Answer:
1500
Explanation:
Breakeven point is the number of units produced and sold where net income is art on it is where revenue equals cost.
The formula for calculating break even points = F / (P - V)
F = fixed cost
P = price
V = variable cost per unit
$270,000 / ($600 - $420) = 1500
I hope my answer helps you
Answer:
changes in private savings offset any changes in the government deficit
Explanation:
Ricardian equivalence means that private saving changes offset any changes in the government budget. Therefore, if the deficit increases by 30, private saving also increases by 30 but the trade deficit and the budget deficit will not change.
In case of the Ricardian equivalence, economic agents are assumed to be perfectly rational. According to them, higher taxes are required to repay the debt in case of an increase in deficit-financed government spending.
Answer:
16.89%
Explanation:
As per the given question the solution of simple rate of return for the investment is provided below:-
we need to first find out the accounting profit and depreciation
where
Accounting Profit = Annual Cash Inflow - Depreciation
and
Depreciation = Investment required in equipment ÷ Life of investment
= $36,500 ÷ 15
= $2,433.33
now we will put the value by using the accounting profit formula.
= $8,600 - $2,433.33
= $6,166.67
So,
Simple Rate of Return = Accounting Profit ÷ Initial Investment
= $6,166.67 ÷ $36,500
= 16.89%
Numbers of suppliers in a purely competitive market dictate how easy it is to start a business or transform it in that sector.
Explanation:
Entry an d Exit in a business sector means the ease of starting or transforming a business that is involved in a particular market sector.
In a purely competitive market the business is dictated by the market standards set by the completion of the various companies vying for a market share between each other.
The harder the competition at the top level, the harder it is for a new business to come up, similar is the case for when one or two companies dominate the hegemony in which case it is hard to grab a market share for the new entrant in the market.
