A Giffen good is a good for which : ________

Suppose the marginal propensity to consume is equal to 0.75. If the government lowers tax rates and tax revenue falls by $100 mi

vovikov84 [41]

Answer:

$100; $75

Explanation:

Given that:

Tax revenue falls by 100 million dollars
marginal propensity to consume (MPC) is 0.75.

Due to the fall in tax revenue, disposable income will increase by the same amount, that is, $100 million.

Consuption spending will initially increase by $75 million, as shown below:

= MPC × tax revenue fall

= 0.75 × $100,000,000 = $75,000,000

6 0

3 years ago

Walmart began offering low-priced extended warranties on home electronics after learning that its rivals such as Best Buy derive

LenaWriter [7]

Complete/Correct Question:

Walmart began offering low-priced extended warranties on home electronics after learning that its rivals such as Best Buy derived most of their profits from extended warranties. According to the Stalk and Lachenauer book, this is an example of the strategy to

A) plagiarize with pride.

B) deceive the competition.

C) devastate rivals profit sanctuaries.

D) unleash massive and overwhelming force

Answer:

c, devastate rivals profit sanctuaries

Explanation:

For Walmart to start making as much or more profits than its rival, Best Buy, it decided to head in the same direction as Best Buy by offering low-priced extended warranties on home electronics.

This action simply means that Walmart has infiltrated the profit strategy system of Best Buy and is using that a a competitive edge to also increase customer base as people will prefer to go Walmart as it has become cheaper.

Devastating rivals profit sanctuaries therefore means targeting the area or strategy of rivals to make more profit.

Cheers.

8 0

3 years ago

For each of the following types of indirect expenses and service department expenses, identify one allocation basis that could b

hodyreva [135]

Answer: (A) Computer service expenses of production scheduling for operating departments

Explanation:

The computer services expenses of the production scheduling is one of the type of indirect expenses and also the type of service department expenses type in the operating department.

The indirect expenses is one of the type of expenses that cannot be directly contribute with the cost object or services in the business department expenses.

According to the given question, the computer service expenses is one of the allocation basis that is used as the indirect expenses in an organization or firm and the indirect expenses are categorized into two main parts that is:

1) Fixed

2) Recurring

Therefore Option (A) is correct answer.

5 0

3 years ago

Purple Cab Company had 50,000 shares of common stock outstanding on January 1, 2018. On April 1, 2018, the company issued 20,000

Sloan [31]

Answer:

The basic earnings per share is $4.15

Explanation:

Earning Per Share : Earning Per share shows a ratio between net income and weighted average outstanding shares.

In mathematically,

Earning Per Share = Net income ÷ weighted average outstanding shares

where,

Net income = $269,915

And, On Jan 1, 2018 the share is 50,000 whereas on April, 2018 the shares is 20,000. But we have to calculated for the December period. From April to December there are 9 months.

So, April 2018 shares = 20,000 × 9 ÷ 12 months = 15,000 shares

Hence, total weighted average outstanding shares is

= 50,000 +15,000

= 65,000 shares

Now, apply the above formula for computation

= $269,915 ÷ 65,000 shares

= $4.15 per share

Thus, the basic earnings per share is $4.15

5 0

2 years ago

Abc company is hesitant about entering ukraine, because the country has been experiencing social unrest in recent years. Based o

AysviL [449]

The answer is<u> "political risk".</u>

Political risk is among the most critical hazard factors confronting international investors. In many rising and frontier markets, the political circumstance is altogether less steady than the United States with the potential for across the board extortion and defilement.

Political risks are those related with changes that jump out at a nation's approaches administering organizations, and additionally outside elements that could influence organizations.

7 0

2 years ago

A Giffen good is a good for which : _________