The first step in the target market selection process is

If long run aggregate supply (LRAS) is vertical, then which of the following statements must be true

Shtirlitz [24]

If long run aggregate supply (LRAS) is vertical, the statements that must be true is: Aggregate demand does not affect the quantity of output.

<h3>What is aggregate supply?</h3>

Aggregate supply can be defined as the amount of goods or product a firm is expected to produce and sell or made available to buyers at a particular period of time.

Hence, assuming aggregate supply is vertical, aggregate demand which is the amount of goods buyers are willing to buy will not not affect the quantity of output or goods produced.

Learn more about Aggregate supply here:brainly.com/question/25749867

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6 0

2 years ago

City Taxi Service purchased a new auto to use as a taxi on January 1, 2018, for $36,000. In addition, City paid sales tax and ti

laiz [17]

Answer:

Depreciation expense for 2018 and 2019 is $6,640 for each year

The amount of gain or loss that would be recognized on the asset disposal is -$2,920 (a loss)

Explanation:

Depreciation is the systematic recognition of the cost of an asset in the p/l overtime as a result of use. When accumulated, it is known as accumulated depreciation which is deducted from the cost of the asset to get the net book value or carrying amount of the asset. The cost of the asset includes all necessary cost incurred to make the asset available for use.

The cost less the salvage value divided by the estimated useful life gives the annual depreciation.

Total cost = $36,000 + $1,200

= $37,200

Annual depreciation

= ($37,200 - $4,000)/5

=$6,640

Net book value on 1 January 2020

= $37,200 - 2($6,640)

= $23,920

Gain/(loss) on disposal

=$21,000 - $23,920

= -$2,920

7 0

4 years ago

You are comparing three securities and discover they all have identical Treynor ratios. Given this information, which one of the

Ede4ka [16]

Answer: The correct answer is "D. They earn identical rewards per unit of systematic risk.".

Explanation: If you are comparing 3 values and by calculating, find that they all have the same Treynor ratio means that they earn identical rewards per unit of systematic risk.

7 0

3 years ago

Golebiewski Corporation has provided the following contribution format income statement. Assume that the following information i

Andrews [41]

Answer:

Margin of safety= $9,000

Explanation:

<u>First, we need to calculate the selling price and unitary variable cost:</u>

Selling price= 150,000 / 5,000= $30

Unitary varaible cost= 112,500 / 5,000= $22.5

<u>Now, we need to determine the break-even point in dollars:</u>

Break-even point (dollars)= fixed costs/ contribution margin ratio

Break-even point (dollars)= 35,250 / [(30 - 22.5) / 30]

Break-even point (dollars)= 35,250 / 0.25

Break-even point (dollars)= $141,000

<u>Finally, the margin of safety in dollars:</u>

Margin of safety= (current sales level - break-even point)

Margin of safety= 150,000 - 141,000

Margin of safety= $9,000

8 0

3 years ago

Compute the standard cost for one hat, based on the following standards for each hat: Standard Material Quantity: 3/4 yard of fa

Taya2010 [7]

Answer:

$21.65

Explanation:

The computation of the standard cost is shown below:

= Material cost + labor cost + factory overhead cost

where,

Material cost = 3 ÷ 4 × $5 per yard

= $3.75

Labor cost = 2 hours × $5.75 = $11.5

And, the factory overhead cost is

= $3.20 × 2 hours

= $6.4

So, the standard cost is

= $3.75 + $11.5 + $6.4

= $21.65

3 0

3 years ago