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2 years ago

Would firms have an incentive to change their level of production if input prices adjusted immediately to output price changes?

1 answer:

7 0

Firms have noincentive to increase production to take advantage of higher prices if they simultaneously face equally higher resource prices. So the answer to this question is No. The availability and productivity of real resources is reflected in the prices of inputs, and in the long run these input prices (including wages) adjust to match changes in the price level.

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Plessings Company leased a piece of machinery to Banana, Inc. on January 1, 2019. The lease is correctly classified as a sales−t

Stells [14]

Answer:

7.49%

Explanation:

n = Number of payment periods = 3

P = Total lease payment = Annual lease payment * Number of period = $20,700 * 3 = $62,100

FV = fair value of the machine = $50,000

Implicit rate = [($62,100 / $50,000)^(1 / 3)] - 1 = 0.0749, or 7.49%

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2 years ago

This table shows the number of cookies several bakeries sell each day. Bakery Number of Cookies Sold Mrs. Track’s 90 Chips 100 T

Serggg [28]

Answer: d. Uncle John's

Absolute Advantage refers to the ability of an individual, company, region or country to produce a particular product or service at a price lower than that of his or her or its competitors.

When the price for the company's products are lower in comparison to other similar products, the demand for its products are more and it's able to sell more number of units than its competitors.

In this case, Uncle John's has the absolute advantage since it sold the most number of cookies (125)

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2 years ago

Read 2 more answers

Which of the following statements correctly compares/contrasts economies of scale and economies of scope?a) economies of scale r

nikitadnepr [17]

Answer:

d) economies of scale result from decline in the average cost of production per unit as volume increases whereas economies of scope result from decline in the average cost of production due to the sharing resources across products and services.

4 0

2 years ago

HElP PLEEEASE!!

bekas [8.4K]

36.) A
37.) not sure but maybe D
40.) A

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2 years ago

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If an adjustable-rate 30-year mortgage for $120,000 starts at 4.0 percent and increases to 5.5 percent, what is the increase in

Lelu [443]

Answer:

The increase in the monthly payment amount is $180

Explanation:

In order to calculate the increase in the monthly payment amount we would have to make the following calculation:

increase in the monthly payment amount=installment increase-installment

installment=(loan amount/1,000)*rate of interest

installment=($120,000/1,000)*4

installment=$480

installment increase=(loan amount/1,000)*rate of interest

installment increase=($120,000/1,000)*5.5

installment increase=$660

increase in the monthly payment amount=$660-$480

increase in the monthly payment amount=$180

The increase in the monthly payment amount is $180

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2 years ago