Business

Suppose the equilibrium price of textbooks is $40 a textbook. At that price, quantity of textbooks demanded and supplied is 20,000. If a $5 tax per textbook paid by producers increases the price paid by consumers to $42 a textbook and reduces equilibrium quantity sold to 18,000, then:A. elasticity of demand is 0.89. Consumers pay a larger portion of the tax.B. elasticity of demand is 0.46. Consumers pay a smaller portion of the tax.C. elasticity of demand is 2.16. Consumers pay a larger portion of the tax.D. elasticity of demand is 2.16. Consumers pay a smaller portion of the tax
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When an economist talks about utility, she is talking about A. a company that provides electricity, water, gas, etc. B. the satisfaction, in terms of price, that a producer receives from selling his product C. the amount of one good that a person is willing to give up in order to get a unit of another good D. the satisfaction that results from the consumption of a good E. the satisfaction that results from the consumption of a good minus the price that must be paid to get the good
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Part Three: Neighboring WSU dropped their tuition and fees by 14 percent and TTA saw enrollment fall from 8,400 to 7,400. What is the cross elasticity between the two schools.?
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When the partners of a business develop an arrangement whereby should one of them die or become permanently disabled, the other partners would purchase the interest of the deceased or disabled partner at a predetermined price, this is called a/an:
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To survive and prosper, a business must gain and sustain ______ major competitive advantages over rival firms. A. as many as one hundred B. one C. at least several D. two E. at least fifteen
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The employees of Sinclair Services Company worked the last two weeks of December. They received their paychecks on January 2. Which of the following accounts should appear on the balance sheet as of December 31? A) Salaries Payable B) Salaries Expense C) Prepaid Expense D) Accounts Payable
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Five years ago, Jane invested $5,000 and locked in an 8 percent annual interest rate for 25 years (end 20 years from now). James can make a 20-year investment today and lock in a 10 percent interest rate. How much money should he invest now in order to have the same amount of money in 20 years as Jane?
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There is a fixed cost of $50,000 to start a production process. Once the process has begun, the variable cost per unit is $25. The revenue per unit is projected to be $45. a. Write an expression for total cost. b.
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Candace uses an office in her home exclusively for her business. The business use of the home is 100 square feet out of 2,000 square feet for the entire home. The total expenses to allocate are $3,000. Candace wishes to maximize her deduction in the current year. What is the amount of her home office deduction before any income limitations?
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Latisha is shopping for a car and an auto loan to purchase the car. All of the following statements are true, except: If Latisha applies for credit at multiple auto lenders for the same amount within the same week, most credit scoring models will treat this as one credit application. All of these answer statements are exceptions. Latisha should avoid shopping for the lowest auto loan interest rate possible, because multiple credit applications will cause her credit score to go lower, leading to a higher interest rate. Latish should shop around at different lenders to find the best loan terms possible for her auto loan.
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" Lanni Products is a start-up computer software development firm. It currently owns computer equipment worth $30,000 and has cash on hand of $20,000 contributed by Lanni's owners. For each of the following transactions, identify the real and/or financial assets that trade hands. Are any financial assets created or destroyed in the transaction?a. Lanni takes out a bank loan. It receives $50,000 in cash and signs a note promising to pay back the loan over three years.b. Lanni uses the cash from the bank plus $20,000 of its own funds to finance the development of new financial planning software.c. Lanni sells the software product to Microsoft, which will market it to the public under the Microsoft name. Lanni accepts payment in the form of 1,500 shares of Microsoft stock.d. Lanni sells the shares of stock for $80 per share and uses part of the proceeds to pay off the bank loan."
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Vargas Company uses the perpetual inventory method. Vargas purchased 600 units of inventory that cost $7.00 each. At a later date the company purchased an additional 1,000 units of inventory that cost $8.00 each. Vargas sold 700 units of inventory for $11.00. If Vargas uses a FIFO cost flow method, the amount of cost of goods sold appearing on the income statement will be:
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On January 1, 2015, Anodel Inc. acquired a machine for $1,000,000. The estimated useful life of the asset is 5 years. The residual value at the end of 5 years is estimated to be $50,000. What is the book value of the machine at the end of 2016, if the company uses straight-line depreciation method.a. $550,000b. $570,000c. $620,000d. $600,000
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On September 30, Valerian Co. had a $110,000 balance in Accounts Receivable. During October, the company collected $110,390 from its credit customers. The October 31 balance in Accounts Receivable was $104,000. Determine the amount of sales on account that occurred in October.
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Is it possible that a firm's production function exhibits increasing returns to scale while exhibiting diminishing marginal productivity of each of its inputs? To answer this question, calculate the marginal productivities of capital and labor for the production of Crocs using the production functionq=AL^K^=21.5L^0.85K^0.5A.) This production function exhibits: (Increasing or Diminishing?) marginal product for labor and (Increasing or diminishing?) marginal product for capital?B. This production function exhibits (increasing, decresing, or constant?) returns to scale?C. Therefore, a production function (can or cannot?) exhibit diminishing marginal returns while exhibiting increasing returns to scale.
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Which of the following is NOT one of the components of a company's microenvironment?A.CompetitorsB.Marketing intermediariesC.Cultural forcesD.Customer marketsE.Suppliers
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Crisp Cookware's common stock is expected to pay a dividend of $3 per share at the end of this year; its beta is 0.9; the risk-free rate is 5.2%; and the market risk permium is 6%. The dividend is expected to grow at some constant rate g, and the stock currently sells for $40 per share. What does the market believe will be the stock's price three years from now?
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When a customer is able to benefit from a good or service on its own or together with other readily available resources, the good or serviceA) is distinct.B) is interdependent.C) is a contract.D) uses variable consideration.
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Concerning the classification of customers in the business market, General Motors is a(n) _________ when purchasing a mainframe computer system from IBM, but is a(n) ________ when purchasing tires from Goodyear. a. user; original equipment manufacturer (OEM) b. user; distributor c. original equipment manufacturer (OEM); user d. user; upstream supplier e. original equipment manufacturer (OEM); downstream supplier
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In a job order costing system, a credit to Finished Goods Inventory will be accompanied by a debit to A. WorkminusinminusProcess Inventory B. Sales Revenue C. Accounts Receivable D. Cost of Goods Sold
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Assume that a consumer can buy only two goods, A and B, and has an income of $100. The price of A is $10 and the price of B is $20. What is the slope of the budget line if A is measured horizontally and B is measured vertically?
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It takes twice as long to fly to city A as it takes to fly to city B. It takes longer to fly to City B than it takes to fly to City D. It takes the same amount the same amount of time to fly to City A and City C It takes less time to fly to City E than City A Which must be true?
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A store has a disproportionately large primary, secondary, and fringe trading area. This situation can be caused by ________. A) a high level of prices B) its being a destination store C) physical barriers D) high competition in each trading area
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These facts provide evidence that Canada has a A)mixed economy. B)market economy. C)command economy. D)traditional economy
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