Answer:
3. the more resources a society uses to produce one good, the fewer resources it has available to produce another
Explanation:
The production possibilities frontier (PPF) is a curve that shows the trade-offs that a person, firm, or country has to incurr when producing two goods.
As economic agents have limited resources, they can only produce a limited amount of one good over the other.
If more resources are devoted to the production of one good, for example, butter, then, less resources are left for the production of the other good, for example, guns.
With each additional unit of butter produced, more resources are spent, which means that less resources are available to produce guns.
In other words, the opportunity cost of producing butter increases as more butter is made, causing the PPF to bow outward.
Answer:
The correct answer is B. Consumers will be unable to buy all the gas they want at the temporary price ceiling price.
Explanation:
At the time that the offer is recent for price control, demand can be stimulated by the existence of a more reasonable and affordable price for the consumer, so that there is an excess of demand against supply, which is It would imply that it should result in an increase in prices that should lead to an optimum level or breakeven point being reached at any given time, a situation that will not occur precisely because of price control.
By resenting the offer while increasing demand, despite the possible shortage, this shortage does not result in a price increase that would be normal, precisely due to the hand of the state that prevents free market development , since it restricts one of the factors that energizes it, which is the price.
The price of goods and services, as well as can increase or decrease the supply, can also increase or decrease demand, a game that alone should maintain a price that satisfies both consumers and producers, but when price control is introduced , only consumers will be satisfied, a situation that causes bidders to stop producing.
Answer:
1.
Debit Credit
Prepaid Rent $22,800
Cash $22,800
2.
Debit Credit
Rent expense(22,800*3/12) $5,700
Prepaid Rent $5,700
3.
Prepaid rent=22,800-5,700=$17,100
Rent expense=$5,700
Explanation:
1.
On October 1, , the following journal entry will be recorded in respect of the advance rent paid by the Hoosiers for one year of rent space at local mall:
Debit Credit
Prepaid Rent $22,800
Cash $22,800
2.
The year end given in this question is December 31 and the prepaid rent is paid for one year and since the rent is paid on October 1, therefore, only expense in respect of 3 months i.e. from October to the December will be recognised in this year in respect of rent expense. Remaining expense of nine months will be recognised in the next year.
The following adjusting Journal entry will be recorded in respect of rent expense in accounts on December 31.
Debit Credit
Rent expense(22,800*3/12) $5,700
Prepaid Rent $5,700
3. The year end adjusting balance of prepaid rent and rent expense will be calculated as
Prepaid rent=22,800-5,700=$17,100
Rent expense=$5,700
Answer:
Please see below
Explanation:
Given that;
Common stock outstanding = 11,300
Price per share = $65
Number of bonds outstanding = 340
Bonds sell for $94.2 percent of par
Par value per bond = $1,000
Market value of common stock = Common stock outstanding × Price per share
= 11,300 × $65
= $734,500
Market value of debt:
Number of bonds outstanding × [Percent of par × Par value]
= 340 × [0.942 × $1,000]
= 340 × $942
= $320,280
Total market value:
= Market value of common stock + Market value of debt
= $734,500 + $320,280
= $1,054,780
WACC:
= [(Market value of debt ÷ Total market value) × Pretax cost of debt × (1 - Tax rate)] + [(Market value of common stock ÷ Total market value) × Rate of return]
= [($320,280 ÷ $1,054,780) × 0.00593 × (1 - 0.39)] + [($734,500 ÷ $1,054,780) × 0.1121]
= [(0.303646258) × 0.0036173 + [0.00780612545]
= 0.0010983796 + 0.00780612545
= 0.008904505
= 0.89%
Answer:
a long put plus a long position in the underlying asset.
Explanation:
A protective put strategy is a long put plus a long position in the underlying asset. It is a risk management strategy that makes use of options contracts which are employed by investors to protect or guard their investments against a potential loss in stocks or assets such as commodities, indexes and currencies. The protective put strategy helps to mitigate or limit risk associated with buying stocks for the first time.
Generally, the value of the underlying asset is anticipated to decrease by the buyers while the value of the underlying asset is anticipated by sellers of call options to also decrease.
Hence, considering the prospective option holder, when the exercise price is higher, it means that the call options are worth less. Also, when the exercise price is higher, it means that the put options are worth more.
