Answer:
$1,720
Explanation:
Total annual premium for both Karen and Mike = $400 + $600 = $1,000
If they insured both cars with the same company, they would save 15% on the annual premiums -> the annual saving = 15% * $1,000 = $150
We use formula FV to calculate the future value of annual payment:
= FV(rate, number of payment, - payment) = FV(3%,10,-150) = $1,720
Answer:
PPF : Downward Sloping Straight Line
Explanation:
PPF is the locus of product combinations that an economy can produce, given resources & technology.
It is downward sloping : Because of inverse relationship between two goods- if one has to be increased other has to be decreased , because of same resources & technology.
Marginal Opportunity Cost (Slope of PPC): is ratio of a good sacrifised to gain each additional unit of the other good.
∆ Good sacrifised / ∆ Good gained
If this ratio is same i.e constant amount of a good is sacrifised to gain an additional amount of the other one , the slope of PPC is constant & it is a straight line
Eg : Good1 Good2 MOC [∆Good2/∆Good1]
0 20 _
10 10 -10/10 = -1 (10-20)/(10-0)
20 0 -10/10 = -1 (0-10)(/20-10)
So , same (1) good 2 is sacrifised to attain a good 1 each time.
However Generally: MOC is increasing , because of assumption that resources are unequally efficient in various goods production - shifting good from efficient to inefficient increases sacrifise each time. This makes PPC usually concave.
Answer:
The correct answer is D.
Explanation:
Giving the following information:
Month - Lease cost - Machine hours
April: $15,000 - 800
May: $10,000 - 600
June: $12,000 - 770
July: $16,000 - 1,000
Using the high-low method, first, we need to determine the unitary variable cost. We need to use the following formula:
Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)
Variable cost per unit= (16,000 - 10,000) / (1,000 - 600)
Variable cost per unit= $15 per unit
Now, we can calculate the fixed costs:
Fixed costs= Highest activity cost - (Variable cost per unit * HAU)
Fixed costs= 16,000- (15*1,000)
Fixed costs= $1,000
Fixed costs= LAC - (Variable cost per unit* LAU)
Fixed costs= 10,000 - (15*600)
Fixed costs= $1,000
<span>Revenues–Expenses–Current Debt = Net Profit or Net Loss
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Answer:
The correct answer is letter "B": inefficiencies result when incentives to produce are reduced.
Explanation:
Equity-efficiency tradeoff takes place when attempting to optimize the production efficiency, distribution of wealth is diminished. The concept is always linked to moral philosophy because it implies taking about how people organize themselves in the way to produce and share their goods in a fairly. According to this point of view, when there is not enough motivation to produce inefficiencies arise.
