Answer:
c is correct
Explanation:
The methods that the Federal Reserve use to stabilize the economy is: C. The Federal Reserve provides loans to banks that cannot obtain loans to prevent shortages in cash.
What is federal reserve?Federal reserves can be defined as a institution that help to ensure that money flow or circulate in an economy. They does this by controlling or supervising the flow of money so as to prevent cash shortages or financial crises.
The federal reserves help to give out loans to banks that are finding it hard to obtain loans so as to prevent cash shortage.
Therefore the correct option is C.
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Which of the following is a fiscal policy that would increase aggregate demand in the Keynesian model?
(A) A decrease in personal income taxes
(B) A decrease in government spending
(C) An increase in corporate income taxes
(D) A purchase of government bonds by the Federal Reserve
(E) A sale of government bonds by the Federal Reserve
According to Keynesian model the purchase of government bonds by the Federal Reserve will increase the aggregate demand, as the money supply will get increased in the economy, (d) is correct answer.
The total quantity of demand for any and all finished products and services generated in an economy is measured as aggregate demand. The total amount of money spent on those products and services at a particular price level and period is known as aggregate demand.
Since the two indicators were computed in same way, aggregate demand is equal to GDP over through the long run. Aggregate demand is the desire or demand for those products, whereas GDP is the total quantity of goods and services produced in an economy. A result of employing identical computation techniques, changes in aggregate demand and Gross domestic product are coordinated. As a result of purchase of purchase of government bonds by Federal reserve the money supply will increase in the economy causing increase in aggregate demand.
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Drag each tile to the correct box.
What are the steps involved in accepting all the changes in a document?
Click Edit.
Click Accept or Reject.
Click Changes.
Click Accept All.
This is how the procedures for accepting all revisions to a document are laid out.
Click Edit
Click Changes
Click Accept or Reject
Click Accept All
steps involved in approving all document changes?
When making changes to a document, the first thing you do is click Edit. Once the modification has been made, you should approve the document.
The second action you perform after selecting "edit" is "click changes," which is utilized to apply the modifications that have already been decided to be made to the document. To confirm that the modifications are correct and don't need further review, click Accept or Reject. While selecting Accept All signifies that you have ultimately agreed to all of the document's changes.
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a state university annual report showed that its retention rate was at 24% and university administrators would like to increase this rate. after implementing several new programs during the last two years, the university reevaluated its retention rate. identify a type i error in the context of this hypothesis test.
A state university annual report showed that its retention rate was at 24% and university administrators, in order to increase this rate, implemented several new programs during the last two years and reevaluated its retention rate. A type I error in the context of this hypothesis test is that the university concludes that the retention rate is increasing, but in fact it has not. (Option D).
In hypothesis testing, a type I error or false-positive happens if a researcher rejects a null hypothesis that is actually true in the population. Type I errors usually result due to random chance or inappropriate research techniques. There are other types of errors in hypothesis testing. A type II error or false negative occurs if the researchers fail to reject a null hypothesis that is actually false in the population. A type III error occurs when the null hypothesis is correctly rejected but for the wrong reason.
Note: The question is missing options which are a) The university does not conclude that retention is on the rise since the retention rate can only decrease. b) The university does not conclude that retention rate is increasing, but in fact the retention rate has increased from 24%. c) The university concludes that retention is on the rise since the retention rate can only increase. d) The university concludes that the retention rate is increasing, but in fact it has not.
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assume that an uber driver refuses to take advantage of an incentive the company is offering because they believe that no matter how many rides provided, they will not be able to meet the incentive requirements. what element of expectancy theory is involved here?
A person goes through this process from early on in life. Expectancy, instrumentality, and valence are the three elements that make up expectancy theory.
What constitutes expectancy theory's components?Three things are key to the expectation theory: Expectancy. Instrumentality. Valence.According to expectation theory, people are more motivated to work hard if they believe that their efforts will be noticed and rewarded (Vroom, 1964). So, performance-based pay users might anticipate gains in their businesses. Through performance-based compensation, benefits may be correlated with the volume of work output.Researchers utilize the expectancy-value theory, a theory of motivation, to investigate how people perceive their performance in a given activity and why they think it is worthwhile to engage in it. Within a particular topic or context, EVT addresses participants' goals' motivation and progress.To learn more about expectancy theory refer to:
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john is asked by his team to request some additional benefits from management for the extra time being spent on a project. which traits would help john in assuming this leadership role? multiple select question. scouting persuading relating dictating
Relating,Scouting,Persuading.A leader is in charge of organizing, directing, and managing people.
Which traits would help john in assuming this leadership role? They are visionaries who inspire and support their teams to achieve their goals.Understanding what leadership includes is critical to your success if your responsibilities require you to lead others. A good leader should be honest, self-aware, courageous, respectful, empathic, and grateful.They should be learning to be agile and flex their influence while effectively communicating and delegating.Consider how these critical leadership traits can be taught and improved at all levels of your organization. A role model. “Someone that acts as a role model to his fellow Scouts and Scouters. Persuasive leadership is the art of presenting a rational case for action in such a way that it elicits a strong positive emotional response.Leadership that persuades.One of the most important measures of a leader is how they utilize persuasion to motivate others beyond their official sphere of influence to act.To learn more about leadership role refer
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this is the result of the ongoing shadow negotiation and regards how the negotiation will proceed, who has influence and power, and what the boundaries of the negotiation are.
Social contract is the result of the ongoing shadow negotiation and regards how the negotiation will proceed, who has influence and power, and what the boundaries of the negotiation are.
This ongoing shadow negotiation has led to the formation of a social contract, which establishes the parameters of the negotiation as well as how it will be conducted.
Shadow negotiation takes place concurrently with the substantive discussion and is focused on the negotiation's course of action.
In any negotiation, there are unstated and covert frames, biases, and personal views that will have an impact on the negotiation.
Negotiation may be hampered if we don't bring such implicit presumptions and frames to light.
We need to be skilled at pushing for our own interests in negotiations as well as making connections.
Advocacy/pushing is particularly crucial for short-term, one-time deals.
More connection is preferable for long-term relationships.
Use "mutual inquiry" in long-term partnerships if we don't know each other well.
An objective evaluation of the anticipated costs and advantages of bargaining.
Getting suggestions from others when assessing options.
Presuming to negotiate at the outset but allowing this to be overruled as the negotiation progresses.
Avoid letting our moral stance interfere with our pragmatic judgments while you are bargaining on someone else's behalf.
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what are general damages? question 10 options: 1) compensation for the expenses put into performing a contract 2) the harm that naturally flows from a breach of contract 3) lost profits 4) expenses incurred in bringing a breach of contract lawsuit
The loss experienced by the non-breaching party as a result of the breach of the contract is covered by compensatory damages,
What are the Punishments for Contract Breach?There are many options for dealing with contract violations, including restitution, rescission, specific performance, and damages. An award of damages is the primary remedy in courts with limited jurisdiction. This lesson does not address specific performance and rescission because they are equitable remedies outside the purview of the magistrate courts.
Damages Reparable. The loss experienced by the non-breaching party as a result of the breach of the contract is covered by compensatory damages, often known as "actual damages." The amount granted is meant to compensate for or replace the harm the breach caused.
general harms The loss directly and inescapably brought on by the contract breach is compensated by general damages. The most typical form of damages for breaches of contract is general damages.
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georgia, a widow, has take-home pay of $1,100 a week. her disability insurance coverage replaces 55 percent of her earnings after a four-week waiting period. what amount would she receive in disability benefits if an illness kept georgia from work for 20 weeks?
The term "weekly benefit amount" refers to the amount of benefits to which a person would be entitled for each full week of unemployment.
How to Calculating Benefit Payment Amounts?Your annual income affects your weekly benefit amount (WBA). It is projected to be between 60 and 70 percent of the wages you made between five and eighteen months prior to the start of your claim, up to the maximum WBA.The beginning of your impairment is the date your claim starts.Your WBA will be determined using a base period. You must have contributed to State Disability Insurance during your base period in order to be eligible for these benefits. On your paystub, this will appear as "CASDI."Given1100 x 55% = 1050 a week
20wk - 4wk wait =16 x 1050 = 16,800
= $16,800
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As described in the ten axioms for success, what issue is considered as being vital to promote trust as project managers from the perspective of know your team?.
The "Competitors" issue is viewed with in Ten Axioms of Success as being crucial to fostering trust for project managers out from perspective of knowing your team.
What are defined as the ten axioms for success?The simplest of reasons account for the failure of many projects. To complete a project on schedule, you don't need to be an expert in some esoteric project management system, nor do you need to be a genius.
A musical concert, or other type of entertainment that is staged or presented as a whole is referred to as a performance.It can also be referred to as the action or method of doing an action, challenge, or feature. Process performance within the work area is an assumed idea or a necessity of a role. Contextual and challenging job performances are the two different types. Contextual performance is dependent on persona, while venture performance overall is dependent on cognitive capacity.Thus, ten Axioms of Success views the "Competitors" issue as being essential to building project managers' trust from the standpoint of getting to know your team.
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in a competitive labor market, the profit-maximizing number of workers that a firm will hire occurs where the ____________.
In a competitive labor market, the profit-maximizing number of workers that a firm will hire occurs when the value of the marginal product of labor is equal to the market wage.
Marginal product measures the boom in total product whilst an additional unit of one of the efficient factors is brought. This idea is crucial for producers and managers when you consider that it will permit them to realize to what extent it is handy to increase the effective elements in this kind of manner that it generates income.
Inside the "law" of diminishing marginal returns, the marginal product first of all will increase while extra of an enter (say labor) is employed, retaining the alternative input (say capital) steady. Here, hard work is the variable enter and capital is the constant enter (in a hypothetical -inputs model).
While the marginal product is 0, then the overall output produced is at the highest level. Consequently, the overall product is likewise at the highest feasible level.
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current yield is the bond’s annual coupon divided by its yield to maturity.
a. true
b. false
The current yield is the bond’s annual coupon divided by its yield to maturity. This statement is false.
Maturity isn't a matter of age, but instead, of how you decide to retort and react to varied life situations. it's essentially a level of mental development or knowledge that incorporates pertaining to all areas of somebody's life, right from their conduct to their relationship with others. The mature cultivate and implement plans while no anyone ever holding their hand or telling them what to try to do. Likewise, the mature can resist doing things others pressure them to do wherever it does not feel right or be to them.
Physical. after I say physical maturity, I'm not concerning the normal aging method of our body.
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Why is it important to pay attention to the amount of taxes withheld from each paycheck?.
It is important to pay attention to the amount of taxes withheld from each paycheck.
When we withhold too much money from our paychecks, we end up making an interest-free loan (and getting a tax refund). And Having too little withheld from our paychecks could result in an unexpected tax bill or even a penalty for underpayment.
Most full-time workers in the United States are familiar with the tax withholding system, in which a portion of a pay period's gross income is deducted for tax purposes.
The tax withholding system was set up to help the government raise funds for various military conflicts and to make it easier for the government to raise taxes without citizens protesting.
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the f. mercury, capital account has a credit balance of $47,000 before closing entries are made. services revenue for the period is $65,200, wages expense is $44,800, and withdrawals are $13,000. what is the correct closing entry for the revenue accounts?
The proper closing entry for the revenues account-
Debit Revenues summary : $65,200 Credit Income Summary : $65,200 Define the term revenues account?Accounts with credit balances are revenue accounts since they document the company's earnings. Sales revenue, rental revenue, interest revenue, and other examples are provided.The money a business makes comes mostly from the selling of its goods or services to clients, and is known as revenue. Whether, how, and when a corporation recognizes revenue are all governed by certain accounting standards. For instance, a client may give money to a business.Based on the data on the question above, the right closing entry for such revenues account reads -
Debit: $65,200 to Revenues Account Credit: $65,200 to Income Summary Account.Every account connected to an income statement has a closing account called the Income Summary.
Thus, the income summary is thus the ideal journal pair for the revenues account.
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cullumber company lost most of its inventory in a fire in december just before the year-end physical inventory was taken. corporate records disclose the following. inventory (beginning) purchases purchase returns $ 79.400 288.900 28.500 sales revenue sales returns gross profit % based on net selling price $417.900 20.900 33 % merchandise with a selling price of $30.100 remained undamaged after the fire, and damaged merchandise has a net realizable value of $8,200. the company does not carry fire insurance on its inventory. compute the amount of inventory fire loss. (do not use the retail inventory method.)
The amount of inventory fire loss is 67502
Beginning inventory = 79400
Purchases = 288900
Less: Purchase return = -28500
Net purchase = 259200
Cost of goods available for sale = 340300
Net Sales (418600-21200) = 397400
Gross profit = -151012
Cost of goods sold = -246388
Ending inventory = 93912
Undamaged inventory (cost) (30100*62%) = -18910
Damaged inventory = 75002
NRV of damaged goods = -8200
Inventory fire loss = 67502
Ending inventory is the worth of merchandise still ready to move and held by an organization toward the finish of an accounting period. The dollar measure of finishing stock can be determined utilizing numerous valuation techniques. Albeit the actual number of units in finishing stock is similar under a strategy, the dollar value of ending inventory is impacted by the inventory valuation technique picked by the management.
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ich of the following statements is correct? multiple choice marginal utility is the sum of total utility. total utility is the sum of marginal utilities. total utility is the product of multiplying price times
Total utility is the sum of marginal utilities is the correct statement in the above given statements.
Utility is a concept used in economics to represent worth or value. Its application has changed considerably over time. Philosophers of morality like Jeremy Bentham and John Stuart Mill first used the phrase to describe a measure of pleasure or happiness as part of their utilitarianism theory. Public utilities include gas, electricity service, and telephones. A utility is a significant service that is provided for everyone and that everyone pays for. The term utility is used in economics to describe the worth or value of a good or service. Utility is more specifically the total pleasure or advantage gained from using a good or service. Typically, consumers are assumed to aim to maximize their utility in economic theories of rational choice.
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to reduce the possibility of errors and embezzlement, the functions of operations and accounting should be separated.
to reduce the possibility of errors and embezzlement, the functions of operations and accounting should be separated. one employee should not be responsible for handling cash receipts (operations) and maintaining the accounts receivable records (accounting).
Debt receivable, frequently called AR or A/R, refers to an enterprise's legally enforceable claims for payment for items provided or services furnished that customers have requested but haven't paid for. They usually take the shape of invoices that a company troubles and sends to the purchaser for a fee inside a predetermined time restriction.
The stability sheet shows money owed and receivable as an asset. The billing of a customer for the products and services they have got requested is handled thru some accounting activities. those can be contrasted with notes receivable, which can be duties installed by using formal prison documents known as promissory notes.
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The tax multiplier equals the change in ________ divided by the change in ________.
The tax multiplier equals the change in real GDP divided by the change in taxes.
Define the term tax multiplier?A measure of the change in the Gross Domestic Product (GDP) in reaction to a change in governmental taxes is the tax multiplier.
Depending on whether the change in taxes affects all components of the GDP or just consumption, the TM can be simple or complex.Governments, investors, and economists frequently employ TM to examine the effects of taxation changes on aggregate production.The straightforward tax multiplier is now more typical. It suggests that a change in aggregate production like a result of a change in government taxation only affects consumption expenditures.Thus, the real GDP change divided by the change in taxes is the tax multiplier.
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The main focus of a __________ group is on social and interpersonal relationships.
The main focus of a youth group is on social and interpersonal relationships.
An interpersonal relationship is a social connection or affiliation between two or more people which includes workers, friends etc.
In the workplace, social skills are known as interpersonal skills. Both skills social and interpersonal skills are same thing which means interaction with others.
The main focus on youth group to influence them for business promotion , buying goods and services etc. In the interpersonal relationship which includes individuals working together in the same organization, relationship between other like family etc.
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which of the shifts explains what will happen to the production possibility curve if political unrest and strikes disrupt all sectors of an economy equally?
The IV graph of shift explains the production possibility curve if political unrest and strikes disrupt all sectors of an economy equally.
What is IV graph?Implied volatility is the market's prediction of a security's price movement that is most likely to occur. It is a statistic used by investors to predict future changes in a security's price (volatility) based on specific predictive criteria. Using the symbol, implied volatility is indicated (sigma). It is frequently regarded as a substitute for market risk. Over a predetermined time range, it is frequently expressed using percentages and standard deviations.The future course of the price change is not foreseen by IV. For instance, high volatility denotes a significant price swing, although the price may swing either up (extremely high) or down (very low) or alternate between the two. Low volatility indicates that significant, erratic changes in price are unlikely.hence, IV shifts explains what will happen to the production possibility curve if political unrest and strikes disrupt all sectors of an economy equally.
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geese company utilizes the dollar-value lifo retail inventory method. its cost-to-retail percentage is 60% based on beginning inventory and 64% based on current-period purchases. the company determined that beginning inventory at retail was $200,000 and that ending inventory at current-year retail prices was $250,000. the current-year price index is
The current-year price index is $152000.
Why do companies enter into purchase commitment agreements?Companies enter into purchase agreements to secure a specific price and, in some cases, the supplier's capacity. This can be used as a defensive tool to prevent competitors from using your production capacity. Commitments can cover orders placed over an extended period of time (known as bulk orders), or they can apply to a single purchase only. Commitments are generally made according to a fixed price or a sliding price scale, depending on the number of units purchased. Any promise to purchase shall be deemed binding on both parties and may be used by either party as a basis for litigation. Litigation is most likely to occur when the price agreed between the parties deviates from the market price over time, putting one party at a disadvantage and wishing to terminate the contract. Legal disputes are especially likely if one party anticipates a price disadvantage over an extended period of time.
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guided by a strong moral compass and a sense of duty, focus on the process of change and inspire through vision, trust, respect, and consideration.
a. true
b. false
Answer:
true
Explanation
i am a ginus!
administrative changes that managers can make to reduce the stressors that lead to employee burnout are called
Social assistance reduce the stressors that lead to employee burnout are called
It is the sentiment of having a loved one by one's side during trying times or when things appear difficult. Social support may come from friends, family, coworkers, etc.
Social support enhances a person's quality of life, self-esteem, mental health, and capacity to overcome obstacles. This assistance could take the form of evaluation, emotional, informational, and practical social assistance.
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a project is expected to generate annual revenues of $132,900, with variable costs of $80,500, and fixed costs of $21,000. the annual depreciation is $4,800 and the tax rate is 21 percent. what is the annual operating cash flow? multiple choice $54,320 $75,320 $36,200 $25,814 $31,400
A project is expected to generate annual revenues of $132,900, with variable cost of $80,500, and fixed costs of $21,000. the annual depreciation is $4,800 and the tax rate is 21 percent. $36,200 is the annual operating cash flow.
What is depreciation ?The monetary cost of an asset diminishes over time through use, wear and tear, or obsolescence. This decrease is measured as depreciation cost. explanation: Impairment of assets can also be caused by many other factors, such as: Unfavorable market conditions, etc.Depreciation represents the estimated decrease in value of fixed assets within a financial year. Tangible assets such as buildings, equipment and vehicles are purchased at large sums. Depreciation is the depreciation of an asset over time. The purpose is to recognize that an acquired asset, such as a tractor, will last more than his one year but has a finite useful life. Two accounting principles apply to the calculation and reporting of depreciation.To learn more about depreciation from the given link :
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ali, a salesperson at a superstore, mistakenly provides wrong information to a customer about the location of a specific brand of dishwashing liquid. the customer, as a result, wastes time searching for the product. this is an example of brand cannibalization.
Ali, a salesperson at a superstore, mistakenly provides wrong information to a customer about the location of a specific brand of dishwashing liquid. The customer, as a result, wastes time searching for the product. This is an example of a) brand cannibalization.
Brand cannibalization can be described as the loss in the sale of products or a business due to another product.
In the scenario mentioned in the question, the salesperson has wasted the time of a customer by providing the wrong information about the wrong brand of dishwashing liquid. As a result of this, the customer's value will be lost and he might not make a purchase from the superstore again. Hence, this is an example of brand cannibalization.
Although a part of your question is missing, you might be referring to this question:
Ali, a salesperson at a superstore, mistakenly provides wrong information to a customer about the location of a specific brand of dishwashing liquid. the customer, as a result, wastes time searching for the product. This is an example of
a) brand cannibalization
b) brand orientation
c) brand recognition
d) brand endorsement
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What project scheduling term is used to describe the completion of significant portions of the project or a transition from one phase to another?.
A Gantt chart is the most common type of project schedule. A Gantt chart can be used to create a detailed project schedule as well as a milestone schedule.
In project management, what exactly is a project schedule?
What needs to be done, which resources need to be used, and when the project is due are all listed in a project schedule. It is a schedule with start and end dates and milestones that must be met to finish the project on time.
What are the methods for scheduling?
The four most widely used scheduling methods by project managers are as follows: Gantt charts, the Critical Path Method, the Program Evaluation and Review Technique, and fast-tracking and crashing.
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Walmart is requiring more trade sales promotion from bolthouse farms, a juice and smoothie company, to keep extensively promoting its products and displaying them on their shelves. Why will bolthouse farms most likely comply with walmart’s request?.
Walmart is requiring more trade sales promotion from Bolthouse farms, a juice and smoothie company, to keep extensively promoting its products and displaying them on its shelves. Bolthouse farms most likely comply with Walmart’s request because retailers like Walmart have gained considerable power in the supply chain.
In trade, a supply chain is a community of facilities that procure uncooked materials and transform them into intermediate items after which the very last merchandise is to customers thru a distribution gadget. It refers to the network of organizations, human beings, activities, information, and resources involved in turning in a product or service to a patron. supply chain sports involve the transformation of herbal resources, uncooked substances, and components into a finished product and delivering the same to the end client.
In state-of-the-art supply chain systems, used products may re-enter the supply chain at any factor where the residual fee is recyclable. deliver chains link cost chains. suppliers in a supply chain are regularly ranked by using "tier", with first-tier suppliers providing without delay to the consumer, second-tier suppliers presenting to the first tier, and so on.
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suppose ronny decides to withdraw all the cash out of his checking account and open a savings account at the same bank. as a result of this transaction:
Let's say Ronny decides to open a one-time deposit account at the same bank and take all the money out of his checking account. Following this transaction: M1 declines but M2 does not.
Economists provide more comprehensive definitions of money based on liquidity as opposed to a single unit of measurement. How soon a financial asset can be used to purchase a good or service is referred to as liquidity. Cash is one example of a liquid asset.
Money has two definitions: the M1 money supply and the M2 money supply. Money that is extremely liquid, such as cash, checkable (demand) deposits, and traveler's checks, is included in the M1 money supply. The M1 money supply adds savings and time deposits, certificates of deposits, and money market funds to make up the M2 money supply, which is less liquid.
M2 is a more expansive definition of money that includes more deposit types in addition to everything in M1. Bank savings accounts, for example, allow you to deposit money but not make checks on them directly. However, you may easily withdraw money Savings deposits are included in M2. Money market funds, which pool the deposits of numerous individual investors and invest them in safe assets like short-term government bonds, are another option offered by many banks and other financial institutions.
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you can calculate the yield curve, given inflation and maturity-related risks. looking at the yield curve, you can use the information embedded in it to estimate the market's expectations regarding future inflation, risk, and short-term interest rates. the -select- theory states that the shape of the yield curve depends on investors' expectations about future interest rates. the theory assumes that bond traders establish bond prices and interest rates strictly on the basis of expectations for future interest rates and that they are indifferent to maturity because they don't view long-term bonds as being riskier than short-term bonds. for example, assume that you had a 1-year t-bond that yields 1.4% and a 2-year t-bond that yields 2.6%. from this information you could determine what the yield on a 1-year t-bond one year from now would be. investors with a 2-year horizon could invest in the 2-year t-bond or they could invest in a 1-year t-bond today and a 1-year t-bond one year from today. both options should yield the same result if the market is in equilibrium; otherwise, investors would buy and sell securities until the market was in equilibrium. quantitative problem: today, interest rates on 1-year t-bonds yield 1.4%, interest rates on 2-year t-bonds yield 2.6%, and interest rates on 3-year t-bonds yield 3.8%.
Pure expectations theory states that the shape of the yield curve depends on the investor's expectations about future interest rates.
The 1-year interest rate on T-bond yields 1.5%
The 2-year interest rate on T-bond yields 2.5%
The 3-year interest rate on T-bond yield 3.2%
a. Yield on 1 year T bond one year from now
(1+0.032)3 = (1+x) (1+0.025)2
1+x = (1+0.032)3 / (1+0.025)2
X= 4.61%
b. Yield on 2-year T bond one year from now
(1+0.032)3 = (1+0.05) (1+X)2
(1.032)3 / 1.05 = (1+x)2
X = 4.06%
c. Yield on 1 year bond two years from now
(1+0.032)3 = (1+X) (1.025)2
X= 4.61%
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at what point described below will producer surplus most likely drop to zero for a firm? a.) when the firm is taking a significant loss b.) when revenue equals opportunity and variable costs c.) when producer and consumer surplus are both the same quantity d.) when the firm is making a significant profit
(B) When revenue equals opportunity and variable cost, then the producer surplus most likely drops to zero for a firm.
What is revenue?The total income derived from the sale of products or services pertaining to a business's core operations is referred to as revenue. Because it appears at the top of the income statement, revenue, which is also known as gross sales, is frequently referred to as the "top line." A company's overall earnings or profit are referred to as income or net income. Although both revenue and profit are positive indicators for your company, they are not the same thing.The producer surplus for a firm will probably reach zero when revenue equals opportunity costs and variable costs.Therefore, (B) when revenue equals opportunity and variable cost, then the producer surplus most likely drops to zero for a firm.
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jake lives in new york city and runs a business that sells boats. in an average year, he receives $851,000 from selling boats. of this sales revenue, he must pay the manufacturer a wholesale cost of $476,000; he also pays wages and utility bills totaling $281,000. he owns his showroom; if he chooses to rent it out, he will receive $71,000 in rent per year. assume that the value of this showroom does not depreciate over the year. also, if jake does not operate this boat business, he can work as an accountant, receive an annual salary of $34,000 with no additional monetary costs, and rent out his showroom at the $71,000 per year rate. no other costs are incurred in running this boat business.
With cost-benefit analysis we can calculate that Jake will be better of working as an accountant and collecting rent from his showroom as oppose to keep his business running.
The reason that Jake is better off working as an accountant and earning $34,000 while collecting passive income from his showroom for $71,000 is that if he were to do so, calculated using cost-benefit analysis, he would earn:
$34,000+$71,000=$105,000
We can then with cost-benefit analysis in mind, calculate that if Jake chooses to keep running his boat business he may receive $851,000 from boat sales but then he needs to deduct the $476,000 wholesale cost of the boat along with wages and utilities of $281,000, he will pocket a net profit of $94,000
$851,000-$476,000-$281,000=$94,000
The reason why cost-benefit analysis is important is that by having done the calculation, we can tell for sure that Jake will be better off working as an accountant and collect passive income from his showroom rather than maintaining his boat business, since he will earn an extra $11,000 by working as an accountant and letting go of his business.
$105,000-$94,000=$11,000
You didn't complete the question, but I suppose the question is will Jake earn more money by running his boat business as oppose to working as an accountant and and renting out his showroom?
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