Answer:
Contributing margin.
Explanation:
Contributing margin is calculated by deducting the cost of producing a food item from its selling price. This represents the portuin of sales revenue that is not used up by cost.
It shows the profit a business eventually makes after considering its costs incurred.
This is an important consideration for businesses because it shows if a business venture is profitable and worth continuing. When the contributing margin is negative, it means that the business is running at a loss.
The question applies the principles of demand, supply, and pricing in the context of two movie theaters - The Modern Multiplex and The Sticky Shoe. By understanding the relationship between price, demand, and the cost to serve each customer, we can analyze the probable outcomes of price regulations, like the imposition of a price floor, on the businesses.
The question pertains to the economic concept of demand curves and consumer behavior using two movie theaters as examples. The Modern Multiplex and the Sticky Shoe operate at different prices and attract different numbers of customers. The demand for movies at the multiplex is given by the equation qmm = 14 - pmm + pss, while the demand at Sticky Shoe is given by qss = 8 + 2pss - pmm. Here, 'q' represents the quantity of movies demanded and 'p' represents the respective price in dollars.
Given that Multiplex has higher expenses per customer at $4, their ticket prices would naturally be higher than Sticky Shoe, which has a lower cost per customer at $2. This translates to their demand equations; the negative sign in front of pmm in Multiplex's demand equation suggests that as prices increase, their demand decreases because more people start favoring Sticky Shoe. Similarly, the positive sign in front of pss in Sticky Shoe's demand equation indicates that as their prices decrease, more customers prefer it over Multiplex.
This problem demonstrates how price floors can create surpluses and shortages, leading to inefficiencies in the market. For instance, if a minimum price (price floor) is set above the equilibrium price, the quantity supplied at this higher price will exceed the quantity demanded, thus leading to a surplus. If not managed carefully, these surplus situations can indeed lead to losses and business closures, as shown in the movie theater example.
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Low start-up costs make it easy for companies to have a natural monopoly.
Natural monopolies are held by companies that cannot pay for start-up costs.
The government offers companies money for start-up costs to prevent natural monopolies.
The correct answer is A. High start-up costs prevent others from offering the same service in a natural monopoly.
Explanation:
In the economy, natural monopolies occur when only one company or provider offers a service or product due to natural barriers to compete. One of the most important factors that lead to monopolies is high start-up costs, because if companies or individuals are unable to cover costs of infrastructure and technology then they cannot offer certain services.
An example of this is railways because for a company to offer this service it requires a lot of infrastructures, technology, workers, etc. and therefore the start-up costs or initial cost stop many companies from offering this service letting only one company to do this and therefore creating a monopoly. Thus, start-up costs are related to natural monopolies because "High start-up costs prevent others from offering the same service in a natural monopoly".
A) shares
B) bonds
C) annuities
Answer:
In total the firm will capitalize interest thorught building account for 560,000 dollars
Explanation:
From the weighted average accumulated of 2,900,000
we should first work with the interest incurred in specific borrowing:
2,400,000 x 9% = 216,000
then we subtract:
2,900,000 - 2,400,000 = 500,000
and forthis amount we apply the rate for the other debt outstanding
500,000 x 12% = 60,000
In total the firm will capitalize interest thorught building account for 560,000 dollars
Answer:
The $160,000 will be reported on the December 31, 2016, balance sheet as accounts payable
Explanation:
Account payable: The account payable is the amount in which the purchase of an item on a credit basis is recorded and the payment is to be made at the later date. It has come under the current liabilities on the balance sheet side.
In the given question, the purchase of inventory is made for $160,000 on a credit basis. Along with it, the receipt is also taken from the supplier. So, the same amount i.e $160,000 will be recorded in accounts payable
Answer:
no i think
Explanation: