Answer:
$237,121.76
Explanation:
Compounding is the computation of the future value of a present amount while the opposite of compounding which is the determination of a present value of a future amount is discounting. the relationship between present and future value is given as
Fv = Pv (1 + r)^n
where
Fv = future value
Pv = Present value
n = time
r = rate
Fv = 217000(1 + 0.03) ^3
= $237,121.76
The worth of the home purchased 3 year ago now is $237,121.76
Answer:
The correct answer is C. refers to a situation where a government does not attempt to influence through quotas or duties what its citizens can buy from other countries
.
Explanation:
Free trade is a characteristic of a market through which some "freedoms" are granted in order to encourage the transit of products and services in order to offer it to a greater number of people. Governments establish a series of rules to achieve fair competition within a specific market, always seeking to protect the national industry from abroad. These treaties allow a greater movement of merchandise flows and encourages trade at the local, national and international levels.
Answer:
$49,000
Explanation:
The number of inspection performed has a direct proportionality relationship with the allocated over heads. In other words, as the number of inspections performed increases, so does the overhead cost assigned to the production activity.
Total inspection = 700 + 1300 = 2000
Total overhead = $140,000
The inspecting cost pool to be assigned to throw rugs
= 700/2000 × $140,000
= $49,000
Answer:
The correct answer is c. Reducing barriers that limit entry of firms into new and existing markets.
Explanation:
An entry barrier is a high cost or other type of barrier that prevents a business from entering the market and competing with other businesses. Barriers to entry may include government regulations, the need for a license, or having to compete with a large corporation being a small business.
As an example, the large company is able to produce a larger quantity of products more efficiently than a company with fewer resources. They have lower costs because they are able to buy bulk materials, and they have less overhead because they produce more under one roof. It would be difficult for the small company to keep up with that, resulting in the avoidance of market entry.
Barriers to entry can have a negative effect on prices because the playing field is not level and competition is restricted. It is not an ideal situation for anyone except for the large company that has a monopoly. However, entry barriers are not always prohibitive. In fact, many new businesses find some type of entry barrier that they must overcome, be it the initial investment, the acquisition of licenses or obtaining a patent - it is only part of the business.
Answer: B) the firm will shut down in the short run, but stay in the industry in the long run if it expects the product price to rise high enough soon.
Explanation:
If a purely competitive firm is currently facing a situation where the price of its product is lower than the average variable cost, but it believes that the market demand for its product will increase soon, then the firm will shut down in the short run, but stay in the industry in the long run if it expects the product price to rise high enough soon.
