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kenny6666 [7]
2 years ago
11

Complete the statements and then calculate the change in consumption. The consumption function shows the relationship between co

nsumption spending and The slope of the consumption function is the Changes in consumption can be predicted by multiplying the change in by the If the MPC=0.80 and disposable income increases by $1000 , then consumption will increase by what amount? Assume that there is no multiplier effect. $
Business
1 answer:
White raven [17]2 years ago
7 0

Answer:

Disposible income.

Marginal propensity to consume.

Disposible income, marginal propensity to consume.

The consumption will increase by  $800

Explanation:

The consumption function shows the relationship between consumption spending and disposible income.

The slope of the consumption function is the marginal propensity to consume.

Changes in consumption can be predicted by multiplying the change in disposible income by the marginal propensity to consume.

Given:  MPC = 0.80

           Disposible income increases by $1,000

consumption increase =  0.80*$1000

                                     = $800

Therefore, The consumption will increase by  $800.

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Explain why the marginal rate of technical substitution is likely to diminish as more and more labor is substituted for capital.
Likurg_2 [28]

Answer: This is because the marginal rate of technical substitution is the ratio of the marginal product of labour to that of capital and for the output to be constant opportunity cost comes in, one input has to be reduced to increase the other input.

Explanation:

The marginal rate of technical substitution (MRTS) shows the amount by which the quantity of an input can be lowered when an extra unit of another input is​ utilized on order for the output to remain constant.

The marginal rate of technical substitution is likely to reduce as more capital is substituted for labor because the marginal rate of technical substitution is the ratio of the marginal product of labour to that of capital and for the output to be constant opportunity cost comes in, one input has to be reduced to increase the other input.

8 0
3 years ago
The Marshall Company has a process cost system. All materials are added when the process is first begun. At the beginning of Sep
Mademuasel [1]

Answer:

c) 48,000 units

Explanation:

The question is to compute the equivalent units of materials in September for Marshall Company

It is computed as follows:

1) Beginning Equivalent Unit

At the beginning, Units = 0, Percent completed = 0 and Equivalent unit= $0

Equivalent Units  Started ad Completed

2) Started Units= 50,000 units

Units still in process at the end of September = 5000 units

Started and Completed = 50,000 - 5,000 = 45,000

Since the Units completed is 45,000, it means 100% completed equivalent unit is 45,000

3) Closing Equivalent Units

In process = 5,000 units and percent completed is 3/5

Equivalent unit is 3/5 x 5000 = 3000 units

Finally, total equivalent units  for conversion costs in September

= 0 + 45,000 + 3,000

=48,000 units

4 0
3 years ago
Stock Y has a beta of 1.40 and an expected return of 14.8 percent. Stock Z has a beta of .85 and an expected return of 11.3 perc
tresset_1 [31]

Answer:

Stock Y has overvalued and Stock Z as undervalued

Explanation:

In this question, we apply the Capital Asset Pricing Model (CAPM) formula which is shown below

Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)

For Stock Y

= 4.85% + 1.40 × 7.35%

= 4.85% + 10.29%

= 15.14%

For Stock Z

= 4.85% + 0.85 × 7.35%

= 4.85% + 6.2475%

= 11.0975%

The (Market rate of return - Risk-free rate of return) is also called market risk premium and the same is applied in the answer

As we see the expected return of both the stock So, Stock Y has overvalued and Stock Z as undervalued

4 0
3 years ago
Splish Corporation reported the following for 2020: net sales $1,242,800, cost of goods sold $737,700, selling and administrativ
tester [92]

Answer:

1. $192,200

2. $192,200

Explanation:

1. Preparation for the statement of comprehensive income using the one statement format

Splish Corporation Statement of Comprehensive IncomeFor the Year Ended December 31, 2020

Sales revenue $1,242,800

Less Cost of goods sold ($737,700)

Gross profit $505,100

Less Selling and administrative expenses ($329,500)

Net income $175,600

($505,100-$329,500)

Add Unrealized holding gain on available-for-sale debt securities $16,600

Comprehensive income $192,200

Therefore the Comprehensive income for the statement of comprehensive income using the one statement format will be $192,200

2. Preparation a statement of comprehensive income using the two statement format

Splish Corporation Statement of Comprehensive IncomeFor the Year Ended December 31, 2020

Sales revenue $1,242,800

Less Cost of goods sold ($737,700)

Gross profit $505,100

Less Selling and administrative expenses ($329,500)

Net income $175,600

($505,100-$329,500)

Comprehensive Income

Net Income $175,600

Add Unrealized holding gain on available-for-sale debt securities $16,600

Comprehensive income $192,200

Therefore the Comprehensive income for the statement of comprehensive income using the two statement format will be $192,200

8 0
3 years ago
Beau borrows $15,000 from credit center to buy a car. The lender assigns the right to receive the loan payments to debt collecti
alexandr1967 [171]

Beau gets a $15,000 loan from a credit union to buy an automobile. Debt  receives the assignment from the lender of the authority to accept loan payments. Beau can be sued by the assignee if he refuses to pay the loan.

A payment is the voluntarily made exchange of money, its equivalent, or other valuables by one party (such as an individual or business) for a loan another's goods, services, or to satisfy a legal obligation. Payer refers to the party sending the money, whereas payee denotes the recipient of the payment.

In principle, the payee is free to choose the payment method he or she will take; nevertheless, most payments regulations often compel the payer to accept the nation's legal cash up to a specified maximum. Except loan otherwise otherwise agreed by the parties, payments are typically made in the payee's native currency.

Learn more about payments here

brainly.com/question/15138283

#SPJ4

5 0
1 year ago
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