Answer:
The correct answer is letter "A": True.
Explanation:
In <em>Accounting</em>, the entity principle states that the activities of the company must be recorded separately from the activities of the company's owners. By doing so, all the assets and liabilities of the firm will be excluded from the ones that the owners possess.
Answer:
Club membership fee of $60 would maximize profit.
If the club charges tow part pricing the maximum revenue can be $3500.
Explanation:
Joe has entered into a monopoly because he is owner of single golf course in the Northlands.
Demand function for Joe's golf course is:
P = 160 - 2q
P = $20 , q = 50
160 - 2 (50) = 60
Consumer surplus = 0.5 * equilibrium quantity
Consumer Surplus for Joe is ; 0.5 * 50 (160 - 20) = $3500
If MR = MC then demand function will become :
160 - 4q
If q = 25 then
160 - 4 * 25 = 60
The income elasticity of real money demand d. 3/4
Increase in real money demand = Increase in nominal money demand - Increase in inflation = 4% - 1% = 3%
Income elasticity of real money demand = % increase in real money demand / % increase in real income
= 3% / 4%
= 3/4
Income elasticity of demand is a monetary measure of how responsive the amount of demand for a very good or provider is to trade-in earnings. The formulation for calculating earnings elasticity of demand is the percentage change in quantity demanded divided by using the percent change in earnings.
In economics, the profits elasticity of call for is the responsivenesses of the quantity demanded an amazing to an alternate in patron profits. It is measured because of the ratio of the share exchange in the amount demanded to the proportion exchange in profits.
If the earnings elasticity of call for is more than 1, the best or carrier is taken into consideration a luxury and profits elastic. An amazing provider that has an earnings elasticity of call for between zero and 1 is considered an ordinary correct and income inelastic.
Learn more about Income elasticity here: brainly.com/question/15899715
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Answer:
The correct answer is Decrease by $5,500.
Explanation:
According to the scenario, the computation of the given data are as follows:
First we calculate the previous operating income, by using following formula:
Previous operating income = ($8.5 - $5.25) × 10,000 units - $22,000
= $10,500
Now, we will calculate the current operating income by using following formula:
New operating income = ($7.5 - $5.25) 12,000 units - $22,000
= $5,000
So, the change in operating income can be calculated as
Change in operating income = New operating income - Previous operating income
= $5,000 - $10,500
= -$5,500 ( Negative shows Decrease)
= Decrease by $5,500.
