Answer:
In simple words, The general explanation is that efficiency gains do exist. Which lowers the cost of transport. In addition, as products are delivered to the facilities, one boat load will support more just one storage facility, lowering the expense of transport. In addition, as products are delivered to the facilities, one boatload will support rather than one supermarket, lowering the cost of transport.
Answer:
The country has closed economy; it means there is no other trading relation with, outside countries. Export imports do not affect the economy of the country, and here is no government interference as mentioned in the question. This is a self sufficient country, its demand fulfilled from inside of the country. So its aggregate price levels and interest rate are fixed. MPC or the marginal propensity to consume indicates whether there is an increase in disposable income or increase in consumption. Here consumption increases equal to the increase in the income.
MPC = ΔC /ΔY which is constant here.
The increase in income in this country is mostly permanent and increases in a fix period of time and proportionately.
C= 200 +0.75 YD (YD is disposable income), Y=75, GDP =$900
The economy achieves it’s equilibrium level when supplies meets demand or the GDP is equals to it’s total expenditure. MPC is a fraction between 0 and 1 , MPC means a change in consumption brings the change in YD . here the MPC is equals to MPS which means the change in saving bring by the change in disposable income. All income here saved or consumed. So the change in income equals to the change in consumption or saving.
MPC+ MPS = 1
So the average propensity to consume is proportionate to income which is spend on consumption. APC= C/ YD. And the average proportionate to save is equals to income saved APS= S/YD . so here APC +APS = 1. The increase in production or price leads to the increase in the total value of output, that is the equilibrium condition.
Explanation:
Answer:
Gilbert Company's total expected cash disbursements for purchases in the month of August are $45,000.
Explanation:
In August the 75% of July purchases payments and 25 % of August purchases Payments will bedisbursed.
Cash Disbursement of August
August Payment = $15,000
July Payment = $30,000
Total Disbursement = $15,000 + $30,000
Total Disbursement = $45,000
Working:
July payment = $40,000 x 75% = $30,000
August Payment = $60,000 x 25% = $15,000
