Answer and Explanation:
(1) Decrease in investment = Decrease in money supply / Investment multiplier
= $60 billion / 5 = $12 billion
Real planned investment will decrease by $12 billion
The Federal Reserve decreased money supply by 60 billion and we wish to determine by how much this would affect real planned investment. We have therefore applied the investment multiplier to determine decrease in real planned investment. This is based on Keynes' theory of investment multiplier
Answer:
b. change in total cost that results from producing one more unit of output.
Explanation:
<em>Marginal cost is the increase in in total cost as a result of producing one more additional unit. It is the extra cost incurred when an additional unit of a product is produced.</em>
Answer:
a.$20 per keyboard
Explanation:
The computation of the variable cost per computer keyboard is shown below:
= Direct material per unit + Direct labor per unit + Variable overhead per unit
= $10 per unit + $6 per unit + $4 per unit
= $20 per keyboard
Basically, we added the Direct material per unit, Direct labor per unit, and the Variable overhead per unit so that the variable cost per computer keyboard could come
Answer: d
Explanation: The service station will most likely pass along the tax to you adding the 10cents/ gallon.
This is because the service station was established mainly for profit and will have to work hard to reduce or eliminate any extra cost t it self.
