Miles and Nick each separately apply for and receive loans worth $5,000 apiece. Miles has a very good credit score, so his loan
2 answers:
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Answer:
a. Decrease
b. Decline
c. Exit
d. No change
Explanation:
The market for gourmet chocolate is in the long-run equilibrium, and an economic downturn has caused the consumer disposable income to fall. Chocolate is a normal good, and the chocolate producers have identical cost structures.
a. This decline in the consumer income will reduce the purchasing power of the consumers. As a result, the demand will decrease. The demand curve will move to the left.
b. This leftward shift in the demand curve will cause the price to decline, As the price falls, the profits earned by the producers will decline as well.
c. In the long run, the firms operate at zero economic profits. So a decline in profits imply that the firms are operating at an economic loss. This will cause the loss incurring firms to exit the market.
d. The long run supply curve will remain the same. It is not affected by change in profits, it changes only with change in the state of technology or availability of resources.
Answer:
$4235350.
Explanation:
Given: Estimated fair value of the equipment= $1000000.
Estimated fair value of the building= $7000000.
Estimated fair value of the land= $2000000.
One Purchase price of equipment, building and land= $6050500.
First finding the allocated percentage share of building.
Total amount shared by building, land and equipments=
∴ Total amount shared by building, land and equipments=
Allocated percentage share of building=
⇒ Allocated percentage share of building=
∴ Allocated percentage share of building=
Now, calculating amount would the company record the building.
Amount recorded for the building=
⇒ Amount recorded for the building=
∴ Amount recorded for the building= .
Hence, amount that company would record for building is $4235350.
Answer:
the fastest we could drop your price before your monthly revenue starts to drop is $2,000
Explanation:
Data provided in the question:
Cars sold per month, Q = 70 cars
Price of each car, P = $35,000
Rate of increase in demand, = 4 cars per month
Now,
Revenue, R = Price(P) × Quantity (Q)
Thus,
When monthly revenue starts to drop i.e < 0
⇒ =
< 0
or
⇒ < 0
or
⇒ < 0
or
⇒ < - 140,000
or
< - 2,000
Hence,
the fastest we could drop your price before your monthly revenue starts to drop is $2,000