i) To compute the GDP of the economy, we can use three different methods: the production approach, the expenditure approach, and the income approach. Let's calculate the GDP using each method:
Production approach:
GDP = Value of final goods and services produced
For flour producers:
Value of flour sold to bread makers = 300 kilos * $0.5/kilo = $150
Value of flour sold to final consumers = 240 kilos * $0.5/kilo = $120
For bread producers:
Value of bread sold to domestic consumers = 170 kilos * $2/kilo = $340
Value of bread exported = 75 kilos * $2/kilo = $150
GDP = ($150 + $120) + ($340 + $150) = $760
Expenditure approach:
GDP = Consumption + Investment + Government spending + Net exports
Consumption = Value of bread sold to domestic consumers = $340
Investment = 0 (not given in the information)
Government spending = 0 (not given in the information)
Net exports = Value of bread exported - VAT on exported goods
= $150 - 10% of $150 = $150 - $15 = $135
GDP = $340 + $0 + $0 + $135 = $475
Income approach:
GDP = Total factor income (wages + profits + taxes on production - subsidies)
For flour producers:
Wages = $200 (given)
Profits = Value of flour sold to bread makers - wages = $150 - $200 = -$50 (negative because it's a loss)
Taxes on production = 10% of ($150 + $120) = $27
For bread producers:
Wages = $220 (given)
Profits = Value of bread sold to domestic consumers - wages = $340 - $220 = $120
Taxes on production = 10% of ($340 + $150) = $49
GDP = ($200 - $50 + $27) + ($220 + $120 + $49) = $566
The answers are not the same for the three possibilities. The production approach gives a GDP of $760, the expenditure approach gives a GDP of $475, and the income approach gives a GDP of $566.
ii) To calculate the shares of GDP attributable to labor income, capital income, and indirect taxes, we can use the income approach.
Labor income = Wages paid to workers
Capital income = Profits earned by producers
Indirect taxes = Taxes on production
Labor income share = (Labor income / GDP) * 100
Capital income share = (Capital income / GDP) * 100
Indirect taxes share = (Indirect taxes / GDP) * 100
Using the values from the income approach calculations:
Labor income share = (($200 + $220) / $566) * 100 ≈ 73.93%
Capital income share = (($120 + (-$50)) / $566) * 100 ≈ 12.25%
Indirect taxes share = (($27 + $49) / $566) * 100 ≈ 14.82%
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Match the description with the key term it represents.
A combination of class work, study, practical
experience and testing
Evidence of one's claim to authority
Collection of everything that showcases your
abilities
portfolio
certification
credential
The descriptions have been matched with the key term they represents as follows:
Portfolio - Collection of everything that showcases your abilitiesCertification - A combination of class work, study, practical experience and testingCredential - Evidence of one's claim to authorityWhat is a portfolio?A portfolio refers to the collection of the working experience of an individual. The portfolio of a person shows cases their abilities and convices potential buyers of the qualified state of the person. It builds trust and helps people to easily purchase things from the individual.
A credential is an evidence of one's claim of expertise in the field. An individual with goood credentials will find it easier to get jobs. Then, certification is awarded to people who have completed a record of educational courses and is proven to now have the requisiste knowledge to excel in an area.
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Which of the following is incorrect? a. Free cash flows to firm (FCFF) is available to debtholders only b. FCFF is always discounted by WACC c. FCFE is referred to as potential dividend d. Free cash flows to equity (FCFE) is available to shareholders only
The correct answer is a. Free cash flows to firm (FCFF) is available to debtholders only. FCFF represents the cash flow available to all stakeholders of a company, including debtholders and shareholders. It is calculated by subtracting operating expenses, taxes, and investments in fixed assets from a company's operating cash flow.
b. FCFF is not always discounted by WACC. The Weighted Average Cost of Capital (WACC) is a discount rate used to calculate the present value of future cash flows. While it is commonly used to discount FCFF, other discount rates can also be used depending on the specific circumstances.
c. FCFE (Free cash flows to equity) is not referred to as potential dividend. FCFE represents the cash flow available to shareholders after accounting for debt obligations and reinvestment needs. It can be used for various purposes like reinvestment in the business, paying dividends, or buying back shares.
d. FCFE is available to shareholders only. FCFE is the cash flow that is accessible to shareholders after meeting debt obligations and reinvestment needs. It represents the cash that can be distributed to shareholders in the form of dividends or retained earnings.
So, the incorrect statement is a. FCFF is available to debtholders only. FCFF is available to all stakeholders, including debtholders and shareholders.
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FCFF is not only available to debtholders but to all stakeholders. The correct option is a. Free cash flows to firm (FCFF) is available to debtholders only.
a. Free cash flows to firm (FCFF) is available to debtholders only.
FCFF is not only available to debtholders but to all stakeholders, including both debtholders and equity shareholders. FCFF represents the cash flow generated by a firm that is available to both debtholders and equity shareholders after deducting necessary investments in fixed assets and working capital.
b. FCFF is always discounted by WACC.
FCFF is typically discounted by the weighted average cost of capital (WACC) when calculating the present value of future cash flows. However, there may be cases where alternative discount rates, such as the cost of equity or the cost of debt, are used depending on the specific circumstances of the firm or project being evaluated.
c. FCFE is referred to as potential dividend.
FCFE (Free cash flows to equity) represents the cash flow available to equity shareholders after deducting necessary investments in fixed assets and working capital, as well as debt-related payments. While FCFE can be used to pay dividends, it is not solely referred to as potential dividend. FCFE can also be used for share repurchases, debt reduction, or reinvestment in the company.
d. Free cash flows to equity (FCFE) is available to shareholders only.
This statement is correct. FCFE represents the cash flow available to equity shareholders after deducting necessary investments in fixed assets and working capital, as well as debt-related payments. Therefore, FCFE is specifically available to shareholders only.
The correct option is a. Free cash flows to firm (FCFF) is available to debtholders only.
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30 POINTS :D
If someone you don't know asks where you go to school, what should you do?
A. Don't respond
B. See if they're a friend of a friend
C. Ask why they want to know
D. Lie to them
Which of the following revenue and expense items would not be associated with operating leases on the books of the lessor? A. Amortization of initial direct costs B. Depreciation expense C. Rental revenue D. Sales revenue
An operating lease can be seen as a rental agreement, with the lessor maintaining ownership of the asset. The correct option is C. Rental revenue.
Operating lease is an agreement between a lessor and a lessee in which the lessor conveys the right to use the asset to the lessee for a specified period in exchange for rent, without transferring ownership rights. The rental expense incurred by the lessee and rental revenue earned by the lessor is recognized in the financial statements in operating leases.
Operating leases are not recognized as asset acquisitions. As a result, depreciation expenses are lower for lessors. The lessor will only record depreciation of the leased asset in the financial statements to the extent that it expects to use the asset for the term of the operating lease.
Amortization of initial direct costs is another item associated with operating leases on the books of the lessor. Initial direct costs are costs that are incurred to facilitate the lease transaction and are directly associated with the lease. Sales revenue is not an item associated with operating leases on the books of the lessor. Operating leases are not recognized as asset acquisitions, and as a result, there is no sale of the leased asset. C. Rental revenue.
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5. Which of the following is an example of budgeting?
A. Mike spends all of his money on comic books.
B. Robert sets aside a certain amount each month to afford a new basketball hoop.
C. Jeremy considers what he wants to do after high school.
D. Alan earns money by putting his money in a bank account.
Answer:
correct answer is B
Explanation:
Mike does not budget, because budgeting means actively spending less to save for something else, but mike spends all his money on comics.
Robert is budgeting so he can buy a new basketball hoop
Jeremy is thinking through a complex question that has nothing to do with money spending or saving
Alan doesn't make sense because the only money you get by banking your money is annual interest but i know he isn't budgeting.
Eliza Conner owns a small clothing boutique. Eliza uses her personal checking account for both business and personal needs. How would you convince Eliza that she should open a separate
bank account for her business?
Answer:
1. It will cause them confusion throughout the tax calculating process.
2. Using a single account will make it difficult to keep payroll records.
3. Keep track of your personal expenses and earnings.
Explanation:
1. It is preferable to establish a separate account to separate the firm's actual income and expenses.
2. Payroll expenses are indistinguishable from personal expenses.
3. This allows you to cross-check bank and hand-made documents for income and expenses. Because cash transactions may not be recorded in the bank account, the entrepreneur should preserve receipts in order to compute revenue and expenses, which may result in erroneous financial statements.
A man is running on the straightroad with the uniform velocity of 3m/s. Calculate acceleration produced by him.
Answer:
acceleration =0 m/s^2
Explanation:
Acceleration is defined as the rate of change in velocity. If there’s no change in velocity, then the rate of change is zero, hence the acceleration is zero. The question says the man is running at a uniform velocity (i.e. he’s running at a steady speed in a fixed direction). This means his velocity is constant, or unchanging. Hence, his acceleration is zero.
Obviously everything I said in the above paragraph only concerns his horizontal velocity. To get even more specific, it only concerns the horizontal velocity of his centre of mass. Vertically, he is of course experiencing upward and downward downward acceleration due to how his feet push against the floor as he runs. And his limbs accelerate and decelerate as well, to allow him to run.
But looking at the man’s horizontal motion as a whole, and thinking of his motion as being entirely represented by his centre of mass, his acceleration is 0.
1) Record the adjusting journal entry for each of the following: a. Allowance for Doubtful Accounts has a credit balance of $835 prior to adjustment. Aging and Analysis of accounts receivables show doubtful accounts of $12,750. b. Allowance for Doubtful Accounts has a debit balance of $645 prior to adjustment. Aging and Analysis of accounts receivables show doubtful accounts of $12,750. c. Allowance for Doubtful Accounts has a credit balance of $2,175 prior to adjustment. Uncollectible accounts are estimated to be 1.75% of sales, which totaled $2,000,000 for the year. d. Allowance for Doubtful Accounts has a debit balance of $1,340 prior to adjustment. Uncollectible accounts are estimated to be 1.75% of sales, which totaled $2,000,000 for the year
a. Allowance for Doubtful Accounts has a credit balance of $835 prior to adjustment. Aging and Analysis of accounts receivables show doubtful accounts of $12,750.
The adjusting journal entry is:-
Debit the expense account (Bad Debt Expense) for $12,750Credit the asset account (Allowance for Doubtful Accounts) for $12,750b. Allowance for Doubtful Accounts has a debit balance of $645 prior to adjustment. Aging and Analysis of accounts receivables show doubtful accounts of $12,750.
The adjusting journal entry is:-
Debit the expense account (Bad Debt Expense) for $12,105Credit the asset account (Allowance for Doubtful Accounts) for $12,105c. Allowance for Doubtful Accounts has a credit balance of $2,175 prior to adjustment. Uncollectible accounts are estimated to be 1.75% of sales, which totaled $2,000,000 for the year.
The adjusting journal entry is:-
Debit the expense account (Bad Debt Expense) for $35,000.Credit the asset account (Allowance for Doubtful Accounts) for $35,000.d. Allowance for Doubtful Accounts has a debit balance of $1,340 prior to adjustment. Uncollectible accounts are estimated to be 1.75% of sales, which totaled $2,000,000 for the year.
The adjusting journal entry is:-
Debit the expense account (Bad Debt Expense) for $34,660Credit the asset account (Allowance for Doubtful Accounts) for $34,660To learn more about "Adjusting Journal Entry" visit: https://brainly.com/question/13035559
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can u guys give me 3 current trends in marketing research
Answer:
The latest marketing trends for 2022 include personalization, social media, artificial intelligence (AI) and virtual reality (VR), and the metaverse. However, a good marketing foundation remains important.
Burnem, Inc. manufactures blank CDs and sells them to a
distributor in packs of 500 CDs. Burnem's total cost and total
revenue (in dollars) for x packs of 500 CDs are given by the
following equations.
Burnem, Inc. manufactures blank CDs and sells them to a distributor in packs of 500 CDs. Burnem need to sell 441 packs to break even.
Let x be the number of packs Burnem need to sell to break even then
Total cost = Total revenue
5 x + 4851 = 16 x
=> 11 x = 4851
x = 441 packs
So Burnem need to sell 441 packs to break even.
The term "total cost" is used to describe the total cost of production, which includes both fixed and variable costs. The cost of producing a product is referred to as the total cost in economics. There are two components that make up the total cost: Cost per unit: The cost remains constant. In economics, total cost includes each factor of production's fixed or variable opportunity cost, or benefits received from the next best alternative. Marginal cost is the additional total cost of producing one more unit.
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Complete question as follows :
Burnem, Inc. manufactures blank CDs and sells them to a distributor in packs of 500 CDs. Burnem's total cost and total revenue (in dollars) for x packs of 500 CDs is shown below. Total cost = 5 x + 4851 and Total revenue = 16 x
How many packs of 500 CDs must Burnem sell to break even? x = packs
Effective service recovery efforts can lead to _____.
Effective service recovery efforts can lead to all of the following EXCEPT increased dependence on technology to prevent future service failures. Thus the correct option is A.
What is a service?Services are referred as a type of goods that is offered to someone in terms of facilities like the one received in a restaurant or shopping mall. It is a type of commodity or product that is intangible in nature, one can only feel it.
Effective service recovery efforts can lead to better satisfaction to the ultimate consumer and they feel valued and delighted. This helps in retaining them for a longer duration of time building loyalty and goodwill in the market.
Therefore, option A is appropriate.
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The complete question is Probably
Effective service recovery efforts can lead to all of the following EXCEPT
a. increased dependence on technology to prevent future service failures.
b. increased purchase intentions.
c. increased positive word of mouth.
d. lower levels of satisfaction than prior to the service failures.
e. increased customer satisfaction.
Use the formula in this example to determine the sample size, n. The estimated prevalence is 25%, and the desired confidence level is 95% with a margin of error of 9%. (This is the same as in the example, except the margin of error has been changed. Round your answer to the nearest integer.)
The sample size, n, required to estimate a population prevalence with a desired confidence level and margin of error can be calculated using the formula:
n = (Z^2 * p * (1-p)) / E^2
where Z is the Z-score corresponding to the desired confidence level, p is the estimated prevalence, and E is the margin of error.
In this example, the estimated prevalence is 25% (or 0.25), the desired confidence level is 95%, and the margin of error is 9% (or 0.09).
First, we need to find the Z-score corresponding to the desired confidence level. For a 95% confidence level, the Z-score is approximately 1.96 (based on a standard normal distribution).
Next, we substitute the values into the formula:
n = (1.96^2 * 0.25 * (1-0.25)) / 0.09^2
Simplifying the equation gives us:
n ≈ 96.44
Rounding the result to the nearest integer, the sample size required is approximately 96.
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Professional video game players can make a living playing, and winning, video game tournaments. Marketing in the video game industry is primarily based on what type of market segmentation?
Answer:
The hardware market is a typical oligopoly, with three major companies: Nintendo, Sony and Microsoft. Economists have realized that the sales of hardware are positively influenced by the quality of its software, and the sales of software are also affected by the sales of hardware.
Explanation:
Mateo has three people in his office; one sales representative, one person on branding, and a third on the administration associated with those tasks. Mateo has a ______ of employees.
Select one:
a. job sharers
b. group
c. team
d. telecommuters
Which type of organizational development intervention focuses on improving employee satisfaction in relationship to pay, compensation, job security, responsibilities, performance, work–life balance, health, and career opportunities?
Select one:
a. quality of worklife
b. task–technology
c. sociotechnical system design
d. people-focused
Mateo has three people in his office; one sales representative, one person on branding, and a third on the administration associated with those tasks. Mateo has a- C. team of employees.
What is the reason?There are various types of OD interventions, including people-focused interventions, quality of work life, sociotechnical system design, and task-technology.
People-focused interventions focus on the human element of the company, such as employee attitudes, interaction, and communication, among other things.
Hence, option c. is correct.
2. The type of organizational development intervention that focuses on improving employee satisfaction in relationship to pay, compensation, job security, responsibilities, performance, work–life balance, health, and career opportunities is - a. quality of worklife.
What are these programs ?Organizational development interventions (OD interventions) are programs designed to assist businesses in enhancing organizational performance and efficiency. There are various types of OD interventions, including people-focused interventions, quality of worklife, sociotechnical system design, and task-technology.People-focused interventions focus on the human element of the company, such as employee attitudes, interaction, and communication, among other things. These interventions are aimed at enhancing employee satisfaction and decreasing employee dissatisfaction, which has a direct influence on productivity and turnover rates.Quality of worklife interventions aim to improve employee satisfaction by concentrating on pay, compensation, job security, responsibilities, performance, work–life balance, health, and career opportunities. These interventions are often used in conjunction with people-focused interventions.Hence, option a. is correct.
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If a company fails to allow for deferred tax liabilities, it can lead to overstatement of profit with the Section A. following consequences L Distortions of Earnings per share Higher gross Profit margin Shareholders being misled iv. Over-optimistic dividend payments Answer M. A. (1) and (ii) B. (1) and () C. (). (i) and (iv) D. All of the above.
D. All of the above, means that all the consequences mentioned in options (i), (ii), (iii), and (iv) can occur when a company fails to allow for deferred tax liabilities.
If a company fails to allow for deferred tax liabilities, it can lead to an overstatement of profit, which can result in distortions of earnings per share, higher gross profit margin, shareholders being misled, and over-optimistic dividend payments. All of these consequences are possible when deferred tax liabilities are not properly accounted for. The overstatement of profit can mislead shareholders and investors by presenting a more favorable financial picture than reality. Distortions of earnings per share and higher gross profit margins can create a false perception of the company's financial performance and profitability. Over-optimistic dividend payments based on inflated profit figures can also mislead shareholders and may not be sustainable in the long run. Therefore, all the mentioned consequences (i, ii, iii, and iv) can occur when a company fails to account for deferred tax liabilities.
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Select the correct answer.
What is the minimum educational requirement for a pediatric psychopharmacologist?
A. MD
B. PhD
C. bachelor’s in medicine
D. master’s in medicine
E. PsyD
THE ANSWER IS A(md)
Which economic effect does a central bank hope to achieve by buying back large amounts of treasury security
A. It hopes to reduce the amount of money available for lending.
Explanation:
Usually, the central bank(Federal reserve) control the supply of money in circulation in the economy so that the nation's economy would be healthy. One of the ways through which the federal reserve controls the quantity of money in circulation is by selling or purchasing of government securities through a process known as open market operation.
If the federal reserve sells government securities such as treasury bills, in large quantities, its aim is to reduce the amount or quantity of money available to commercial banks for lending, hence mop up the quantity of money in circulation.
Also, if the federal reserve buys government securities, its aim is to make more money available in large quantities to commercial banks and other institutions, hence have more cash to lend people.
The economic effect that central bank are trying to effect by the process of buying back large amounts of treasury security is bring reduction to amount of money available for lending.
Treasury notes as well as bonds are securities that brings about payment of fixed rate of interest which is usually done every six months till the security reach a stage of maturity.The central bank do buy large amounts of treasury security so that the money that can be available for lending can be reduced.Therefore, this process are put in place to balance the economy.
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Which of the following is not one of the reasons to track expenses when creating a budget
A. It helps you to analyze your spending habits.
B.It allows you to determine patterns in spending.
C. It helps you to identify which purchases can be reduced.
D. It allows you to find out if you can afford to set a savings goal.
Answer:
D. It allows you to find out if you can afford to set a savings goal is not a reason to track expenses.
Explanation:
Regardless of income, an individual should track their expenses to ensure that their money is being spent appropriately.
Answer choice A, B, and C are correct because if someone were to monitor their spendings, they would be able to discern the following:
What different goods and services they spend their money onHow often they purchase certain goods and servicesWhich goods and services they can cut down on to save costs for other necessary goods and servicesIndividuals who track their expenses are more likely to make better financial decisions than those who don't. Regardless of if someone makes 6 figures a year or someone who is employed at minimum wage, tracking expenses can help anyone to spend their money efficiently.
Hope this helps!
HELLLPPPP
The Kids have been asked to decide whether India has more wealth than Peru. Mary says they should use the GDP while jann says they should use the GDPP. Who is right?
1. Mary
2. Jann
Neither, they should use the exports and imports
Answer: Mary
Explanation:
GDP simply means the gross domestic product and it is the value in terms of money based on the goods and services that a country produces.
With regards to the question, Mary is right as the GDP can be used to denote economic growth and also know how a particular economy is doing. Wealthy nations usually have a huge GDP.
define economics according to adam Smith .
Smith defined economics as “an inquiry into the nature and causes of the wealth of nations.”
what are the effects of increasing a manager's span of control ?
Answer: Higher average span of control means fewer layers of management within the organization and a relatively flatter organizational structure.
Explanation: This can lead to, Faster decision-making due to fewer levels of approvals required for a specific decision, which allows the company to respond more quickly to business issues.
If you have saved $4,000 in your savings account that earns 0.3% interest annually, what will most likely happen to the purchasing power of your savings over time?
If You have more money, but your purchasing power is lower. You will actually lose money if your savings don't increase at a rate that keeps up with inflation. Hence purchasing power will be $ 4012 .
What is Purchasing power ?If inflation reduces your purchasing power every year when you are retired and living off of your savings, you won't be able to maintain the same level of life. This is particularly true in the United States, where medical costs frequently increase more quickly than other prices.
Long before retiring, inflation can be detrimental. Let's say you are diligently setting aside money for a specific purpose, like a home down payment or a college fund for your kids. While you're saving, your money's purchase power can decrease.
Given in que
Saving $ 4,000
interest = 0.3%
\(4000+0.3%= 4,012\\$ 4012\\\)
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What is profit in an economic system?
A. Profit is the investment a producer makes in the economy to achieve financial gain.
B. Profit is the net change in the value of the economy due to an exchange.
C. Profit is the financial gain resulting from an exchange.
D. Profit is the investment a consumer makes in the economy to achieve financial gain.
Answer:
I think D is correct answer
The profit in the economic system is the investment made by the consumer for accomplishing the financial gain.
The information related to the profit is as follows:
It is the surplus that comes after deducting the cost from the revenue made. It is the investment that should be made by the consumer for attaining financial gain.Therefore all the other options are incorrect.
Thus we can conclude that profit in the economic system is the investment made by the consumer for accomplishing the financial gain.
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Which of the following is an advantage of buying your home over renting?
(1 point)
O You do not have to worry about the housing market in your area.
O The amount you pay each month is set by the terms of your mortgage.
O If something breaks, you have to fix it or pay to have it fixed.
O Your mortgage payments will far exceed the value of your home.
Answer:
The amount you pay each month is set by the terms of your mortgage.
Explanation:
connexus
In this assignment, you'll use a word processor to create a newsletter based on the following scenario: Suppose that you are a secretary at a high school. You need to provide the students with information about upcoming events and a reminder about the cell-phone policy. The cell-phone policy states that all cell phones need to be turned off while on the school campus until dismissal time. After the dismissal bell, phones may be turned on and used. The events that should be in the newsletter include a dance, chess tournament, community garden, basketball game, and fundraiser.
A high school secretary is under obligation to convey the students regarding the rules and regulations as well as the upcoming events that are about to take place in a high-school through a newsletter.
What is a newsletter?A bulletin of information, which is circulated among the members of an organization and any such person who has substantial interest in such information, is regarded as a newsletter.
A newsletter is attached in the form of an image with this part for the purpose of reference.
Hence, a newsletter that is required to be circulated by the high-school secretary will be in the form of the image being attached.
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people make decisions at the margin by a. following tradition. b. experience. c. comparing marginal costs and marginal benefits. d. calculating dollar costs.
People make decisions at the margin by comparing marginal costs and marginal benefits.
This is a method that people use to make rational decisions by comparing the additional benefit of an action to the additional cost that it would incur. If the additional benefit is greater than the additional cost, the action is taken, and vice versa.
Marginal cost is the cost of producing one more unit of a product. It is the change in total cost that results from producing one more unit. For example, if producing 10 units costs $100 and producing 11 units costs $110, the marginal cost of producing the 11th unit would be $10 ($110 - $100). Marginal benefit is the additional benefit that a person receives from consuming one more unit of a good or service. It is the change in total benefit that results from consuming one more unit. For example, if a person gets a benefit of $10 from consuming 5 units of a good and a benefit of $11 from consuming 6 units, the marginal benefit of consuming the 6th unit would be $1 ($11 - $10).Thus, by comparing marginal costs and marginal benefits, people can make rational decisions based on the additional costs and benefits of their actions.
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How do customers find out about Donny Ouyang's company
Answer:
People found out about his company through different types of promotion over the Internet. As well as offline around his community. Most people reach his Web sites through search engines like Gooogle and Bing.com.
Explanation:
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the amount of money you may earn over time is called
The amount of money you may earn over time is called Future Earnings Potential. Amount that you might make in your lifetime. Demographics. Individual traits like age, gender, race, income, and so forth.
What is Future Earnings Potential?
Earning potential is the anticipated increase in total return that an investor might anticipate from holding an investment (capital gains plus dividends and cash flows). Ratio analysis is a tool used by fundamental analysts to estimate a company's earning potential for investors.
Total future values of your contracts less your compensation, the payroll of the company, and other fixed costs. Your projected future business income is represented by the resulting number.
Let's start with the definition of your earning potential (income potential): this is the sum of money you should be able to accumulate over the course of a certain period of time. In other words, this is a reference to your potential for financial gain. Earning potentials are often determined by the highest wage in a given industry or profession.
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Jackson, a self-employed taxpayer, uses his automobile 90% for business and during 2021 drove a total of 14,000 business miles. Information regarding his car expenses is listed below.
Business parking $ 140
Auto insurance 1,300
Auto club dues (includes towing service) 180
Toll road charges (business-related) 200
Oil changes and engine tune-ups 210
Repairs 160
Depreciation allowable 2,850
Fines for traffic violations (incurred during business use) 320
Gasoline purchases 2,800
What is Jackson's deduction in 2021 for the use of his car if he uses:
a. The actual cost method?
b. The automatic mileage method?
Using the automatic mileage method, jackson's deduction for the use of his car in 2021 would be $7,840.
a. the actual cost method:to calculate the deduction using the actual cost method, jackson can deduct the actual expenses incurred for the business use of his car. these expenses include business parking, auto insurance, auto club dues, toll road charges, oil changes and engine tune-ups, repairs, depreciation, fines for traffic violations, and gasoline purchases.
the total deductible expenses would be the sum of these expenses:
$140 (business parking) +
$1,300 (auto insurance) +$180 (auto club dues) +
$200 (toll road charges) +$210 (oil changes and engine tune-ups) +
$160 (repairs) +$2,850 (depreciation allowable) +
$320 (fines for traffic violations) +$2,800 (gasoline purchases) = $8,160
, using the actual cost method, jackson's deduction for the use of his car in 2021 would be $8,160.
b. the automatic mileage method:
alternatively, jackson can choose to use the standard mileage rate provided by the irs for calculating his car expense deduction. for 2021, the standard mileage rate for business use is 56 cents per mile.
since jackson drove a total of 14,000 business miles, his deduction using the automatic mileage method would be:
14,000 miles × $0.56/mile = $7,840
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What would be Tipical Day for a Doctor ?
Explanation:
Average 20 patients would be tipical Day for a doctor.
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