You Are Considering Adding a Microbrewery on to One of Your

question 33

Multiple Choice

You are considering adding a microbrewery on to one of your firm's existing restaurants.This will entail an increase in inventory of $8000,an increase in accounts payable of $2500,and an increase in property,plant,and equipment of $40,000.All other accounts will remain unchanged.The change in net working capital resulting from the addition of the microbrewery is:

• A)$45,500.
• B)$10,500.
• C)$6500.
• D)$5500.

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Definitions:

Demand for Wine

The total quantity of wine that consumers are willing and able to purchase at various prices within a specific time period.

Imports

Goods and services purchased from other countries for domestic consumption, often contrasted with exports.

Reaction Function

In economics, it represents how one economic agent's decision changes in response to another's action, especially in competitive markets or games.

Demand Function

A mathematical representation showing the relationship between the quantity demanded of a good and its price, along with other determinants.