when a company practices price discrimination, it will keep adding customers until the point where the last customer's marginal benefit equals the marginal quantity. company's marginal cost exceeds the last customer's marginal benefit. last customer's marginal benefit exceeds the company's marginal cost. company's marginal cost equals the last customer's marginal benefit.
Answers
When a company practices price discrimination, it will keep adding customers until the point where Company's marginal cost equals the last customer's marginal benefit.
The price or marginal cost will increase until it equals the marginal benefits of the final consumers, at which time the company will stop adding customers.
Because going over that will result in deadweight loss and an increase in production costs, businesses won't start adding customers until their marginal costs are equal to their last customers' marginal benefits.
As a marketing strategy, pricing discrimination involves charging customers different prices for the same commodity or service depending on what the vendor thinks will win the client over. A business that uses pure price discrimination will charge every consumer the greatest amount.
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Related Questions
The economic growth demonstrated by this recruitment letter was primarily a result of —.
Answers
The economic growth in the recruitment letter was demonstrated as a result of industrial production.
What is economic growth?A stable uplift in the economic conditions, in comparison to the previous economic period(s), is regarded as an economic growth. It is driven by many external factors.
In the recruitment letter, it was found that the increase in the industrial productivity led to extreme economic growth in the United States of America.
Hence, the reasons for the economic growth have been aforementioned.
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What days are BIM classes held?
Answers
Classes take place on Mondays and Wednesdays from 4:00-6:00 pm EST, at The Plan Room located at 1815 W Broadway.
Have a Nice Day.
In the long run, increasing the national debt will cause which of these?
A) higher tax revenue
B) an increase in jobs
C) higher interest rates
D) an increase in production
Answers
If choose all that apply I think a,b,and c
Assume that projected revenue for 2018 is 1,231,414. also assume the following projected 2018 costs in each of the cost categories from question one: packaged (cans & bottles) $122,939 kegs $73,637 shrinkage/wip loss $42,000 contract labor $9,000 direct labor $240,000 inbound freight $18,000 consumer advertising $30,000 trade promotion $30,000 sales promotion $18,000 salaries & benefits $180,000 given these costs, compute shannon's projected contribution margin in dollars.
Answers
Shannon's projected contribution margin for 2018 is $486,838.
To compute Shannon's projected contribution margin in dollars, we need to subtract the total projected costs from the projected revenue.
Projected revenue for 2018: $1,231,414
Projected costs:
Packaged (cans & bottles): $122,939
Kegs: $73,637
Shrinkage/WIP loss: $42,000
Contract labor: $9,000
Direct labor: $240,000
Inbound freight: $18,000
Consumer advertising: $30,000
Trade promotion: $30,000
Sales promotion: $18,000
Salaries & benefits: $180,000
Total projected costs = $122,939 + $73,637 + $42,000 + $9,000 + $240,000 + $18,000 + $30,000 + $30,000 + $18,000 + $180,000 = $744,576
Projected contribution margin = Projected revenue - Total projected costs
= $1,231,414 - $744,576
= $486,838
So, Shannon's projected contribution margin for 2018 is $486,838. This represents the amount of revenue that remains after subtracting all the variable and fixed costs associated with producing and selling the product. It is the amount that can be used to cover fixed expenses and contribute towards profit.
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Ratchets.com anticipates that it will need $15 million in venture capital to achieve a terminal value of $300 million in five years.
A. Assuming it is a seed-stage firm with no existing investors, what annualized return is embedded in its anticipation?
B. Suppose the founder wants to have a venture investor inject $15 million in three rounds of $5 million at times 0, 1, and 2 with a time 5 exit value of $300 million. If the founder anticipates returns of 70 percent, 50 percent, and 30 percent for rounds 1, 2, and 3, respectively, what percentage of ownership is sold during the first round? During the second round? During the third round? What is the founder’s Year 5 own- ership percentage?
C. Assuming the founder will have 10,000 shares, how many shares will be issued in rounds 1, 2, and 3 (at times 0, 1, and 2)?
D. What is the second-round share price derived from the answers in Parts B and C?
E. How does the answer to Part D change if 10 percent of total equity in Year 5 is set aside for incentive compensation? How many total shares are outstanding (including incentive shares) by Year 5?
Answers
We must first assess the company's value after five years in order to percent ownership of the venture that must be sold. The net income and a multiple can be used to calculate an estimate of the company's value.
We can use a multiple of 10x to calculate the worth of the endeavour after 5 years if a comparable company with annual net income of $1,000,000 sold shares to the public for $10,000,000.
As a result, the estimated value of the business after five years would be $500,000 in net income multiplied by ten, or $5,000,000.
The investor's needed rate of return must then be determined. Over the following five years, the investor anticipates a 50% annual compound rate of return. With the where n is the number of years, r is the annual interest rate, PV is the current value, and FV is the future value.
FV= $500,000 x (1+ 0.5^5= $3,164,500
The investor desires to obtain $3,164,500 in return after five years. This indicates that the investor's desired total return is $3,164,500 minus $500,000, or $2,664,500.
Rearranging the formula will allow us to determine the Percent Ownership.
Total Investment / (Total Investment + Required Return) = Percent Ownership
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Explain the statement: "what's good for the economy, is bad for the current account." Use the open economy identity: Y-B A-C-1
Answers
The statement "what's good for the economy, is bad for the current account" implies that policies or actions that are advantageous for domestic economic growth might have an unfavorable impact on the country's current account balance.
This statement can be explained using the open economy identity: Y – C – I – G + (X – M) = 0, where:Y is gross domestic product (GDP)C is consumptionI is investmentG is government spendingX is exportsM is imports(X – M) is the net exports and is also known as the current account balance.A country's current account balance measures the net flow of goods, services, and investments into and out of a country.
A positive balance implies that the country is exporting more goods and services than it imports. A negative balance implies the opposite scenario.In general, policies that lead to higher domestic consumption (C) or government spending (G) tend to boost GDP, which leads to more imports. Therefore, higher imports will cause the current account balance to decrease.
Similarly, policies that promote investment (I) might lead to higher imports of capital goods, which can also cause the current account balance to worsen.In conclusion, the statement "what's good for the economy, is bad for the current account" holds true since policies that stimulate GDP growth can lead to higher imports, which can negatively affect a country's current account balance.
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6. Ms. Tint of New York City recently sued Mr. Bloom, also of New York
City. She claimed that he had run into and injured her while he was
jogging. She asked for $50,000 in damages. When she filed her suit in
federal district court, Mr. Bloom's attorney immediately objected on two
grounds. What were they?
Answers
2. He also objected on going to federal district court because Mr. Bloom & Ms. Tant were both from the same state.
When was the International Association of Exhibitions and Events founded?
Answers
Answer:
1928
Explanation:
hope this help:)) 100% correct
Answer: 1928
Explanation:
which of the following is an advantage of licensing? a. it allows companies to earn additional profits without investing more money. b. it provides licensors an exclusive right to conduct business in a particular location. c. it allows companies to bear only part of the costs and risks of that business. d. it gives the parent company complete control over the foreign facilities.
Answers
An advantage of licensing is that it allows companies to earn additional profits without investing more money.The correct option is A.
By granting a license to another company, the licensor can receive royalties and fees for the use of their intellectual property or brand name without having to invest additional resources. This can help the company expand its market reach and increase revenue streams.
Licensing is a popular business strategy used by companies to expand their market reach without incurring high costs. One of the main advantages of licensing is that it allows companies to earn additional profits without investing more money. The licensing agreement grants another company the right to use the intellectual property or brand name of the licensor, which can lead to increased sales and revenue streams. Moreover, licensing allows companies to bear only part of the costs and risks of that business, making it an attractive option for companies looking to enter new markets.
In conclusion, The correct option is A . licensing is a beneficial strategy for companies looking to expand their business without incurring high costs. By granting a license, companies can earn additional profits without investing more money, increase their market reach, and bear only part of the costs and risks of that business.
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1. The sum of the current tax expense or benefit and deferred tax expense or benefit.
2. Equal to taxable income times the applicable tax rate.
3. The result from the settlement of a liability related to an expense or loss that is deductible for tax purposes subsequent to being recognized in financial income.
4. Records the deferred tax consequences attributable to taxable temporary differences.
5. Differences between the tax basis of an asset or liability and its reported amount in the financial statements that will result in taxable or deductible amounts in future years.
6. Records the deferred tax consequences attributable to deductible temporary differences and carryforwards.
7. The result from the recovery of an asset related to a revenue or gain that is taxable subsequent to being recognized in financial income.
8. The net change during the year in an entity's deferred tax liabilities and assets.
9. The amount of taxes paid or payable (or refundable) for the year as determined by applying the enacted tax law to the taxable income or excess of deductions over revenues for that year.
OPTIONS:
Permanent Differences
Temporary Differences
Deferred Tax Asset
Deferred Tax Liability
Deferred Tax Expense or Benefit
Current Tax Liability
Future Taxable Amount
Current Tax Expense or Benefit
Income Tax Expense or Benefit
Future Deductible Amount
Answers
These are eight key terms related to income tax accounting. They include current tax expense, deferred tax liability, temporary differences, and deferred tax asset, among others.
1. Income Tax Expense or Benefit is the sum of the current tax expense or benefit and deferred tax expense or benefit.
2. Current Tax Expense or Benefit is equal to taxable income times the applicable tax rate.
3. Future Deductible Amount is the result from the settlement of a liability related to an expense or loss that is deductible for tax purposes subsequent to being recognized in financial income.
4. Deferred Tax Liability records the deferred tax consequences attributable to taxable temporary differences.
5. Temporary Differences are the differences between the tax basis of an asset or liability and its reported amount in the financial statements that will result in taxable or deductible amounts in future years.
6. Deferred Tax Asset records the deferred tax consequences attributable to deductible temporary differences and carryforwards.
7. Future Taxable Amount is the result from the recovery of an asset related to a revenue or gain that is taxable subsequent to being recognized in financial income.
8. Deferred Tax Expense or Benefit is the net change during the year in an entity's deferred tax liabilities and assets.
9. Current Tax Liability is the amount of taxes paid or payable (or refundable) for the year as determined by applying the enacted tax law to the taxable income or excess of deductions over revenues for that year.
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The jury's final decision is referred to as which of the following?
Answers
Answer:
Verdict
Explanation:
Answer:
verdict- the jury's final decision
Which of the following are laws which protect workers?
Answers
Answer:
The Equal Employment Opportunity Commission (EEOC) enforces federal laws prohibiting employment discrimination. These laws protect employees and job applicants against: Discrimination, harassment, and unfair treatment in the workplace by anyone because of: Race.
Explanation:
8) How can using a credit card affect your credit score in a good way? In a bad way?
Answers
Answer:
Explanation:
Good way: using your credit card and paying off the balance each month and on time can increase your credit score. Also, having a large credit limit affects the credit positively
Bad way: paying your balances late or not at all is bad for your credit.
Cost of Goods Manufactured, Income Statement, Manufacturing Company
Consider the following account balances (in thousands) for the Peterson Company:
Peterson Company Beginning of 2014 End of 2014
Direct materials inventory 21,000 23,000
Work-in-process inventory 26,000 25,000
Finished goods inventory 13,000 20,000
Purchases of direct materials 74,000
Direct manufacturing labor 22,000
Indirect manufacturing labor 17,000
Plant insurance 7,000
Depreciation—plant, building, and equipment 11,000
Repairs and maintenance—plant 3,000
Marketing, distribution, and customer-service costs 91,000
General and administrative costs 24,000
Calculate the following:
Prepare a schedule for the cost of goods manufactured for 2014.
Revenues for 2014 were $310 million. Prepare the income statement for 2014.
Answers
The cost of goods manufactured for 2014 for the Peterson Company is $169,000.
To calculate the cost of goods manufactured for 2014, we need to consider the changes in inventory and the manufacturing costs incurred during the year. The formula for calculating the cost of goods manufactured is as follows:
Cost of Goods Manufactured = Beginning Work-in-Process Inventory + Total Manufacturing Costs - Ending Work-in-Process Inventory
Given the account balances provided, we can calculate the cost of goods manufactured as follows:
Beginning Work-in-Process Inventory: $26,000
Total Manufacturing Costs:
- Direct materials: $74,000 (purchases of direct materials)
- Direct manufacturing labor: $22,000
- Indirect manufacturing labor: $17,000
- Plant insurance: $7,000
- Depreciation—plant, building, and equipment: $11,000
- Repairs and maintenance—plant: $3,000
Total Manufacturing Costs: $74,000 + $22,000 + $17,000 + $7,000 + $11,000 + $3,000 = $134,000
Ending Work-in-Process Inventory: $25,000
Cost of Goods Manufactured = $26,000 + $134,000 - $25,000 = $135,000
Therefore, the cost of goods manufactured for 2014 for the Peterson Company is $169,000.
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Perfection standards do not allow for poor-quality raw materials, waste in the production process, machine-breakdown, or other inefficiencies. True or False?
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The given statement is False Perfection standards do not imply the absence of poor-quality raw materials, waste in the production process, machine breakdowns, or other inefficiencies.
In fact, the concept of perfection standards recognizes that these issues can and do occur in real-world operations.
Perfection standards refer to the ideal or desired level of quality and efficiency that an organization strives to achieve. They represent a benchmark for performance and guide efforts to continuously improve processes and products.
However, it is important to acknowledge that achieving absolute perfection is often not feasible or practical in practice.
Poor-quality raw materials can still be encountered, even with strict quality control measures in place. Supply chain issues, variations in raw material sources, or unforeseen circumstances can lead to the presence of subpar inputs.
Similarly, waste in the production process can arise due to factors such as imperfect process control, human error, or unexpected events.
Machine breakdowns are a reality in any production environment, regardless of perfection standards. Mechanical failures, maintenance needs, or other technical issues can interrupt operations and result in downtime.
Furthermore, inefficiencies can arise due to various factors, including human factors, complex workflows, bottlenecks, or external disruptions.
Even with well-defined processes and performance targets, organizations continually strive to identify and address inefficiencies to improve productivity.
Rather than expecting absolute perfection, organizations strive for continuous improvement by implementing quality control measures, optimizing processes, and addressing issues as they arise.
The pursuit of perfection is a mindset and a goal, but it recognizes the practical realities of operating in a dynamic environment where challenges and imperfections are inevitable.
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as consumer demand for new cars increases, tire makers and steel and aluminum suppliers may experience an increase in demand for their products, which is an example of:
Answers
The increase in demand for tire makers, steel and aluminium suppliers is an example of derived demand.
Derived demand is the demand for a good or service as a result of an increase in the demand for another good or service. Labour and raw materials usually have a derived demand.
As the demand for new cars increase, car makers would want to produce more cars in order to meet the increased demand. This would lead to an increase in the raw materials and labour that is needed to make more cars. On the other hand, if there is a decrease in the demand for new cars, there would also be a decrease in the demand for the raw materials and labour that is needed to make more cars.
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an addition to the new ethics code involves the expectation for behavior analysts to promote an ethical ____________.
Answers
An addition to the new ethics code involves the expectation for behavior analysts to promote an ethical Option C. culture.
The revised ethics code involves a greater emphasis on the behavior analyst's responsibility to promote an ethical culture, in addition to the responsibility to adhere to ethical principles themselves. The ethical culture concept has been introduced to recognize the importance of the wider environment in which ethical behavior is cultivated. It recognizes the idea that ethical behavior goes beyond the individual and that it is shaped and influenced by the environment in which it occurs.
The revised ethics code specifies that behavior analysts are expected to promote an ethical culture by encouraging adherence to ethical principles and standards within their professional communities, organizations, and regulatory bodies. Behavior analysts are expected to help foster an ethical culture by contributing to the development of ethical standards and policies, educating others about ethical behavior, and addressing ethical violations.
Ethical culture development is expected to occur within all aspects of the profession of behavior analysis, including research, practice, education, and supervision. Behavior analysts must work to establish and promote an ethical culture to ensure that their clients receive the highest quality services, that the profession maintains its integrity, and that public trust is maintained. Therefore, the correct option is C.
The question was incomplete, Find the full content below:
An addition to the new ethics code involves the expectation for behavior analysts to promote an ethical ____________.
a. Client base.
b. Critique.
c. Culture.
d. None of the above.
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a lot measures 105' square. zoning requires a front setback of 30', rear setback of 25', and side setbacks of 15'. what is the maximum square footage, of a single story structure, that could be built on this property? draw a picture. select one: a. 3,750. b. 4,500. c. 5,600. d. 11,025.
Answers
11,025 is the maximum square footage, of a single story structure, that could be built on this property, the correct option is d.
To determine the maximum square footage of a single-story structure that can be built on the given lot, we need to subtract the setbacks from the total area of the lot. Let's calculate it step by step:
Total lot area = 105' x 105' = 11,025 square feet
Front setback = 30' on each side (since it's a square lot)
Effective front area = 105' - 30' - 30' = 45'
Rear setback = 25' on each side (since it's a square lot)
Effective rear area = 105' - 25' - 25' = 55'
Side setbacks = 15' on each side (since it's a square lot)
Effective side area = 105' - 15' - 15' = 75'
Maximum allowable building area = Effective front area x Effective rear area x Effective side area
Maximum allowable building area = 45' x 55' x 75' = 186,750 square feet
Since the question asks for the maximum square footage of a single-story structure, we can assume the structure will cover the entire allowable building area.
Therefore, the correct answer is d. 11,025 square feet, the correct option is d.
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The appropriate question is:
A lot measures 105' square. Zoning requires a front setback of 30', rear setback of 25', and side setbacks of 15'. What is the maximum square footage, of a single story structure, that could be built on this property?
Select one:
a. 3,750
b. 4,500
c. 5,600
d. 11,025
Harry's, your family-owned business, has been serving breakfast, lunch, and dinner in your city for so long that it's practically an institution! Your lunch menu items range in price from $8.99 to $13.99. Recently, your head chef suggested adding a delicious new seafood option to the lunch menu, but the costly ingredients involved will force you to charge $17.99 for it, which is comparable to what you charge for dinner menu items. You're concerned that this will upset your long-time customers. What should you do?
A. Set the price at $17.99, but raise the prices of all other menu items by S2 or more so it doesn't stand Support and out
B. Set the price at $17.99, and trust that your customers will see the value of the new menu item
C. Set the price at $14.99 for the first month, then gradually raise it to $17.99 over the next three months
D. Set the price at $13.99, but cut costs on all other menu items to make up for any revenue shortfalls
Answers
Answer:
Option C
Explanation:
To run a food business, the first and foremost thing is to attract customers and create a customer base. Hence, the price must be kept lower in the initial days to grab attention of customer. As the customer become used to with the product taste and quality, the prices can be increased to make the business profitable.
Hence, option C is correct
if a food server worker follows directions, how long does it take to wash his/her hands
Answers
Answer:
A food server worker should wash his/her hands for 20 sec or longer.
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When there are differences that result in current accounting income being greater than taxable income?
Answers
When there are differences that result in current accounting income being greater than taxable income, it is known as "temporary differences." These differences occur when the amount of income or expense recognized for accounting purposes is different from the amount recognized for tax purposes.
Temporary differences can arise due to differences in depreciation methods, differences in revenue recognition, and differences in the treatment of certain expenses.
For example, a company may use the straight-line method of depreciation for accounting purposes, but use an accelerated method for tax purposes. This will result in a higher accounting income in the early years of the asset's life, but a lower taxable income.
Similarly, a company may recognize revenue on an accrual basis for accounting purposes, but use the cash method for tax purposes. This can result in a higher accounting income in the current period, but a lower taxable income.
It is important to note that these temporary differences will eventually reverse over time, resulting in a lower accounting income and a higher taxable income in future periods. This is why they are called "temporary" differences.
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The purpose of a responsibility accounting system is to provide information to: (Check all that apply.)
Answers
The purpose of a responsibility accounting system is to provide information to:
Evaluate a manager's performanceAssign cost and expenses to the manager's responsible for controlling themResponsible accounting is a type of management accounting that is responsible for the overall management, budgeting, and internal accounting of a company. The main goal of this accounting system is to support all planning, calculation, and responsibility centers of the company.
Therefore, accountability is based on the basic principle that managers are only responsible for the actions they control. Responsible accounting follows the basic principles of cost management systems such as budget control and standard costing.
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what benefit dose a corporation have that a partnership and sole proprietorship do not
Answers
Answer:
An unlimited life spam
Explanation:
If your firm has an existence independent, it will continue to exist indefinitely unless it is legally disbanded. Limited liability prevents you from being held personally liable for their company's obligations or legal judgements. Shareholders were protected from legal responsibilities and debts by corporate entities.
The bookkeeper for MontroseMontrose Company wrote a check for $ 200$200 to pay for furnace maintenance. The check was incorrectly recorded in the general journal as $ 20$20. The entry to correct this error would be:
Answers
The check was incorrectly recorded in the general journal as $ 20$20. The entry to correct this error would be to increase repairs and maintenance expense by $180, hence option D is correct.
The mistake was to report the $200 check as $20. In other words, the Cash account and the Repairs and Maintenance Expense account were both overstated by $180.
It is required to add $180 to the Cash account and $180 to the Repairs and Maintenance Expense account to make up for the error. This will restore the proper balance to both accounts.
The Cash account and the Repairs and Maintenance Expense account will both be increased by $180 as a result of this entry. This will make the mistake right and guarantee the accuracy of both accounts.
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The given question is incomplete, so the most probable complete question,
1) The bookkeeper for Montrose Montrose Company wrote a check for $ 200$200 to pay for furnace maintenance. The check was incorrectly recorded in the general journal as $ 20$20. The entry to correct this error would be:
A. decrease Cash by $ 200$200.
B.increase Cash by $ 180$180.
C.increase Repairs and Maintenance Expense by $ 200$200.
D.increase Repairs and Maintenance Expense by $ 180$180
Manufacturers will work with specific retailers depending on where their target consumers expect to find their products. what does this process refer to?
Answers
Manufacturers will work with specific retailers depending on where their target consumers expect to find their products in the process known as Consumer expectation.
What is Consumer expectation?Consumer expectations can be regarded as the economic outlook of households.
Expectations in the path of consumers help them in the bearing on current economic activity and help Manufacturers to work with specific retailers depending on where their target consumers.
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I need help ASAP!!!!
Answers
Answer:Feet
Explanation:
with what?
Anyone have an idea how to create a NPV Spreadsheet which intakes a 6% discount factor.
My actual question is very similar to this, If someone could give me a step by step breakdown it would be much appreciated
Answers
The way to calculate an NPV Spreadsheet using the NPV Function are:
=NPV(discount rate, series of cash flow)Step 1: Set a discount rate in a cell.Step 2: Establish a series of cash flows (must be in consecutive cells).Step 3: Type “=NPV(“ and select the discount rate “,” then select the cash flow cells and “)”.What is an NPV Function?This refers to the excel function that is used to calculate the net present value and the discount rates for cash flows.
Hence, we can see that given that you have the discount factor, the annual operating costs, and annual benefits, you would then need to add the present value of all +ve cash flows and subtract the present value of all -ve cash flows.
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Which account has the lowest minimum balance requirement?
Answers
The Account D has the lowest minimum balance requirement.
The minimum balance requirement for the bank is $500, the highest of the four banks.
The third-highest minimum balance is $250, which is demanded of Bank B.
The second-highest minimum balance required by Bank C is a $300 balance on the account.
The smallest requirement among the four banks is simply $100 for Bank D.
Which account has the lowest minimum balance requirement? Bank Account Terms and Conditions Bank A has a $500 minimum balance, bank B has 250 dollars, bank C has 300 dollars, bank D has 100 dollars. Account A Account B Account C Account D.
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A cube has a side length (s) of 5 centimeters. The expression 6s2 gives the surface area of the cube and the expression s3 gives the volume. What is the volume and surface area of the cube?
Answers
Answer:
The volume and surface area of the cube is 125 cm³ and 150 cm² respectively.
Explanation:
The expression for the surface area of the cube :
A = 6s²
s is the side of the cube
The expression for the volume of the cube is :
V = s³
We need to find the volume and surface area of the cube.
For surface area : S = 6(5)² = 150 cm²
For volume : V = (5)³ = 125 cm³
Hence, the volume and surface area of the cube is 125 cm³ and 150 cm² respectively.
Which are indicators that economists use to measure how an economy grows?
Answers
Economic indicators include measurements of macroeconomic stability and performance, such as gross domestic product (GDP), consumption, investment, and international trade (central government budgets, prices, the money supply, and the balance of payments).
Gross domestic product (GDP) measures the market value of all completed goods produced and sold by countries within a specific time period in terms of money. Due to the measurement's complexity and subjectivity, it must be repeatedly adjusted before it can be considered a reliable indicator. While GDP per capita does not account for differences in the cost of living and inflation rates of the various countries, nominal GDP is preferable for comparing national economies on the global market. Therefore, when comparing living standards between nations, employing a base of GDP per capita at purchasing power parity (PPP) may be more useful.
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Economic indicators include measurements of macroeconomic stability and performance, such as gross domestic product (GDP), consumption, investment, and international trade (central government budgets, prices, the money supply, and the balance of payments).
Gross domestic product (GDP) measures the market value of all completed goods produced and sold by countries within a specific time period in terms of money. Due to the measurement's complexity and subjectivity, it must be repeatedly adjusted before it can be considered a reliable indicator. While GDP per capita does not account for differences in the cost of living and inflation rates of the various countries, nominal GDP is preferable for comparing national economies on the global market. Therefore, when comparing living standards between nations, employing a base of GDP per capita at purchasing power parity (PPP) may be more useful.
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