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3 years ago

Suppose the equilibrium wage for fast food restaurant workers is $12 per hour. What does that mean?

Business

1 answer:

beks73 [17]3 years ago

4 0

Answer:

This means that the wage of $12 per hour is the wage in which labor supply (the workers) and labor demand (that is demanded by firms) meet and reach market equilibrium.

If the wage was raised, for example to $13 or $14 per hour, there would be an oversupply of fast food workers, leading to unemployment. And if the wage was lowered, for example to $12 or $11 per hour, there would be a higher demand for workers than the supply, leading to a labor shortage for some fast food restaurants.

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The anticipated purchase of a fixed asset for $400,000, with a useful life of 5 years and no residual value, is expected to yiel

Evgesh-ka [11]

The answer is a.True
The cost of the fixed asset is already excluded from the net income. In this case, the rate of return can be computed by the total net income divided by the cost of the fixed asset. So that would be $200,000/$400,000. The rate of return would be 50%

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3 years ago

Assuming no change in taxes, an increase in government spending (g) of $100 billion with an mpc of 0.80 will add a total of $___

Firdavs [7]

The answer is 180..........

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3 years ago

You are planning to save for retirement over the next 30 years. To do this, you will invest $700 a month in a stock account and

Vedmedyk [2.9K]

Answer:

Monthly withdraw= $5,870.6

Explanation:

Giving the following information:

Stock:

Monthly deposit= $700

Interest rate= 0.075/12= 0.00625

Number of periods= 30*12= 360

Bond:

Monthly deposit= $400

Interest rate= 0.055/12= 0.0045833

Number of periods= 30*12= 360

First, we need to calculate the value of the investment at the moment of retirement:

FV= {A*[(1+i)^n-1]}/i

A= monthly deposit

Stock:

FV= {700*[(1.00625^360) - 1]} / 0.00625

FV= $943,211.797

Bond:

FV= {400*[(1.00458^360) - 1]} / 0.00458

FV= $365,447.415

Total FV= $1,308,659.212

Now, the monthly withdrawal:

Interest rate= 0.025/12= 0.002083

Number of periods= 25*12= 300

Monthly withdraw= (FV*i) / [1 - (1+i)^(-n)]

Monthly withdraw= (1,308,659.212*0.002083) / [1 - (1.002083^-300)]

Monthly withdraw= $5,870.6

7 0

3 years ago

Burkhardt Corp. pays a constant $14.40 dividend on its stock. The company will maintain this dividend for the next six years and

larisa86 [58]

Answer:

$60.80

Explanation:

The value of the stock can be determine by using calculating the present value of the dividend. In this question the dividend of $14.40 will be paid for a specified period of six year. This is a type of annuity and we can calculate the stock value using following formula.

PV of annuity = P x [ ( 1- ( 1+ r )^-n ) / r ]

where

P is the annual payment means dividend payment of $14.40

r = required rate of return = 12%

n = numbers of years = 6 years

Placing value in the formula

Value of Stock = $14.40 x [ ( 1- ( 1+ 12% )^-6 ) / 12% ]

Value of Stock = $14.40 x [ ( 1- ( 1.12 )^-6 ) / 0.12 ]

Value of Stock = $60.80

3 0

3 years ago

Adventure Travel signed a 14%, 10-year note for $152,000. The company paid an installment of $2,200 for the first month. Afte

Likurg_2 [28]

Answer:

The principal balance is $151,573

Explanation:

For computing the principal balance, we need the following calculation which is shown below:

1. First we have to compute the 1 month interest payment which equals to

= Note amount × rate × 1 month ÷ total months in a year

= $152,000 × 14% × 1 ÷ 12

= 1773.33

2. Now deduct the first month interest from installment amount which equals to

= Installment amount - Interest amount

= $2,200 - $1773.33

= $426.67

3. Now subtract step 2 amount from notes amount which equals to

= Notes amount - principal amount

= $152,000 - $426.67

= $151,573.33

Hence, the principal balance is $151,573

5 0

3 years ago