Answer:
$900
$10
$10
Explanation:
A perfect competition is characterised by many buyers and sellers of homogeneous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry.
In the long run, firms earn zero economic profit. If in the short run firms are earning economic profit, in the long run firms would enter into the industry. This would drive economic profit to zero.
Also, if in the short run, firms are earning economic loss, in the long run, firms would exit the industry until economic profit falls to zero.
In a perfect competition, price = marginal revenue = average revenue
if price is $10, marginal and average revenue is $10.
total revenue = price per haircut x total number of people he attends to in a week.
total number of people he attends to in a week = 18 x 5 = 90
Total revenue = $10 x 90 = $900
Answer:
A. 72
Explanation:
This can be calculated as follows:
Maintenance margin - Initial margin = $3,000 - $4,000 = $1,000 loss
Based on the above, we can have the following equation:
1,000 = 50,000 (b - 0.7) ........................... (1)
Where b is the futures price per unit above which there will be a margin call.
Solving equation (1) and making b the subject of the formula, we have:
b - 0.7 = 1,000/50,000
b - 0.7 = 0.02
b = 0.02 + 0.7 = 0.72
Multiply by 100, we have:
b = 0.72 × 100 = $72
Therefore, the futures price per unit above which there will be a margin call is $72.
Answer:
(a) For example, an increase in the money supply, a<u> nominal economic</u> variable, will cause the price level, a<u> nominal economic</u> variable, to increase but will have no long-run effect on the quantity of goods and services the economy can produce, a<u> real economic</u> variable. The notion that an increase in the quantity of money will impact the price level but not the output level is known as<u> Neutrality of money.</u>
Explanation:
Neutrality of money is the theory believed by most economists, which describes money as a neutral factor, such that an increase in the money supply in the economy will simply increase the price level but would have no effect on the output in the economy.
For example, if the Central bank prints more money and supply's it to the economy, this would only affect the price level, which is a nominal value, but would not affect factors that determine the structure of the economy, which are the real economic variables. An example of the real economic variable would be the unemployment level in the economy.
Answer:
A credit to an unearned revenue account
Explanation:
Ordinarily, when cash is received from a person whereas service has not been performed, the accounting entry is to debit cash account and credit the unearned revenue account.
Here, the receipt of cash means that revenue was realized however, the service expected have not been performed hence necessitated crediting the unearned revenue account and a debit to the asset cash for the amount received.
Answer: Bilateral Investment Promotion and Protection Agreement.
Explanation: