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2 years ago

"An inflationary gap exists when AD and SRAS" :

Business

2 answers:

lozanna [386]2 years ago

8 0

Answer: The Answer IS A.

Explanation: fail to Intersect

svetoff [14.1K]2 years ago

8 0

Answer: b). Intersect to the right of Natural Real GDP.

Explanation: Inflation is a persistent increase in the general price level of goods and services in an economy over a given period of time.

Inflationary gap describes the difference between the current level of real gross domestic product and the anticipated GDP that would occur if an economy is at full employment.

An inflationary gap however exists when aggregate demand (AD) and short run aggregate supply (SRAS) intersect to the right of natural real GDP.

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Suppose you are the marketing manager for Fruit of the Loom. An individual's inverse demand for Fruit of the Loom women's underw

anzhelika [568]

Answer: Profit of charging the optimal block price is 73.5 cent or $0.74.

Explanation:

Given that,

The inverse demand function: P = 25 − 3Q (in cents)

Cost of producing = C(Q) = 1 + 4Q (in cents)

By charging the optimal block price, the firm produce at a point where

Price = Marginal Cost (MC)

MC = 4

Therefore,

25 − 3Q = 4

Q = 7

Consumer Surplus = Profit of charging the optimal block price=0.5 × (y-intercept of the demand curve -MC) × Q

= 0.5(25 - 4) × 7

= 73.5 cent

It is equivalent to $0.74.

7 0

2 years ago

kane manages a used book store he reads a report advising him to stock more encyclopedias. however the report is mistaken custom

Dafna1 [17]

Kane manages a used book store he reads a report advising him to stock more encyclopedias. However the report is mistaken customers in Kane's town hardly ever buy encyclopedias. what problem could this mistake cause?

As mentioned below, if the consumers do not buy the encyclopedias, then they will lose money due to purchasing items that consumers do not want. It's necessary to not only look over reports, but understand the reports to make sure that a business is not overstocking in items that consumers are not actually in demand for. Consumers will purchase items they have a demand for and based on the reports, you can understand the items they are in demand for versus the items they will not be purchasing.

5 0

2 years ago

Read 2 more answers

Five independent projects consisting of reinforcing dams, levees, and embankments are available for funding by a certain public

Alex777 [14]

Answer:

the correct answer is option (b).

Explanation:

Equivalent annual benefits and annual cost of each project is provided.

Calculate B-C ratio of project A -

Annual benefits = $1,800,000

Annual costs = $2,000,000

B-C ratio = Annual benefits/Annual costs = $1,800,000/$2,000,000 = 0.90

The B-C ratio of Project A is 0.90.

Calculate B-C ratio of project B -

Annual benefits = $5,600,000

Annual costs = $4,200,000

B-C ratio = Annual benefits/Annual costs = $5,600,000/$4,200,000 = 1.33

The B-C ratio of Project B is 1.33.

Calculate B-C ratio of project C -

Annual benefits = $8,400,000

Annual costs = $6,800,000

B-C ratio = Annual benefits/Annual costs = $8,400,000/$6,800,000 = 1.24

The B-C ratio of Project C is 1.24.

Calculate B-C ratio of project D -

Annual benefits = $2,600,000

Annual costs = $2,800,000

B-C ratio = Annual benefits/Annual costs = $2,600,000/$2,800,000 = 0.93

The B-C ratio of Project D is 0.93.

Calculate B-C ratio of project E -

Annual benefits = $6,600,000

Annual costs = $5,400,000

B-C ratio = Annual benefits/Annual costs = $6,600,000/$5,400,000 = 1.22

The B-C ratio of Project E is 1.22.

It has been stated that the agency is willing to invest money in any project as long as the B-C ratio is at least one.

The B-C ratio of project A and D are less than 1. So, they will not be considered.

Out of remaining three project, B-C ratio is highest in the case of Project B.

So, Project B will be selected.

Hence, the correct answer is option (b).

7 0

2 years ago

Question 9 TEME is a manufacturer of toy construction equipment. If it pays out all of its earnings as dividends, it will have e

drek231 [11]

Answer:

8 million

Explanation:

I solved the question a short while ago

Module 4

Fundamentals of Finance

6 0

1 year ago

Charlene, the manager of CraftRite Leather Goods, checked the weekly records and discovered that the number of handbags produced

Genrish500 [490]

Answer:

Determining whether the Performance Matches the Standard

Explanation:

In the Control process there are four steps:

Step 1. Establish Standards and Methods for Measuring Performance

Step 2. Measuring the Performance

Step 3. Determination of Whether the Performance Matches the Standard

Step 4. Taking Corrective Action.

In this example, the first and second steps have been completed, step 3 has just been done by Charlene since she discovered that the number of handbags produced in one week by 45 employees was 375 against the set target of 450 handbags.

Charlene is yet to complete step 4.

4 0

2 years ago