The benefits of direct and digital marketing for buyers are that it is easy, convenient, and private. Therefore, option A is the correct answer.
Digital marketing is an excellent way to reach out to a target market in a cost-effective and efficient manner. It is a type of marketing that involves the use of digital media to connect with consumers. Direct marketing, on the other hand, is the practice of communicating with customers one-on-one. Both direct and digital marketing can benefit buyers by being easy, convenient, and private. Digital marketing allows buyers to find what they are looking for quickly and efficiently.
It is also easy to compare prices and read reviews of products and services. Digital marketing is also convenient because buyers can shop online from the comfort of their own homes. They do not have to waste time and money traveling to a store or shopping center. It is also available 24/7. Direct marketing is private because it is typically done through mail or email. Buyers can receive targeted offers that are tailored to their interests. This makes it easier for them to find what they are looking for and make informed purchasing decisions.
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Describe the difference in one-part and two-part trade credit
terms. (Be specific please)
In one-part trade credit, the supplier provides credit to the buyer for the full amount of the purchase, and the buyer is expected to pay back the entire amount within a specified time period.
For example, if a buyer purchases a product for RM10,000 and is offered one-part trade credit, they would receive a credit of RM10,000 from the supplier, which they would be expected to pay back in full within a certain time period, such as 30 days.
In two-part trade credit, the supplier provides credit to the buyer for a portion of the purchase, and the buyer is expected to pay back the remaining amount in addition to any interest or fees. For example, if a buyer purchases a product for RM10,000 and is offered two-part trade credit, they may receive a credit of RM5,000 from the supplier, with the remaining RM5,000 to be paid back in full within a certain time period. In this case, the buyer would be responsible for paying back the full RM10,000, in addition to any interest or fees that may apply.
The main difference between one-part and two-part trade credit is the amount of credit provided by the supplier. In one-part trade credit, the supplier provides credit for the full amount of the purchase, while in two-part trade credit, the supplier provides credit for a portion of the purchase. The buyer's responsibility for paying back the credit also differs, with one-part trade credit requiring full payment within a specified time period, and two-part trade credit requiring full payment for the full purchase price as well as any interest or fees.
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forecast bellamy’s external financing needed (efn) in 2020 using the percentage-of-sales method.
To forecast Bellamy's external financing needed (EFN) in 2020 using the percentage-of-sales method, we need additional information such as the historical financial data and the projected sales for 2020.
The percentage-of-sales method is a financial forecasting technique that estimates the financing needed by a company based on the relationship between sales growth and various financial accounts. It assumes that certain financial ratios, such as the ratio of assets to sales, liabilities to sales, and retained earnings to sales, remain constant over time.
To calculate EFN using the percentage-of-sales method, follow these steps:
1. Determine the historical relationship between sales and the relevant financial accounts (assets, liabilities, and retained earnings) by calculating the ratios.
2. Forecast the sales for the upcoming period (2020 in this case).
3. Multiply the forecasted sales by the historical ratios to estimate the corresponding amounts for the financial accounts.
4. Calculate the difference between the estimated financial account values and the projected liabilities and equity. This difference represents the EFN for the forecasted period.
It's important to note that the accuracy of the forecast depends on the reliability of the historical relationships and the assumptions made. Without specific data for Bellamy's, I cannot provide a precise EFN forecast for 2020.
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Suppose the marginal propensity to consume increases from 0.71 to 0.77. The value of the expenditure multiplier will increase from to. (Enter your responses rounded to two decimal places) When the value of the multiplier increases, all else equal, a change in expenditure will raise aggregate expenditure by amount
The marginal propensity to consume (MPC) refers to the change in consumer spending that occurs when disposable income changes. The expenditure multiplier measures the change in aggregate expenditures that arises from a change in autonomous expenditure.
The formula for calculating the expenditure multiplier is: Expenditure Multiplier = 1 / (1 - MPC)Given that the MPC increases from 0.71 to 0.77, the expenditure multiplier will increase as well. To determine the new value of the expenditure multiplier, we plug the new MPC value into the formula.Expenditure Multiplier = 1 / (1 - MPC)Expenditure Multiplier = 1 / (1 - 0.77)Expenditure Multiplier ≈ 4.35When the value of the multiplier increases, all else equal, a change in expenditure will raise aggregate expenditure by an amount equal to the multiplier times the change in autonomous expenditure.
For example, if autonomous expenditure increases by $100, then aggregate expenditure will increase by $435 (i.e., $100 x 4.35).
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What forces in the industry environment might affect Tata Starbucks’ choice of strategy? And what does an internal analysis tell us about this? What intellectual assets are most important to Tata Starbucks?
Tata Starbucks’ choice of strategy can be influenced by various industry environmental forces such as the competitive, economic, technological, and sociocultural forces. The competitive forces influence the company’s ability to compete and succeed in the industry, and they include the intensity of rivalry among existing competitors, the threat of new entrants, the bargaining power of buyers and suppliers, and the threat of substitutes.
Economic forces, such as inflation, exchange rates, economic growth, and interest rates, may impact the company’s choice of strategy, as well as technological forces that affect the company’s ability to adopt and implement new technologies.
The sociocultural forces may also affect the company’s strategy, such as cultural norms, beliefs, and values that may impact the demand for the company’s products. An internal analysis of Tata Starbucks indicates that the company’s most important intellectual assets include its brand name, customer loyalty, and human capital. Tata Starbucks’ brand name is well established in the industry and provides the company with a competitive advantage over its rivals.
Customer loyalty is also a critical asset for the company, as it helps to create a stable customer base and provides a reliable revenue stream. Finally, the company’s human capital, including its skilled workforce, management team, and employees, are essential to its success. These assets contribute to the company’s ability to innovate, improve its operations, and achieve its objectives.
In conclusion, Tata Starbucks’ choice of strategy is influenced by various environmental forces that affect the industry, and the company’s most critical intellectual assets are its brand name, customer loyalty, and human capital.
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Short-run model From Chapter 9 onwards in the prescribed Jones textbook, we focus more on the short run and expenditure side of the economy. Briefly describe the three premises on which the short-run model developed in subsequent chapters is based. (5) Short-run model Nominal interest rates have risen in recent months in many countries as inflation threatens to rise to the highest levels seen in decades. Briefly and very simply, explain why monetary policy authorities have done so
The short-run model developed in subsequent chapters of the Jones textbook is based on three premises: (1) prices are sticky in the short run, (2) output is determined by aggregate demand.
The short-run model presented in the Jones textbook is built upon three key premises. First, it assumes that prices are sticky or slow to adjust in the short run, meaning they do not immediately respond to changes in supply and demand. Second, it posits that output or real GDP is primarily influenced by aggregate demand, which encompasses consumption, investment, government spending, and net exports. Lastly, the model acknowledges that the economy can experience deviations from its long-run equilibrium, where factors such as unemployment and inflation may differ from their natural levels.
In response to the recent threat of rising inflation, monetary policy authorities have raised nominal interest rates. This decision aims to curb inflationary pressures by reducing aggregate demand. When interest rates increase, borrowing becomes more expensive, which discourages businesses and individuals from taking on new loans. Consequently, this decrease in borrowing activity can lead to reduced spending and investment, helping to cool down the economy and restrain inflation.
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(Answer Length – up to 100 words
approximately)
Covid-19 has created a volatile operating environment for all
companies and one major concern is the impact on asset values.
Companies will need to ca
COVID-19 has resulted in a tumultuous operating atmosphere for all businesses, and one major concern is the effect on asset values.
The nature of the impact on your assets is determined by this.The impact of COVID-19 on asset values is largely determined by the nature of the business's assets. Some organizations may have seen a decrease in property, plant, and equipment values as a result of a decline in production or other business activities that use those assets. Goodwill value, on the other hand, may not have been affected as significantly, particularly for businesses with a strong reputation and customer base.
For businesses with intangible assets, including brands, copyrights, and patents, the effect on their asset values is less straightforward. It is dependent on a variety of variables, including the sector, the pandemic's effect on supply chains and operations, and other aspects of the business's operating environment. Overall, in the current economic environment, companies must consider the worth of their assets and adapt their operations and priorities in order to stay profitable and relevant.
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Question 10 0/ 1 point Given the information above for Texas Co., how much overhead was applied? a) $768,000 b) $733,000 c) $727,500 d) $722,650 e) $749,810 Question 10 0/ 1 point Given the information above for Texas Co., how much overhead was applied? a) $768,000 b) $733,000 c) $727,500 d) $722,650 e) $749,810 Section 2 Texas Co. expected its annual overhead costs to be $750,000 and machine hours to equal 100,000 hours. Actual overhead was $745,000, and actual machine hours totalled 97,000 hours. Question 9 0 / 1 point Given the information above for Texas Co., how much is the company's predetermined overhead rate to the nearest cent, assuming overhead is applied based on machine hours?
The amount of overhead that was applied is c) $727,500 where the actual overhead was $745,000, and actual machine hours totaled 97,000 hours.
Given that the company Texas Co. expected its annual overhead costs to be $750,000 and machine hours to equal 100,000 hours.
We are to determine the overhead that was applied. The predetermined overhead rate is the rate used to apply the overhead costs to the products or services rendered. The predetermined overhead rate formula is;
Predetermined overhead rate = Estimated overhead costs ÷ Estimated cost driver
The estimated cost driver is the estimated number of units of the cost driver to be used for the specific period.
Predetermined overhead rate = Estimated overhead costs ÷ Estimated cost driver
Estimated overhead cost = $750,000
Estimated cost driver = 100,000 hours
Predetermined overhead rate = $750,000 ÷ 100,000 hours = $7.50 per machine hour
Therefore, we can calculate the overhead applied using the actual machine hours as follows;
Overhead applied = Actual machine hours × Predetermined overhead rate
Overhead applied = 97,000 hours × $7.50 per machine hour = $727,500
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A 10-year, 6% coupon bond gives out semi-annual coupon payments. If it's currently selling for 85% of its face value, what is the yield to maturity? Compute your rate of return if you sell the bond next year for 88% of its face value.
The yield to maturity for the bond is approximately 7.95%, and the rate of return if the bond is sold next year for 88% of its face value can be calculated by dividing the total cash flows received by the initial investment.
To calculate the yield to maturity (YTM) of a bond, we need to consider the bond's current market price, coupon payments, time to maturity, and face value. In this case, we have a 10-year, 6% coupon bond that gives semi-annual coupon payments and is currently selling for 85% of its face value.
First, we need to determine the cash flows from the bond. Since it's a 6% coupon bond with semi-annual payments, the coupon payment will be 6% divided by 2, or 3% of the face value. The number of coupon payments over the bond's life will be 10 years multiplied by 2, or 20 payments. The final payment will be the face value of the bond.
Next, we calculate the present value of these cash flows using the current market price of 85% of the face value. We discount each cash flow back to its present value using the required rate of return or YTM.
By using trial and error or financial calculators, we can find that the YTM for this bond is approximately 7.95%. This means that the bond is priced in the market to provide a return of 7.95% to investors.
If the bond is sold next year for 88% of its face value, we can calculate the rate of return. The bond will have one year left to maturity, and the investor will receive the final coupon payment plus the face value of the bond. We can calculate the rate of return as the total cash flows received divided by the initial investment.
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Finding the start-up money for any new venture is always a major concern for an entrepreneur. Based on your budget plans, how much money and other resources will you need for your start- up? Where will you find these resources?
To determine the required start-up funds and resources, a comprehensive budget plan needs to be developed. The budget should include expenses related to equipment, inventory, marketing, operational costs, and any other necessary investments. Funding for the start-up can be obtained through various sources such as personal savings, loans from financial institutions, angel investors, venture capital firms, crowdfunding platforms, and government grants.
Start-up Budget: The first step is to create a detailed budget plan that outlines all the anticipated expenses for the start-up. This includes costs for equipment, lease or rental fees, initial inventory, marketing and advertising, employee salaries, utilities, legal and accounting services, and any other operational costs.
Conducting market research and consulting with industry experts can help estimate these expenses more accurately.
Funding Sources: After determining the required start-up funds, entrepreneurs can explore different avenues to secure the necessary resources. These may include:
a) Personal Savings: Using personal savings is a common option for entrepreneurs to invest in their start-ups.
b) Loans: Applying for business loans from financial institutions can provide the necessary capital. This may require a solid business plan and collateral.
c) Investors: Seeking investment from angel investors or venture capital firms can offer funding in exchange for equity or a share of future profits.
d) Crowdfunding: Utilizing crowdfunding platforms allows entrepreneurs to raise funds from a large number of individuals who believe in their business idea.
e) Government Grants: Researching and applying for grants or subsidies provided by government agencies that support entrepreneurial initiatives can provide additional resources.
By assessing the start-up budget requirements and exploring various funding sources, entrepreneurs can develop a financial strategy to secure the necessary resources for their venture. It is important to consider a mix of funding options and align them with the specific needs and goals of the business.
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Reflect on a situation when you were a part of the team (or managed a team) where one or more components of the rocket model were missing. What problems did it cause? How were they solved (if they actually were solved) or how they could have been solved
In a situation where a component of the rocket model was missing during my time as part of a team, it caused significant problems and required immediate action to address the issue.
During my experience as part of a rocket development team, we encountered a situation where a crucial component of the rocket model was missing. This component was responsible for controlling the rocket's trajectory during flight. Its absence posed a serious threat to the success and safety of the mission.
The missing component caused several problems. First and foremost, without the trajectory control mechanism, the rocket would have been unable to maintain stability, risking failure or even catastrophic consequences during launch. Additionally, it posed challenges for the overall design and engineering of the rocket, as other components had to be adjusted to compensate for the missing functionality.
To address the problem, the team immediately initiated a thorough investigation to determine the cause of the missing component and the implications it had on the rocket's design. The first step was to retrace our steps and identify any potential points of error or miscommunication. Once the issue was identified, we collaborated with our suppliers and partners to expedite the production and delivery of the missing component. In the meantime, the team worked on contingency plans to modify the rocket's design and subsystems to ensure a safe and controlled launch, even without the missing component.
This situation highlighted the importance of effective communication, coordination, and contingency planning within the team. It emphasized the need for thorough checks and balances throughout the entire rocket development process to minimize the chances of missing critical components. Lessons learned from this experience were used to enhance our project management practices, including improved documentation, regular progress tracking, and increased communication with suppliers and partners to prevent similar issues in the future.
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Briefly discuss the European model of the feudal mode of
production.
The European model of the feudal mode of production can be summarized as follows:
1. Feudal Hierarchy: The feudal system in medieval Europe was characterized by a hierarchical structure, where the king or monarch held the highest position of authority. This can be represented as:
[tex]\[ \text{King} > \text{Nobles} > \text{Knights} > \text{Peasants} \][/tex]
2. Land Tenure: Land ownership and control were central to the feudal system. The king granted land, known as fiefs, to the nobles in exchange for their loyalty and military service. The nobles, in turn, granted smaller portions of land to knights and peasants. This can be represented as:
[tex]\[ \text{King} \rightarrow \text{Nobles} \rightarrow \text{Knights} \rightarrow \text{Peasants} \][/tex]
3. Manorialism: Manorialism was a key aspect of the European feudal model. It involved the operation of self-sufficient agricultural estates called manors, controlled by the lord or noble. The peasants, known as serfs, worked on the manor and provided labor and a portion of their produce to the lord in return for protection and the right to cultivate the land.
4. Obligations and Services: In the feudal system, each social class had specific obligations and services to fulfill. The nobles provided military service to the king, while the knights served the nobles. Peasants, as serfs, were tied to the land and obligated to provide labor, pay taxes, and offer a share of their produce to the lord.
5. Lack of Mobility: Social mobility was limited in the feudal system. One's social position was determined by birth, and it was challenging for individuals to move up or down the social ladder. The system was relatively static, with little room for upward mobility.
6. Decentralized Political Authority: Political power in the feudal system was fragmented and decentralized. The king held authority over the entire realm but relied on the support of the nobles to maintain control. The nobles, in turn, exercised authority over their lands and maintained their own courts and laws.
The European model of feudalism had variations across different regions and countries, with specific local customs and practices. However, the overall feudal structure and the relationship between lords, knights, and peasants remained consistent throughout medieval Europe. To know
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Your company, (insert a company name of your choice here), is considering an opportunity to develop and introduce a new product which will trick kids into eating healthy at breakfast. The product is a breakfast "treat" which is actually made from all healthy ingredients and contains no added sugar…..and it tastes good. Based on your superior knowledge of the market, you think that this product line will last a minimum of 5 years before the kids catch on and start eating sugar-coated sugar cubes again for breakfast (when I was a kid, there was actually a cereal called Super Sugar Crisp).
Getting up and running will cost the company $1,000,000 for capital equipment; there was an additional $400,000 for development expenses. The equipment is expected to have a useful life of 5 years (what a coincidence). The expected sales volumes are:
Year 1: 400,000
Year 2: 700,000
Year 3: 900,000
Year 4: 850,000
Year 5: 600,000
Your assignment is to figure out if this is a good idea and, of course, maximize your wealth.
A few facts:
Unit cost is $1.250
Profit margin is 37% on sell price
Corporate income tax rate is 25.8%
The company’s cost of debt is 8%
You will finance the entire $1,000,000 but you do have it in cash if required; the financing will be at 9% and only 1 payment per year (5 total payments) for simplicity.
A few questions
Is this a worthwhile program to invest in?
What assumptions did you make?
Are there any alternatives at the end of 5 years?
Please use excel and explain the steps (Where numbers are coming from and which formulas are used in each step)
To evaluate the investment in the new breakfast product, let's calculate the net present value (NPV) and internal rate of return (IRR) using Excel.
First, we need to calculate the annual cash flows for each year, taking into account the sales volumes, unit cost, profit margin, and tax rate.
Year 1: 400,000 * ($1.25 * 0.37) * (1 - 0.258) = $69,860
Year 2: 700,000 * ($1.25 * 0.37) * (1 - 0.258) = $122,401
Year 3: 900,000 * ($1.25 * 0.37) * (1 - 0.258) = $157,738
Year 4: 850,000 * ($1.25 * 0.37) * (1 - 0.258) = $149,457
Year 5: 600,000 * ($1.25 * 0.37) * (1 - 0.258) = $105,328
Next, we need to calculate the annual cash flows for the capital equipment and development expenses. Since these costs occur at the beginning, they will be considered as cash outflows (negative values) in year 0.
Year 0: -$1,000,000 - $400,000 = -$1,400,000
Now, let's calculate the discounted cash flows using the company's cost of debt (8%) as the discount rate.
Year 0: -$1,400,000 / (1 + 0.08)^0 = -$1,400,000
Year 1: $69,860 / (1 + 0.08)^1 = $64,643
Year 2: $122,401 / (1 + 0.08)^2 = $106,997
Year 3: $157,738 / (1 + 0.08)^3 = $127,238
Year 4: $149,457 / (1 + 0.08)^4 = $113,149
Year 5: $105,328 / (1 + 0.08)^5 = $79,150
To calculate the NPV, sum up all the discounted cash flows:
NPV = -$1,400,000 + $64,643 + $106,997 + $127,238 + $113,149 + $79,150
NPV = -$908,823
To calculate the IRR, use the IRR function in Excel on the cash flows:
IRR = 14.3%
Based on the NPV of -$908,823 and the IRR of 14.3%, this investment does not appear to be worthwhile. The negative NPV suggests that the project's cash flows are not sufficient to cover the initial investment and generate a positive return. The IRR of 14.3% is lower than the cost of debt (8%), indicating that the project's rate of return is not attractive compared to alternative investment options.
Assumptions made include the accuracy of sales volume projections, constant unit cost and profit margin, stable tax rates, and the discount rate based on the cost of debt.
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Lance-Hefner Specialty Shoppes decided to use the dollar-value LIFO retail method to value its inventory. Accounting records provide the following information Cost Retail Merchandise inventory, January 1, 2018 Net purchases Net markups Net markdowns Net sales $292,000 $400,000 492,800 635,000 20,000 15,000 500,000 Related retail price indexes are as follows January 1, 2018 December 31, 2018 1.00 1.20 Required: Determine ending inventory and cost of goods sold Ending inventory at retail Ending inventory at cost Cost of aoods sold
Cost of goods sold = Beginning inventory at cost + Net purchases - Ending inventory at cost
= 160,000 + 350,200 - 234,800
= $275,400
The process of ordering, storing, using, and selling a company's inventory is referred to as inventory management. This covers the storage and processing of such commodities as well as the management of raw materials, components, and completed goods.
Depending on a company's demands, there are various forms of inventory management, each with advantages and disadvantages. The entire process of managing inventories, from raw materials to completed goods, is known as inventory management. In order to prevent shortages and gluts, inventory management works to efficiently streamline stockpiles. Just-in-time management (JIT), materials requirement planning (MRP), economic order quantity (EOQ), and days sales of inventory (DSI) are the four main inventory management techniques.
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the following information describes a company's usage of direct labor in a recent period. the direct labor efficiency variance is:
The direct labor efficiency variance is calculated by comparing the actual hours worked with the standard hours allowed and multiplying it by the standard rate per hour.
The formula for calculating the direct labor efficiency variance is as follows:
Direct Labor Efficiency Variance = (Actual Hours - Standard Hours) x Standard Rate
To calculate the direct labor efficiency variance, you need the actual hours worked and the standard hours allowed. The actual hours worked represent the number of hours actually used in production, while the standard hours allowed represent the number of hours that should have been used based on the standard rate and production output.
Once you have the actual hours worked and the standard hours allowed, you can calculate the direct labor efficiency variance. If you provide me with the necessary information, I would be happy to assist you in calculating the variance.
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The following information describes a company's usage of direct labor in a recent period. The direct labor efficiency variance is: Actual hours used 41,000 Actual rate per hour $ 14.00 Standard rate per hour $ 13.00 Standard hours for units produced 43,000 a) $26,000 favorable. b) $26,000 unfavorable. c) $15,000 unfavorable. d) $41,000 favorable. e) $41,000 unfavorable.
Frank currently rents an apartment for $700 per month. He is considering purchasing a $125,000 condominium. He has been approved for a 30-year term mortgage with a 5.25% interest rate. Use technology to create a loan amortization model What is Frank's monthly mortgage payment? What is the total interest he will pay on the loan? What is the total of all loan payments he will make? What is the difference between Frank's monthly loan payment and his monthly rent? Match the amount to the statement the total interest paid on the loan the difference between his monthly payment and his rent the monthly payment on the home the total of all payments on the loan
# $725.75 1. $248,492 :: $12.75 :: $690.25 # $275,684 11 $205,125 :: $700 :: $123,492 + $9.75 11 $165,875
Frank's monthly mortgage payment is $725.75. The total interest he will pay on the loan is $123,492. The total of all loan payments he will make is $275,684.
To calculate Frank's monthly mortgage payment, we can use a loan amortization model. Based on the given information, Frank has a 30-year term mortgage with a 5.25% interest rate and a loan amount of $125,000. Using these parameters, the monthly mortgage payment can be calculated to be $725.75.
The total interest paid on the loan can be found by subtracting the original loan amount from the total of all loan payments. In this case, the total interest paid is $275,684 - $125,000 = $123,492.
The total of all loan payments includes both the principal amount and the interest paid over the loan term. In this case, the total of all loan payments is $275,684.
To determine the difference between Frank's monthly loan payment and his monthly rent, we subtract his monthly rent of $700 from his monthly mortgage payment of $725.75. The difference is $25.75.
In summary, Frank's monthly mortgage payment is $725.75, the total interest he will pay on the loan is $123,492, the total of all loan payments he will make is $275,684, and the difference between his monthly loan payment and his monthly rent is $25.75.
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Suppose you are
Deputy manager of ABX company that is a chain retail shop. Authority wants
to inform all the employees about new changes (disciplines, rules,
regulations) to all the staffs of the company. Now write a ‘memorandum’
/ ‘memos’ to inform all the employees about it.
To: All Employees of ABX CompanyFrom: Deputy ManagerSubject: New Disciplines, Rules, and Regulations
Dear Employees,This memorandum is to inform you about some important changes that have been introduced in ABX Company, a chain retail shop. Please be informed that effective immediately, all employees must adhere to the new disciplines, rules, and regulations that have been put in place.To ensure the smooth running of the company and to provide better services to our customers, we have decided to introduce these new changes. As employees, we expect your full cooperation to help us in this effort. The following are the details of the new disciplines, rules, and regulations that you are expected to follow:• All employees are required to be at work on time. Late coming will not be tolerated.• All employees must dress appropriately in the company uniform.• No smoking is allowed within the company premises.• All employees are required to treat customers with respect and to provide excellent customer service.• Employees are not allowed to use their personal mobile phones during working hours.• Employees are required to adhere to all safety protocols within the company premises.• All employees are required to be honest and ethical in their dealings with customers and other employees.• Any violation of these rules will result in strict disciplinary action, up to and including termination.We hope that you will cooperate with us to make ABX Company a successful and customer-friendly company. If you have any questions or concerns about these new rules, please feel free to contact your supervisor or manager.Thank you for your cooperation.
Regards,
Deputy Manager
ABX Company.
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QUESTION 61 If the firm has a kinked demand curve O all firms have the same output firms will only compete based on price there is price volatility there is price stability raising or lowering prices will be matched by competitors QUESTION 62 If the Marginal Product of capital is 6 and the Marginal Product of labor is 3: the prices of capital and labor are $10 and $2 respectively. What should the manager do? O Increase output O Substitute in more labor for less capital O Substitute in more capital for less labor O Pay workers less QUESTION 63 Suppose a stream is discovered whose water has remarkable healing powers. You decide to bottle the liquid and sell t. The market demand curve is linear and is given as P-30-Q. The marginal cost to produce this new drink is $3. What is the monopoly price of this new drink 00 0:53 O $13.50 O $16.50 QUESTION 64 "Suppose that the prices of good A and good l were to suddenly double. If good A is plotted along the horizontal axis" O the budget line will become steeper O the budget line will become flatter O the slope of the budget line will not change O the slope of the budget line will change, but in an indeterminate way
the slope of the budget line increases as the price ratio increases. As a result, the budget line will become steeper.
QUESTION 61A kinked demand curve is a model of oligopoly. In this model, a firm facing a kinked demand curve assumes that its rivals will not follow a price increase, but will follow a price decrease. As a result, the firm faces a discontinuity in its marginal revenue curve at the prevailing price.
QUESTION 62The manager should substitute in more capital for less labor because the Marginal Product of Capital (MPC) is greater than the Marginal Product of Labor (MPL). The manager would reduce the number of workers to raise output if they were to substitute capital for labor. In addition, it's more cost-effective to use more capital than labor because the price of capital is $10 and the price of labor is $2, and MPC > MPL.
QUESTION 63The marginal cost (MC) of the new drink is $3, and the market demand curve for the new drink is P = 30 - Q. Since the demand curve is linear, the marginal revenue (MR) for the new drink is constant at MR = 30 - 2Q. A monopolist maximizes profit where MC = MR. Set MC equal to MR to get: MC = MR $3 = 30 - 2Q 2Q = 27 Q = 13.5 P = 30 - Q P = 30 - 13.5 = $16.50 Hence, the monopoly price of the new drink is $16.50.
QUESTION 64If the prices of good A and good l were to suddenly double, the budget line will become steeper. The slope of a budget line is the ratio of the prices of two goods. If the prices of two goods in a budget line double, the ratio of the prices of the two goods will remain unchanged. However, the slope of the budget line increases as the price ratio increases. As a result, the budget line will become steeper.
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Duo Corporation is evaluating a project with the following cash flows: Year Cash Flow 0 −$ 16,800 1 7,900 2 9,100 3 8,700 4 7,500 5 −4,900
Duo Corporation is evaluating a project with cash flows of -$16,800 at Year 0, $7,900 at Year 1, $9,100 at Year 2, $8,700 at Year 3, $7,500 at Year 4, and -$4,900 at Year 5.
To evaluate the project, we need to consider the cash flows over the project's lifespan and calculate the net present value (NPV) using an appropriate discount rate. The NPV is a measure of the project's profitability and determines whether it is a worthwhile investment. To calculate the NPV, we discount each cash flow to its present value using the chosen discount rate. The discount rate represents the opportunity cost of capital or the required rate of return. By summing up the present values of all cash flows, we can determine the project's net present value.
In this case, the cash flows are a mix of positive and negative amounts. The negative cash flow at Year 0 indicates an initial investment or cost, while the positive cash flows at Years 1 to 5 represent expected returns or cash inflows from the project. By discounting these cash flows and summing them up, we can calculate the NPV. If the NPV is positive, the project is considered financially viable, while a negative NPV suggests the project may not be worthwhile. To provide a more detailed analysis, the specific discount rate and calculation of the NPV need to be determined.
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Explain in words and demonstrate graphically the effects of a negative supply shock in both the short-run and long-run. To upload your figure, click on the CIRCLE with a plus sign in the middle, select ADD LOCAL FILE, and then add the photo or PDF of your figure. If you are unable to upload your graph, Remember to both explain what happens and show it in the graph
A negative supply shock refers to a situation where there is an unexpected decrease in the supply of goods and services in the economy. This can be caused by factors such as natural disasters, political instability, or sudden increase in production costs such as the cost of raw materials.
The effects of a negative supply shock can be observed in both the short run and the long run.
In the short run, the negative supply shock results in a decrease in output and an increase in prices. This is illustrated in the graph below :In the graph above, the short-run aggregate supply curve (SRAS) shifts to the left from SRAS1 to SRAS2, causing the price level to increase from P1 to P2. The output level decreases from Y1 to Y2.
This is because firms are facing higher input costs, such as the cost of raw materials, and cannot produce as much output at the same price level as before.
As a result, prices increase to reflect the increased costs of production.
In the long run, the negative supply shock results in an increase in prices, but output returns to its natural rate of output. This is illustrated in the graph below: In the graph above, the long-run aggregate supply curve (LRAS) shifts to the left from LRAS1 to LRAS2, causing the price level to increase from P1 to P2.
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Case Study James Benker has started the Jamaica Knowledge Services Centre Limited (JKSCL). The company started after James completed his Masters of Business Administration (MBA). He was unable to get a job, so he started offering knowledge process outsourcing to overseas and local clients. As a result, the company has been featured in the Caribbean’s number one growing business and received the Private Sector Organization of Jamaica (PSOJ) as the best business in Jamaica for 2019. One of the employees, Mrs. Suzanne Marcus, has worked at the company since its start-up in 2001, Suzanne is known for her involvement not only in her duties but also in other various activities of the department. She was aware of many minute details about the department throughout her tenure. She is loaded with responsibilities very often, sometimes given to her and sometimes taken by her. In the beginning, she was happy with her profile and gave her the best in all her responsibilities. However, she becomes overloaded when years pass and gets elevated to higher responsibilities. Still, she was happy with her job. Suzanne started realizing that many of her colleagues complete their work on time and equally take care of their personal lives. On the other hand, Suzanne, having been loaded with responsibilities, completed it partially at work and partially during her personal time. This becomes a reason for her stress. She started questioning her ability to not being able to complete her work at the scheduled time. Later, she understood that apart from being given responsibility, she was involved in many other crucial activities of the department, which became her additional responsibility which slowly the people forget that it is not under her job profile. Suzanne, being highly disturbed, started feeling her job as a burden. She thought she can’t come out of this because the habit which she developed for herself and her co-workers is irreversible. So she finally decided to take a break from her job. She fixed an appointment with the head HR, Mr. Marvis Jenkins, for her resignation, He knows the fact that her involvement is irreplaceable, and he also knew that she can be his competitor in a very short period, so, he had some other plans for her. During the conversation, Mr. Jenkins understood that Suzanne is highly stubborn in leaving the job. So, he convinced her to do work from home and advised her to limit her responsibilities as she will not come in any direct contact with the employees. Suzanne happily accepted the option and she felt relaxed. Several employees heard of Suzanne’s option to work from home and started making such requests. They were all told by Mr. Jenkins that he is unable to approve work from home as this will affect company’s profit. He also complained to the employees and their union that it is difficult to manage performance when employees work from home. This has resulted in staff morale for the department being low, which is spreading quickly to other departments within the company. There have been at least TWO (2) industrial actions over the past six months, which have costed the company over Fifty Thousand USD ($50,000.00) One employee Mr. Junio Black, has complained that the HRM department is run by a group of unfair and unscrupulous people who often display no good customer service, He explained that getting a letter verifying your employment status can become a nightmare as there is no clear procedure for requesting such and its based on how the people in HR feel. The company is also accused of failing to provide feedback during the performance appraisal process which has caused THREE (3) pending cases with the Industrial Dispute Tribunal (IDT). You have been employed as a Human Resource Consultant to assist the company with rectifying these issues. Complete the following tasks to advise the company: According to Adam’s Equity Theory, the employees may feel that they are unfairly treated and may start exercising balance redress. Provide a detailed summary of the two concepts (Adam’s Equity Theory and Balance Redress). You should cite an example from the case study.
Adam's Equity Theory explains how individuals compare their inputs and outcomes to others to determine fairness, while balance redress refers to the actions taken to restore equity when inequities are perceived. Suzanne's experience in the case study demonstrates the application of these concepts, highlighting the importance of addressing perceived inequities to maintain employee satisfaction and motivation.
Adam's Equity Theory is a motivational theory that suggests individuals strive for fairness and balance in their relationships and interactions at work. According to this theory, employees compare the ratio of their inputs (such as effort, time, and skills) to the outcomes (such as salary, recognition, and opportunities) they receive in relation to others. If they perceive an inequity, either overpayment or underpayment, compared to their colleagues, they will experience a sense of unfairness and become motivated to restore equity.
In the case study, Suzanne's situation reflects the application of Adam's Equity Theory. Initially, Suzanne was satisfied with her job and put in extra effort to fulfill her responsibilities. However, as time passed, she observed that her colleagues were able to complete their work on time while maintaining work-life balance. Suzanne perceived an inequity in the outcomes she received for her inputs, as she was overloaded with additional responsibilities that were not part of her job profile. This perception of unfairness led to stress and made her view her job as a burden, eventually leading her to consider resigning.
Balance redress, also known as equity restoration, refers to the actions individuals take to restore equity when they perceive an inequity. This can involve seeking changes in inputs or outcomes to achieve a sense of fairness. In Suzanne's case, her initial decision to take a break from her job can be seen as an attempt to restore equity by reducing her workload. However, the HR head, Mr. Jenkins, recognized Suzanne's value and convinced her to work from home and limit her responsibilities. This alternative arrangement provided Suzanne with a sense of balance and fairness, addressing her perception of inequity.
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Consider the following open economy (Home economy).
The real exchange rate is fixed and equal to one.
Saving, investment, government spending, taxes, imports and exports are given by:
S = −80 + 0.18Y
I = I
G = G
T = T0 + t1Y
Q = q1Y
X = x1Y∗
where T0 is the level of autonomous taxes, q1 and x1 are , respectively the marginal propensity to import, and export reaction to the foreign country’s income. An asterisk is used to designate variables related to the foreign economy.
1. Assuming that t1 = 0.1, and T0 = 100, find the values for the values of c0 and c1. (I cannot for the life of me figure out how to get the integer values for both C0 and C1 please assist)
S = −80 + 0.18YI = IG = GT = T0 + t1YQ = q1YX = x1Y∗where, the real exchange rate is fixed and equal to one We know that, Y = C + I + G + X - S
Putting values in the above equation and simplify
Y = C + I + G + X - S = C + I + G + x1Y* - (-80 + 0.18Y + 80 - 0.1Y + q1Y) = C + I + G + x1Y* + 0.08Y - q1Y + 80
Taking Y common on the right side Y - 0.08Y + q1Y = C + I + G + x1Y* + 80Y(1 - 0.08 + q1) = C + I + G + x1Y* + 80Y0.92Y + q1Y = C + I + G + x1Y* + 80
Rearrange the terms
C + I + G + x1Y* = (0.92 + q1)Y - 80......(1)
We need to find the values of C0 and C1
Assuming that t1 = 0.1, and T0 = 100We know thatT = T0 + t1YT = 100 + 0.1Y
Putting value in equation (1)C + I + G + x1Y* = (0.92 + q1)Y - 80C + I + G + x1Y* = 0.92Y + q1Y + 20
Subtracting q1Y + 20 from both sides
C + I + G + x1Y* - q1Y - 20 = 0.92
YAdding 100 on both sidesC + I + G + x1Y* - q1Y + 80 = 0.92Y + 100
Comparing with Y = C0 + C1Y
Slope, C1 = 0.92
Intercept, C0 = C + I + G + x1Y* - q1Y + 80
The values of c0 and c1 are:Intercept, C0 = C + I + G + x1Y* - q1Y + 80 Slope, C1 = 0.92
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Complete the following analysis of cost alternatives and select the preferred alternative. The study period is 10 years and the MARR = 12% per year. "Do Nothing" is not an option. A B C D $15,000 $16,000 $13,000 $18,000 Capital investment Annual costs 250 300 500 100 Market value 1,000 1,300 1,750 2,000 at EOY 10 FW(12%) -$49.975-$53,658 ???-$55,660
To complete the analysis and determine the preferred alternative, we need to calculate the present worth (PW) of each alternative and compare them. The present worth is the sum of the capitalized capital investment and the present value of the annual costs over the study period.
Using the given information:
Alternative A:
Capital investment: $15,000
Annual costs: $250
Market value at EOY 10: $1,000
Alternative B:
Capital investment: $16,000
Annual costs: $300
Market value at EOY 10: $1,300
Alternative C:
Capital investment: $13,000
Annual costs: $500
Market value at EOY 10: $1,750
Alternative D:
Capital investment: $18,000
Annual costs: $100
Market value at EOY 10: $2,000
To calculate the PW, we need to discount the annual costs and market value using the MARR of 12% per year. The formula to calculate the PW is:
PW = Capital investment + (Annual costs * (1 - (1 + MARR)^(-study period)) / MARR) + (Market value / (1 + MARR)^(study period))
Let's calculate the PW for each alternative:
Alternative A:
PW(A) = $15,000 + ($250 * (1 - (1 + 0.12)^(-10)) / 0.12) + ($1,000 / (1 + 0.12)^10)
Alternative B:
PW(B) = $16,000 + ($300 * (1 - (1 + 0.12)^(-10)) / 0.12) + ($1,300 / (1 + 0.12)^10)
Alternative C:
PW(C) = $13,000 + ($500 * (1 - (1 + 0.12)^(-10)) / 0.12) + ($1,750 / (1 + 0.12)^10)
Alternative D:
PW(D) = $18,000 + ($100 * (1 - (1 + 0.12)^(-10)) / 0.12) + ($2,000 / (1 + 0.12)^10)
Calculating these values will provide the PW for each alternative, and we can compare them to determine the preferred alternative.
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The Milk Chocolate Division of Mmmm Foods, Inc. had the following operating results last year: $60,000 Sales (150,000 pounds of chocolate).. Variable expenses. 37,500 22,500 Contribution margin 12,000 Fixed expenses. Profit $10,500 Milk Chocolate expects identical operating results this year. The Milk Chocolate Division has the ability to produce and sell 200,000 pounds of chocolate annually. Assume that the Peanut Butter Division of Mmmm Foods wants to purchase an additional 20,000 pounds of chocolate from the Milk Chocolate Division. Milk Chocolate will be able to increase its profit by accepting any transfer price above: Select one: a. $0.40 per pound b. $0.08 per pound c. $0.15 per pound d. $0.25 per pound
To determine the minimum transfer price that the Milk Chocolate Division of Mmmm Foods, Inc. should accept from the Peanut Butter Division for an additional 20,000 pounds of chocolate, we need to consider the contribution margin per pound of chocolate.
Given that the Milk Chocolate Division's operating results are expected to be identical to last year, we can calculate the contribution margin per pound by dividing the contribution margin by the total pounds of chocolate sold:
Contribution margin per pound = Contribution margin / Pounds of chocolate sold
Contribution margin per pound = $12,000 / 150,000 pounds
Contribution margin per pound = $0.08 per pound
Therefore, the Milk Chocolate Division should accept any transfer price above $0.08 per pound in order to increase its profit by selling an additional 20,000 pounds of chocolate to the Peanut Butter Division.
The correct answer is b. $0.08 per pound.
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According to Herzberg’s two-factor theory: Motivating factors include working conditions, base wage, policies and rules. Motivating factors relate to the context of the jobs. Improving motivating factors increases the level of employees’ satisfaction. Improving motivating factors decreases the level of employees’ dissatisfaction. Improving motivating factors decreases the level of employees’ satisfaction.
According to Herzberg's two-factor theory, motivating factors are factors that are directly related to the job context and have the potential to positively influence job satisfaction and motivation.
These factors include aspects such as challenging work, recognition, responsibility, growth opportunities, and achievement. Improving motivating factors, such as providing meaningful and fulfilling work, can increase employees' satisfaction and motivation. On the other hand, Herzberg identified hygiene factors as factors that are related to the job context but do not directly lead to satisfaction or motivation. These factors include working conditions, base wage, policies, and rules.
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The materials price variance is calculated by multiplying the
difference between actual unit price and standard unit price by the
standard units purchased.
True or False
False. The materials price variance is calculated by multiplying the difference between the actual unit price and the standard unit price by the actual quantity of materials purchased, not the standard units purchased.
In the context of business and manufacturing, materials refer to the physical substances or components used in the production of goods or the provision of services. Materials can include raw materials, such as metals, wood, plastics, or chemicals, as well as intermediate components or finished products. The selection and management of materials are crucial in manufacturing operations to ensure quality, efficiency, and cost-effectiveness. Materials management involves activities such as sourcing, procurement, inventory control, storage, and utilization of materials. Effective materials management practices are essential for optimizing production processes, minimizing waste, controlling costs, and meeting customer demands. Advanced technologies and data analytics are often employed to improve materials planning and management strategies.
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A real estate investor can purchase a piece of land currently
zoned residential. If the county board approves a request to rezone
the property as commercial within the next year, the investor will
be
A real estate investor who purchases a piece of land currently zoned residential and the county board approves a request to rezone the property as commercial within the next year will be in luck.
This is because the value of the land will likely increase if the rezoning request is granted.
The process of rezoning involves changing the designated use of land, such as changing land zoned for residential use to commercial use or vice versa.
The legal power to regulate zoning rests with local governments, which have the authority to enact, amend, or repeal zoning laws that specify how the land in their jurisdiction can be used.
Residential zoning refers to the use of land for single-family and multi-family homes, apartments, and townhomes. Commercial zoning, on the other hand, pertains to businesses, offices, restaurants, retail stores, and other similar enterprises.
When the county board approves the request to rezone a property, it means the piece of land is allowed to be used for commercial purposes. Therefore, the real estate investor can expect an increase in the value of their land due to the higher potential for business income.
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Short review of the movie explaining what issue it is dealing with. I don’t want a long
critical review explaining the actors, director, etc. (only central theme is expected).
movie report must explain in detail a minimum of 5 "ideas/concepts/topics in
finance" that the movie covers
Movie: Money for Nothing: Inside the Federal Reserve (2013).
Money for Nothing: Inside the Federal Reserve is a documentary that aims to explain the United States' central bank's role in managing the economy. It addresses the historical significance and present-day operations of the Federal Reserve while also delving into various economic concepts.
The film portrays the Federal Reserve as a mysterious and mystical organization with immense power. The film, however, stresses that it's a misunderstood institution that has a crucial role in maintaining economic stability by regulating inflation, interest rates, and monetary policy. It showcases the Great Depression, the 2008 financial crisis, and the role of Fed Chairman Ben Bernanke as examples of the Federal Reserve's decision-making procedures. In addition, it discusses the Fed's role in managing interest rates and money supply and the challenges that the Central Bank faces. 5 ideas/concepts/topics in finance covered in the movie are: The role of the Federal Reserve in regulating the economy. The history of the Federal Reserve in the United States. The monetary policy of the Federal Reserve.The decisions taken by the Federal Reserve to manage the Great Recession and its impact on the economy.The impact of the Federal Reserve's decisions on financial markets and the economy.
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1.
Name & describe various stages of workforce planning. (500
words minimum)
Workforce planning is a method that involves identifying a company's future personnel needs and developing tactics to meet those needs. The goal of workforce planning is to ensure that a company has the appropriate employees in the appropriate roles to achieve its objectives.
Assessing the current workforceThe first stage of workforce planning is to assess the current workforce. This includes determining how many staff are currently employed and what their roles are. This stage is important because it establishes a starting point for determining the company's workforce needs in the future.
Developing workforce strategies Once the company's future workforce requirements have been determined, the next stage is to develop workforce strategies to meet those requirements. This may involve developing training programs to upskill current staff, hiring new staff with the required skills, or outsourcing certain tasks. Implementing Workforce strategies After workforce strategies have been developed, the next step is to implement them. This may involve hiring new staff, offering training programs to current staff, or outsourcing tasks to external providers.
Monitoring and reviewing workforce planningThe final stage of workforce planning is monitoring and reviewing the process to ensure that it is effective. This involves tracking the company's progress toward meeting its workforce goals and making adjustments as needed. Regular review of workforce planning helps ensure that the company's workforce remains aligned with its strategic goals.
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Which of the following is not an advantage of business
intelligence:
Select one:
A. allows for easy analytics
B. streamlines business processes
C. boost productivity
D. cost
Cost is the only factor that business intelligence does not have in its favour. So, the correct answer is option D.
Organisations can gain many advantages from business intelligence, such as simple analytics, simplified business procedures, and higher productivity.
Cost, however, is not regarded as a benefit of business information. Investments in infrastructure, software licence purchases, and continuous maintenance expenses may be necessary to implement and sustain business intelligence solutions. Budget and resources must be set aside by organisations for data integration, support, and training. In terms of enhanced decision-making, efficiency, and competitive advantage, business intelligence can sometimes offset the costs, but the up-front and continuing costs of setting up and running business intelligence systems should be carefully addressed.Cost is therefore not considered a direct benefit, but rather a consideration when evaluating the overall benefit and return on investment of business intelligence efforts. Therefore, the correct option is D.
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Consider a firm in a perfectly competitive product market selling each unit of its product for $9. This firm has production function Q=10K1/4L 3/4 For this production function, the marginal (physical) product of capital is 2.5(L/K)3/4 and the marginal (physical) product of labour is 7.5(K/L)1/4. A. In the short run, capital is fixed at K=4096. if the firm employs L=81 workers it can produce units of output. In order to produce 80 units of output in the short run this firm must use units of labour. . If the labour market has competitive wage $59, the firm will demand units of labour in the short-run, B. When L=81, the firm's marginal revenue product of labour is equal to assuming it is also perfectly competitive in the product industry. E. Suppose the union raises wages by $2. In this case %AW = % (This percent value will be graded correct if it is within 0.1). Based on the new short-run quantity of labour demanded, the union can expect the firm to reduce employment by units of labour. Calculate the short-run elasticity of labour demand. Assuming labour is a normal input, the union should expect in the long run that the firm will (Enter 1 for "increase employment again," 0 for "not make further changes," and -1 for "decrease employment further"). Explain why.
The firm can adjust its capital input based on the changes in the price of labour. When the union raises wages by $2, the cost of labour increases.
Given data, Production function Q=10K1/4L3/4.
Marginal (physical) product of capital = 2.5 (L/K)3/4.
Marginal (physical) product of labour = 7.5 (K/L)1/4.
Part A
In the short run, capital is fixed at K=4096.
If the firm employs L=81 workers, it can produce units of output. In order to produce 80 units of output in the short run, this firm must use units of labour.
Let Q=80In the short run, with fixed capital K=4096, we get the production function:
80=10(4096)1/4L3/4 => L = 106.67 ≈ 107.
Thus, to produce 80 units of output in the short run, this firm must use 107 units of labour.If the labour market has a competitive wage $59, the firm will demand units of labour in the short-run.
Demand for labour can be calculated as follows:
MPL = MRPL Marginal Revenue Product of Labour (MRPL) = P x MPL
Where, P = Price of the product
MPL = Marginal Physical Product of Labour
MPL = 7.5 (K/L)1/4At K = 4096 and
L = 81, we get
MPL = 7.5 (4096/81)1/4 = 39.48
MRPL = $9 x 39.48 = $355.32
Wage rate = $59
Thus, the firm will demand 6 units of labour when wage rate is $59.
Part B
When L=81, the firm's marginal revenue product of labour is equal to assuming it is also perfectly competitive in the product industry.
Marginal Revenue Product of Labour
(MRPL) = P x MPL
Where, P = Price of the product
MPL = Marginal Physical Product of Labour
At L = 81, we get
MPL = 7.5 (4096/81)1/4 = 39.48P = $9
Thus, MRPL = $9 x 39.48 = $355.32
Therefore, when L = 81, the firm's marginal revenue product of labour is equal to $355.32
Suppose the union raises wages by $2.
In this case %AW = %Short-run elasticity of labour demand = % Change in Quantity Demanded / % Change in Wage Rate = (%ΔQ / Q) / (%ΔW / W) %ΔQ / Q = (New Quantity Demanded - Initial Quantity Demanded) / Initial Quantity Demanded = (6 - 7) / 7 = -0.1429%ΔW / W = (New Wage Rate - Initial Wage Rate) / Initial Wage Rate = (59 + 2 - 59) / 59 = 0.0339
Elasticity = (-0.1429) / (0.0339) ≈ -4.2172 ≈ -4.2
When wages are raised by $2, the union can expect the firm to reduce employment by 0.6 units of labour.
Assuming labour is a normal input, the union should expect in the long run that the firm will "not make further changes."In the long run, all inputs are variable.
Therefore, the firm can adjust its capital input based on the changes in the price of labour. When the union raises wages by $2, the cost of labour increases.
As a result, the firm substitutes capital for labour in the long run to reduce the cost of production. Since labour is a normal input, the demand for labour will decrease in the short run, but it will increase again in the long run. Thus, the union should expect that the firm will not make further changes in the long run.
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