Suppose that sharply lower coffee prices lead to a decrease in the demand for tea. Tea price decreases, and the tea producers experience short-run economic losses. If the tea industry is a price-taker market, after sufficient time is allowed for the market to adjust fully to the decrease in the demand for tea, one would expect the tea industry's output to

Answers

Answer 1

Answer:

C)decline and economic losses to disappear.

Explanation:

here are the options to this question :

A)increase and economic losses to persist. B)decline and economic losses to persist. C)decline and economic losses to disappear. D)increase and economic losses to disappear

Coffee and tea are substitute goods. As a result, of the fall in price of coffee, the demand for tea would decrease. The decrease in price of tea would lead to an inward shift of the demand curve, assuming supply remains unchanged in the short run, equilibrium quantity would fall and equilibrium price would fall. this leads to firms in the tea industry experiencing economic losses.

In the long run, firms would exit the tea industry, output would reduce and economic losses would disappear


Related Questions

In recent years, the United States has Group of answer choices had a large goods trade surplus with the rest of the world. exported more services abroad than it has imported. maintained an overall trade surplus (goods and services combined) with the rest of the world. had a small goods trade surplus with Japan

Answers

Answer:

exported more services abroad than it has imported.

Explanation:

The US in recent years have been the largest exporter of services in the world. The United states is as of today known as a global leader in services export which has been seen to grow seven fold over the past 34 years especially from areas like insurance and financial services. From an average of 40 countries(both emerging and advanced economies), the country has the lowest trade barriers in 14 out of 18 services sectors.

A company has bonds outstanding with a par value of $100,000. The unamortized discount on these bonds is $4,500. The company retired these bonds by buying them on the open market at 97. What is the gain or loss on this retirement

Answers

Answer:

$1,500 loss

Explanation:

Calculation for the gain or loss on this retirement

First step is to find the 97% of the bond outstanding $100,000

Par value of bond=97%*$100,000

Par value of bond=$3,000

Second step is to calculate for the gain or loss on the retirement using this formula

Carrying value of bond=Par value of bond-Unamortized discount on bond

Let plug in the formula

Carrying value of bond=$3,000-$4,500

Carrying value of bond= -$1,500

Therefore the loss on this retirement will be $1,500

Becker Industries is considering an all equity capital structure against one with both debt and equity. The all equity capital structure would consist of 30,000 shares of stock. The debt and equity option would consist of 15,000 shares of stock plus $255,000 of debt with an interest rate of 8 percent. What is the break-even level of earnings before interest and taxes between these two options

Answers

Answer:

The break-even level of earnings before interest and taxes is $47,200

Explanation:

EBIT = Earnings before interest and taxes

EPS = Earnings per share

I = interest

n = number of equity shares

n1, n2 = number of equity shares outstanding after adopting financing plans 1 and 2

n1=30,000

n2= 15,000

Break-even EBIT level   is the indifferent point where EPS under alternative financing plan is the same.

Mathematically, the break-even EBIT level is:   EBIT/ n1 = (EBIT - I ) / n2

EBIT/30,000 =(EBIT -295,000 x 8%/ 15,000)  

EBIT/2 = EBIT - 23,600

2*EBIT - 23,600 x 2 = EBIT

2EBIT - EBIT= 47,200

EBIT= $47,200

Which of the following would be an example of direct finance? Group of answer choices A saver deposits money into a credit union. A saver buys a bond a corporation has just issued so it can purchase capital. None of the above is correct. A saver buys shares in a mutual fund.

Answers

Answer:

A saver buys a bond a corporation has just issued so it can purchase capital.

Explanation:

Direct finance is the process of financing in which the borrower borrows thd fund directly from the financial institution without involving the third party i.e intermediate, broker, etc

In the question, the option b is correct as it derives that a saver could purchase a bond since the corporation issued it so the capital could be purchased

hence, the second option is correct

Answer:

A saver buys a bond a corporation has just issued so it can purchase capital.

Explanation:

A key process topic that should be part of early discussions regarding ground rules is appropriate decision making and problem solving, ensuring that the project manager and core team understand who makes each type of decision and how those decisions are made.

a. True
b. False

Answers

Answer: true

Explanation:

From the question, we are informed that a key process topic that should be part of early discussions regarding ground rules is appropriate decision making and problem solving, ensuring that the project manager and core team understand who makes each type of decision and how those decisions are made.

This is true. It should be noted that for a project manager to achieve his or her goals, the person must be a problem solver and have what it entails to succeed.

Jack oversees two very different workers. Kenny wants to be told exactly what to do because he is hesitant to make decisions, and Laila wants to be told exactly what to do because she wants to get on with it. So, even though they are very different people, they both respect decisiveness. According to the path-goal theory of leadership, Jack should use the _____________ leadership style with Kenny and Laila.

Answers

Answer:

Directive.

Explanation:

In this scenario, Jack oversees two very different workers. Kenny wants to be told exactly what to do because he is hesitant to make decisions, and Laila wants to be told exactly what to do because she wants to get on with it. So, even though they are very different people, they both respect decisiveness. According to the path-goal theory of leadership, Jack should use the directive leadership style with Kenny and Laila.

Under a directive leadership style, leaders generally set a clearly defined objective, guidelines, roles or functions and rules for his or her subordinates (employees).

Hence, it is always considered or deemed necessary to guide employees to achieve organizational success in a directive leadership style.

A group consists of key representatives from all departments in the product development process, such as marketing, sales, finance, and manufacturing. These core members have primary responsibility for the product, with supporting resources as needed. This is an example of a(n) self-managed team. cross-functional team. flexible workforce. extended team. CRM team.

Answers

Answer:

self-managed team

Explanation:

The self-managed team is a team of people who are working in a group belonging from different specialization that is responsible and accountable with respect to the product production and service delivering

Here, in the given question it is mentioned that the core members have responsibility for the product or the resources required

Therefore the first option is correct

Coda Inc. is an apparel manufacturer. The management at Coda prefers moderate control over the operations of the different departments such as R&D, design, marketing, and sales. It allocates a budget to each function at the beginning of each quarter. This is an example of implementing control through _____.

Answers

Answer: input control

Explanation:

From the question, we are informed that Coda Inc. is an apparel manufacturer and that the management at Coda prefers moderate control over the operations of the different departments such as R&D, design, marketing, and sales.

We are further told that it allocates a budget to each function at the beginning of each quarter. This is an example of implementing input control.

Hudson Corp. operates several factories that manufacture medical equipment. The factories have a historical cost of $200 million. Near the end of the company’s fiscal year, a change in business climate related to a competitor’s innovative products indicated to Hudson’s management that the $170 million carrying amount of the assets of one of Hudson’s factories may not be recoverable. Management identified cash flows from this factory and estimated that the undiscounted future cash flows over the remaining useful life of the factory would be $150 million. The fair value of the factory’s assets is reliably estimated to be $135 million. The change in business climate requires investigation of possible impairment. Which of the following amounts is the impairment loss?
A) $15 million.
B) $20 million.
C) $35 million.
D) $65 million.

Answers

Answer:

C) $35 million.

Explanation:

The computation of the impairment loss is shown below:

= Carrying amount of the assets - fair value of the factory assets

= $170 million - $135 million

= $35 million

Since the carrying amount exceeds the fair value of the asset so the impairment loss is recorded and hence the same is to be considered.

Hence, the correct option is c.

Entrepreneurial opportunities Group of answer choices are conditions in which new goods or services can satisfy a need in the market. are conditions contrary to a firm"s established strategy and segments served. present risk to the firm and should be avoided. present the potential for a firm to leverage existing products or services into new markets.

Answers

Answer:

Option A would be the correct choice.

Explanation:

These would be generally characterized as circumstances where commodities could be offered at that same slightly higher price than certain manufacturing costs. This is indeed a condition in which businessmen will operate to make massive profits.

There seem to be certainly profit-making circumstances:

There have been plenty of companies that are making profits.Even though policymakers described it.Manipulating information asymmetries.

Some other options in question aren't relevant to the particular circumstance. And option A is the right one.

When Brandon decided he needed a new car, he immediately called his old college roommate, who owns a BMW dealership, to ask questions about options and financing. Brandon was searching for information from Group of answer choices

Answers

Answer:

external source

Explanation:

In this specific scenario, Brandon was searching for information from an external source. In this case, Brandon's friend is the external source of information, because he is someone from the outside that is capable of providing Brandon with the information that he needs and why Brandon reached out for that information. Internal Information would be information that comes from Brandon's own memories.

An auditor's report includes the following statement: "The financial statements referred to above do not present fairly the financial position, results of operations, or cash flows in conformity with U.S. generally accepted accounting principles." This auditor's report was most likely issued in connection with financial statements that are

Answers

Answer:

The answer is misleading or not free from material misstatement

Explanation:

When a financial statement is misleading or not free from material misstatement, an auditor issued a qualified report. This qualified report tells the users of the financial statement that something is wrong.

Material misstatement refers to an error in the financial statement that if omitted, it will affect the decision of the users.

If a financial statement is free from error or material misstatement, an auditor will issue unqualified report.

Suppose that in a month the price of oranges increases from $.75 to $1. At the same time, the quantity of oranges demanded decreases from 100 to 80. The price elasticity of demand for oranges (calculated using the initial value formula, also known as the simple elasticity formula) is:_______A 0.6. B. 0.75. C. 025. D. 20.

Answers

Answer:

Option A is correct

Price elasticity of demand =0.6

Explanation:

Price elasticity of demand (PED) is the degree of responsiveness of demand to a change in price.  

Where a percentage change in price produces a more than a proportional change in quantity, we say the product is price elastic. On the other hand, where a change in price produces a less than a proportional change in quantity demand, then demand is price inelastic  

PED is computed as follows:  

PED = % change in quantity /% change in Price

% change in demand = (100-80)/100 × 100 = 20%  

% change in price =(0.75-1)/0.75 × 100 = 33.33%

PED = 20%/33.33% = 0.600

Price elasticity of demand =0.6

All of the following are reasons that the statement of cash flows is useful to the analyst except: A. The statement of cash flows shows how cash is generated during an accounting period and how it has been used. B. A positive net income figure on the income statement is ultimately insignificant unless a company can translate its earnings into cash, and the only source in financial statements for learning about cash generation is the statement of cash flows. C. The statement of cash flows shows the adjustments made to net income in order to calculate cash flow from operations; those should be examined to determine why cash flow from operations is negative or positive. D. The statement of cash flows is the only financial statement that cannot be manipulated.

Answers

Answer: The statement of cash flows is the only financial statement that cannot be manipulated

Explanation:

The cash flow statement is used to know how much cash is coming into and going out of a business.

The statement of cash flows shows the adjustments that can be made to the net income to calculate cash flow from operations.

The assumption that the statement of cash flows is the only financial statement that cannot be manipulated is wrong.

The statement of cash flows is the only financial statement that cannot be manipulated is not reason that the statement of cash flows is useful to the analyst.

Cash flow statements are important for all investors, which makes financial analysts increase the inflow of cash flow so that it looks good for investors and becomes confident in the business.  

Therefore, cash flow is essential in providing cash availability its inflow and outflow to accountants as well as analysts that is further used for developing income statements.

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Which of the following statements is​ FALSE? A. Investments with higher volatility have rewarded investors with higher average returns. B. Volatility seems to be a reasonable measure of risk when evaluating returns on large portfolios and the returns of individual securities. C. Riskier investments must offer investors higher average returns to compensate them for the extra risk they are taking on. D. Investments with higher volatility should have a higher risk premium​ and, therefore, higher returns.

Answers

Answer: B. Volatility seems to be a reasonable measure of risk when evaluating returns on large portfolios and the returns of individual securities.

Explanation: Over time, investment with high degree of volatility, which refers to the rapid unpredictability associated with the price or value of an investment seems to have ditched out higher returns and risk premium on those investment to investors in other to reward them for making such unpredictable investment. This said, the risk associated with an investment plays a huge factor in determining the average return issued to investors as higher risk investment attracts higher returns. However, when evaluating large portfolios and return of individual securities, volatility such not be used as a reasonable determinant of the risk associated with such investment as the large portfolios and individual securities are usually prone to unpredictability which should not be translated to the probability that such investment will result in loss of capital.

Basics Test - English EXIT PREVIOUS Paul is setting up a marketing/sales event at a community center where he is going to discuss UnitedHealthcare Medicare Advantage plans. He has placed a UnitedHealthcare logo pen ($3 value), Clarity consumer workbook, and an Enrollment Guide at each seat. What, if anything, has Paul done wrong

Answers

Answer:

What Paul has done wrong is to place these marketing materials on seats.  He should devised a plan to give out these materials at the registration point where participants would be registered and then they would collect the items.  By placing them on the seats, some of the participants could collect more than one, especially the valuable pen that is worth $3 each.

Explanation:

Marketing materials cost the entity some funds to produce.  They should not be wasted.  In addition, the number of participants with some details like names and contact information should be captured for future marketing efforts.  Allowing participants to have free access to the marketing materials that cost so much without driving any potential customer list is not prudent.

the insured under a $1000000 life insurance policy with a triple indemnity rider for accidental death was killed in a car accident it was determined that the accident was his fault the triple indemnity rider in the policy specifies that the death must be contributed to by the insured in any

Answers

Answer:

A triple indemnity rider establishes that the insurance company will pay double or triple (depends on the accident and the specifics of the policy) the original insurance amount in case the insured dies from an accident as long as the insured was not responsible for the accident. In this case, since the insured was responsible for causing the accident, his family will receive the face value of the policy ($1,000,000) and the triple indemnity rider clause will not be enforced.

When over 200,000 people were injured or killed as a result of gas being released from a Union Carbide plant in Bhopal,India,the cause was attributed to a number of factors: the company saving money by not installing safety devices,the political arrangements that enable Union Carbide to build a plant in India,the people living in the vicinity of the plant being too poor to live in safer locations,etc.Thus the people were victims of _______________.
A) multinational corporations
B) apartheid
C) structural violence
D) overpopulation
E) cultural pluralism

Answers

Answer:

C. Structural violence

Explanation:

Structural violence can be seen as a form of violence in which some social structure or social institution may harm people by preventing them from meeting their basic needs. It is an avoidable form of violence against people. It can be avoided by putting in place safety measures to protect people's lives.

The over 200,000 people who were injured or killed as a result of gas being released from a Union Carbide plant in Bhopal,India, which was caused by a number of factors such as the company saving money by not installing safety devices, the political arrangements that enable Union Carbide to build a plant in India, the people living in the vicinity of the plant being too poor to live in safer locations are victims of structural violence.

Complete the sentence. An increase in labor productivity​ ______. A. increases the supply of​ labor, increases potential​ GDP, and decreases potential GDP per hour of labor B. increases potential GDP and decreases potential GDP per hour of labor C. decreases the real wage​ rate, increases potential​ GDP, and increases potential GDP per hour of labor D. shifts the demand for labor curve rightward and the production function upward

Answers

Answer:

The correct answer is

Explanation:

increases potential​ GDP.

Hope this helps....

Have a nice day!!!!

An increase in labor productivity​ decreases the real wage​ rate, increases potential​ GDP, and increases potential GDP per hour of labor. Thus, option (c) is correct.

What is GDP?

The gross domestic product (GDP) of a nation over a certain time period captures the monetary value of all final goods and services, those purchased by the consumer, that are produced there. The every country economic indicator was the depend on the measurement of Gross domestic product.

According to the economist, the increase in labor productivity was the automatically increases the demand of the labour. The number of the hours in the labour was the also increased. It was the increases in the potential GDP per hour of labor. But, the drawback is decreasing the real wage​ rate.

As a result, the significance of the GDP are the aforementioned. Therefore, option (c) is correct.

Learn more about on GDP, here:

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The ending retained earnings balance of the Taco Heaven restaurant chain increased by $2.6 million from the beginning of the year. The company had declared a dividend of $1.5 million. What was the net income earned during the year

Answers

Answer: $4.1 million

Explanation:

From the question, we are informed that the ending retained earnings balance of the Taco Heaven restaurant chain increased by $2.6 million from the beginning of the year and that the company had declared a dividend of $1.5 million.

The net income earned during the year will be:

= $2.6 million + $1.5 million

= $4.1 million

A company is considering replacing an old machine, which has a market value of $75,000 and a tax basis of $50,000. The new machine would cost $145,000 and would require an additional $12,000 in working capital for spare parts. If the company’s tax rate is 34%, what would be the initial cash outlay for this replacement project?

Answers

Answer:

$90,500

Explanation:

The computation of initial cash outlay is shown below:-

initial cash outlay = New machine cost + Increase in working capital - After tax salvage value

= $145,000 + $12,000 - (($75,000 - ($75,000 - $50,000) × 0.34

= $145,000 + $12,000 - $66,500

= $90,500

Therefore for computing the initial cash outlay we simply applied the above formula.

On Monday, the seller offers to sell his vacant lot to the buyer for $42,000. On Tuesday, the buyer counteroffers to buy for $40,500. On Friday, the buyer learns that several other prospects may be making offers on the property, so he withdraws the counteroffer and agrees to the original asking price of $42,000. Under these conditions, there is

Answers

Answer:

b. not a valid agreement because the buyer's counteroffer was a rejection of the seller's offer, and once rejected, an offer cannot be accepted later.

Explanation:

Since in the question it is mentioned that the vacant lot is offered for $42,000 but the buyer counteroffers to buy $40,500 but afterward he agreed to the original price of $42,000

So this situation represents that it is not a valid agreement as the counteroffer made by the buyer was rejected by the seller and once it is rejected then the same could not be accepted

Therefore the correct option is b.  

A manger is described by subordinates as someone who inspires hard work by treating people kindly and giving employees individual attention and praise. What type of power is being used by the manager? Coercive Expert Referent Legitimate

Answers

Answer:

Referent

Explanation:

The referent power refers to the power in which the employees capacity, capability, skills and knowledge, hard work being liked by the other employees. Ths could be gained from the leadership skills and personality

So according to the given question since the manager described by subordinates through inspiring hard work by giving them attention and praise

This represents the referent power

Sam entered into a contract to sell his home to Gina. After the inspection, Gina insisted that Sam replace the damaged roof. Sam refused, and the parties agreed to cancel the deal. This is an example of ______.

Answers

Answer:

Mutually rescinding the contract.

Explanation:

In this scenario, Sam entered into a contract to sell his home to Gina. After the inspection, Gina insisted that Sam replace the damaged roof. However, Sam refused, and the parties agreed to cancel the deal. This is an example of Mutually rescinding the contract.

Mutually rescinding a contract refers to the act of annulment of a contract, by discharging or relieving both parties in the contract of their obligation by reaching an agreement after the execution of an original contract agreement.

Simply stated, it avails two parties in a contract, the opportunity and privilege to cancel or annul the contract by relieving them of their contractual obligations.

For​ February, the cost components of a picture frame include $0.45 for the​ glass, $0.68 for the wooden​ frame, and $0.95 for assembly. The assembly desk and tools cost $500. Two hundred fifty frames are expected to be produced in the coming year. What cost function best represents these​ costs?

Answers

Answer: C(x) = 2.08 + 500x

Explanation:

Given the following :

Cost component of picture frame :

Glass = $0.45

Wooden frame = $0.68

Assembly = $0.95

Assembly desk and tools = $500

Using the linear cost function :

C(x) = mx + b

C(x) = total cost

b = fixed cost

mx = variable cost

b = cost of glass + wooden frame + assembly

b = $(0.45 + 0.68 + 0.95) =$2.08

mx = (cost of assembly desk and tools * number produced) = 500x

C(x) = 2.08 + 500x

A company has revenues of $1,250,000 with a net profit margin of 10%. If the depreciation for the year is $75,000, short-term investments decreased by $15,000, accounts receivable increased by $10,000, inventory decreased by $5,000 and accounts payable decreased by $6,000, what is the net cash provided by operations.

Answers

Answer:

$204,000

Explanation:

The computation of net cash provided by operations is shown below

Cash flow from operating activities

Net profit ($1,250,000 × 10%) $125,000

Add: depreciation expense $75,000

Add: Decrease in short term investment $15,000

Less: Increase in account receivable -$10,000

Add: Decrease in inventory $5,000

Less: Decrease in account payable -$6,000

Net Cash provided by operations $204,000

The minus sign depicts the cash outflow and the positive sign depict the cash inflow

Integrated marketing communications: Group of answer choices provide an approach to deliver one consistent message. budget the promotional efforts related to a product. measure the number of people exposed to a message. measure how often people are exposed to a message. measure how receivers interpret messages.

Answers

Answer:

provide an approach to deliver one consistent message

Explanation:

Integrated marketing communications is a concept in which a company tries to make sure that all the forms of communications that are used are integrated to help one another and maintain a consistent message through the different channels used. According to this, the answer is that integrated marketing communications provide an approach to deliver one consistent message because the idea of this concept is that the company integrates all the forms of communications used to have a cohesive message to reach its target market.

Bakery A sells bread for $2 per loaf that costs $0.50 per loaf to make. Bakery A gives a 70% discount for its bread at the end of the day. What is the salvage value of its bread? $2.00 $0.10 $0.50 $0.60

Answers

Answer:

Salvage value = $0.60

Explanation:

Selling Price = $2 per loaf

Discount on price = 70%

So, salvage percentage is 100% -70% = 30%

So, Salvage value = Salvage/Percentage * Selling price

Salvage value = 30/100 * $

Salvage value = $0.60

Certain closing costs will be prorated to account for the period of time during which the seller occupied the house. If a transaction is scheduled to close on September 21 (236 days into a 365-day year), calculate the amount that the buyer will be credited if the particular closing cost in question is estimated to be $1,569 for the entire year

Answers

Answer:

Amount will be credit = $1,014.47

Explanation:

Given:

Closing cost = $1,569

Total number of days work = 236 days

Total number of days in year = 365 days

Find:

Amount will be credit.

Computation:

Amount will be credit = Closing cost × [236 / 365]

Amount will be credit = $1,569 × [236 / 365]

Amount will be credit = $1,014.47

"A customer's short margin account shows the following balances: Credit Balance: $120,000 SMV: $60,000 SMA: $30,000 What would the adjusted SMA balance be in the account after a short cover of 100 shares of MMM stock at $100 in the account?"

Answers

Answer:

$35,000

Explanation:

Calculation for adjusted SMA balance .

First step

Short cover =100 Shares × MMM stock $100

=$10,000

Second step is to find the 50% of the amount of $10,000

50%×$10,000

=$5,000

Third step is to calculate for adjusted SMA balance

Adjusted SMA balance=$SMA $30,000 +$5,000

Adjusted SMA balance=$35,000

Therefore the Adjusted SMA balance will be $35,000

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