Answer: Corporate culture.
Explanation:
The Corporate culture of a company is the ideas, behavior and values that are shared among workers of that company and it is normally in line with the vision and mission statements of that company. The Corporate culture of an organization is what makes it stand out from other similar Organizations.
uppose that an MBA degree creates no extemality because the benefits of an MBA are internalized by the student in the form of higher wages. If there are no government subsidies for MBAs, then which of the following statements is correct? a. The equilibrium quantity of MBAs will equal the socially optimal quantity of MBAs. b. The equilibrium quantity of MBAs will be greater than the socially optimal quantity of MBAS. c. The equilibrium quantity of MBAs will be less than the socially optimal quantity of MBAs. d. There is not enough information to answer the question.
Answer:
A) The equilibrium quantity of MBAs will equal the socially optimal quantity of MBAs.
Explanation:
No government subsidies, no government taxes, no government anything = free markets = capitalism = fantasy world
Pure capitalism doesn't exist (only semi capitalistic economies), since governments exist and they regulate the economy, tax and transfer money, and spend.
But in a fantasy world where governments do not exist, then the equilibrium quantity of any good or service equals the socially optimal quantity. That applies to every single product or service.
Geyer Company has the following account balances: Accounts Receivable: $40, Accounts Payable: $45, Cash: $70 and Notes Payable: $65. If the Notes Payable balance is listed as $56 in the trial balance, what impact will this have on the accounts
Answer:
Credit side of the trial balance will be understated by $9
Explanation:
Note Payable has a credit balance of $ 65 by writing it as $56 it will understate the total credit value by $9 ( 65 - 56 ). Trial will be imbalanced. Ultimately the Balance sheet will not balance, it will show $9 more assets than the total equity and liabilities. The note payable is recorded in the liabilities section of the balance sheet which will be a cause of imbalance of balance sheet too.
The Heartlake Corporation manufactures and sells toy gyroscopes. The following data is related to sales and production of the toy gyroscopes for last year. Selling price per unit $8.20 Variable manufacturing costs per unit $1.84 Variable selling and administrative expenses per unit $4.45 Fixed manufacturing overhead (in total) $79,000 Fixed selling and administrative expenses (in total) $83,000 Units produced during the year 520,000 Units sold during year 190,000
Answer:
The Question is Incomplete; Full Question is as follows;
Using variable costing, what is the contribution margin for last year?
Contribution Margin = $362,900
Explanation:
Computation of expenditure margin by differential costing;
Sales Minus variable cost
Sales (190,000 *$8.20)= $1,558,000
Variable cost of Manufacturing(190,000 units *$1.84)= $349,600
— variable sales and administrative costs(190,000 units *$4.45)
= $845,500
= contribution margin = $362,900
Keep in mind that; Set or Fixed expenses and overhead costs are not taken into account when trying to calculate the contribution margin.
Trimble Graphic Design receives $1,800 from a client billed in a previous month for services provided. Which of the following general journal entries will Trimble Graphic Design make to record this transaction?
Answer:
Explanation:
The journal entry is presented below:
Cash A/c Dr $1,800
To Accounts receivable A/c $1,800
(Being the cash is received)
Since the cash is received so we debited the cash account and there is a decrease in account receivable so this account should be credited. Both the accounts are recorded at $1,800 each.
Herbert gained most of the capital for his new start-up project by posting a small demonstration of his product on a website that he created especially for the project. Many people showed genuine interest in his product and donated money to help him launch it. In the given scenario, Herbert:
a. was able to fund his project through venture capital.
b. received money for his venture from angel investors.
c. received money for his venture through crowdfunding.
d. was able to fund his project through seed money.
Answer:
d. was able to fund his project through seed money.
Explanation:
Seed money or seed funding is the first fund or seed that is obtained for a new business idea. Mostly seed money is obtained from friends, family, and colleagues.
Herbert had a great idea by presenting a demonstration of his product on a website, attracting people with interest to fund the start-up.
Herbert gained capital for his start-up through crowdfunding, which is the collective effort of individuals who donate small amounts of money via an online platform to support a project.
In the scenario described where Herbert gained most of the capital for his new start-up project by posting a small demonstration of his product on a website and receiving donations from many people, this approach is known as crowdfunding. Crowdfunding allows a large number of people to contribute small amounts of money to help a project or venture, leveraging the collective effort of individual investors or donors through an online platform. This is different from receiving money from angel investors, who are individuals that provide capital for a business start-up, usually in exchange for convertible debt or ownership equity, or from venture capital, which is a form of private equity and a type of financing that investors provide to start-up companies and small businesses that are believed to have long-term growth potential. Seed money, often referred to as seed funding or seed capital, is a type of financing used in the initial stages of a new business or venture, typically provided by angel investors, friends, family, or the business founders themselves.
Trusted Wholesalers is a company that purchases products produced in Mexico and sells them to companies based in the United States and Canada. Management at Trusted Wholesalers would most likely be interested in becoming experts in the agreements made by ________.
A) The EU.
B) NAFTA.
C) CAFTA- DR.
Answer:
B. NAFTA
Explanation:
The North American Free Trade Agreement (NAFTA) is a trade agreement entered into by Mexico, Canada, and the United States of America. It went into operations on the 1st of January 1994.
NAFTA discarded tariffs, certain restrictions that were in place prior to the treaty being signed. The trilateral agreement led to a more robust economy, cheaper goods etc for the member countries.
Since Mexico is a member of NAFTA, the management of Trusted Wholesalers would most likely be interested in becoming experts in the agreements made by NAFTA.
as a speaker, the best way to utilize the lectern during your speech is to
Answer:
use when your speech has notes.
Explanation:
A lectern is reading desk that is a tall stand with a sliding top to hold a book or notes.
Therefore, the best way to utilize the lectern during speech is to read notes while standing up and to rest ones hands on it when not making gestures. An example of this is seen when a President is giving a speech, he often uses a lectern.
Answer:
If you have an answer choice that says "None of the above," that is correct
Explanation:
A(n) _______________ leader is one who is focused on developing a long term vision for the company and who uses a charismatic personality to communicate his or her visionto the employees.
a. transactional
b. transformational
c. rational
d. committed
Answer:
b. transformational
Explanation:
Transformational leadership refers to the kind of leadership wherein a leader uses his appeal or charisma effectively to convey and convince his subordinates with respect to long term vision.
Transformational, as the word suggests refers to those leaders who are capable of transforming the approach of their subordinates owing to their charm and the reputation they have earned for themselves.
Such leaders are good at implementing organizational changes owing to their personality.
Meggwatt Inc. is a company that manufactures electronic accessories. It studies the market standards for products similar to the products it creates and uses them to improve the quality standards of its own products. In the context of total quality management (TQM), Meggwatt Inc. is most likely using _____.
Answer: Benchmarking
Explanation:
Benchmarking process is a system in business used to measure and compare a company's performance against another. It is a measure used to determine the effectiveness of an organization's policies, strategies, programs, etc. Benchmarking helps a business or an organization to detect areas they needs to improve on.
Suppose the value of your home increases from $100,000 to $125,000. If you continue to live in your home, the increase in its value:
A) adds nothing to GDP.
B) increases GDP by $25,000.
C) increases GDP by $100,000.
D) increases GDP by $125,000.
Answer:
The correct answer is option A.
Explanation:
The value of a house was $100,000.
It increased to $125,00.
It will have no effect on the GDP if the person owning it continues to live in it.
The GDP of an economy measures the value of final goods and services produced in an economy in a year. This increase in the value of a house will not affect GDP as no final good or service is being produced.
The value of second-hand goods is not included in GDP.
Entrepreneurs who start with a goal instead of a plan and look for a chance to achieve it are known as ________. a. reactive planner b. critical-point planner c. comprehensive planner d. opportunistic planner
Answer:
d. Opportunistic planners
Explanation:
Opportunistic planners -
These refers to the people , who tries to take the advantage of the situation , is referred to as an Opportunistic planners .
These people are the smartest of all , which the maximum patience , to wait and target at the perfect time to achieve their goal .
Hence , from the given information of the question,
The correct option is d. Opportunistic planners .
The term for entrepreneurs who start with a goal and then look for opportunities to achieve it, rather than starting with a detailed plan, is opportunistic planner. They focus on maximizing opportunities relevant to their goal.
Explanation:Entrepreneurs who start with a goal instead of a plan and look for a chance to achieve it are known as opportunistic planners. These entrepreneurs set a specific goal and then look for opportunities to attain that goal, rather than setting a specific, detailed plan from the beginning. For example, an opportunistic planner might set a goal to build a successful software company, but instead of creating a detailed plan on how exactly to achieve this, they would look for opportunities in the market, like partnering with other companies, inventing a unique software, or even acquiring other businesses, to reach their goal of a successful software company.
Learn more about opportunistic planner here:https://brainly.com/question/36679164
#SPJ3
Which of the following refers to the process of collecting, analyzing, and interpreting data about customers, competitors, and the business environment in order to improve marketing effectiveness? A. Dashboarding B. Reverse engineering C. Custom research D. Market research E. Syndicated research
Answer:
d. Market research
Explanation:
Market research -
It is one of the important step for the organisation ,
In this process , the information and data is collected , analysed and interpreted with respect to the customers reviews or feedback .
This step helps to enhance the production , sale and marketing of the goods and services the company produces , which in turn increases the profit earned by the company .
Hence , from the given information of the question ,
The correct option is d. Market research .
Sri Lanka is one of the major tea producing nations in the world. A substantial portion of the? country's annual tea production gets exported to various? countries, including the United Arab? Emirates, Russia, and other countries in the Middle East. Given the success in these? countries, Sri Lanka decided to foray into the Asian market. Research evidence indicated that people in Myanmar are major consumers of tea and that there is a high demand for tea in that country. This convinced industry experts in Sri Lanka that exporting to Myanmar was a good idea.
The above reasoning is based on the assumption that
A. tea exports to Myanmar will help the Sri Lankan producers to get an idea about how they might perform in other Asian markets.
B. Myanmar does not export tea.
C. Sri Lankan tea producers incur a higher cost of production than the tea producers in Myanmar.
D. people in Myanmar have similar tastes and preferences in tea consumption as the other consumers of Sri Lankan tea.
E. the market for tea in Myanmar is perfectly competitive.
Answer:
Option E is correct.
Explanation:
The product is homogeneous that is all firms would be selling identical products in the market which would held remove preference for local products.
Answer:
its E i took the test
Explanation:
If the price of a good increases, ________. 1, the consumer surplus increases 2, the budget constraint shifts to the left 3, the consumer surplus decreases 4, the budget constraint shifts to the right
Answer:
3, the consumer surplus decreases
Explanation:
Consumer surplus is the difference between the willingness to pay of a consumer and the price of the good.
For example if the willingness to pay for a good is $60. If the price of the good rise from $30 to $40. The consumer surplus would fall from $30 to $20.
Budget constraint is the amount of goods and services a consumer can purchase given the consumers income and the price of goods.
Only increase or decrease in income leads to a shift of the budget constraint.
I hope my answer helps you
Final answer:
An increase in the price of a good results in a decrease in consumer surplus and a leftward shift of the budget constraint, which shows a reduced level of utility for consumers.
Explanation:
If the price of a good increases, the economic consequence is that the consumer surplus decreases and the budget constraint shifts to the left, indicating that consumers can afford less of the good or must substitute away from the good due to the increased price. This leftward shift means that the budget line is now tangent to a lower indifference curve on a consumer preference graph, representing a reduced level of utility. The degree of change in the quantity demanded of each good will vary based on personal preferences and the degree of necessity versus luxury attributed to the good.
Cover Board Inc. is a company that designs and prints advertisements on coffee sleeves used on cups sold in coffee shops. To find clients to advertise on the coffee cup sleeves, the company sends a representative to other companies to explain them the benefits of advertising on these sleeves. In this case, which of the following promotional strategies is used by Cover Board Inc.?A. Mass communication B. Implicit communication C. Personal selling D. Sales promotion E. Consumer badgering.
Answer:
The correct answer is: C. Personal selling
Explanation:
The personal sale is a tool of the promotional mix or type of sale where a particular seller offers, promotes or sells a product or service to a particular individual consumer directly.
It is based on a personal communication since it goes from one person (the seller) to another person (the potential customer or buyer), unlike for example advertising, which uses impersonal means since it is addressed to several consumers at the same time.
Personal selling is the most effective way to sell a product and to get a satisfied customer with the possibility that he can repeat the purchase or recommend the product or the company to other consumers.
Answer:
The correct answer is the option C: Personal selling.
Explanation:
To begin with, in the field of marketing, the term of ''personal selling'' refers to the tool that the communication mix has in order to reach the potential clients. Moreover, this type of communication technique focuses in caughting the client's interest by sending a professional salesperson who will be able to explain every part of the product that is being sold by the company and also to establish a flexible speech that is going to be adjusted to the situation regarding the fact that the customers may have several questions to do and therefore the salesman will be available for them at every moment. This type of communication tends to be the most effective one when it comes to products that are very difficult to sell or to understand by the clients.
When a scientific study on the harmful effects of a particular food preservative was published, Ultimo Foods, a popular potato chips producer, stopped using preservatives in its potato chips. This change significantly reduced the shelf life of the chips even though there were no customer complaints about Ultimo Foods' products. This is an example of a(n) _____.
Answer:
proactive strategy
Explanation:
Proactive strategies are continuous interventions aimed at reducing the probability of some disadvantageous actions occuring. It is preventive and typically deals with the preceding circumstances.
The action of Ultimo Foods is an instance of a precautionary measure where changes were implemented to prevent perceived harm despite no customer complaints.
Explanation:The scenario described, where a company like Ultimo Foods changes its product composition in response to a scientific study (regardless of there being no customer complaints), demonstrates an example of a precautionary measure. This is a business strategy action taken in advance to prevent potential adverse effects or to mitigate the impact of potential crises.
Learn more about Precautionary Measure here:https://brainly.com/question/32799740
#SPJ3
Panamint Systems Corporation is estimating activity costs associated with producing disk drives, tapes drives, and wire drives. The indirect labor can be traced to four separate activity pools. The budgeted activity cost and activity base data by product are provided below.
Activity Cost Activity Base
Procurement $370,000 Number of purchase orders
Scheduling 250,000 Number of production orders
Materials handling 500,000 Number of moves
Product development 730,000 Number of engineering changes
Production 1,500,000 Machine hours
Number of Number of Number of Number of Machine Number of
Purchase Orders Production Orders Moves Engineering Changes Hours Units
Disk drives 4,000 300 1,400 10 2,000 2,000
Tape drives 4,000 150 800 10 8,000 4,000
Wire drives 12,000 800 4,000 25 10,000 2,500
35. Determine the activity rate for procurement per purchase order.
a $43.53
b $18.50
c $15.42
d $37.00
Answer:
b $18.50
Explanation:
We have to divide the Procurement cost pool over the total number of order which is the cost driver of this activity.
Cost pool: 370,000
Disk drives purchase orders: 4,000
Tape drivers purchase orders: 4,000
Wire drivers purchase drives: 12,000
Total purchase order 20,000
Now, we know the variables values so we can calculate the rate:
$370,000 cost pool/ 20,000 purchase order = $ 18.5
Suppose that the market for premium bottled water is initially in equilibrium at point A Further suppose the demand for premium bottled water increases rapidly during 2018. At the same time, six more firms begin producing premium bottled water. A student remarks that, because of these events, we can't know for certain whether the price of premium bottled water will rise orfall Market for Premium Bottled Water The student's remarks (that, because of these events, we can't know for certain whether the price of premium bottled water will rise or fallis A .correct. When there is an increase in supply and an increase in demand, the new equilibrium quantity increases but whether the equilibrium price increases or decreases is unknown B. correct When there is an increase in supply and an increase in demand, the change In both new equilibrium price and equilibrium quantity are unknown C. Incorrect. When there is an increase in supply and an increase in demand the new equilibrium price will be unambiguously higher D. incorrect. When there is an increase in supply and an increase in demand, the new
Answer:
The remark by the student is correct since;
B. correct When there is an increase in supply and an increase in demand, the change In both new equilibrium price and equilibrium quantity are unknown
Explanation:
The major factor that affects the supply and demand is the market price of a good or service. The supply of a good or service is the quantity of goods that producers are willing to sell at a particular price, while the demand is the quantity of goods that consumers are willing to but at a particular price. When the price of a good rises, most producers are usually inclined to supply more of the product. On the contrary, when the prices drop, the suppliers tend to sell less of the good. However, there is a state known as the equilibrium point is the price where the quantity of goods supplied is the same as the quantity of goods demanded. This typically means that the suppliers and the consumers are comfortable with the price of that particular good or service. In reality, this scenario is often extremely rare.
In our case, premium bottled water was initially in equilibrium then a sudden rise in demand and a sudden increase in supply also ensued. In this case, it is difficult to know what how much the price and demand will change since we don't have a clue on the quantity of bottled water that will be supplied by the new firms that have entered the market. At the same time, we don't know how much the demand for premium bottled water increased.
When cities prevent landlords from charging market rents, which of the following are common long-run outcomes? Check all that apply. a. The quality of rental housing units falls. b. Landlords earn lower profits from renting housing units, but the rent charged has no effect on either the quantity or quality of rental units. c. The quantity of available rental housing units falls. d. The future supply of rental housing units increases.
Answer:
a. The quality of rental housing units falls
c. The quantity of available rental housing units falls.
Explanation:
As the landlord cannot receive a desired return for their investment they will stop improving and doing proper maintenance of the property to obtain it.
They will also be less likely to rent and would prefer to sale and move away from the real-state investment business in the region to more profitable region or better business. This will make the ernt go up as there is less offer as well so the policy backfires.
Stoping the market to work property will cause market failures and the outcome won't be the desired
The common long-run outcomes when cities prevent landlords from charging market rents are the quality of rental housing units falls and the quantity of available rental housing units falls. The correct options are a and c.
Landlords may be less motivated or equipped to spend money on preserving or raising the caliber of rental properties when they are unable to collect market rents.
Rent control or limitations on market rents may discourage landlords from supplying rental properties or cause a decline in the number of rental houses available. Landlords have the option to change their properties into other types of real estate or to use them for different purposes.
Thus, the ideal selections are options a and c.
Learn more about Landlords here:
https://brainly.com/question/29741978
#SPJ6
A description of the good or service, an assessment of the opportunity, an assessment of the entrepreneur, specification of activities and resources needed to translate the idea into a viable business, and the source(s) of capital together make up a(n):_________.
Answer:
opportunity analysis
Explanation:
opportunities analysis applies to the development of demand and competitive analysis, and to the evaluation of business conditions in order to have a vision for the future and to prepare tactics appropriately. opportunities analysis is a critical method for an organisation's development and needs to be done regularly
Adam Company has 100 units costing $300 in beginning inventory. During the year, the company purchases 900 units for a total cost of $2,880. At the end of the year, a physical count reveals that 200 units remain in ending inventory. If the company uses the FIFO method, the cost of ending inventory will be:
Answer:
The value of the ending inventory is $ 640
Explanation:
First we have to make a table showing the inventory movements.
Beginning inventory 100 units $ 300
Purchases 900 units $ 2,880
Ending inventory 200 units
Adam Company uses the FIFO method which means that the units sold shall be valued at the opening inventory plus purchases. The ending inventory shall be priced at the purchase value.
The unit value for purchases is $ 2,880/900 = $ 3.20 per unit.
So the value of the ending inventory shall be
200 units * $ 3.2 per unit = $ 640
Answer:
ending inventory = $620
Explanation:
beginning inventory 100 units $300 $3 per unit
purchases 900 units $2,880 $3.20 per unit
ending inventory 200 units ??? ???
Under FIFO method (first in, first out), the first units purchased (oldest) are the first units to be sold.
Since the ending inventory = 200 units and using the FIFO method:
100 units x $3 per unit = $300100 units x $3.20 per unit = $320ending inventory = $300 + $320 = $620
Amazon, the largest online retailer, has experimented with physical stores and recently bought Whole Foods. Whole Foods has almost 500 stores and gives Amazon facilities for rapid physical expansion. The general insight here is that:__________
a. to survive today, organizations need to be present in both the online and physical markets
b. Amazon recognized a bargain-priced stock in Whole Foods
c. people do not like buying groceries online
Answer:
a. to survive today, organizations need to be present in both the online and physical markets
Explanation:
Nowadays, despite emergence of online stores for buying goods or availing services, majority of the customers still prefer traditional buying i.e bricks and mortar set up.
The shift towards online purchases has been on a rise over the years yet it is not substantial enough for retailers to obviate the need for physical retail stores.
Since, consumers still shop from both, it has become essential in the current scenario for organizations to be present both in physical markets as well as set up online stores.
The insight from Amazon's strategy of acquiring Whole Foods and exploring physical stores signifies the importance for organizations to maintain presence in both online and physical markets to cater to diverse consumer preferences.
Explanation:The general insight from Amazon's acquisition of Whole Foods and their experiment with physical stores is that organizations aiming to thrive in the current market climate need to establish a presence in both the online and physical markets. This integrated approach enables businesses to cater to varied consumer preferences - those inclined towards in-person shopping experiences and those favoring the convenience of online purchases. Physical stores give Amazon facilities for fast geographical extension. The fact that Amazon bought Whole Foods doesn't necessarily indicate that it was bargain-priced stock, or people dislike buying groceries online, rather it shows the strategic intent of Amazon to create a blended online and offline retail presence.
Learn more about Market Presence here:https://brainly.com/question/32612452
#SPJ3
Look at Armenia. The money supply growth rate and the average rate of inflation are 120%. If the growth rate in real GDP was 80%, the percent change in velocity would be
Answer:
80%
Explanation:
As per the Quantity Theory of Money,
Inflation rate + growth rate of real GDP = Money supply growth rate + Growth rate of velocity
So, The percentage change in velocity is
= Average rate of inflation + growth rate in real GDP - money supply growth rate
= 120% + 80% - 120%
= 80%
As the Growth rate of velocity equals to the percentage change in velocity
"The sellers listed their property for six months on February 26 for $522,500. They agreed to pay the listing broker a 7% commission at closing on the agreed upon sale price. A buyer made an offer on the property on March 29 for $510,000. The seller countered the offer on April 1 at $517,500, and the buyer accepted the counter offer with the closing to occur on June 15. How much commission did the seller owe the listing broker, and how would it appear on the settlement statement?
Answer:
4) $36,225. Debit the seller.
Explanation:
The broker's commission = 7% of the final selling price = 7% x $517,500 = $36,225. The percentage didn't change, only the selling price changed.
Any expenses paid by the seller must be debited on the settlement statement, expenses paid by the buyer are credited.
In order to use evidence discovered during an inventory search, a police department must have a ________ criteria for doing inventory searches, like written general orders of established routines.
Answer:
standardized
Explanation:
standardized criteria refers to a set of procedure that already vetted and approved by a trusted establishment. This type of criteria will be used by experts to measure their work result.
The way polices search for evidence must follow a standardized criteria which created by the police department.
They require the polices to do so to ensure that the polices do not breach any ethical standard during the evidence search and do not overlook important findings for the case.
The average German worker worked about 400 fewer hours per year and earned nearly $14,000 less than did the average worker in the United States. Can we conclude anything about the well-being of the average German worker versus the well-being of the average worker in the United States from these data? What other measures would you like to see in evaluating the well-being of workers in these two countries?
Answer:
By itself his information doesn't tell us a lot about the well being of German and American workers because even though German workers earn significantly less than American workers, they also work less hours.
Both Germany and the US are considered developed countries and other factors must be included before determining the standard of living of the population, e.g. crime rates, pollution, income distribution, life expectancy, etc.
An e-mail message from a manager to an employee that reads "please stop by my office at your convenience" is likely to be perceived differently than a message that reads "report to my office immediately." This is based on the external factor of:
Answer:
intensity
Explanation:
Answer:
Intensity
Explanation:
The more intense an eternal factor such as loud noises and bright lights are, they more it is likely to be perceived that way by an individual. In an office setting, when a line manger sends an email to his or her direct report, asking him or her to come to the office at the employees convenience, it would not have the same intensity and high sense of urgency compared to a situation in which the same email be restructured to ask the same employee, by the same line manager, to come to the office “immediately”
Which of the following statements about sequence flows is not true? a. None of the choices. b. Sequence flows are continuous from the start event through activities and gateways, if any, to an end event in a pool. c. Sequence flows may not cross lane boundaries. d. Tokens move along sequence flows.e. Sequence flows may not cross pool boundaries.
Answer:
OPTION C
Explanation:
A sequence flow refers to the power grid among two system components. Following visitation of a component during process execution, all outgoing sequence flows will be accompanied. But two outgoing sequence flows by default will create two separate, parallel implementation routes.
Following the visitation of an entity during process execution, all outgoing sequence flows are followed. Thus two outgoing sequence flows by default will create two separate, parallel execution paths. That behavior may be altered.
Thus from the above we can conclude that the correct option is C.
Suppose a price ceiling is currently set below the equilibrium price. Now suppose that policy makers decide to lower the price ceiling. This reduction in the price ceiling will cause what to occur?
Reducing a price ceiling below equilibrium price results in an increased shortage, with suppliers offering fewer goods due to low profitability and consumers demanding more due to lower price. This lead to the rise of non-price competition methods and longer waiting times for goods.
Explanation:When a price ceiling is reduced further below the equilibrium price, it tends to create an even greater shortage in the economy. This is because the number of products/services that suppliers are willing to provide at this even lower price is far less than the quantity demanded by buyers.
Suppliers would find it unprofitable to produce goods or provide services at the lower price, leading to a reduction in the supply of such goods/services. On the other hand, consumers, enticed by the lower prices, would demand more. This situation would intensify the shortage, causing longer waiting times for goods or services, or alternative non-price competition methods to emerge.
Learn more about Price Ceiling here:https://brainly.com/question/32823769
#SPJ6
If policy makers decide to lower the price ceiling, it will cause the quantity demanded to rise and the quantity supplied to fall, leading to a larger shortage.
Explanation:A price ceiling is a maximum price allowed by the government and is typically set below the equilibrium price in order to keep prices low for consumers. If policy makers decide to lower the price ceiling, it will cause the price to decrease further. As a result, the quantity demanded will increase because consumers are willing to buy more at the lower price. Conversely, the quantity supplied will decrease because producers are less willing to supply goods or services at a lower price.
For example, let's imagine that the equilibrium price of a product is $10 and the government sets a price ceiling of $8. This would create a shortage because consumers would demand more at the lower price, but producers would be less willing to supply goods at a lower price. If policy makers then decide to lower the price ceiling to $6, the price of the product would decrease further and the quantity demanded would increase even more, creating an even larger shortage.
In summary, if policy makers lower the price ceiling, it will cause the quantity demanded to rise and the quantity supplied to fall, leading to a larger shortage.
Learn more about Price ceilings here:https://brainly.com/question/32823769
#SPJ6
The budgeted overhead cost for the year is $1,260,000. the company has estimated that one-third of the budgeted overhead cost is incurred to support the firm's two partners, and two-thirds goes to support the staff accountants. the current audit bid for monoco industries requires $18,000 in direct partner professional labor, $30,000 in direct staff accountant professional labor, $5,000 in direct material. what is the overhead rate based on a single cost driver (rounded to the nearest percentage)?
Answer:
90%
Explanation:
The computation of the overhead rate based on a single cost driver is shown below:
= Total Overheads ÷ Total Compensation
where,
Total overhead = $1,260,000
Total compensation = Compensation to partners + Compensation to staff accountants
= $560,000 + $840,000
= $1,400,000
So, the overhead rate equal to
= $1,260,000 ÷ $1,400,000
= 90%
The overhead rate, when computed using the total estimated professional labor cost as the cost driver, comes out to be 26 percent.
Explanation:The question wants us to calculate the overhead rate based on a single cost driver. Since the overhead costs are distributed between the partners and the staff accountants, we will use the estimated total professional labor cost as the cost driver to allocate the overhead costs. To start, we will add the amount spent on the partners and staff accountants to get the total estimated professional labor cost. This will be $18,000 (direct partners' labor) + $30,000 (direct staff accountants' labor) = $48,000.
Next, calculate the overhead rate by dividing the budgeted overhead cost by the total estimated professional labor cost. So, Overhead Rate = Total Overhead Cost / Total Labor Cost = $1,260,000 / $48,000 = 26.25. Thus, the overhead rate is 26 percent when rounded to the nearest percentage.
Learn more about overhead rate here:https://brainly.com/question/31953044
#SPJ3