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atroni [7]
2 years ago
5

Suppose that in a month the price of movie rentals decreases from​ $3.25 to​ $3. At the same​ time, the quantity of movie rental

s demanded increases from 100 to 120. The price elasticity of demand for movie rentals​ (calculated using the midpoint​ formula) is:
a. elastic.
b. zero.
c. inelastic.
d. unitary elastic.

Business
1 answer:
Sergeeva-Olga [200]2 years ago
4 0

Answer:

The correct answer is option a.

Explanation:

The initial price of movie rentals is $3.25.

The initial quantity is 100.

The price falls to $3.

This causes demand to rise to 120.

The price elasticity of demand a ratio of change in quantity demanded to change in price level.

The elasticity is calculated at -2.25, through the process given in images.

The price elasticity of demand here is greater than 1 which means it is elastic.

So, option a is the correct answer.

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Question 6 of 10
Fiesta28 [93]

Answer: A

Explanation: Apex

5 0
2 years ago
PB1.
maria [59]

Answer:

Explanation:

1. prime costs: direct materials+direct labour

                   = $22,000+$35,000

                    = $57,000

2. Conversion Costs= Direct labour + Manufacturing Overheads

                      = $35,000+ $17,500

                      = $52,500

3. Product Costs = direct material+ direct labour+ manufacturing overheads

                             = $22,000 + $ 35,000 + $17,500

                             = $74,500

4. Period Costs = Selling expenses+ administrative expenses

                          = $17,600 + $13, 400

                          = $31,000

If 13,750 equivalent units are produced, what is the equivalent material cost per unit = direct materials costs / unit produced

             = $22,000/13,750

            = $1.6 per unit

If 17,500 equivalent units are produced, what is the equivalent conversion cost per unit = total conversion costs/unit produced

                   = $52,500/17,500

                   =$3 per unit

3 0
2 years ago
Turnbull Co. has a target capital structure of 45% debt, 4% preferred stock, and 51% common equity. It has a before-tax cost of
3241004551 [841]

Answer:

TurnBull's Weighted Average cost of capital is higher by 1.07% if the used common Equity to raised the capital.

Explanation:

First, using the WACC formula and using Retained earnings cost of Capital. we get the following outcome.

WACC = Debt W x after tax cost of Debt + Preferred Stock weight x Cost of capital + Equity W x Cost of Capital

WACC = 45% x 8.33% + 4% x 12.20% + 51% x 14.70% =

WACC = 3.75% + 0.49% + 7.50% = 11.73%

Second, using the WACC formula and using common equity cost of Capital. we get the following outcome.

WACC = Debt W x after tax cost of Debt + Preferred Stock weight x Cost of capital + Equity W x Cost of Capital

WACC = 45% x 8.33% + 4% x 12.20% + 51% x 16.80% =

WACC = 3.75% + 0.49% + 8.57% = 12.80%

Increase Cost using common equity over Retained earnings is (12.80% - 11.73% ) = 1.07%

4 0
2 years ago
Read 2 more answers
The development of a nationwide computerized job bank listing of all job openings would be most likely to reduce:
Molodets [167]

Answer: (2) Friction unemployment

Explanation:

  The friction unemployment is one of the type of unemployment in which the employees or workers are jobless and they are searching for the healthy and good economy.

It is also known as the searching unemployment process as it is differentiated from all the other types of unemployment. The following are the types of friction unemployment are as follows:

  • Cyclical unemployment
  • Structural unemployment

 According to the given question, the friction unemployment is one of the development computerized job process in which the employees search the job on the basis of employee interest.

Therefore Option (2) is correct answer.

       

3 0
2 years ago
9. Bayarmaa owns land with an adjusted basis of $610,000 subject to a mortgage of $350,000. On April 1, Bayarmaa sells her land
Solnce55 [7]

Answer:

610000-b=a

Explanation:

April 1=610000

6 0
2 years ago
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