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Grace [21]
2 years ago
11

5. Taxes and the impact on relative price In her school's food court, Susan notices that a carton of juice costs $1.75 and a can

of soda costs $1.25. Since Susan just finished studying for an economics exam, she immediately calculates that the relative price of a carton of juice is per . Suppose that school administrators want to encourage healthy choices and decide to impose a $0.25 price increase on cans of soda. Given that the absolute price of a carton of juice is unchanged, the relative price of a carton of juice .
Business
1 answer:
AveGali [126]2 years ago
3 0

Answer:

1.4

Decreases

Explanation:

The question is incomplete. Here is the complete question:

In her school's food court, Jamie notices that a carton of juice costs $1.75 and a can of soda costs $1.25. Since Jamie just finished studying for an economics exam, she immediately calculates that the relative price of a carton of juice is a) 2/1.5/1.4/1.3 Suppose that school administrators want to encourage healthy choices and decide to impose a $0.25 price increase on cans of soda. Given that the absolute price of a carton of juice is unchanged, the relative price of a carton of juice d) increases/decreases

Relative price is the price of a good in terms or another good.

The relative price of carton of juice before the price increase = price of carton of juice / price of can of beer = $1.75 / $.125 = 1.4

The new price of a can of beer after the school adminsitrators increase its price = $1.25 + $0.25 = $1.50

The relative price = $1.75 / $1.50 = 1.167

We can see that the relative price decreased after the increase in the price of a can of beer.

I hope my answer helps you

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Juan purchased shares in ABC company for​ $5,000 three years ago. During these three years he received​ $600 in dividends. He ju
7nadin3 [17]

Answer:

B) –2%

Explanation:

The total return on an investment is calculated by,

Total Return = Capital gains ÷ Initial Investment x 100

First we will have to calculate capital gains of his investment,

He got 600 in dividends and 4,300 after selling the stock against the initial investment of $5,000.

So capital gains,

= 600 + 4,300 - 5,000

= -100

Total Return would be,

= -100 / 5,000 x 100

= -2% is the total return on his investment.

7 0
2 years ago
Assume the Atlas Corporation is expected to pay a $5 cash dividend next year. Dividends are expected to shrink at a rate of 3% p
Simora [160]

Answer: $40

Explanation:

First find the required return using CAPM;

Required return = Riskfree rate + beta * (Market return - riskfree rate)

= 6% + 0.5 * (13% - 6%)

= 9.5%

Then use DDM to determine intrinsic value;

= Next dividend / (Required return - growth rate)

= 5 / (9.5% - (-3%))

= $40

3 0
2 years ago
Some people argue that “the only beneficiary of the entrepreneurial wealth is the entrepreneur him/herself” Do you agree? Why or
tamaranim1 [39]

Answer:

I do not agree that “the only beneficiary of the entrepreneurial wealth is the entrepreneur him/herself.”

The entrepreneur may be the chief beneficiary when she is alive to reap the rewards of their entrepreneurial efforts.  But, she is certainly not the only beneficiary of the entrepreneurial wealth that she creates.  Nobody works in isolation.  When the entrepreneur commences her business, society as a whole benefits because any individual wealth created increases the wealth of the nation and the world.  She only gets the profit share of the created wealth.  Customers who patronize her services and goods also derive satisfaction of needs (utility or value).  The entrepreneur's wealth is also shared to the government in form of taxes.  Suppliers of primary goods and services also share in the wealth of the entrepreneur.  And employees of the entrepreneur also take a large share of the created wealth.

Explanation:

But, who is an entrepreneur?  She is somebody who assumes some entrepreneurial (first-time) risks in order to set up a business for the manufacture or provision of goods and services for the purpose of profit.  Her business may not be profitable in the short-run.  She can even lose tons of money initially until the profit stage sets in.  As she preserves, the profits will start rolling in, provided she had done her homework well.

5 0
2 years ago
Edison Corporation's variable manufacturing overhead rate is $5.00 per direct labor-hour. Total budgeted fixed overhead is $25,0
Mila [183]

Answer:

Manufacturing overhead for July will be $55000

Explanation:

We have given budgeted labor hour in month of July = 20000

Variable overhead rate = $5

So variable manufacturing overhead = 20000×$5 = $100000

Fixed manufacturing overhead = $25000

Now total manufacturing overhead = $100000+$25000 = $125000

Depreciation expense = $7000

So manufacturing overhead for July = $125000 - $7000 = $55000  

6 0
2 years ago
Which job in the Finance career would be best for someone who had knowledge of banking and credit systems and the ability to rep
kramer
My answer is A) ACCOUNTS CLERK.

The job of an accounts or accounting clerk is very repetitive.

These tasks are:
1) V<span>erifying the accuracy of invoices and other accounting documents/records.
2) Updating and maintaining accounting journals, ledgers and other records that details financial business transactions 
3) Entering data into the computer system using defined computer programs
4) Compiling data and preparing a various of reports.
5) Reconciling records with internal company employees and management, or external vendors or customers.
6) </span>Investigating questionable data and r<span>ecommending actions to resolve discrepancies.

</span>
6 0
2 years ago
Read 2 more answers
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