Answer:
b. the price of a good will eventually rise in response to an excess demand for that good.
Explanation:
As more people are willing to purchase the good the price will rise. Because, the supplier can offer up to certain amount given their current production factors thus, this increase in demand is met with an increase of price. In the future this increase in price which generates more producer surplus will make more company’s invest in the business or the current ones will develop new ways of production to produce more and therefore; lowering the price.
Answer:
$130,000
Explanation:
In this question, we are going to calculate Andrew’s economic profit.
To do this, we first identify the mathematical formula that could help us arrive at the answer.
Mathematically, economic profit = Total revenues-(explicit cost + implicit cost)
Explicit cost are referred to as direct payment made by the business. Here, the explicit cost include ,cost of labor and start up costs. The value is thus 30,000 + 60,000 = $90,000
The implicit cost here is the opportunity cost, which is the amount she would have earned at her previous job. Another implicit cost here is the $10,000 he is supposed to pay for rent but does not since he owns the building
The Economic profit is thus = 300,000 -90,000-10,000-70,000 = $130,000
Answer:
6.03%
Explanation:
The computation of the required rate of return is shown below:
Required rate of return = Annual preference dividend ÷ expected sale price
= $5.55 ÷ $92
= 6.03%
By dividing the annual preference dividend by the expected sale price we can get the required rate of return and the same is shown above
Hence, the required rate of return is 6.03%
Answer: The situation in which expansionary fiscal policy does not lead to a rise in aggregate output is referred to as
Select one:
a. Fiscal neutrality.
b. Inflation.
c. Complete crowding out
d. A recession.
Explanation:
