Answer: Wages are flexible if the economy is self-regulating.
Explanation:
Classical economists believe that the economy is self-regulating. This means that if the economy is not at equilibrium, it will return to equilibrium if it is left without interference.
For this to happen, inputs such as wages have to flexible to enable them to adjust to market conditions and thus take the Economy back to equilibrium.
For instance, if there is a recession, wages will reduce so that the prices that the producers can charge will reduce as well which will enable supply to match demand and bring the economy back to equilibrium.
Answer:
$18,750
Explanation:
The double declining method of depreciation (DDB) formula is:
DDB= 2 * Cost of the asset * Depreciation rate (DR)
DR= (1/useful life)*100
For this problem:
Value to depreciate: $75,000
DR= (1/4)*100= 25%
DEPRECIATION YEAR 1: DDB= 2 * $75,000*25%= $37,500
Machine´s value year 1: $75,000-$37,500= $37,500
DEPRECIATION YEAR 2: DDB= 2*37,500*25%= $18,750
Answer: d. charge a high price to high-value consumers and a low price to low-value consumers
Explanation: Price discrimination as a selling strategy involves charging customers different prices for the same product or service. It is often based on what the seller thinks they can get the customer to agree to and that customers can be asked to pay more or less based on certain demographics or on how they value the product or service on sale. Therefore, for a firm to maximize total profits through price discrimination, it should charge a high price to high-value consumers and a low price to low-value consumers.
Answer:
Given that,
Value of promissory note = $11,700
Time period = 60 days
Interest rate = 14%
Interest revenue:
= Note value × Interest rate × Time period
= $11,700 × 0.14 × (60/360)
= $273
Therefore, the journal entry is as follows:
Accounts receivable A/c Dr. $11,973
To Interest revenue $273
To Notes receivable $11,700
(To record the dishonored note)
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