Answer: Remains constant
Explanation:
The resources used in the production of both the cars and the trucks are the same. The resources used to produce an additional car to the detriment of the trucks is therefore always the same.
This means that the opportunity cost of producing each additional car will be constant and will neither be increasing nor decreasing because the same quantity is always given up.
The PPF for these two goods will be a diagonal straight line to represent that the opportunity cost is constant.
Answer:
An elastic demand curve will result in higher social surplus. Social surplus equals consumer surplus plus supplier surplus, or simply total surplus. The highest possible social surplus is reached at the equilibrium point.
If a product's demand is completely inelastic, the supplier can increase the price at will, reducing consumer surplus to minimum levels. If a product's demand is completely elastic, then consumer surplus increases while supplier surplus is directly related to shifts in the demand. Higher demand increases supplier surplus.
Answer:
2021 = $1,240
2022 = $3,720
Explanation:
Depreciation is basically a decrease in useful life of an asset and it can be calculated by using the following formula:
Depreciation = Cost - Residual Value/Estimated useful life
Per year Depreciation = ($43,000 - $5,800)/10 = $3,720
For 2021
As the asset is purchased on September 1, 2021 so only four months depreciation needs to be charged which is as under.
Depreciation = $ 3,720 * 4/12 = $1,240
2022 = $3,720
For 2022 full twelve months depreciation needs to be charged even if the asset is idle so the total depreciation expense would be $3720
Answer:
$87,000
Explanation:
The computation of the cash provided by operating activities (indirect method) is given below:
Cash flow from Operating activities
Net income $72,000
Add: Depreciation expense $4,000
Add: Current assets decreased $3,000
Add: Current liabilities increased $8,000
Net Cash flow provided by operating activities $87,000