Answer:
The correct answer is B: The investment has a future value of $8,053
Explanation:
Giving the following information:
A lump sum of $5,000 is invested at 10% per year for five years. The company's cost of capital is 8%.
We need to calculate the final value of the investment. We will use the following formula:
FV= PV*(1+i)^n
FV= 5,000*1.10^5= $8,052.55
Answer:
According to the numbers in the article
smoking among adults is inelastic because the percent change in price is less than the percentage change in quantity demanded.
Explanation:
Inelasticity means that price changes do not affect the demand for smoking among adults. When the habits of consumers to smoke are not determined by the change in the price of the item, the demand is described as inelastic. In other words, a change in the price of the good or service does not generate a corresponding change in the quantity demanded. Inelasticity, as an economic term, states that the quantity demanded of a good or service remains static when there is a change in its price.
The main source of income for the Federal Reserve System is interested in US government assets that the Federal Reserve has purchased through open market activities.
<h3>
What determines the supply of money?</h3>
The Central Bank controls the money supply through its "monetary policy," and the economy must function with that predetermined amount of money. The money supply is seen as entirely vertical because the economy has no bearing on its amount (on models).
By increasing or decreasing the monetary base, the Fed can regulate the amount of money in circulation. The amount of money in circulation plus the deposits that depository institutions have with the Federal Reserve make up the monetary base, which is correlated with the size of the Fed's balance sheet.
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Answer:
The question is incomplete; Determine the consumer surplus from the original purchase and the additional surplus generated by the resale of the cannon.
Marcus' consumer surplus= $45-$35= $10
Starling's consumer surplus= $80-60= $20
Marcus' producer surplus = $60-35 = $25
Explanation:
Answer:
d. Cost cutting in one area of the value chain might increase costs in another.
Explanation:
Although cost leadership is an efficient way to dominate the competition,it does have potential pitfalls if not executed correctly. For example, if operating cost is decreased, the changed product feature may imply a higher marketing cost afterward. In order to be truly efficient, the cost leadership strategy has to be implemented in such a way, so it doesn't impact other value chain costs negatively (increasing them).
