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I said skool shud not b closed cux o positive contrib
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Economics, Accounting & Business: Post your doubts here!
- Thread starter XPFMember
- Start date
All right this question really stressed me out. Thanks for asking this sis. When observing the 0.10 tax payment for $1, this means that tax is $o.1. This means the consumer is using $0.9 of its disposable income. We need to find another leakage which is savings, if the consumer uses $0.9 of the income this means that savings which is 1/6 of total spending as 5/6 is given as spending. So if you multiply 0.9 with 5/6 you will get the mpc. Marginal propensity to consume is the desire to consume with the next $1 earned so using this definition obtain the result 0.75. We know that 1-mpc=mpw so the value of multiplier will be 1/(1-0.75) which is 4.
What a question! What a question! Truly this was something unexpected. We just had to remember the definition of mpc in order to this.
tutor2u, very useful.
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bt the contribution is too low...can't even cover the partial fix cost. and though it has a positive cont. it couldnt make profit for the past 6 years...which means the fix cost had to be covered by the overall profit. bt in business u just need to give specific reasoning to ur point. analyse it well ...u might get it well
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I think more marks are given on how u support ur argumnt rather wat conclusion u cum upto as long as wateva u say is logical
1/(1-mpc(1-t)) = 1/(1- 5/6(1-0.1)) = 4
As long as a sector of the company makes positive contribution and is able to cover its variable cost it can be profitable in the sense that it is sharing part of the total allocated costs. We use this principle in economics. As I said answer can be two-sided but u have to justify it.
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Can i make you ppl jealous?
You can never do that to a pie!
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Huh?
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how is that??
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Well my pprs r over and i juzz went and ate chat ...khattaaa and now im having a burger wid a can of coke in ma hand which wud soon be followed by a brownie 
redapple20 u seemed surprised? Come on make me jealous!
Well my pprs r over and i juzz went and ate chat ...khattaaa and now im having a burger wid a can of coke in ma hand which wud soon be followed by a brownie
I did not know that u eat so much!
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Wel i stopped eating during my paper
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U ppl might wanna c my wall!
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& then you'll be able to watch the full match, Germany-Holland, while we have to studyWell my pprs r over and i juzz went and ate chat ...khattaaa and now im having a burger wid a can of coke in ma hand which wud soon be followed by a brownie
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How does an increase in volume of output causes interest rates to rise?
This is possible as MV=PT the quantity theory of money, if volume goes up this means that people are demanding more leading to an increase in transaction. An increase in transaction means people want to spend more rather than save this will lead the bank to raise the interest or can be explained by the liquidity preference curve that people are more willing to hold financial asset than save this will cause a contraction of the curve thus interest rate increase.