Answer: False
Explanation:
Question mentions that even though Worker A and Worker B are both paid the same salary and become less effective as their workload increase, Worker A is still more effective than Worker B.
The optimal allocation therefore would be one where Worker A get more of the 200 units of production than Worker B because they would be able to produce more as they are more effective.
When an economist makes a prediction that a rise in consumer incomes will increase the demand for bicycles sold by a bicycle company, it is made on assumption that bicycles are normal goods. Therefore, the option A holds true.
<h3>What is the significance of normal goods?</h3>
The normal goods or services being sold in the market of an economy can be referred to or considered as goods that have a direct relation with the demand for such goods, which are affected by consumer income.
As per the behavior of normal goods, it can be inferred that their demands increases with a given increase in the disposable income of the consumer, such as the one in the condition given above.
Therefore, the option A holds true and states regarding the significance of normal goods.
Learn more about normal goods here:
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An economist for a bicycle company predicts that a rise in consumer incomes will increase the demand for bicycles. This prediction assumes that bicycles are _____.
A. Normal goods
B. Luxury Goods
C. Inferior Goods
D. None of the Above
Answer:
The correct answer is A.
Explanation:
Giving the following information:
Estimated overhead= $800,000
Total estimated direct labor hours= 4,000
Direct labor hours Beta= 1,200
To calculate the estimated manufacturing overhead rate we need to use the following formula:
Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Estimated manufacturing overhead rate= 800,000/4,000= $200 per hour
Now, we can allocate overhead to Beta:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 200*1,200= $240,000
Answer:
13%
Explanation:
the new cost of equity = old cost of equity + [(debt / equity) x (old cost of equity - cost of debt)]
the new cost of equity = 12%+ [(20 / 80) x (12% - 8%)] = 12% + 1% = 13%
Since we are in the MM world, taxes do not exist, therefore they are not included in the equation.
Answer:
A. $ 3,750,000
Explanation:
Given that
At lower price
A copy is $3
Copies sold = 1.25 million
Recall that
Total revenue = Price of good × quantity of goods sold.
That is, the total amount of money a seller obtains by selling goods or/and services to a buyer(s)
Thus
Total revenue at low cost
= 3 × 1.25 million
= 3.75 million
= $3,750,000
