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andrey2020 [161]
2 years ago
12

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

Business
1 answer:
statuscvo [17]2 years ago
7 0
Firms have<span> no</span>incentive<span> to </span>increase production<span> to take advantage of higher prices </span>if<span> they simultaneously face equally higher resource prices. So the answer to this question is No. </span>The<span> availability and productivity of real resources is reflected </span>in the<span> prices of inputs, and </span>in the<span> long run these </span>input prices<span> (including wages) </span>adjust<span> to match </span><span>changes in the price level.</span>
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Andrew and Emma Garfield invested $7,900 in a savings account paying 4% annual interest when their daughter, Angela, was born. T
Aleonysh [2.5K]

Answer:

$44,440.96

Explanation:

We must find the future value of the initial $7,900 deposit and the annuity (17 deposits of $1,200 each)

  • future value of the initial deposit = present value x (1 + interest rate)ⁿ = $7,900 x 1.04¹⁸ = $16,003.95
  • future value of the annuity = Payment x ([1 + interest rate]ⁿ - 1) / interest rate = $1,200 x (1.04¹⁷ - 1) / 0.04 = $28,437.01

total amount on Angela's savings account = $16,003.95 + $28,437.01 = $44,440.96

5 0
2 years ago
John is an athlete. He has $120 to spend and wants to buy either a heart rate monitor or new running shoes. Both the heart rate
pshichka [43]

Answer:

a scale of preference has to be drawn.

Explanation:

This is an economic concept where a choice is made between two or more items based on the order of importance.

8 0
2 years ago
On January 1, 20Y8, Crabb &amp; Co. sold land to ASP, Inc. and accepted a two-year, $500,000 face value note as payment. 6% inte
jeka94

Answer:

1. Discount

2. $449,298.47

3. $369,298.47 gain

4. land reduces by $80,000, investment increases by $449,298.47, reserves increases by $369,298.47

Explanation:

Question 1

Using the formula below

Price=\frac{I_{1}}{1+r} +\frac{I_{2}+F}{(1+r)^{2}}

where

I = interest rate, which is 6% of 500,000 = 30,000

F = Face value, 500,000

r = borrowing cost = 12%

Therefore, the price of the note at the time it was used for payment was

Price=\frac{30,000}{1.12} +\frac{30,000+500,000}{(1.12)^{2}}

= $449,298.47.

As the price is lower than the face value of the note, the note was issued at a discount.

Question 2

The fair market value of the note is $449,298.47, the compute price in question 1.

Question 3

The gain/loss on the sale of the land

= sale price - purchase price

= $449,298.47 - 80,000

= $369,298.47.

Question 4

The transaction would affect Crabb & Co's balance sheet as follows.

<em>Asset side:</em>

land reduces by $80,000

investment increases by $449,298.47

<em>Equity & liabilities side:</em>

reserves increases by $369,298.47

3 0
2 years ago
Fullerton Waste Management purchased land and a warehouse for $720,000. In addition to the purchase price, Fullerton made the fo
g100num [7]

Answer:$813,000

Explanation:

The cost of property plants and equipment in relation to IAS 16 includes the purchase price, related tax, transportation, professional fee, first insurance cost, and all other costs incurred to put the property in a position to be put into the desired use. The cost also includes all related miscellaneous cost.

8 0
2 years ago
Karl’s Sporting Goods started as a small shop catering to the fly-fishing crowd but as requests were made for different and vari
Tju [1.3M]

The full question is:

Karl's Sporting Goods started as a small shop catering to the fly-fishing crowd but as requests were made for different and varied goods, it branched out into an outdoor-sports store. Karl caters to his core customer base of hunters and fishermen, but stocks the latest outdoor gear for those who want to incorporate other sports such as backpacking into their hunting and fishing experience. Due to space limitations, he does not carry mountain bikes, but does carry gear for them. Since Karl's is not located near the ocean or a large body of water, he does not carry wetsuits or other watersports equipment, but he does carry gear that would be required for wading in cold mountain rivers and streams, and canoes and kayaks. His marketing is directed toward hunters and fishermen, but includes activities, events, and sales aimed at bringing outdoor enthusiasts with other interests into his store. Over the past month, he has received numerous request for rock climbing gear. As a result of these requests, Karl has entered into negotiations with three providers of high-quality rock climbing shoes and gear. What do Karl's activities show about his marketing for Karl's Sporting Goods?

Answer:

He has a marketing concept and is acting on it.

Explanation:

A marketing concept is the way by which businesses identify the needs of customers and come up with strategic ways of meeting those needs better than competing firms.

Different marketing concepts include: production concept, product concept, selling concept, marketing concept, and the societal marketing concept.

In the given scenario Karl's sporting goods only catered for fly fishers but as demand for other items increased they branched into other outdoor sport items.

He is stocking gear for swimming, rock climbing, and mountain bikers through partnership with suppliers even if they are not his primary market.

This is acting on marketing concept to be able to meet demand for the other outdoor sporting activities he does not normally supply

3 0
2 years ago
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