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3 years ago

1.2.5 quiz examining basic economic concepts

1 answer:

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The study that deals with the problem of how to allocate the world's scarce resources between the competing and unlimited wants and needs of people.

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For good X, the supply curve is the typical upward-sloping straight line, and the demand curve is the typical downward-sloping s

Pepsi [2]

Answer:

deadwweight loss $2,250

Explanation:

The deadweight loss is the area loss between the new consumer and producer surplus after-taxes and the previous consumer and prodcuer surplus after taxes

As this is a straight line then we have the area of a triangle which height is

P2 - P1 in this case the $15 tax levied

and Q2 - Q1 as the high of the triangle in this case 300 units

We now sovle for the area of the triangle:

300 x 15 / 2 = 2,250

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3 years ago

A retrofitted space-heating system is being considered for a small office building. The system can be purchased and installed f

Margaret [11]

Answer:

Retrofitted Space-Heating System

Benefit-Cost Ratio = $75,420/$121,521

= 0.6206

= 0.62

Benefit is less than 1. Therefore, project will not deliver positive NPV.

Recommendation:

It is better and cheaper to incur electricity costs than to purchase the retrofitted space-heating system. The retrofitting benefit does not justify the cost of the project.

Explanation:

a) Data and Calculations:

Purchase cost of system = $125,000

Salvage value (PV of $7,000 in five years) = $3,479

Total cost of project = $121,521 ($125,000 - 3,479)

Benefit of Project = Savings in 250,000 kWh annually

Cost of a kilowatt-hour = $0.09

Total annual cost of electricity = $22,500 (250,000 * $0.09)

Annuity Factor for 5 years = 3.352

Present value of annuity of $22,500 = $75,420 ($22,500 * 3.352)

Benefit-Cost = $75,420/$121,521

= 0.6206

= 0.62

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4 years ago

Assume that the risk-free rate is 8 percent, the required rate of return on the market (or an average-risk stock) is 13 percent,

LenKa [72]

Answer:

22.7 %

Explanation:

We can solve two of the problems using Capital Asset Pricing Model (CAPM) which is as follows:

Ra= Rf + (Rm-Rf)*B

Where,

Ra= Rate of return on stock

Rm= Rate of return on market

Rf= Risk Free rate

B= Beta coefficient of stock

Now we can move for your problem

Prob1) Ra= .15, Rf= .08, Rm= .13, B= ?

.15=.08+(.13-.08)B

Therefore, beta Coefficient = 1.4

Prob2: Ra= ?, Rf= .04, Rm= .15, B=1.7

= .04+(.15-.04)*1.7

Therefore, Ra=0.227 = 22.7 %

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3 years ago

In which situation could Sara be considered a mentor?

lana [24]

Answer:

B) Sarah provided feedback to a classmate

Explanation:

She is using her kowledge to help someone else, definition of a mentor

brainliest is appreciated

5 0

3 years ago

Read 2 more answers

If ending accounts receivable exceeds the beginning accounts receivable Group of answer choices cash collections during the peri

sukhopar [10]

Answer:

no cash was collected during the period

cash collections during the year are less than the amount of revenue recognized

Explanation:

For example if we had Accounts receivable beginning balance $ 250,000 and Sales of $ 500,000 are made on accounts then the Total Accounts receivable will be $ 750,000.

But out of the $ 500,000 sales only $300,00 cash is collected and the remaining $ 200,000 is still in the Accounts receivable balance so the ending Accounts receivable balance will be $ 250,000 + $200,000 = $ 450,000 which will be greater than beginning Accounts receivable balance.

So there are two possibilities either cash collections during the year are less than the amount of revenue recognized.

no cash was collected during the period.

Similarly it cannot be choice no 1 : collections during the period exceed the amount of revenue recognized

Because if more cash is collected then ending account receivable balance would be less than the beginning account receivable balance.

Choice no 3 is also wrong if cash collections are more than the ending accounts receivable balance would be less

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3 years ago