After reviewing financial and nonfinancial criteria, you have determined that His nonsystematic risk will be decreased by selling a piece of ABC and using the proceeds to buy mutual funds.
We should be aware that the prospect in this instance has a sizable interest in the business and is consequently subject to non-systematic risk.
It is advised for the prospect to sell a portion of the chunk of the ABC stock and use the proceeds to purchase mutual funds in order to lessen the risk associated with the prospect's significant investment. Diversification like this helps to cut down on risk.
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If the required reserve ratio is 10 percent, currency in circulation is $1,200 billion, checkable deposits are $1,600 billion, and excess reserves total $2,500 billion, then the m1 money multiplier is.
The required reserve ratio can be calculated by using the equation as follows:
Excess reserve ratio = Excess reserve/Checkable deposit
2500/1600
=1.5625
Therefore, the excess reserve ratio is 1.5625.
The money multiplayer can be calculated by using the equation (1) as follows:
1+ currency ratio
Money multiplayer =
Excess reserve ratio + Currency ratio +Required reserve ratio
1+0.75
1.5625+0.75 +0.1
= 0.7253
Thus, the money multiplayer is 0.7253.
Bank loans or invests its extra reserves to earn greater hobby. A one-greenback increase in the monetary base reasons the cash delivery to grow by using more than one greenback. The boom within the money supply is the money multiplayer.
The cash multiplier is essential in macroeconomics because it determines the money supply, which impacts interest prices. It is also crucial in banking as it impacts financial policy and the stability of the banking region.
The money multiplier tells you the maximum amount the cash supply ought to increase based on an increase in reserves in the banking machine. The component for the cash multiplier is simply 1/r, in which r = the reserve ratio.
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a company factored $44,000 of its accounts receivable and was charged a 1% factoring fee. the journal entry to record this transaction would include a
The journal entry to record this transaction would include a Debit to Cash of $43,650 ($44,000 - $440), a Debit to Factoring Fee Expense of $1,350, and a Credit to Account Receivable of $45,000.
Any transaction, whether or not it is related to money, can be documented by a journal entry. Transactions are recorded in an accounting journal that shows the debit and credit balances of a company. The journal entry may contain many recordings, each of which is either a debit or a credit.
According to the logic underlying a journal entry, every business transaction should be documented in at least two locations (known as double-entry accounting). A journal entry frequently has supporting documents attached, is printed, and is preserved in a binder of accounting transactions.
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a deli sells 640 sandwiches each day when the price is $8.00. a market survey determines that for every $0.10 decrease in price, 40 more sandwiches will be sold. write the revenue function and determine the price that should be charged in order to maximize the revenue.
The price that should be charged in order to maximize the revenue is 5.6
Let x be the number of $0.10 reduction in price
Then the number of sandwiches sold will be 640+20x
The price per sandwich is 8-0.10x
So we find the domain of the price function
P ≥ 0
8-0.10x ≥ 0
x ≤ 8/0.10
x ≤ 80
Revenue function becomes
R(x) = (640+20x)(8-0.10x)
R(x) = 5120 +160x - 64x -2x²
R(x) = 5120 +96x -2x²
Now maximize the Revenue we have
R'(x) = 96 - 4x = 0
x = 96/4 = 24
x = 24
P = 8 -0.10(24) = 8 - 2.4 = 5.6
Hence in order to maximize the revenue should be the price should be $5.6
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chris used the va guaranteed loan program to purchase a home five years ago. he now wants to sell that house and buy a new one. is chris allowed to use the va loan program a second time?
Yes, but Chris will have to make an application to have his eligibility reinstated after the VA loan is repaid with the sale of the house.
What is a VA loan?An American mortgage loan with the Department of Veterans Affairs' guarantee is known as a VA loan. The program is available to American veterans, active duty service members, reservists, and certain surviving spouses. It can be used to buy manufactured homes, single-family homes, condominiums, multi-unit buildings, and new construction. The VA does not originate loans; instead, it establishes eligibility criteria, specifies minimal standards and requirements for mortgage offers, and provides financial guarantees for loans that meet program requirements. The main goals of the VA home loan program are to provide qualified veterans with mortgage financing and to assist them in making no-down payment real estate purchases. A competent lender may grant the loan.
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A monopolistically competitive firm is currently producing 20 units of output. At this level of output the firm is charging a price equal to $20, has marginal revenue equal to $12, has marginal cost equal to $12, and has average total cost equal to $18. From this information we can infer that.
A monopolistically competitive firm is currently producing 20 units of output. At this level of output the firm is charging a price equal to $20, has marginal revenue equal to $12, has marginal cost equal to $12, and has average total cost equal to $18. From this information we can infer that the firm is currently maximizing its profit.
What products will the monopolistically competitive corporation offer, and at what cost?The company creates an output where marginal revenue and marginal cost are equal, and it sets its pricing in accordance with its demand curve. Any economic gains or losses will eventually be offset by entry or exit in monopolistic competition, leaving enterprises with no economic profit.
What factors does a company in monopolistic competition consider when deciding how much production to produce?Its output level that maximizes profits is chosen by the monopolistic rival. In this instance, the Authentic Chinese Pizza company will take its marginal revenues and marginal costs into account to estimate the quantity to create that will maximize profits.
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which of the following would help a group achieve its goal? a. collaboration b. competition c. individual leadership d. emphasis on individualism
Collaboration would help a group achieve its goal .
How does collaboration help people reach their goals?
In order to achieve common objectives, collaboration enables organizations to bring together individuals with various experiences, knowledge, and talents. It offers a variety of advantages, such as combining talents, organizing significant initiatives, or developing new products.Why is group collaboration so crucial?
It fosters trust. Individuals naturally develop a greater sense of trust for one another as teams and departments connect. This improves morale throughout the entire company in addition to improving team productivity. Teams cannot interact without trust, and if teams cannot work together, innovation will not take place..Learn more about collaboration
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the marketing manager would like to introduce sales commissions as an incentive for the sales staff. the marketing manager has proposed a commission of $11 per unit. in exchange, the sales staff would accept a decrease in their salaries of $65,000 per month. (this is the company's savings for the entire sales staff.) the marketing manager predicts that introducing this sales incentive would increase monthly sales by 300 units. what should be the overall effect on the company's monthly net operating income of this change?
The marketing manager has proposed a commission of $11 per unit. in exchange, The overall effect on the company's monthly net operating income of this change is $40,960.
New contribution margin ($154 - $11)=143
New unit monthly sales (9,800 + 320)=10,120
New total contribution margin (10,120 units * 143 per unit)= 1,447,160
Present total contribution margin (9,800 units * 154 per unit)=1,509,200
Changes in total contribution margin=(62,040)
Plus Savings in sales person's salaries= 103,000
Change in net operating income $40,960.
Marketing is the activity, set of institutions, and processes that create, communicate, deliver and exchange services of value to customers, customers, partners, and society as a whole. In short, it is an action taken to draw attention to the company's services; it can be physical goods for sale or services provided.
Common examples of marketing in the workplace include television commercials, roadside billboards, and magazine ads. The importance of marketing for your business is to make your customers aware of your product or service, engage them, and help them make a purchasing decision.
Additionally, a marketing plan, part of your business plan, helps create and maintain demand, relevance, reputation, competition, and more.
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price of labor is affected by the marginal product of labor
The price of labor is said to be affected by the marginal product of labor. As the marginal product of labor tends to take into account the marginal value of each additional product.
The marginal product of labor is considered to be the change in output wherein the additional labor is said to be added, such as when an additional employee is hired. So, it is quite important in order to point out that all other factors remain constant.
However, the price of labor is said to be affected by the marginal product of the labor. Thus, as the marginal product of labor tends to take into account the marginal value of the each additional product.
Hence, the marginal product of labor is a company's total output which increases when it adds a single labor unit.
The given question is incomplete, so the complete question is here-
How is the price of labor affected by the marginal product of labor?
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Brief explanation on how the Uber company’ miion tatement i contributing toward
achieving the company’ goal and objective
Uber's project declaration manner that We are a tech enterprise that connects the bodily and virtual worlds to assist make motion show up at the faucet of a button.
The required details for Uber in given paragraph
Uber Technologies Inc.'s (UBER) explosive boom and regular controversy make it one of the maximum charming corporations to emerge over the last decade. The worldwide ride-sharing application, based in 2009, disrupted current transportation as we are aware of it and at one factor grew to grow to be the highest-valued non-public startup enterprise within side the world. Ten years after its founding, Uber went public on May nine, 2019. Though the street has been bumpy,
Uber stays a first-rate enterprise within side the ride-sharing space. In its maximum latest quarterly profits release, for Q2 monetary year (FY) 2021, Uber suggested a internet earnings of $1.1 billion, $3.nine billion in revenue, and 1.five billion journeys on its platform.
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There are many differences between a market served by a monopoly and a market that is perfectly competitive. Indicate whether each item is associated with a single-price monopoly, perfect competition, or is true of both market structures.
In a monopolistic market, there is only one company that has complete market dominance and sets the prices and levels of supply for goods and services.
What is the main difference between a monopoly and a perfectly competitive market?In a monopolistic market, there is only one company that has complete market dominance and sets the prices and levels of supply for goods and services.In contrast to a monopolistic market, which is made up of just one firm, a perfectly competitive market is made up of numerous firms.By deliberately limiting supply, which lowers output and raises prices, a monopolist generates positive economic profit.This does not occur in a completely competitive market, when total surplus is maximized.As a result, a completely competitive market produces more than a monopoly.To learn more about monopolistic market refer,
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if jack were to have shared the secret recipes with friends during his ownership of the restaurant, could he still claim that they are trade secrets?
No, once the secret recipes are divulged to a third party, it is no longer a trade secret. Hence, the correct answer is Option D.
Since the recipe is divulged, it can't be a trade secret. Assuming that Sophia has invented the recipes during the course of her duty and uses the resources of the restaurant, Jack (strictly speaking the restaurant) becomes the owner of the trade secret. Hence Jack would own any intellectual property rights in the recipes since it was at his restaurant. If there is trade secret protection for the recipes, the protection would last forever, as long as the recipes are not revealed to others.
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suppose the nominal exchange rate between the japanese yen and the u.s. dollar is 100 yen per dollar. further, suppose that a pound of hamburger costs $2 in the united states and 250 yen in japan. what is the real exchange rate between japan and the united states? a. 0.5 pound of japanese hamburger/pound of american hamburger b. 0.8 pound of japanese hamburger/pound of american hamburger c. 1.25 pounds of japanese hamburger/pound of american hamburger d. 2.5 pounds of japanese hamburger/pound of american hamburger e. none of the above
The actual change fee (RER) between two currencies is the nominal exchange charge (e) extended via the ratio of expenditures between the two countries, P/P*. The RER therefore is eP*/P.
What change price gadget does Japan use?In 1973, Japan moved to a floating alternate fee system. The contemporary change charge of the yen, when measured by way of the actual effective exchange rate, which roughly suggests the worldwide competitiveness of Japanese businesses, is about 30 percentage under the common charge over the nearly half of century seeing that 1973.
Why is the Japanese alternate fee so low?The yen has weakened past a hundred and forty per dollar for the first time in nearly a quarter century, typically because Japan's central bank is preserving interest charges at rock-bottom ranges whilst the Federal Reserve and different central banks are conducting outsized rate hikes.
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https://brainly.com/question/2202418#SPJ4due to some of the 11,000 trade regulations that specify how goods are to be made and marketed, japanese car safety rules effectively require all automobile replacement parts to be japanese. rules like these often function as multiple choice universal codes. binding requirements. trade barriers. targets for bribery. economic infrastructure.
In addition to about 11,000 other trade regulations that specify how goods are to be made and marketed, Japanese car safety rules effectively require all automobile replacement parts to be Japanese. Rules like these often function as trade barriers.
Trade barriers are authorities-induced regulations on international change. in keeping with the idea of comparative advantage, exchange barriers are adverse to the sector's financial system and decrease average economic efficiency.
TANC classifies foreign alternate limitations within 4 wide sorts: Border obstacles, Technical boundaries to change, government affect obstacles and enterprise environment barriers.
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_________ determines the point at which the cumulative dollar value of the benefits from a project equals the investment made in the project.
Breakeven analysis determines the point at which the cumulative dollar value of the benefits from a project equals the investment made in the project.
Describe break-even analysis using examples.Assume a company has $1 million in fixed costs and a 37% gross margin. $1 million divided by 0.37 results in $2.7 million as the break-even point. In the aforementioned example, the company needs to generate $2.7 million in revenue to meet its fixed and variable expenses. The business will make money if it boosts sales.
What makes it important?Small business owners are advised on how much product needs to be sold in order to be profitable by a calculation called a breakeven analysis. It helps entrepreneurs create a pricing strategy that will cover costs and generate a gross profit.
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Why is there a need to compare and align your pecs with the pecs of a successful entrepreneur?.
PECs, or Personal Entrepreneurial Competencies, are what you need to compare and align with the pecs of a successful entrepreneur.
It is described as those skills or character traits that a successful entrepreneur must possess. The likelihood of someone succeeding as an entrepreneur increases with the degree to which they exhibit these qualities.
An entrepreneur is a person who starts a new business, taking on the most of the risks and reaping the majority of the gains. The term Competencies "entrepreneurship" refers to the act of starting a business. The entrepreneur is frequently viewed as an innovator, a source of novel concepts, products, services, and/or business models.
In any economy, entrepreneurs play a crucial role because they have the knowledge and drive to foresee demands and market valuable new ideas. Profits, notoriety, and prospects for ongoing expansion are given to entrepreneurialism that succeeds in assuming the risks involved in Competencies founding a startup. Failure in entrepreneurship costs the participants money and reduces their visibility in the market.
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a key change in the order delivery component of the order cycle is that more and more shippers are emphasizing both the elapsed transit time and transit time variability. true false
It's true that a major change inside the order delivery portion of the ordering process is the increasing emphasis placed by shippers on both the total transit time and the variance in that time.
How much transit time is there?Distance, transportation method, route, and season all have an affect on how quickly freight is transported. Express delivery can take as short as 1-3 days, air cargo normally takes 5-ten days, and sea shipment can take anywhere between 20 and 45 days or longer.
How is travel time calculated?When utilizing the default logic of the Premier Order Management Software, the transit time is determined as follows: A set unit shipping time + (the range between the ship-to and shipping locations/the average distance per day). The two zip codes included in the calculation's longitude and latitude are used to determine the distance.
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a company you are considering investing in has a dividend of $0.40 per share. if you have a required return of 12% and the dividend is expected to grow at 3% per year, the discounted dividend valuation model would value the stock at: question 3 options: $5.50. $4.58. $4.98. $5.89.
The company has dividend $0.40 per share. With rate of return 12% and dividend growth rate 3% per year, the value of the stock is $4.58
The dividend discount model is an approach for projecting the price of a company's stock based on the premise that its current price is equal to the sum of all future dividend payments when discounted back to their present value.
The formula for dividend discount model:
Value of stock = ed / (cce - dgr)
Where:
ed = expected dividend per share
cce = cost of capital equity
dgr = dividend growth rate
Using parameters given in the problem:
Expected dividend per share = 0.4 x (1 + 0.03) = 0.412
Value of stock = 0.412 / (0.12 - 0.03) = 4.58
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newson minerals is considering a project that will require the purchase of $479,000 of equipment. the equipment will be depreciated straight-line to a zero book value over the five-year life of the project after which it will be worthless. the required return is 12 percent and the tax rate is 25 percent. what is the value of the depreciation tax shield in year 4 of the project assuming no bonus depreciation is taken?
The value of the depreciation tax shield in year 4 of the project assuming no bonus depreciation is taken is $23,950.
What is a depreciation tax shield?A depreciation tax shield is a tax-saving strategy in which depreciation expense is deducted from taxable income. The amount by which depreciation protects the taxpayer from income taxes is calculated by multiplying the applicable tax rate by the amount of depreciation.
A tax shield is a reduction in taxable income achieved by claiming allowable deductions such as mortgage interest, medical expenses, charitable contributions, amortization, and depreciation.
Given,
Purchase cost = $479,000
Number of years = 5
Required return = 12%
Tax rate = 25%
Now,
Calculating the value of the depreciation tax shield,. the formula will be:
Depreciation tax shield = ( Purchase cost / Number of years ) * tax rate
Depreciation tax shield =( $479,000 / 5 ) * 25%
Depreciation tax shield = $95,800 * 25%
Depreciation tax shield = $23,950
The Depreciation tax shield is $23,950.
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what shipping term should mavis include in the contract to ensure juno carries the risk of loss until the sculpture leaves the ship?
When the items leave the ship, the buyer assumes the risk of loss, according to the maritime idiom "delivery ex-ship" (delivery from the carrying vessel).
When a business, like Dell, ships a product to a customer, it alters the customer's name as soon as the package is sent out for delivery by a common carrier.
In the event that a computer is damaged after being delivered to the carrier, Dell is not liable.
If FedEx has a policy for ensuring the product's safety during delivery, it will either be responsible for the damage to the computer or will not be. If not, the purchaser is liable for any harm. However, once it has given the product to FedEx for delivery, Dell will not be held accountable in any of the scenarios.
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grant enjoys investing in older, single-family homes with status that also offer a tax credit of as much as 20% to offset any necessary renovation expenses. what type of investment opportunity does this describe?
The type of investment opportunity does this describe is Conversion investment opportunity.
When you choose between two or more possibilities, you incur an opportunity cost, which is the cost of what you lose. Regardless of what you stand to lose by choosing, you believe that the decision will benefit you more in the long run.
Your investing decisions will always result in immediate and long-term losses or gains, according to the concept of opportunity cost. Take the decision to sell stock shares now or to keep them and sell them later as an example. It's true that an investor could sell their stock right away and lock in any gains they might have, but they would forfeit any potential future gains.
Choosing between going to work and choosing to go to a movie is a straightforward example of opportunity cost.
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when apple first introduced the iphone, some consumers were willing to pay the premium $599 price tag. what pricing strategy was apple using?
Some customers were prepared to pay the $599 price tag when Apple first released the iPhone. Apple employed a Price Skimming tactic and eventually reduced the price.
Price skimming: what is it?Skimming is a pricing technique that involves setting initial product prices high and then lowering them as competitors enter the market. Skim pricing is the reverse of penetration pricing, which sets low initial rates for newly launched products in an effort to attract a large consumer base.
During the first launch phase, electronic products, like the Apple iPhone, frequently employ a price-skimming technique. After rival goods, like as the Samsung Galaxy, are introduced by competitors, the price of the product drops to maintain its competitive advantage.
What is price skimming's key advantage?Price skimming generates greater initial sales figures to pay R&D expenses. By holding onto interest for a longer period of time, you may see better returns on your investment. At each price point, you can segment your consumer base using various marketing techniques.
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managers who are believe that their native country, culture, language, and behavior are superior to all others.multiple choice question.
Managers who believe that their native country, culture, language, and behavior are superior to all others are Ethnocentric.
What is Ethnocentric?The term "ethnocentrism" refers to cultural or ethnic prejudice, whether conscious or unconscious, in which a person sees the world through the lens of his or her own group, setting their own group as the archetypal group and evaluating all other groups in light of this ideal.When someone feels that their own cultural group is superior to others, they are said to be ethnocentrists. People who are ethnocentric will think that the beliefs, ideas, values, and practices of their own culture are correct, and they will judge other ethnic groups by the criteria of their own culture.Ethnocentrism refers to the belief held by managers that their own nation, culture, language, and conduct are superior to all others.Therefore, managers who believe that their native country, culture, language, and behavior are superior to all others are Ethnocentric.
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on january 1, 2024, a company acquired land for $6.6 million. the company paid $1.4 million in cash and signed a 7% note requiring the company to pay the remaining $5.2 million plus interest on december 31, 2025. an interest rate of 7% properly reflects the time value of money for this type of loan agreement. what amount of interest expense, if any, would the company record on december 31, 2024 (one year later)? multiple choice $182,000 $364,000 $0 $728,000
The interest expense that the company would record on december 31, 2024 (one year later) is $364.000. Therefore, the answer is B (or the second multiple choice answer).
What is interest expense?It is the cost incurred by an entity for borrowed funds. Interest expense is a non operating expense shown on the income statement. It represents interest payable on any borrowings - bonds, loans, convertible debt or lines of credit. It is essentially calculated as the interest rate times the outstanding principal amount of the debt.
How to calculate the interest expense that the company would record?
The land original cost price is $6.6 million ($1.4 million as down payment in cash, and $5.2 million is payable after 2 years with 7% interest)
The interest payment will be recognized as finance cost
Interest cost at december 31, 2024 (one year later) would be
= $5.200.000 * 7% * 1 year
= $364.000
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a form of compensation whereby the employee receives a predetermined amount of benefit dollars to spend on a benefits package he or she has selected to meet individual needs is called a(n)
A flexible benefits plan is a type of pay wherein the employee receives a predetermined amount of benefit dollars to spend on a benefits package they have chosen to suit their particular needs.
What exactly is a flexible benefits plan?Employers can control their costs while providing health coverage that is appropriate for their employees' requirements by offering flexible benefits. You decide how many credits your employees should have access to in order to purchase their benefits coverage.
Employees can choose the level of coverage they require, whether it's the entire package or only the parts that apply to them specifically. Any unused credits may be carried over to the following plan year or a Health Spending Account by the employee. Flexible benefit plans provide employees with more options when it comes to their benefits and give companies the chance to:
By specifying the money to be spent, they may control their costs.Increasing employee understanding of benefit costsEncourage staff to exercise more caution when making purchases for medical services.Learn more about flexible benefits plans with the help of the given link:
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most independent craftspeople flourished in the economic environment promoted by the new capitalist class. true false question. true false
Most independent craftspeople flourished in the economic environment promoted by the new capitalist class False.
Which scientific developments fueled the expansion of American journalism in the 1840s?The telegraph's invention in the late 1840s accelerated news reporting and dissemination; the Associated Press was established in 1849 to make use of the new technology.
What factors led to the decline of commercial capitalism in the middle of the 1800s?In the 1840s, merchant capitalists continued to play significant roles in places like New York, Philadelphia, and Boston. However, merchant capitalism was in decline overall, largely due to the fact that manufacturing offered more lucrative chances for profit.
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deregulation or removal/reduction of government regulations to allow industries to operate businesses more freely and remove corporate restrictions leads to which drawback? g
It leads to the lack of financial-costly Deregulation, firms will be forced to compete more fiercely, especially with overseas corporations.
Deregulation, the repeal or modification of laws, or other businesses control requirements. Deregulation frequently takes the form of completely getting rid of regulations or changing them to make them less impactful. Only by legislation, the President giving an executive order, or a federal agency ceasing to enforce the rule can an industry be deregulation.
Advantages of Deregulation
Because there are fewer barriers for new enterprises to enter the market, there is more competition, which boosts economic activity.
As businesses compete with one another, increased market rivalry boosts innovation and accelerates market growth. Prices for customers decrease when more businesses engage in competition.
Companies are no longer required to use cash and resources to meet deregulation and abide by rules. They can then utilize the funds to fund research and development. Without worrying about limitations or rules governing them, businesses can operate. They are unrestricted in their ability to create new products, set their own prices, enter new markets, acquire new assets, and engage with customers.
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one way in which a homeowner can set aside funds for future real estate taxes and property insurance premiums is to make regular payments into
One way in which a homeowner can set aside funds for future real estate taxes and property insurance premiums is to make regular payments into an impound account set up by the lender.
Your mortgage lender creates an escrow account, often known as an impound account depending on where you live, to cover specific property-related costs.
An amount from your monthly mortgage payment is used to fund the account. Because you send money through your lender or servicer each month rather than having to pay a sizable bill once or twice a year, an escrow account makes it easier for you to cover these costs.
To ensure that the bill is paid, many lenders demand that you pay your taxes and insurance through escrow. The escrow account will be handled by your mortgage servicer, who will also pay these bills on your behalf. Escrow accounts can occasionally be mandated by law.
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Which statement about holding costs, also known as carrying costs, are correct? (select all that apply.)A) Carrying costs can be negative.B) Carrying costs can be stated as a percentage of item price,C) Carrying costs can be stated as a constant.D) Carrying costs are assumed to be zero.
The correct statements about holding costs or carrying costs are:
(B) Carrying costs can be stated as a percentage of the item price.
(C) Carrying costs can be stated as a constant.
What are the carrying costs?The numerous expenses a business incurs for keeping inventory on hand are known as carrying costs.
Taxes, insurance, personnel costs, and opportunity costs are some examples of carrying costs.
You can define carrying costs as a constant.
A percentage of the item price can be used to represent carrying expenses.
Add up the costs listed above for capital, storage, labor, transportation, insurance, taxes, administration, depreciation, obsolescence, and shrinkage over a year in order to calculate inventory carrying costs.
Then multiply the result by 100 to get a percentage by dividing those carrying expenses by the overall inventory value.
The cost of an asset less accumulated depreciation is its carrying amount, sometimes referred to as its carrying value. Since it must be calculated, the carrying amount is typically excluded from the balance sheet.
Therefore, the correct statements about holding costs or carrying costs are:
(B) Carrying costs can be stated as a percentage of the item price.
(C) Carrying costs can be stated as a constant.
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a policy designed to ensure that sellers receive a minimum price that is greater than what would be available at the market is a price .
a policy designed to ensure that sellers receive a minimum price that is greater than what would be available at the market is a price floor.
A price floor is a restriction on how low a price can be charged for a good, commodity, or service that is set by the government or another party. To be effective, a price floor needs to be greater than the equilibrium price.
The price at which economic forces like supply and demand are balanced and, in the absence of outside influences, the (equilibrium) values of economic variables will not change is known as the equilibrium price, also known as the "market price."
It is frequently described as the point at which quantity demanded and quantity supplied are equal (in a perfectly competitive market). To prevent particular prices from falling too low, governments utilize price floors.
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Empirical statements describe how the world should be. Normative statements describe how the world is.
A declaration outlining how the sector must be. is a statement of the norm. A normative statement implies a cost judgment based on how a situation appears. Regular cost assessments are presented in this normative statement.
What do empirical statements mean?Empirical statements don't evaluate the social reality; they merely describe it. They are assertions that can be empirically evaluated. Beginning students enter class oblivious of the many types of claims they are making, but with enough practice, they can grow to recognize the distinctions.
What do normative statements refer to?
A normative statement articulates a value judgment regarding the desirableness of a circumstance. A normative statement also referred to as a negative statement, is intended to discuss how the world should be, as opposed to a descriptive statement, which is intended to explain the world as it is.
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