QUESTION 16 Which of the following will cause the equilibrium price of widgets to fall and the equilibrium quantity to rise? A. Widget workers agree a large wage decrease so that none of them will have to be laid off. B. A decrease in the price of an item that consumers consider a substitute. C. The government raises taxes on widget firms. D. An increase in the price of an item that producers consider a substitute

Answers

Answer 1

Answer:

Answer: A. Widget workers agree a large wage decrease so that none of them will have to be laid off.

Explanation:

There are activities that affects supply function cost, like wages cost going down, pushing prices down as well. In this case, with everything else constant, when cost go down the productivity per factor increase, making it possible to produce the same quantity at a lower price, or to produce more at a same price

Related Questions

Lyons Company deducts insurance expense of $210,000 for tax purposes in 2018, but the expense is not yet recognized for accounting purposes. In 2019, 2020, and 2021, no insurance expense will be deducted for tax purposes, but $70,000 of insurance expense will be reported for accounting purposes in each of these years. Lyons Company has a tax rate of 40% and income taxes payable of $180,000 at the end of 2018. There were no deferred taxes at the beginning of 2018. Reference: Ref 19-5 What is the amount of income tax expense for 2018? A. $180,000 B. $210,000 C. $264,000 D. $252,000
TaskMaster Enterprises employs a standard cost system in which direct materials inventory is carried at standard cost. TaskMaster has established the following standards for the prime costs of one unit of product.Standard Quantity Standard Price Standard CostDirect Materials 10 pounds $ 1.90 per pound $ 19.00 Direct Labor 0.30 hour $ 6.80 per hour 2.04 $ 21.04 During November, TaskMaster purchased 200,000 pounds of direct materials at a total cost of $440,000. The total factory wages for November were $48,000, 80% of which were for direct labor. TaskMaster manufactured 19,000 units of product during November using 175,000 pounds of direct materials and 6,000 direct labor hours.What is the direct labor price (rate) variance for November?
In an assembly operation at a furniture factory, 4 employees assembled an average of 600 standard dining chairs per 6-day work week. What is the labor productivity of this operation
What aspects do financial institutions like the Bank of Rhode Island assess before granting funding to businesses
Hardy Company has current assets of $95,000, current liabilities of $100,000, long-term assets of $180,000 and long-term liabilities of $80,000. Hardy Company's working capital and its current ratio are: A. -$5,000 and .95:1. B. $5,000 and .95:1. C. -$5,000 and 1.95:1. D. $85,000 and .95:1.

Workers and management agree on a contract that gives a 5% wage increase for each of the next three years. Everyone expected 3% inflation but inflation turned out to be 5% per year. Then at the end of three years... a. real wages will be higher than was expected.

b. real wages will have fallen

c. nominal and real wages will have changed by the same percentage.

d. real wages will be lower than was expected.

Answers

Answer:

The correct option is (d)

Explanation:

Real wages are nominal wages less inflation. Nominal wage is not adjusted for inflation. Everyone had expected an inflation of 3% per year while increase in wages per year is 5%. This implied that they will expect real wage of 2% (5% - 3%) per year.

However, it turned out that inflation was 5% per year. This means that real wages were actually 0% (5% - 5%). There was no increase in real wages at all. So, they received lower real wage (actually nil) as against expected real wage of 3% per year.

Evaluating strategies LO C2 If the company raises its selling price to $240 per unit. 1. Compute Hudson Co.'s contribution margin per unit. 2. Compute Hudson Co.'s contribution margin ratio. 3. Compute Hudson Co.'s break-even point in units. 4. Compute Hudson Co.'s break-even point in sales dollars.

Answers

Answer:

Instructions are below.

Explanation:

We weren't provided with enough information to answer the requirements. But, I will provide the formulas.

1) Contribution margin:

CM= selling price - unitary variable cost

2) contribution margin ratio:

contribution margin ratio= contribution margin / selling price

3) break-even point in units

Break-even point in units= fixed costs/ contribution margin per unit

4) break-even point in sales dollars:

Break-even point (dollars)= fixed costs/ contribution margin ratio

Harris Company had checks outstanding totaling $15,400 on its May bank reconciliation. In June, Harris Company issued checks totaling $64,900. The June bank statement shows that $37,600 in checks cleared the bank in June. A check from one of Harris Company's customers in the amount of $300 was also returned marked "NSF." The amount of outstanding checks on Harris Company's June bank reconciliation should be ____.

Answers

Answer:

$42,700

Explanation:

The presentation of bank reconciliation is shown below:-

Check outstanding in June beginning $15,400

Add: Check issued $64,900

Total check to be cleared $80,300

Less: Check cleared $37,600

The Outstanding amount of checks issued $42,700

A U.S. manufacturing company operating a subsidiary in an LDC (less-developed country) shows the following results: U.S. LDC Sales (units) 100,505 19,600 Labor (hours) 19,550 14,550 Raw materials (currency) $ 20,500 19,550 (FC) Capital equipment (hours) 58,600 4,550 *Foreign Currency unit a. a. Calculate partial labor and capital productivity figures for the parent and subsidiary. (Round your answers to 2 decimal places.)
b. Compute the multifactor productivity figures for labor and capital together. (Round your answers to 2 decimal places.)
c. Calculate raw material productivity figures (units/$ where $1

Answers

Answer:

Part A:

Labur Productivity:

For US=5.14, LDC=1.35

Capital Productivity:

For US=1.72 LDC=4.31

Part B:(Multi factor productivity)

For US=1.29 LDC=1.03

Part C: (Raw material productivity)

For US=4.90 LDC=10.02

Explanation:

Part A:

Labur Productivity:

For US:

$Partial Labor Productivity=(Sale(units))/(Labour(hours) \nPartial Labor Productivity=(100505)/(19550) \nPartial Labor Productivity=5.14$

For LDC:

$Partial Labor Productivity=(Sale(units))/(Labour(hours) \nPartial Labor Productivity=(19600)/(14550) \nPartial Labor Productivity=1.35$

Capital Productivity:

For US:

$Capital Productivity=(Sale(units))/(Capital Equipment) \nCapital Productivity=(100505)/(58600)\nCapital Productivity=1.72$

For LDC:

$Capital Productivity=(Sale(units))/(Capital Equipment) \nCapital Productivity=(19600)/(4550)\nCapital Productivity=4.31$

Part B:

For US:

$Multifactor Productivity=(Sales(units))/(labour(Hours) + Capital Equipment(hours))\n Multifactor Productivity=(100505)/(19550+58600) \nMultifactor Productivity=1.29$

For LDC:

$Multifactor Productivity=(Sales(units))/(labour(Hours) + Capital Equipment(hours))\n Multifactor Productivity=(19600)/(14550+4550) \nMultifactor Productivity=1.03$

Part C:

For US:

$Raw material productivity=(Sales(Hour))/(Raw Material) \n Raw material productivity=(100505)/(20500) \n Raw material productivity=4.90$

ForLDC:

Converting Raw material FC into $ (1$=10FC)

Raw Material =19550/10=$1955

$Raw material productivity=(Sales(Hour))/(Raw Material) \n Raw material productivity=(19600)/(1955) \n Raw material productivity=10.02$

The Kilp Sisters Trust is required to distribute $60,000 annually equally to its two income beneficiaries, Clare and Renee. If trust income is not sufficient to pay these amounts, the trustee can invade corpus to the extent necessary. During the current year, the trust generates only taxable interest income and records DNI of $160,000; the trustee distributes $30,000 to Clare and $150,000 to Renee. a. How much of the $150,000 distributed to Renee is included in her gross income? $.
b. How much of the $30,000 distributed to Clare is included in her gross income? $ is included in her gross income.
c. The distributions which are composed of trust accounting income that is required to be distributed currently come under .

Answers

Answer:

Results for Renee are as follows:

After the first tier distributions ($60000/2 = $30000 to each income beneficiaries) are accounted for, $100000 DNI remains to be assigned to the beneficiaries on the second tier ($160000 DNI - $60000 DNI used for first tier distribution).

Amount received DNI received = Gross income,

portfolio income

First tier $30,000.00 $30,000.00

Second tier $1,20,000.00 $ 1,00,000.00

Total $1,50,000.00 $ 1,30,000.00

Results for Clare are as follows:

Amount received DNI received = Gross income,

portfolio income

First tier $30,000.00 $ 30,000.00

Second tier $ - $ -

Total $30,000.00 $ 30,000.00

The distributions which are composed of trust accounting income that is required to be distributed currently come under First Tier Distribution.

Which of the following statements is FALSE?A. MMProposition1, if there are no taxes, states the value of the firm does not depend whatsoever on itscapital structure.B. MM Proposition 2, if there are no taxes, explains how the cost of equity decreases as the firm increasesits use of debt financing.C. Because interest expense is tax deductible, leverage increases the firm's value by the amount of thepresent value of the interest tax shield.D. Because interest expense is tax deductible, a firm's WACC decreases as firms rely more heavily on debt financing.

Answers

Answer:

B. MM Proposition 2, if there are no taxes, explains how the cost of equity decreases as the firm increases its use of debt financing

Explanation:

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Hayes Corp. is a manufacturer of truck trailers. On January 1, 2021, Hayes Corp. leases ten trailers to Lester Company under a six-year non-cancelable lease agreement. The following information about the lease and the trailers is provided: 1) Annual payment of $120,175 is due on January 1, 2021 and at December 31 from 2021 to 2025. Hayes Corp. has an implicit rate of 8% (present value factor for 6 periods at 8% is 4.99271). 2) Titles to the trailers pass to Lester at the end of the lease. 3) The fair value of each trailer is $60,000. The cost of each trailer to Hayes Corp. is $54,000. Each trailer has an expected useful life of nine years. 4) Collectibility of the lease payments is probable. Instructions (a) What type of lease is this for the Lester Company and Hayes Corp? (b) Prepare a lease amortization schedule for Lester Company till 12/31/2021. (c) Prepare the journal entries for Lester Company on 1/1/2021 and 12/31/2021. Round all amounts to the nearest dollar.

The delivered equipment cost for setting up a production and assembly line for two-way floating ball valves is $650,000. If the direct cost and indirect cost factors are 1.82 and 0.31, respectively, and only the direct cost factor applies to delivered equipment cost, the total plant cost estimate is approximately:a. $ 2,034,500b. $ 2,401,230c. $ 2,684,500d. $ 2,983,000