Answer:
Correct option is C.
<u>If the economy is at full capacity, then the AS curve will be vertical</u>
Explanation:
The long-run aggregate supply curve is perfectly vertical, which reflects economists' belief that the changes in aggregate demand only cause a temporary change in an economy's total output. For the short-run aggregate supply, the quantity supplied increases as the price rises.
The full capacity AS curve is a long-run AS curved and it is vertical as the potential output level is denoted by it with the fully employed resources.
Answer:
Make decisions that maximize benefits
Explanation:
The whole purpose of a cost-benefit analysis is to allow management to make the best decisions using the measurment of profitability in a specific project or system. The model calculates all the income and benefits as well as all the associated costs, substracting the costs from the benefits. This is how you can determine the opportunity cost for each project or system.
State tax is 5%, so 0,05
0,05•4000=200$
Federal tax is 25% so 0,25
0,25•4000=1000$
Total of taxes to pay =1000+200=1200$
So the real profit will be
4000-1200=3800$
The real value of Annie's profit is 3800$
Answer:
The Hound Dog Bus Company should not expand
Explanation:
The decision to expand should be made if the incremental (marginal) cost to be incurred is less than the incremental revenue to be earned.
Incremental revenue = $60 (given)
Incremental cost = total cost - already incurred (non-incremental) cost
= 120 - 50 = $70.
Since the incremental revenue ($60) is less than the incremental cost ($70), the company should not expand.
Answer:
The answer is: Postconventional moral development
Explanation:
At this stage of moral development, an individual´s morality is defined by more abstract principles and values. He or she may believe that some laws and rules are unfair and should be changed or eliminated. Individual realize that they are separate entities from societies and they may choose to not follow the rules of the organization.
