A collection of methodical criteria used by auditors while performing audits of businesses' financial records is known as generally accepted auditing standards (GAAS). The actions and reports of auditors are more accurate, consistent, and verifiable thanks to GAAS.
The measure or yardstick used to judge the calibre of the audit outcomes is the Auditing Standards. ” When a matter is of material importance and its interpretation is of a technical nature, auditing standards are especially crucial. businesses purpose is to guarantee the fair and accurate representation of financial data. The income statement is one of the three main financial statements.
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Studies show that a 10 percent increase in the minimum wagea. decreases teenage employment by about 10 to 15 percent.b. increases teenage employment by about 10 to 15 percent.c. decreases teenage employment by about 1 to 3 percent.d. increases teenage employment by about 1 to 3 percent.
Option c is Correct. According to studies, a 10% rise in the minimum wage will result in a 1–3% decrease in teen employment. A mandatory minimum salary could deter workers from looking for work.
If the market wage is high since there will be fewer openings. The outcomes of the search model agree with the monopsony model: Theoretically, a minimum wage might lower unemployment. review of theory and the literature.
In a model of a competitive labor market, a minimum wage set above equilibrium results in a drop in employers' labor demand and the displacement of some workers, leading to unemployment. According to economists' studies, a 10% rise in the minimum wage results in a 10% drop in teen employment.
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Correct Question:
Studies show that a 10 percent increase in the minimum wage
a. Decreases teenage employment by about 10 to 15 percent
b. Increases teenage employment by about 10 to 15 percent
c. Decreases teenage employment by about 1 to 3 percent
d. Increases teenage employment by about 1 to 3 percent
a decrease in the price of a good will typically increase demand for that good. select one: a. true b. false
The Statement is False. A decrease in the price of goodwill typically increases demand for that good.
In economics, the call for is the quantity of a terrific that purchasers are inclined and capable of purchasing at various charges all through a given time. the relationship between price and quantity called for is also referred to as the call for the curve. call for a particular item is a feature of an object's perceived necessity, fee, perceived pleasant, comfort, available alternatives, purchasers' disposable earnings and tastes, and plenty of different alternatives.
In economics, the call for the curve is the graphical illustration of the relationship between the charge and the quantity that purchasers are willing to buy. The curve suggests how the rate of a commodity or service modifications as the quantity demanded will increase. each point on the curve is a number of consumer calls for and the corresponding marketplace charge. The graph suggests the regulation of call for, which states that humans will purchase much less of something if the charge goes up and vice versa.
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what is the price of a 2 year coupon bond with a face value of $4,500 and a coupon rate of 2%, assuming that market interest rates are currently 3%?
A bond's price is the present value of its future cash flows, which include coupon payments and the face value returned at maturity. We may use the following formula to compute the bond's price.
P = C/(1 + r)1 + C/(1 + r)2 +... + C/(1 + r)n + F/(1 + r)n where P denotes the bond's price, C the coupon payment, r the market interest rate, F the face value, and n the number of years until maturity. This bond requires the following: C = $4,500 x 2% = $90 F = $4,500\sn = 2\sr = 3% When we plug in the values, we get: P = $90 / (1 + 0.03) ^1 + $90 / (1 + 0.03)^2 + $4,500 / (1 + 0.03) ^2\sP = $87.57 + $84.52 + $4,284.49\sP = $4,456.58 As a result, the cost The bond's face value is $4,456.58, assuming a market interest rate of 3%. price is the present value of its future cash flows, which include coupon payments and the face value returned at maturity. We may use the following formula to compute the bond's price.
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What's In
Interview your parents what were the organizations they are joining and what the
benefits they got out of these organizations were. Make an essay about your
insights.
By conducting an interview with my parents, about the organizations they belong to and their benefits, it should be inferred that:
My mother receives health insurance benefits, medicine benefits and canteen in the organization.My father receives life insurance benefits, transportation, food vouchers and accident insurance.What is the importance of a company's benefits?Company benefits are important because they are an advantage for all the workers who work in the company, and they also serve as motivation for them to work with security and to be able to have achievements in the future.
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o owns a 100-acre rectangular parcel, where he occupies only the eastern 10 acres. a sells b a flawed deed purporting to give b ownership of all 100 acres of the parcel. b enters the parcel but occupies only the western 10 acres for the relevant adverse possession period. what does b own?
In this case, it appears that both "a" and "b" have claimed ownership of a 100-acre rectangular parcel, with "a" occupying the eastern 10 acres and "b" occupying the western 10 acres.
However, the fact that "a" sold "b" a flawed deed purporting to give "b" ownership of the entire 100 acres could be a significant issue. If the deed is found to be flawed, it may be invalid and "b" would not have obtained a valid ownership interest in the property.
In this case, the original ownership of the property would still belong to "a" or whoever held valid title prior to the flawed deed being sold. If the flawed deed cannot be corrected or if "b" is unable to prove that they acquired ownership through adverse possession, then "b" would likely only own the western 10 acres that they occupied.
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over which component of investment do firms have the least amount of control?
Firms have the least amount of control over the investment component of political environment.
Investment decisions are influenced by a variety of factors, including a firm's financial position, market conditions, and the external economic and political environment. While firms have varying degrees of control over these factors, the component over which they have the least amount of control is typically the political environment.
The political environment refers to the government policies, regulations, and political stability of a country in which a firm operates or is considering investing. Changes in government policies or regulations can have a significant impact on a firm's investment decisions, as they can affect the profitability of investments and the overall risk of doing business.
For example, a government may change its tax policies or regulations in a way that makes it more expensive or difficult for firms to operate in certain industries. Political instability or unrest can also create uncertainty and risk for firms, making it more difficult to make long-term investment decisions.
Despite the lack of control that firms have over the political environment, they can still take steps to mitigate the risks associated with it.
This may include conducting thorough research and analysis of the political climate in a particular country or region, developing contingency plans for unexpected changes, and maintaining open communication with government officials and other stakeholders to stay informed of potential developments.
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a(n) organizational structure is the hierarchy most people think of when picturing an organizational chart.
A functional organizational structure is the hierarchy most people think of when picturing an organizational chart.
Option d is correct .
A hierarchical structure is a chain of command within a company that begins with top management and managers and extends to general employees. This authoritative organization ensures that management levels understand the relationships and helps businesses make effective decisions.
Organizational structure - arrangement or relationship of tasks in the organization. A structure is formed when managers assign work tasks to individuals or groups and coordinate the various activities necessary to achieve the company's goals. The four types of organizational structure are functional, multi-departmental, plan and matrix structures.
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The correct question is :
A ____ is the hierarchy most people think of when picturing an organizational chart.
a. project organizational structure c .matrix organizational structure
b. system organizational structure d. functional organizational structure
pam files a successful suit against quality market based on quality's negligence. normally, an award in such a suit consists of
pam files a successful suit against quality market based on quality's negligence. normally, an award in such a suit consists of compensatory damages.
Money given to a claimant as compensation for loss, harm, or other damages is known as compensatory damage. In civil court cases, compensatory damages are given when one party's negligence or illegal behaviour caused a loss. To be eligible for compensatory damages, the claimant must demonstrate that a loss happened and that it was the defendant's fault. Additionally, the claimant must be able to demonstrate to the jury or court how much money they have lost. Punitive damages, on the other hand, differ in that they may exceed any loss or damage sustained and are intended to deter repeating the behaviour that resulted in the claimant's loss or damage.
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nielsen is engaged in the collection and analysis of information about consumers, competitors, and developments in the marketplace. this systematic monitoring is known as .
Nielsen is engaged in the collection and analysis of information about consumers, competitors, and developments in the marketplace. This systematic monitoring is known as competitive marketing intelligence.
Competitive marketing intelligence is the process of gathering and analyzing information about competitors, their products, and their marketing strategies. This information can then be used to improve a company's own marketing efforts. The goal of competitive marketing intelligence is to gain a deeper understanding of the competitive landscape and to use this information to gain a competitive advantage. This can involve a wide range of activities, including monitoring competitors' marketing campaigns, tracking changes in their product offerings, and analyzing their pricing strategies.
By staying informed about the activities of competitors, companies can stay ahead of the curve and be better prepared to respond to changes in the market. The results of competitive marketing intelligence can inform a company's decision-making around product development, pricing, and marketing, helping them to stay ahead in a competitive market.
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Complete Question: -
Nielsen is engaged in the collection and analysis of information about consumers, competitors, and developments in the marketplace. This systematic monitoring is known as __________.
a. customer insight
b. internal databases
c. big data
d. marketing information systems
e. competitive marketing intelligence
depreciation refers to: group of answer choices capital worn out during the production process. the effects of government subsidy programs. the value of leisure goods. income that we earn but do not receive. changes in exchange rates.
Depreciation refers to the ''income that we earn but do not receive''. So, basically the income that credited by sells. The correct option is C.
The Depreciation according to the economics, it is the decrease in the economic value of the stock usually capital stock of the organization, nation or the entity through the physical depreciation. The demand for the services of the capital. It is also defined in the simple term, the decrease in the book value of fixed assets.
The formula to calculate Depreciation value is the asset cost minus from the salvage value upon the useful life. The income that we earn but do not receive is also refers to the term that is accrued income.
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you are thinking of investing in nikki t's, inc. you have only the following information on the firm at year-end 2021: net income is $170,000, total debt is $2.60 million, and debt ratio is 65 percent. what is nikki t's roe for 2021?
Nikki T's ROE for 2021 is 18.7%.
What is Return on equity?Return on equity (ROE) measures a company's profitability by calculating the amount of net income generated in relation to the amount of shareholder equity.
To calculate ROE, we first need to determine shareholder equity. To do this, we can use the debt ratio and total debt figures:
Debt ratio = 65%
Total debt = $2.60 million
Therefore, total equity = 1 - debt ratio = 1 - 65% = 35%
Total equity = $2.60 million * 35% = $910,000
Now that we have shareholder equity, we can calculate ROE:
ROE = Net Income / Shareholder Equity
ROE = $170,000 / $910,000 = 18.7%
So, Nikki T's ROE for 2021 is 18.7%.
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the break-even point is: multiple choice the point where zero contribution margin is earned. the point where zero profit is earned. the point where selling price just equals variable cost. equal to sales revenue less fixed costs.
Option 2 is Correct. The point at which no profit is made is known as the break-even point. Your overall contribution margin dollars only cover your fixed costs at break-even.
A profit and free cash flow cannot be generated with additional resources. When your fixed costs and contribution margin in dollars are equal, you reach break-even. The break-even point is the point at which a company's operations are neither profitable nor unprofitable.
A company's break-even point can be described in terms of sales revenue stated in terms of dollars or in terms of units produced or sold. Whatever way a firm presents it, the break-even point is still where there is no profit or loss.
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Correct Question:
The break-even point is: multiple choice
1. the point where zero contribution margin is earned.
2. the point where zero profit is earned.
3. the point where selling price just equals variable cost.
4. equal to sales revenue less fixed costs.
used the straight-line method instead of the effective interest method to amortize the premium, cyber does not elect the fair value option for reporting financial liabilities, how is the carrying amount of the bonds affected by the error?
If Cyber used the straight-line method instead of the effective interest method to amortize the bond premium, the carrying amount of the bonds would be understated in the financial statements.
The effective interest method is the preferred method for amortizing bond premiums because it more accurately reflects the economic reality of the bond issuance. It takes into account the bond's yield, the bond's carrying amount, and the expected cash flows from the bond to determine the appropriate amount of interest.
The straight-line method, on the other hand, spreads the premium evenly over the life of the bond, regardless of the bond's yield or expected cash flows. This can result in an understated carrying amount for the bond, as the interest expense.
By not electing the fair value option for reporting financial liabilities, Cyber is required to measure its bonds at amortized cost. The error in using the straight-line method instead of the effective interest method will therefore affect the carrying amount of the bonds in the balance sheet, as it will be understated.
This can impact the financial ratios and performance metrics that are calculated using the balance sheet data, and may also impact the decision-making of investors and other stakeholders who rely on the financial statements.
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assume that sales are $100,000, variable costs are $40,000, and fixed costs are $10,000. what is the degree of operating leverage?
Due to the $100,000 in sales, $40,000 in variable expenditures, and $10,000 in fixed costs, the operational leverage is 1.20.
Please elaborate?Contribution margin = Operating Leverage as Percentage $40,000 in variable costs minus $100,000 in sales equals operating income.
What is an appropriate operational leverage?It is a solid indicator that a company's ratio of fixed to variable costs is high if it has a high level of operating leverage. In order to support its main business, the company is therefore utilising additional fixed assets. The company will ultimately be able to increase its profit margin more swiftly as a result of this.
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babbel is a subscription-based language learning app available in 14 different languages. on which element of the marketing mix is babbel concentrating?
An element of the marketing mix that babbel focuses on is the product. The service marketing mix is the combination of various elements of service marketing that companies use to communicate their organizational and brand messages to their customers.
The mix consists of 7 P's. H. Products, Prices, Places, Promotions, People, Processes, Physical Evidence.
The marketing mix includes multiple focus areas as part of your overall marketing plan. The term often refers to a general classification that begins with the four P's.
Products, Pricing, Placement and Advertising. Effective marketing doesn't just stick to one message, it affects a wide range of areas. This allows you to reach a wider audience. And keeping the 4 Ps in mind helps marketers focus on what really matters. Focusing on the marketing mix helps organizations make strategic decisions when launching new products or revising existing products.
The marketing mix often references E. Jerome McCarthy's his 4 P's.
Products, Pricing, Placement, and Advertising. Different elements of the marketing mix work together.
A consumer-centric marketing mix incorporates a customer focus into your approach.
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All of the following are advantages of the partnership form of organization except
A. ease of start-up.
B. combined skills and knowledge.
C. better access to capital and credit.
D. retention of profits.
E. unlimited liability.
Unlimited liability is not an advantage for an organization working in a partnership form.
The correct option is option E.
Partnership form of the organization basically has a large number of different advantages which include the combined set of skills as well as knowledge from the partners in the organization, ease of start-up, better access to capital as well as credit and also a better retention of the profits that have been made.
Partnerships also might have unlimited liabilities for the debts which are incurred by the business and this server as a major disadvantage for the partnership form of the organization.
Hence, the correct option is E.
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suppose the gdp deflator in an economy increases from a base year value of 100 to a value of 110 and the nominal gdp increases from $8 trillion in the base year to $9.9 trillion. what is the percent change in real gdp over this time period?
The percent change in real GDP is 19 percent.
The percent change in real GDP is calculated by dividing the change in nominal GDP by the change in the GDP deflator and then multiplying the result by 100.
Calculate the change in nominal GDP: Change in nominal GDP = 9.9 trillion - 8 trillion = 1.9 trillion
Calculate the change in GDP deflator: Change in GDP deflator = 110 - 100 = 10
Calculate the percent change in real GDP: Percent change in real GDP = (1.9 trillion / 10) x 100 = 19 percent
The percent change in real GDP is 19 percent.
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agriscience accounts for what percent of jobs in the united states? group of answer choices 70 50 30 20
According to USDA, agriscience accounts for approximately 20% of jobs in United States.
What is agriscience?Agriscience is the study of agriculture and its related sciences. It is an interdisciplinary field that combines elements from traditional agricultural studies with modern scientific approaches. This includes subjects such as biology, ecology, chemistry, physics, genetics, and many others. Agriscience explores the principles and practices of sustainable agriculture, including soil management, crop and animal production, pest management, and the use of technology to improve efficiency and productivity. The goal of agriscience is to provide a comprehensive understanding of agriculture and its impact on the environment and human health. Agriscience also addresses the challenges of global food security and the need to feed a growing population while preserving natural resources. Through agriscience, students can gain the skills and knowledge necessary to become effective leaders in the agricultural industry.
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assume a firm had the debt-equity ratio of 0.91 as of 2018. what was the firm's equity multiplier as of that year? group of answer choices 0.91 1.91 1.09 1.56
The answer is 1.91, the firm's equity multiplier as of that year was 1.91 as calculated in that year.
What do you mean by equity?Equity is the sum of money invested in or owned by a company's owner. The difference between a firm's obligations and assets on its balance sheet indicates how much equity the company has. The equity value is calculated using the share price or a value established by valuation specialists or investors.
What does equity and equality mean?Equality simply means that everyone is treated equally, without regard to their needs or any other personal distinctions. On the other side, equity entails giving everyone access to the resources they need to succeed.
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marketing is the activity, set of institutions, and processes that create, capture, communicate, and blank value. multiple choice question. justify deliver reduce replicate
Option 2 is Correct. Value is created, captured, communicated, and delivered through marketing activities, institutions, and processes.
The process of developing, communicating, delivering, and trading offerings that are valuable to customers, clients, partners, and society at large collectively is known as marketing. The phrase "set of institutions" refers to a variety of instruments, procedures, strategies, and methods that we might apply in a marketing capacity.
Product, place, price, and promotion are the 4Ps of marketing, which is an organizational function. View Response. A. An organizational function and a collection of procedures for producing, disseminating, and providing value to clients that are advantageous to the company. Since marketing only ends with the actual sale of products and services, selling is always the primary goal of any marketing activity.
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Correct Question:
Marketing is the activity, set of institutions, and processes that create, capture, communicate, and ______ value. multiple choice question.
1. justify
2. deliver
3. reduce
4. replicate
The Colvilles are buying a new car. The cash price is $35,000.00. They will make a down payment of 20% or $5,000. The balance will be covered by an installment loan. The loan will be repaid in 48 monthly payments of $651. The annual percentage rate for the loan is ____
%. (Round your answers to two decimal places.)
1.07% will be the Annual Percentage for the Colvilles.
What is a payment?A payment is when one entity voluntarily offers wealth, its counterpart, or other valuables to someone else in consideration of the other campaign's products or services, to satisfy a contractual obligation or both.
The cash price of Colvilles for buying is $35,000.00
The down payment will be 20% or $5,000
The number of months with which the loan will be repaid = 48 monthly payment
Monthly payments are $651
The balance on the loan = 35,000.00 - 5,000
= 30,000
The interest paid over the life of the loan = per month payment × time period - Payment
Loan = 651 × 48 - 30,000 = 1,284
The Annual Percentage Rate will be
= [tex](\frac{128}{30000*48}) *12 *100\\[/tex]
= 1.07%
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the beach carrier what are the pros and cons of the mail-order marketing strategy? what are the pros and cons of alternative distribution methods
The pros and cons of the mail-order marketing strategy are: Companies can connect with a broader audience with mail-order marketing, including people who reside in outlying areas and have little access to conventional retail establishments. Customers may have to wait days or even weeks for their items to arrive when they shop via mail.
Here are other pros and cons of mail-order marketing :Pros:
Reach: Mail-order marketing allows companies to reach a wider audience, including those who live in remote areas and have limited access to traditional retail stores.
Convenience: Mail-order allows customers to shop from the comfort of their own home, without the need to physically go to a store.
Personalization: Companies can tailor their marketing messages and product offerings to specific segments of their customer base based on their past purchasing behaviors.
Cost-effectiveness: Mail-order marketing can be a cost-effective way to reach customers, as it eliminates the need for physical retail space and can be automated to reduce labor costs.
Cons:
Lack of immediacy: Mail-order can be slow and customers may have to wait several days or even weeks for their purchases to arrive.
Quality concerns: Customers may be hesitant to purchase products without seeing and touching them first, which can lead to dissatisfaction and returns.
Dependence on the postal service: Delivery times can be unpredictable and the reliability of the postal service can impact customer satisfaction.
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which one of these indicates that a firm is efficient? group of answer choices a high average collection period a high days' sales in inventories a low asset turnover a high inventory turnover
A high inventory turnover indicates that a firm is efficient.
Inventory turnover is a measure of how many times a company's inventory is sold and replaced over a given period, usually a year. A high inventory turnover means that the company is selling and replacing its inventory quickly, which is a sign of efficiency. A low inventory turnover, on the other hand, could indicate that the company is having difficulty selling its inventory, which could lead to excess stock and waste. A high average collection period, high days' sales in inventory, and low asset turnover, while they may have some impact on a company's financial performance, are not necessarily indicators of efficiency.
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by relating managers' compensation packages to the value of the firm, agency problems: group of answer choices are eliminated entirely from the firm. are shifted to other stakeholders. can be reduced. will be created.
Agency problems can be reduced by relating managers' compensation packages to the value of the firm.
By encouraging an agent to act more in the principal's best interests, the agency problem may also be reduced. A management, for instance, can be encouraged to behave in the best interests of the shareholders through rewards like performance-based compensation, The agency problem in corporate finance typically refers to a conflict of interest between a company's management and its stockholders. Even if it is in, the manager, acting as the principals' or shareholders' agent, is required to make choices that would maximise shareholder wealth. By offering stock packages or compensation for the decisions made by the administration and their effects on the shareholders.
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fines assessed for convictions involving violations of insider trading laws are paid to the: a internal revenue service b department of treasury c securities and exchange commission d department of justice
C Securities and Exchange Commission. Insider trading regulations must be enforced, and the securities markets must be governed by the Securities and Exchange Commission (SEC).
The following organisations receive fines imposed for convictions concerning violations of insider trading laws:
Commission for Securities and Exchange Regulation (SEC)
The SEC is in charge of overseeing the securities markets and enforcing insider trading rules. Fines are levied and paid to the SEC as part of the enforcement process when people or organisations are found guilty of breaking insider trading regulations. The fines are used by the SEC to pay for operations and advance its goals of safeguarding investors, preserving fair and orderly markets, and encouraging capital formation.
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alex and tyler enjoy the food at a restaurant named china star. alex values a meal there at $15, and tyler values it at $26. if the restaurant charges only $10 a meal, what is alex and tyler's joint consumer surplus from a meal at china star?
Consumer surplus for alex:15-10=5; Consumer surplus for Tyler:26-10=16. Therefore, the total consumer surplus is 21
Related Subjects demand and supply
In economics, the consumer surplus is the difference between the price a consumer pays for a good and the amount he would be prepared to pay rather than go without it. It is also referred to as the societal surplus and consumer surplus. The idea was created by French economist and civil engineer Jules Dupuit in 1844 and made popular by British economist Alfred Marshall. It was based on the presumption that levels of customer satisfaction (utility) are quantifiable. The overall utility will surpass the total market value because the utility produced by each incremental unit of a commodity typically declines as the quantity purchased grows and because the item's price only represents the utility of the last unit purchased rather than the utility of all units. a call to the phone
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Which is a true statement about marginal benefit? To an individual, one good may have a larger marginal benefit than than another. The amount of benefit a person receives from a good or service remains constant. It is the difference (or change) in cost of a different choice.
To an individual, one proper might also have a larger marginal gain than than another. The quantity of advantage a character receives from a exact or provider remains constant. It is the distinction (or change) in fee of a different choice.
Which announcement is authentic about marginal benefit?Answer and Explanation: The marginal advantage represents the additional gain that a firm can get from growing its manufacturing through one more unit.
Marginal advantages are the most amount a client will pay for an extra properly or service. A marginal benefit is additionally the extra pleasure that a purchaser receives when the extra precise or carrier is purchased. The marginal gain generally decreases as consumption increases.
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https://brainly.com/question/8136407#SPJ1countries often use local content regulations to determine the proportion of the product that must be made in the local market versus made outside of the local market in order to .
countries often use local content regulations to determine the proportion of the product that must be made in the local market versus made outside of the local market in order to favor domestic companies.
The local content regulations( LCRs) are an artificial policy that bear a given chance of domestic value- added or domestic intermediate products be embodied in specific final goods( Grossman, 1981.( 1981). The proposition of domestic content protection and content preference.
What's the purpose of original content?
Original Content is a term used in the oil painting and Gas assiduity to describe the commitment to make on the capacity and capability of original people and businesses to support the long- term development of the arising sector.
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assume a manufacturing process produces a 20 cm diameter wafer containing 84 dies, and has an average defect rate of 0.020 defects/cm2. about how many good dies per wafer are expected?
Suppose a manufacturing procedure results in a 20 cm diameter wafer with 84 dies and an average defect rate of 0.020 defects/cm2. the wafer has 78 good dies in total.
To find the number of good dies per wafer, we use the following formula:
No of good dies per wafer = Die yield x Number of dies per wafer
where Die yield = Fraction of good dies on the wafer
We know that number of dies per wafer = 84 (given)
So we only need to find Die yield.
Now,
To find Die yield, we use the following formula:
Die yield = 1 / ( 1 + defects per area x (die area / 2 ) )2
We know that defects per area( or defect rate) = 0.020 cm2 (given)
Calculating die area:
Diameter of the wafer = 20 cm (given) radius = 10 cm
Therefore, Area of wafer = \Pi r2 = 3.14 x 10 x 10 = 314 cm2
Number of dies per wafer = 84 (given)
Hence, Area of each die = 314/84 cm2 = 3.74 cm2
So, die yield = 1/1+0.02 x(3.74/2))2 = 1/1.076 = 0.929
Therefore using the above formula, the number of good dies per wafer = 0.929 x 84 = 78.036 = 78
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5. if two goods are complements, an increase in the price of one good will cause a decrease in the demand for the other. a. true b. false
"If two goods are complements, an increase in the price of one good will cause a decrease in the demand for the other." This is true.
An item that is utilized in conjunction with another good or service is said to be complementary. The complementary good typically has little to no value when consumed by itself. However, it increases the overall worth of the bid when combined with another good or service.
When two products complement one another, the demand for the complementary product will decrease as the price of the complementary product rises. The demand curve is also shifted by the prices of complementary or substitutable items. The demand for both the complementary good and the complementary good grows when the price of the complementary item lowers.
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