Answer:
Alex may have to lower the price to convince Clara to buy a second slice.
Explanation:
Marginal utility is an economic concept that says that a consumer recieves more marginal utility in the first consumption of a good or services than in the second and the subsequents. In fact with each consumption the marginal utility reduces, this effect is known as diminishing marginal utility.
One of the the methods to reduce the effects of the diminishing marginal utility is to reduces prices. As the utility of a product decreases as its consumption increases, consumers are willing to pay smaller amount of money for more of the product.
Answer:
employment increases and a given amount of employment produced more real GDP.
Explanation:
Labor productivity is the measurement of the hourly output of a country's economy. This tells us the amount of GDP that is produced by an hour of labor. On the other hand, GDP (Gross Domestic Product) is the monetary value of all goods and services within a country in a specific period of time. Therefore, when we have an increase in labor productivity, we also have an increase in potential GDP because employment increases and a given amount of employment produces more real GDP.
Answer:
The toy supplier won't be getting as much money, and he might not be getting a profit.
Explanation:
Answer:
$1.92 million
Explanation:
The value of the subsidy per year = $12,000,000 x 3% = $360,000
Now we have to find the present value of the cash flows using an excel spreadsheet and the net present value function =NPV(discount rate,series of cash flows)
discount rate = 10% (market rate)
cash flows = 8 cash flows of 360,000 each
=NPV(10%,360000,360000,360000,360000,360000,360000,360000,360000) = $1,920,573 ≈ $1.92 million
Answer:
<h2>The accounting scandals of the early 2000s</h2>
led many people to question the legitimacy of:
allowing an accounting firm to do both consulting and auditing work for the same company.
Explanation:
1) Enron and WorldCom fell from grace during the scandal. And Sarbanes Oxley Act of 2002 was introduced to regulate the practise of auditing, which was before self-regulated.
2) People felt that accounting firms were getting so much revenue from consulting that they did not pay much attention to their auditing work.
3) They also felt that the consulting relationship was jeopardizing their responsibilities and commitments as independent auditors.
4) Since they were involved in consulting and offering management services, they paid a lip service to their main responsibilities and directly compromised their positions as verifiers of the truth and fairness in the presentation of financial statements.
5) According to Paul Krugman of The New York Times, “the Enron debacle is not just the story of a company that failed; it is the story of a system that failed. And the system didn’t fail through carelessness or laziness; it was corrupted.” People felt that the corruption arose from the performance of these separate services by the same auditing personnel and firm.
