In building a model to analyze economic situations, one of the important assumptions is

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Answer 1

In having to build a model in analyzing economic situations, the most important assumption is the ceteris paribus. The ceteris paribus means that it is having things in equal and where conditions should always remain the same. It is important as it is a way of having to show balance.

Related Questions

As a result of their influence on the quantity, variety, and quality of products, trade barriers ________ domestic consumers.

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The answer in the space provided is hurt. It is because of their influence in the following factors such as the variety, quantity and the quality of products, the trade barriers will most likely hurt the domestic consumers involved in it.

Martinez company’s relevant range of production is 7,500 units to 12,500 units. when it produces and sells 10,000 units, its average costs per unit are as follows:

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Part 1.)

For financial accounting purposes, the total amount of product cost incurred to make 10,000 units is given by

($6.00 x 10,000) + ($3.50 x 10,000) + ($1.50 x 10,000) + ($4.00 x 10,000) = $60,000 + $35,000 + $15,000 + $40,000 = $150,000

Part 2.

The total amount of period cost to make 10,000 units is given by
($3.00 x 10,000) + ($2.00 x 10,000) + ($1.00 x 10,000) + ($0.50 x 10,000) = $30,000 + $20,000 + $10,000 + $5,000 = $65,000.

Part 3.)

If 8,000 units are sold the variable cost per unit sold is given by
[($6.00 x 8,000) + ($3.50 x 8,000) + ($1.50 x 8,000) + ($1.00 x 8,000) + ($0.50 x 8,000)] / 8,000 = ($48,000 + $28,000 + $12,000 + $8,000 + $4,000) / 8,000 = $100,000 / 8,000 = $12.50

Part 4.)

Therefore, if 12,500 units are sold the variable cost per unit sold is given by
[($6.00 x 12,500) + ($3.50 x 12,500) + ($1.50 x 12,500) + ($1.00 x 12,500) + ($0.50 x 12,500)] / 12,500 = ($75,000 + $43,750 + $18,750 + $12,500 + $6,250) / 12,500 = $156,250 / 12,500 = $12.50

Part 5.)

Therefore, if 8,000 units are sold the variable cost related to the units sold is given by
($6.00 x 8,000) + ($3.50 x 8,000) + ($1.50 x 8,000) + ($1.00 x 8,000) + ($0.50 x 8,000) = $48,000 + $28,000 + $12,000 + $8,000 + $4,000 = $24,000 = $100,000

Part 6.)

If 12,500 units are sold the variable cost per unit sold is given by
($6.00 x 12,500) + ($3.50 x 12,500) + ($1.50 x 12,500) + ($1.00 x 12,500) + ($0.50 x 12,500) = $75,000 + $43,750 + $18,750 + $12,500 + $6,250 = $156,250

Part 7.)

Given that 10,000 units were budgeted, thus the total fixed manufacturing overhead is given by 10,000 x $4.00 = $40,000

Therefore, if 8,000 units are produced, the average fixed manufacturing cost per unit produced is given by $40,000 / 8,000 = $5.00

Part 8.)

If 12,500 units are produced, the average fixed manufacturing cost per unit produced is given by $40,000 / 12,500 = $3.20

Part 9.)

If 8,000 units are produced, the fixed manufacturing cost incured to support this level of production is $40,000

Part 10.)

If 12,500 units are produced, the fixed manufacturing cost incured to support this level of production is $40,000

Part 11.)

The total variable manufacturing overhead is given by $1.50 x 8,000 = $12,000

Given that 10,000 units were budgeted, thus the total fixed manufacturing overhead is given by 10,000 x $4.00 = $40,000

Therefore, the total amount of manufacturing overhead cost incurred to support this level of production is given by $12,000 + $40,000 = $52,000

And the the total amount of manufacturing overhead cost incurred to support this level of production expressed on a per unit basis is given by $52,000 / 8,000 = $6.50

Part 12.)

If 12,500 units are produced, what is the total amount of manufacturing overhead cost incurred to support this level of production? What is the total amount expressed on a per unit basis?

The total variable manufacturing overhead is given by $1.50 x 12,500 = $18,750

Therefore, the total amount of manufacturing overhead cost incurred to support this level of production is given by $18,750 + $40,000 = $58,750

And the the total amount of manufacturing overhead cost incurred to support this level of production expressed on a per unit basis is given by $58,750 / 12,500 = $4.70

Part 13.)

If selling price is $22 per unit, what is the contribution margin per unit sold?

Contribution margin is a product’s price minus all associated variable costs, resulting in the incremental profit earned for each unit sold.

The variable cost per unit sold is given by $6.00 + $3.50 + $1.50 + $1.00 + $0.50 = $12.50
Therefore, the contribution margin per unit sold is given by $22 - $12.50 = $9.50

Part 14.)

If 11,000 units are produced, what are the total amounts of direct and indirect manufacturing costs incurred to support this level of production?

Thus the total amount of direct manufacturing costs is given by ($6.00 x 11,000) + ($3.50 x 11,000) = $66,000 + $38,500 = $104,500

Thus the total amount of indirect manufacturing costs incurred is given by ($1.50 x 11,000) + ($4.00 x 11,000) = $16,500 + $44,000 = $60,500

Therefore, the total amounts of direct and indirect manufacturing costs incurred to support this level of production is given by $104,500 + $60,500 = $165,000.

Part 15.)

What total incremental cost will Martinez incur if it increases production from 10,000 to 10, 001 units?

An incremental cost is the increase in total costs resulting from an increase in production.

The total cost for the production of 10,000 units is given by ($6.00 + $3.50 + $1.50 + $4.00 + $3.00 + $2.00 + $1.00 + $0.50) x 10,000 = $21.5 x 10,000 = $215,000

The total cost for the production of 10,001 units is given by ($6.00 + $3.50 + $1.50 + $4.00 + $3.00 + $2.00 + $1.00 + $0.50) x 10,001 = $21.5 x 10,001 = $215,021,50

Therefore, the total incremental cost Martinez will incur if it increases production from 10,000 to 10, 001 units is given by $215,021.50 - $215,000 = $21.50

Final answer:

When producing and selling 10,000 units, the average cost per unit for Martinez company could fall within the range of $10 to $20, depending on the specific plant's production capacity.

Explanation:

Figure 33.5 illustrates economies of scale for a plant producing toaster ovens. The average cost of production varies based on the quantity of production. Production plant S has an average cost of production of $30 per toaster oven, plant M has an average cost of production of $20 per toaster oven, and plant L has an average cost of production of $10 per toaster oven. Production plant V, despite being larger, still has an average cost of production of $10 per toaster oven. This means that when producing and selling 10,000 units, the average cost per unit for Martinez company could fall within the range of $10 to $20, depending on the specific plant's production capacity.

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A medical group includes a provision in its contract with an hmo to receive larger pmpm payments if the hmo members are chronically ill. this type of provision is referred to as a

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It alludes as Adverse Selection. Adverse selection alludes to a circumstance where dealers have data that purchasers don't, or the other way around, about some part of item quality. On account of protection, an unfriendly determination is the propensity of those in risky occupations or high-hazard ways of life to get life coverage.

Final answer:

The provision in question is known as a risk-adjusted payment system, where healthcare providers receive higher payments if their patient population presents greater health risks.

Explanation:

A medical group that includes a provision in its contract with a Health Maintenance Organization (HMO) to receive larger per member per month (PMPM) payments if the HMO members are chronically ill is dealing with a form of risk-adjusted payment system. This system adjusts payments to healthcare providers based on the predicted cost of providing care, accounting for the health status and risk of their patients. If the HMO's members require more resources for their care, the medical group is compensated with higher PMPM rates, which helps in managing the financial risk of treating sicker patients.

Which organizational pattern argues that there is a direct relationship between two things?

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The answer is "cause-effect pattern".
Different causes and effects of various conditions are shown utilizing this pattern. This pattern is especially successful when composing an persuasive composition in which the author advocates some activity to solve an issue, since it exhibits vital connections between factors. It usually says because of that, this happened" and offers the reasons why some positive and negative actions occur.

Honest tea considers themselves a mission-driven business. they have decided that it is important to understand the communities from which they buy their tea leaves and have focused on fair-trade. this ethical decision was likely made based on the ________ view of ethics.

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The ethical decision was likely made based on the utilitarian view of ethics as this is related to the statement above of which the people focus on the importance of understanding of buying the things or their tea and to made use of fair trade as utilitarian is a way of having to focus on its content or the usefulness rather than its external or attractiveness of a certain thing.

Explain why and how a reasonably competitive market is always moving toward equilibrium.

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shortages below equilibrium will drive up price that decrease quantity demanded and increases quantity supplied moving toward equilibrium. Also because of the two conditions one is informal and the other one is free market entry.

Understanding foreign languages is especially important for international managers because of ________.

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Understanding foreign languages is especially important for international managers because of some countries like China, Brazil, and Russia don't have English as their first or second language. Being able to communicate fluently with other people in other countries is a big plus when it comes to creating business relations. It is better to understand the language than relying on translators that can sometimes skew and misinterpret foreign words when translating to English and vice versa.

If pillow pets remained a small business by choice of the owners, then the owners might be called

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If they remained a small business by choice of the owners, then the owners might be called "micropreneurs".

Some people by choice don't expand their businesses, usually not having more than five employees. Micropreneurs are business people willing to acknowledge the danger of beginning and dealing with the sort of business that remaining small, gives them a chance to do the sort of work they need to do, and offers them an adjusted way of life. Numerous business people remain little by decision.

The owners of Pillow Pets who choose to keep their business on a smaller scale may be described as lifestyle business owners. They aim for a work-life balance and are not necessarily looking to dominate the market.

If the owners of Pillow Pets decided to keep their business small by choice, they might be referred to as lifestyle business owners. This term describes entrepreneurs who prefer to maintain their business at a manageable size that aligns with their personal life goals and desired quality of life. These types of businesses typically do not seek to dominate the market but rather provide a stable income while allowing the owners to enjoy a certain balance between work and personal life.

Explain how and why governments may want to regulate the price setting of a natural monopoly.

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The reason why government may want to regulate the price setting of natural monopoly because they are a high scale of economy and because of that, competition is not encouraged They have the power to have prices to be set as high in market compared to the market who are referred to be more competitive.

Joe takes his car into the repair shop to have his tires realigned. while he is waiting for his car, he sees the repairmen take his car to the area where they change the car's oil. the car is then taken to the area where the tires are realigned. joe watches while the tires are realigned. the employees next take joe's car to be washed. joe did not know his car would be washed, but knows that many car repair businesses have a practice of cleaning the cars at no additional cost to the customer after completing the repair work. when joe is presented with the bill, there is a charge for the oil change, the realignment, and the car wash. according to the courts in pic realty corp. v. southfield farms, inc., the court is most likely to make joe pay for:

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The court will most likely make Joe pay for the original services agreed upon between himself and the repair shop. As Joe did not request nor come into contract with the repair shop for the additional services and there was a known practice of auto shops cleaning the vehicles after repairs it is acceptable that Joe should not have expected to be charged for the service. Furthermore Joe was not asked nor offered a further contract neither implied nor express, to have the additional services conducted. The fact that Joe witnessed the additional services does not automatically entitle the auto repair shop to further compensation than that which was already agreed upon due to the known practice of added services in the area.

Final answer:

The court is likely to rule that Joe must pay for the oil change and realignment, the services he requested, but not for the car wash if it was provided without his consent and he reasonably believed it was complimentary.

Explanation:

The case presented here involves an issue where a customer, Joe, observed unintended services being performed on his car and was then charged for all the services including the unrequested car wash. According to the principles laid out in Pic Realty Corp. v. Southfield Farms, Inc., the court is likely to consider whether Joe had a reasonable opportunity to reject the car wash service and whether the car wash was imposed upon him without his consent.

The fact that many car repair businesses have a practice of cleaning the cars at no additional cost could indicate that Joe had reasonable grounds to assume the car wash was complimentary. Therefore, the court would most likely find Joe responsible for paying for the oil change and the realignment, which were services he requested, but not for the car wash if he did not agree to it and if he reasonably believed it was provided free of charge.

What is the market value of the shareholders’ equity if assets equal $5,700?

Answers

Shareholder equity will have a market value of the assets less whatever the company owes its creditors during the coming year. If that value is less than zero, the value simply becomes zero. In this case, it will be (5700 - obligations) for the year in question.

Final answer:

To determine the market value of shareholders' equity, more information about the liabilities is needed.

Explanation:

The market value of shareholders' equity can be calculated by subtracting total liabilities from total assets. In this case, since we are given that the assets equal $5,700, we need more information about the liabilities to determine the market value of shareholders' equity.

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Ag economic transactions that involve no coercion are win-win situations. why?

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Agricultural economic transactions that has no coercion are win win situations because as the coercion means, such as forcing an individual with the use of threats in order to do something-- and is not in the transaction, it is already a win win situation because coercion is not involve, and people who are involve have the freedom to do as they please and there will be agreement with both parties with no force involve.

In the circular flow model, the expenditures on goods and services flow in the

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The answer is opposite direction as goods and services.
In the circular flow model, the expenditures on goods and services will be paid by the households to the producers/
The direction of goods and services (products) on the other hand, will be given by the producers to the households.

Final answer:

In the circular flow model, expenditures on goods and services flow from households to firms as they purchase goods and services, completing a cycle of economic activity between households and firms in the goods and services and labor markets.

Explanation:

In the circular flow model, the expenditures on goods and services represent the money that households spend in the product market to acquire goods and services from firms. In return, these firms pay households for the labor services, land, capital, and entrepreneurship provided through wages, rent, interest, and profits. This interaction highlights the dependence of households and businesses upon each other within the economy, forming a continuous loop that is fundamental to economic activity.

The model simplifies the real-world complexity into a more understandable form, representing the essential transactions between households and firms. Households provide labor services and receive income, which they then turn into expenditures on goods and services, completing the cycle within the diagram. The goods and services market and the labor market are thus two critical components of the circular flow model, illustrating the flow of money and resources in an economy.

True or false: the price floor of $8 per pound of cheese reduces the total revenue of cheese producers.

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False, because the fact that they're selling by pound doens't change their revenue if, and only if, they made the math calculus about the best price to sell the cheese acording to their balance sheet

How can organizations justify investing in enterprise or portfolio project management software?

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Organisations should not be scared in this because it was found that investing in enterprise project management for IT projects is extremely important. Not only can it save the company time, money, and resources, enterprise project management can help manage multiple projects concurrently. This can keep the company organized and efficient as they carry out projects simultaneously.

The current u.s. economy is based primarily on the production of

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The current U.S. economy is based primarily on the production of services. Services are expert work performed by teams for customers, such as products, accountancy, consultation, banking, cleaning, education, insurance, and treatment, for example.

Efficiently scheduling material and labor is an example of ________________ decisions

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A) strategic
B) tactical
C) operational
D) short-term
E) none of the above

its b tactical

Situation analysis is an ongoing process, referred to as __________.

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The answer is 'scanning the environment'. Environmental scanning is a process that systematically surveys and interprets relevant data to identify external opportunities and threats.

If the owner contributes 9,200 and the owner withdraws 39,500 how much is net income

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The owner contributes 9,200

0 +9200 = 9200

The owner than withdraws 39500

9200 - 39500 = -30300

The net income is -30,300

hope this helps

The r&r company's manufacturing costs for august are: direct labor, $25,000; indirect labor, $10,500; direct materials, $28,600; taxes on raw materials and work in process, $1,600; heat, lights, and power, $1,800; and insurance on plant and equipment, $600. r&r company's factory overhead incurred for august is:

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Company's factory overhead includes:
Indirect labor 10500
taxes on raw materials and work in process, $1,600
heat, lights, and power, $1,800
insurance on plant and equipment, $600
Total= 14500....answer

Hope it helps!

A good example of a government imposed-price ceiling is:

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A price ceiling would exist on items like the rent for apartments, which some municipalities would place on landlords as a way of making sure people find affordable housing. By setting the price at a maximum, the government has imposed a ceiling above which it is illegal to charge.

Compare tax rates in the united states versus other countries. what impact could these differences have on "keeping jobs at home"?

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The most minimal tax rates among created nations dwell in Europe, with a normal corporate expense rate among European nations at 26 percent. In the examination, 30 percent is the normal assessment rate among Asia-Pacific nations, and 38 percent is the duty rate for the United States and Japan. Numerous nations are bringing charge rates down to draw in speculation.

The consideration of future consequences scale is intended to measure the extent to which an individual considers the future when making immediate choices. if the scale is a reliable measure, we would expect that:

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If the scale of it were able to provide a more reliable measure, it is expected that the score of the person in the scale would have caused or resulted into a more relatively stable from his or her day to day life or daily life.

Figure out Samuel's Net Pay using the following information.
Gross Monthly Earnings $4,200
Social Security Tax Rate 6.2%
Medicare Tax Rate 1.45%
Net Pay__________

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Gross monthly earnings = $4,200
Social Security Tax = 0.062*4200 = $260.40
Medicare tax = 0.0145*4200 = $ 60.90

Net pay = 4200 - 260.40 - 60.90 = $3,878.70

Answer: $3,878.70

You have a list of european stocks that are priced in euros. where can you go to format the prices in euros in excel?

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To convert prices in euros in dollars it means you should make Currency Conversion. In order to do the currency conversion you should take several steps in Excel:
1. Select a blank cell next to the price in Euros and enter the formula =NUMBERVALUE(A2,",",".").
Now you will have the amount. If you also want to have the symbol for dollars you should:
2. Format the cell: Right click-> Format->Currency and select the currency.

Final answer:

To format prices in euros in Excel, highlight the cells with values to change, navigate to the 'Home' tab and the 'Number' group. Click on 'Number Format', select 'Currency', and then choose 'Euro' in the currency dropdown. The selected cells will display Euro prices.

Explanation:

To format the prices in euros in Excel, you need to follow certain simple steps. Firstly, open your excel sheet and then select the cells containing the values you want to display as Euros. Secondly, go to the 'Home' tab, which is generally located at the top left side of your Excel window, and look for the 'Number' group.

In the 'Number' group, click on the dropdown menu for 'Number Format' (which usually defaults to 'General'), and select 'Currency'. A new dialog box for 'Currency Format' will open. From here, you can choose 'Euro' from the drop-down list of currency symbols, and click on 'OK'. Your selected cells should now display the prices in Euros.

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Jerry's supervisor has asked him to revise a memo because his paragraphs are too long. how long should jerry's paragraphs be, on average, in his revision?

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On average, Jerry's paragraph should be between 40 - 80 WORDS.
Memo is a type of business message which is used in formal setting to pass across information to necessary individuals. Paragraphs used in this type of message should be short and straight to the point. A maximum of 80 words is considered effective for each paragraph in such a message.

Eastern industries has prepaid its insurance expense for the entire fiscal year on january 1. under the cash basis of accounting eastern will

Answers

Under the cash basis of accounting, the prepayout for the insurance for the year on January 1st should be recorded as such ie with the payout amount entered in the record for that date. The cash basis accounting method only records transactions when cash is payed out or received.

If you borrow $25,000 from a local finance company and you are required to pay $4,424.50 per year for 10 years, what is the annual interest rate on the loan?

Answers

Final answer:

To find the annual interest rate on the loan, calculate the interest paid each year as a percentage of the loan amount. Set up the equation 44,245 = x/100 x 25,000 and solve for x. The annual interest rate on the loan is 17.79%.

Explanation:

To find the annual interest rate on the loan, we need to calculate the interest paid each year as a percentage of the loan amount. The total interest paid over 10 years is $4,424.50 x 10 = $44,245. We can set up the equation:

44,245 = x/100 x 25,000 in which the value of x can be the variable that stands for the figure that we do not know

Solving for x, we find that the annual interest rate on the loan is 17.79%.

In studies of seed production, why is it important to assign plots of land to either the control group or treatment group at random?
a. it decreases the likelihood that the results of the study will be challenged.
b. it increases the chance that the study will be able to be scaled to a higher level.
c. it increases the likelihood that the treatment group will show a difference from the control group.
d. it decreases the likelihood that plots that receive a particular treatment share other characteristics that might influence seed production.

Answers

The answer to this question is: d. it decreases the likelihood that plots that receive a particular treatment share other characteristics that might influence seed production
It is almost impossible to find out exact nutrition composition that exist within a soil. (which will play a huge factor in seed productin). So, to make the data more reliable, it is important to randomly assign plots of land as either the control group or the group that receive special treatment and grow the seed separately.

B. if lucinda has only $18 to spend and the price of kewpie dolls and the price of beanie babies are both $6, how many of each would lucinda buy if she were rational?

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$6: price of a kewpie doll $6: price of a beanie baby $18: Lucinda's money 18:6=3 Lucinda can buy one kewpie doll and one beanie one. There are enough money for a tird doll so, if she wants to buy it, she has to choose between the types of dolls and she can't buy both

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