When a supply-side shock is assumed to be permanent: O only the SRAS curve shifts. O only the LRAS curve shifts. O both the LRAS curve and the SRAS curve shift. O neither the LRAS curve nor the SRAS curve shifts.

Answers

Answer 1

When a supply-side shock is assumed to be permanent, both the LRAS curve and the SRAS curve shift. The third option is correct.

This is because a permanent shock affects the long-term potential of the economy and also the short-term adjustments. The LRAS curve, which represents the potential output of the economy in the long run, shifts to reflect the new level of production capacity. The SRAS curve, which represents the short-run adjustments to changes in price and output levels, also shifts to reflect the immediate effects of the shock on production costs and prices.

Therefore, the correct answer is that both the LRAS curve and the SRAS curve shift. The third option is correct.

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Related Questions

Blank______ levels of withdrawal behavior are closely correlated with a Blank______ degree of organizational commitment.

Answers

High levels of withdrawal behavior are closely correlated with a low degree of organizational commitment.

The definition of behavior is the way a person or thing acts or reacts. Behavior can be of two types:

voluntaryinvoluntary

Good behavior helps to enhance an individual's understanding as to why people act the way that they do as well as assist with ways to help manage people within the organization.

Three fundamental types of behavior can be distinguished: the purely practical, the theoretical-practical, and the purely theoretical. These three types of behavior have three different reasons: the first a determining reason, the second a motivating reason, and the third a supporting reason.

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What is the core content included in each section of the report?

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Title page, Table of contents, Executive summary, Introduction, Discussion, Conclusion, Recommendations and References are the core content included in each section of the report.

A report is a written document that organizes information for a particular audience and use. Complete reports are nearly always supplied in the form of written papers, despite the fact that summaries of reports may be given verbally.

Report writing is a formal way of writing in-depth about a subject. Reports always have an official tone. Always consider who the intended audience is before writing a section. Writing a report about a school event, a business case, etc. are a few examples.

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Learning by doing contributes to a firm's ______

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Learning by doing contributes to a firm's explicit cost

Explicit costs are normal operating costs that appear in your general ledger and have a direct impact on your company's profitability. Explicit costs clearly define the amount entered in the income statement. Examples of explicit costs are wages, rent, utilities, raw materials, and other direct costs.

Explicit costs (also known as accounting costs) are easily identified and linked to the business activities of the company to which the costs are assigned. They are recorded in the company's general ledger and are included in the expenses recorded in the income statement. A company's net income (NI) reflects the residual income that remains after all explicit costs have been paid.

Explicit costs are the only accounting costs required to calculate profits, as they have a clear impact on a company's profits. Explicit cost metrics are especially useful for long-term strategic planning by an enterprise.

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currently a monopolist's profit-maximizing output is 400 units per week. it sells its output at a price of $70 per unit and collects $40 per unit in revvenues from the sale of the last unit produced each week. the firms tptal costs each weel are $7,500

Answers

The answer is:

A) $ 20,500

B)  $40.

C)  $ 18

What is Monopolist Market ?

A monopolist market is a market that is expressed theoretically as the place where a single company offers the products and services to its customers. It is very opposite to the perfectly competitive market that includes the infinite number of firms operating with the number of buyers.  

According to the scenario, the computation of the given data are as follows:

Given:

Total Cost per week = $7,500

Total weekly Output = 400 unit

Price per Unit = $70

Revenue per Unit = $40

A) What are the firm's weekly economic profits?

The company's weekly economic profit = Total Revenue - Total Accounting Cost - Total Opportunity Costs

Revenue per week = Total Output x Price per Unit

                                = 400 units x $ 70 = $28,000

Weekly economic profit = $7,500

Weekly economic profit = $28,000 - $7,500

                                        = $ 20,500

B) What is the firm's marginal cost?

Since the firm is maximizing its profits, its marginal revenue = marginal cost. Since the marginal revenue of the last unit sold= $40, then the marginal cost of the last unit sold = $40.

C) The Firm's average total cost = Total cost / Number of units

           Firm's average total cost =  $ 7,500 / 400

           Firm's average total cost = $ 18

Your question is incomplete, but most probably your full question was:

​Currently, a​ monopolist's profit-maximizing output is 400 units per week. It sells its output at a price of ​$70 per unit and collects ​$40 per unit in revenues from the sale of the last unit produced each week. The​ firm's total costs each week are $7,500 per week.

a. What are the firm's weekly economic profits?

b. What is the firm's marginal cost?

c. What is the firm's average total cost?

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A major benefit of a limited partnership is the limited partner is only liable for the_______________.

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A major benefit of a limited partnership is the limited partner is only liable for the amount invested.

What is a limited partnership?

A limited partnership is when two or more partners establish a business together. There are two sets of partners in a limited partnership. One is known as the general partner. The general partner is in charge of the day to day running of the business and the general partner usually has unlimited liabilities.

The second type of partner is a limited partner. The limited partner only contributes capital and he is not involved in the day to day running of the business. The liability of this partner is limited to the amount invested in the business. This means that in the case of a bankruptcy or debt, the maximum amount the limited partner can lose is the amount invested in the business.

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Claire has borrowed . She plans to pay off the loan in full after two payments. She will make one payment 3 years from now, then another payment 6 years from now. The second payment will be exactly double the amount of the first payment. How much is the first payment if the interest rate of the loan is , compounded annually

Answers

Answer:

$2,489.05

Explanation:

PMT=5000 / (1*1.085^-3 + 2*(1.085^-6))

PMT = $2,489.05

Flexible Budgeting At the beginning of the period, the Fabricating Department budgeted direct labor of $72,000 and equipment depreciation of $18,500 for 2,400 hours of production. The department actually completed 2,350 hours of production. Determine the budget for the department, assuming that it uses flexible budgeting.

Answers

The budget for the department is $89,000.

A flexible budget is a finance that adjusts to the interest or quantity levels of a company. Unlike a static price range, which does not exchange from the amounts installed whilst the budget turned into created, a flexible budget continuously "flexes" with an enterprise's variations in expenses.

Flexible finances will include strains for one-of-a-kind quantities. As instance, if your manufacturing of widgets is a hundred steps per month, your variable admin prices can be $2 hundred per month. however, if your production of widgets is 2 hundred in line with the month, your variable admin expenses would boom to $400.

A flexible price range is one based on distinctive volumes of sales. A bendy price range flexes the static budget for every predicted level of manufacturing. This adaptability lets in control to estimate what the budgeted numbers might seem like at diverse levels of income.

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What industry cannot rely on estimation

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There is no industry which can not relay on estimation, all industries needs estimation.

The two primary categories of this profession are construction and manufacturing, according to the Bureau of Labor Statistics. It states that more than half of all cost estimators work in the construction industry, where they may further specialize in projects for homes, businesses, industries, or the government.

Cost estimation aids in setting the project budget, planning the required work, and managing new resources. Cost estimates are also of the utmost importance when trying to win over new clients. Before starting actual building, property owners also utilize cost estimates to evaluate the viability of their projects.

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Through the recording, classifying, summarizing, and interpretation of financial events in an organization, the function of ______ helps managers make good decisions about the firm's operations.

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Through the recording, classifying, summarizing, and interpretation of financial events in an organization, the function of Accounting helps managers make good decisions about the firm's operations.

Accounting is the process of identifying  events of a financial nature, recording them in a journal, classifying them into the respective accounts, and aggregating them in the income statement and balance sheet. and communicate the results to those who use this information. owners, government, creditors, investors, etc.  at least, of a financial nature and to interpret the results.

In 1970, the American Institute of Certified Public Accountants revised the definition and stated: “The function of accounting is to provide quantitative information, mainly of a financial  nature, about economic entities, in order to  useful for making economic decisions.

Objectives of Accounting:

Systematic recording of business transactions - It is necessary to keep systematic records of all business transactions because of remembering such a large number of transactions. is beyond human capacity. Neglecting to record  any  transactions can lead to false and misleading results. Determining Profit or Loss - To determine net profit  at the end of an accounting period, we need to calculate profit or loss. For this purpose, a trading account and a profit and loss account are prepared. It provides information about the quantity of goods bought and sold, the costs incurred and the amount earned in a year. Establishing the Financial Condition of the Business - Establishing insufficient profits or losses; The owner is  also interested in knowing the financial position of his business, i.e. the value of his assets, the  amount of his liabilities, the net increase or decrease in his capital. This goal is accomplished by  the preparation of a balance sheet that helps determine the true financial position of the company. Management Support - Systematic accounting helps  management to make effective decisions, effectively control  cash management policies, prepare budgets and forecasts, and more. Evaluating a company's progress - Accounting helps in assessing a company's progress  from year to year because accounting facilitates comparisons between companies and within companies. Fraud and Error Detection and Prevention - Fraud and errors, mismanagement and financial waste need to be detected and prevented. Systematic recording facilitates the  detection and correction of frauds, errors and inefficiencies if they arise. Communicating Accounting Information to Various Users - An important step in the accounting process is communicating accounting and financial  information to a variety of users, including  internal and external users such as owners ownership, management, government, employees, tax authorities, etc. This helps users to understand and interpret  accounting data meaningfully and appropriately without any ambiguity.

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Market competition can provide _______________ for _________________ , unsustained profits; firms with marketable patents the needed incentive; discovering new technologies time; competitors to catch up with other's inventions an opportunity; competitors seeking out innovations

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An incentive; discovering new technologies
Market competition
can provide incentives for discovering new technologies, unsustained profits; firms with marketable patents.
Market competition - the competition between businesses supplying comparable goods and services. Consumer rivalry is fueled by a competitive market. This implies that consumers compete with one another for a good or service, particularly when stock is low. For instance, when buying tickets to a sporting event or concert, customers frequently compete to get the best seats. Market competition is essential to the health of the American economy. Economic fundamentals show that when businesses compete for customers, the result is lower pricing, better goods and services, more variety, and more innovation.

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Total surplus can be used to measure a market’s efficiency. is the sum of consumer and producer surplus. is the value to buyers minus the cost to sellers. all of the above are correct.

Answers

The total surplus;-

can be used to measure a market’s efficiency.is the sum of consumer and producer surplus.is the value to buyers minus the cost to sellers.

The total market surplus is a measure of the overall welfare of all market participants. It is the sum of consumer surplus and producer surplus. Consumer surplus is the difference between the willingness to pay for a product and the price consumers actually pay.

If you are looking for a mutual fund as a stand-alone investment or as a core holding in a diversified portfolio, an all-stock index fund is a good choice. However, it should be noted that while all equity index funds offer a wide range of diversification, they carry the same level of market risk as any other equity investment.

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The credit purchase of a new oven for $6,500 was posted to Kitchen Equipment as a $6,500 debit and to Accounts Payable as a $6,500 debit. What effect would this error have on the trial balance

Answers

The effect this error would have on the trial balance would be when the trial balance is completed, the amount in the debit column will be more than the amount in the credit column by $13,000.This is further explained below.

What is a trial balance?

Generally, In a double-entry accounting system, if there is a discrepancy between the debits and credits, it means there was a mistake.

In conclusion, If this mistake is included in the final trial balance, it will cause the debit column to exceed the credit column by $13,000. You may learn more about this in the sections below.

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Compared to digital goods, traditional goods have:

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Compared to traditional goods, digital goods have: lower distribution costs.

What are digital goods?

Any goods that are sold, delivered, and transferred digitally are referred to as digital goods. Media files, such as music files, video files with movies or television shows, branded multimedia files, and other similar products, are among the most prevalent examples of digital goods.

Problems with digital goods:

The protection of intellectual property is one of the main problems with digital goods. Producers and distributors must ensure that digital goods are packaged in technologies that are largely resistant to piracy or illegal sharing because they are sold in such a flexible and transferable format.

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Pete is thinking of asking for his own car for his birthday. Which of the following is a financial responsibility that comes with vehicle ownership

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Gas, Insurance, Registration are the financial responsibility that comes with vehicle ownership.

Financial responsibility laws, which are frequently related to automobiles, call on an individual or organisation to demonstrate that it is financially capable of covering accident-related expenses. The party is not expressly required under financial responsibility legislation to carry insurance. Instead, even if they are not at fault, the law demands that they be able to prove they have the resources to cover the entire cost of the losses.

For a number of different reasons, authorities may request proof of adherence to financial responsibility regulations. Police officers may demand proof after an accident has happened during routine traffic stops unrelated to accidents, while registering a car, and when applying to have a revoked or suspended driver's licence reinstated.

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Scrapper Elevator Company has 20 sales representatives who sell its product throughout the United States and Canada. The number of units sold last month by each representative is listed below. Assume these sales figures to be the population values. 2 3 2 3 3 4 2 4 3 2 2 7 3 4 5 3 3 3 3 5

Answers

The mean ls the average of a distribution obtained by taking the ratio of the sum and the frequency. The mean and standard deviation values of the distribution are 3.30 and 1.26 respectively.

We know,

Mean, μ = ΣX/ nStandard deviation = √variance

To calculate mean and variance :-

X = 2,3,2,3,3,4,2,4,3,2,2,7,3,4,5,3,3,3,3,5

ΣX = sum of X = 66n = sample size = 20

As, Mean = sum of x / sample size

66 / 20 = 3.3

Mean = 3.3

The variance = [Σ(X - μ)²] ÷ (n - 1)

Variance = [Σ(X - μ)²] ÷ (n - 1)

= (30.2) / 19 = 1.589

The standard deviation = √variance

= √1.589

= 1.26

Standard deviation =  1.26

Therefore,

The mean and standard deviation values are 3.3 and 1.26.

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Correct Question - Scrapper Elevator Company has 20 sales representatives who sell its product throughout the United States and Canada. The number of units sold last month by each representative is listed below. Assume these sales figures to be the population values. 2,3,2,3,3,4,2,4,3,2,2,7,3,4,5,3,3,3,3,51. Compute the mean of the population.2. Compute the standard deviation.3. what would be the mean of the sample means?4. what would be the standard deviation of the sample means?

John is a sales associate who has complaints against him for making false statements about property and for giving advice about the purchase contract. This is the third time these same violations have been investigated. If John is found guilty of violating these two practices at the formal hearing, the maximum fine John can face is:

Answers

If John is found guilty of violating these two practices as regards the contract at the formal hearing, the maximum fine John can face is $10,000.

What is a contract and what is the fine for violation the agreement?

A contract serves as the agreement between two or more parties, in this case of violation of the agreement terms, there is usually as fine.

Therefore, If John is found guilty of violating these two practices as regards the contract at the formal hearing, the maximum fine John can face is $10,000.

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The average revenue for Professional Road Bikes in the US market was $17,362, and in Germany was $19,669. Can you conclude that road bike sales in Germany are significantly higher than in the US? Yes, or no? why? Explain your answer in a few sentences.

Answers

Yes.  Road bike sales in Germany are significantly higher than in the US.

What is revenue?

Revenue can be defined as the income or  money generated from the sales of goods and service.

Since the average revenue of Professional Road Bikes in the United States is market was $17,362 while that of Germany was $19,669 , this implies that  road bikes sell more in Germany than United States.

Hence, the likely reason for the difference in revenue may be because their are high number of people that make use of rode bike in Germany compare to US.

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Ethanol, a biofuel derived from corn, is used in the production of both gasoline and pharmaceutical-grade hand sanitizer. During the pandemic, as the demand for gasoline plummeted, several producers of ethanol retrofitted their plants by purchasing new capital in order to produce a higher-quality ethanol, which could be used to make a medical-grade hand sanitizer. Future decisions about whether to produce ethanol for gasoline or for hand sanitizer – be informed by the – costs they incurred to retrofit their plant.

Answers

Ethanol, a biofuel derived from corn, is used in the production of both gasoline and pharmaceutical-grade hand sanitizer. During the pandemic, as the demand for gasoline plummeted, several producers of ethanol retrofitted their plants by purchasing new capital in order to produce a higher-quality ethanol, which could be used to make a medical-grade hand sanitizer. Future decisions about whether to produce ethanol for gasoline or for hand sanitizer would not be informed by the sunk costs they incurred to retrofit their plant.

An unrecoverable expense that has already been made is referred to as a sunk cost. Sunk costs are a manifestation of the business principle that you must "spend money to make money." Sunk costs are distinct from potential expenses that a company may incur in the future, such as choices on the price of products or the cost of purchasing inventories. Sunk costs are not considered in future business decisions since they will not change regardless of the outcome. An unrecoverable expense that has already been made is referred to as a sunk cost. Sunk costs, for instance, might include the price of machinery and equipment as well as the cost of the factory's lease for a manufacturing company.

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Property taxes are a major source of revenue for: Multiple Choice state governments. local governments. the federal government. both local governments and school districts. school districts.

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Property taxes comprise some of the highest revenue sources for local governments.

Where do local governments get revenue?

Local governments are able to source the largest portion of their revenue from property taxes on people living in the area.

This then allows them to fund government activities such as running schools and providing road markings.

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According to a supply and demand model for apples, if the average household income decreases at the same time ten apple orchards go out of business, one would expect the:

Answers

Based on the law of supply and demand if orchards go out of business and income decreases, the  equilibrium price of apples to increase and the equilibrium quantity of apples in the market to decrease.

What would cause the prices of apple to increase?

Due to scarcity, the prices of apple would increase in the market. People would have to pay more to get the product which is now scarce.

When goods are few in the market they become more expensive than they were before.

What is the law of supply and demand ?

The law of supply states that as the price of a good rise, the quantity supplied also rise and as the price of a good go down or fall, the quantity supplied also go down or fall.

The law of demand states that that as the price of a good rise, the quantity demanded go down or fall and as the price of a good go down or fall, the quantity demanded also rise.

Therefore, we can conclude that the correct option is E. The law of supply and demand if orchards go out of business and income decreases, the  equilibrium price of apples to increase and the equilibrium quantity of apples in the market to decrease.

Your question is incomplete, but most probably your full question was:

According to a supply and demand model for apples, if the average household income decreases at the same time ten apple orchards go out of business, one would expect the:

a. equilibrium quantity of apples in the market to be indeterminate and the equilibrium price of apples to increase.

b. equilibrium price of apples to be indeterminate and the equilibrium quantity of apples in the market to increase.

c. equilibrium quantity of apples in the market to decrease and the equilibrium price of apples to be indeterminate.

d. equilibrium quantity of apples in the market to decrease and the equilibrium price of apples to stay the same.

e. equilibrium price of apples to increase and the equilibrium quantity of apples in the market to decrease.

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A seller wants to net $10,000 after the brokerõs commission of 6 nd a loan balance of $250,000 are paid. for how much does the property need to sell?

Answers

The selling price of the property is $276,595.74

What does net of $10,000?

Net of $10,000 means that the seller wants a profit of $10,000 when the property is sold.

The fact that brokers would charge 6%, means that the loan balance and the net of $10,000 constitutes 94% of the selling price and by adding the brokers' commission of 6%, we would arrive at the selling price of the property which is 100%(i.e. 94%+6%).

94% of selling price=loan balance+ net

loan balance=$250,000

net=$10,000

94% of selling price=$250,000+$10,000

94% of selling price=$260,000

divide both sides by 94% to arrive at the selling price

selling price=$260,000/94%

selling price=$276,595.74

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As a promotional tool, podcasting offers the advantage to listeners of:____.
a. high frequency
b. convenience
c. extensive reach interactivity
d. benchmarking

Answers

As a promotional tool, podcasting offers the advantage to listeners of convenience. Option B. This is further explained below.

What is a promotional tool,?

Generally,  Consumers may be persuaded to purchase a product or service via the use of promotional tools such as tactics, techniques, or resources. They are used by many experts in marketing and advertising to enhance sales of a certain item or service as well as to spread knowledge of a recently released product.

In conclusion,

The convenience factor is one of the many benefits that listeners may get from podcasting as a form of advertising.

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When curt’s catering first opened, the owner decided to target only events at resorts in its geographic region. curt’s catering was using a(n) ________ targeting strategy.

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When curt’s catering first opened, the owner decided to target only events at resorts in its geographic region. curt’s catering was using a(n) concentrated targeting strategy.

Concentrated marketing is a marketing strategy in which a company focuses on a specific audience for most or all of its marketing initiatives. Companies that use focused marketing emphasize how their products meet the unique needs of a niche audience.

A marketing segmentation strategy in which we focus all our efforts and resources on services to market segments. Also known as niche marketing.

There are typically four different types of market targeting strategies.

Mass Marketing (Undifferentiated Marketing)

Segmented Marketing (Differentiated Marketing)

Centralized Marketing (Nitch Marketing)

Micro Marketing.

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For a bond issue which sells for less than its face amount, the market rate of interest is?

Answers

For a bond issue which sells for less than its face amount, the market rate of interest is higher than the rate stated on the bond.

Bonds can be sold for more and less than their par values because their interest rates change depending upon the market conditions. Like most fixed-income securities, bonds are highly correlated to interest rates. Thus, when interest rates go up, a bond's market price will fall and vice versa.

The actual market value of a bond may not be reliably as indicated by its face value because there are many other influencing forces at play, such as supply and demand in the market.

Hence, when the price of a bond goes above its face value, it is said to be a premium bond, and when the price is below its face value, it is known as a discount bond.

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You have just opened a new Italian restaurant in your hometown where there are three other Italian restaurants. Your restaurant is doing a brisk business and you attribute your success to your distinctive northern Italian cuisine using locally grown organic produce. What is likely to happen to your business in the long run

Answers

Your success will invite others to open competing restaurants and ultimately your profits will be driven to zero.

What is Managerial Economics?A subfield of economics called managerial economics deals with the use of economic principles in managerial decision-making. Economics is the study of how products and services are produced, distributed, and consumed. In managerial economics, choices on how to distribute finite resources are made using economic theories and principles.Economic frameworks are used by managers to maximize earnings, resource allocation, and overall firm production while enhancing productivity and reducing wasteful activities. These frameworks analyze real-world issues at the micro and macroeconomic levels in order to help firms make intelligent, forward-thinking decisions. Managerial economic techniques help to guide managers in these decisions. Managerial decisions entail forecasting (making decisions about the future), which involves levels of risk and uncertainty.

When trade or business is brisk, a lot of money is being made and goods are being sold extremely quickly. Souvenir vendors were doing good business. Since, the restaurant is doing a brisk business, this success will invite others to open competing restaurants and ultimately your profits will be driven to zero.

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The existence of the federal income tax and the welfare system serve as the primary elements of?

Answers

The answer is nondiscretionary fiscal policy.

Nondiscretionary fiscal policy refers to measures that are incorporated into the system to automatically provide expansionary or contractionary stimulus. Nondiscretionary fiscal policy, for example, entails government measures that stimulate the economy when it needs it and deflate it when it needs it.

Nondiscretionary fiscal policy refers to numerous continuing government spending and taxing schemes. These are largely for the purpose of sustaining revenue. They are almost never modified. They consist of social security, welfare, and unemployment benefits.

Unemployment benefits are a common example of nondiscretionary fiscal policy. Payments must rise when the number of jobless rises, which occurs during an economic slowdown. When the jobless return to work as the economy improves, the payments must fall.

Therefore, the answer is non-discretionary fiscal policy.

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Assuming that all occupied blocks need to be moved, how long will it take to compact the memory

Answers

Assuming that all occupied blocks need to be moved, to compact the memory it will take a while.

To compact the memory all the free partitions are made contiguous and all the loaded partitions are brought together. Also, all the occupied blocks need to be moved.

By applying this technique, we can store the bigger processes in the memory. The free partitions are merged which can now be allocated according to the needs of new processes.

When you compact the memory, it moves the in-use areas of memory to eliminate holes in order to create larger contiguous free areas.

Hence, to compact the memory it will take a while.

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The internet has resulted in which two factors that affect the competitive environment for pricing?

Answers

Two factors that affect the competitive environment for pricing are

a. Consumer's access to pricing information from many competitors.

b. Companies' ability to change prices frequently.

A system where numerous businesses compete with one another utilizing diverse marketing channels, advertising strategies, pricing approaches, etc. is referred to as a competitive environment. Businesses should abide by the rules contained in this system. Direct competitors are the most obvious example of a competitive environment aspect, but additional examples include regulatory sources, indirect competitors, and societal and technical changes.

Whether it is used in team sports or intellectual endeavors, competition can have an impact on performance. However, most people concur that when a competitive setting is healthy, it aids participants in developing qualities referred to as sportsmanship.

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Tammy has had a lot of success investing in preferred stocks. She wants to invest in other assets that are very similar to preferred stocks. What options would BEST match her investment preferences

Answers

If Tammy wants to invest in assets that are very similar to preferred stocks because she has been successful with them, she should try common stocks and corporate bonds.

What investments are similar to preferred stocks?

Corporate bonds are quire similar to preferred stocks because they involve getting a specified amount every period just like the dividends on preferred stocks.

Common stocks are also similar to preferred stocks because they get dividends and both represent an ownership stake in a company.

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Is it more common for a firm to fail due to lack of sales or poor financial management? multiple choice question.
a. poor financial management
b. overcapitalization
c. lack (shortage) of sales
d. too many sales

Answers

When it comes to lack of sales or poor financial management, the reason why most firms fail is a. poor financial management.

Why do companies fail?

There are several reasons why a company can fail such as budgetary issues, and a lack of concrete goals to guide the activities of the company.

Most of these things stem from poor financial management however. Think of it this way, if a ship has a bad captain, then the chances of the ship sinking increases.

Poor financial management would lead to money not going to the right expenses which means that the business will make a lot of losses instead of profit and so will close.

In conclusion, between lack of sales and poor financial management, poor financial management is worse.

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