(a) Formulate a linear programme to determine an investment plan that will maximize the total return.Linear Programming involves optimization problems that aim to either maximize or minimize an objective function while satisfying a set of constraints.
Let x1 and x2 be the amount of money invested in securities Hexa and Deca, respectively. Therefore, the problem can be formulated as follows:Objective function: Maximize z = 0.09x1 + 0.15x2Subject to: x1 + x2 = 500,000 ... (1)0.05x1 + 0.08x2 ≤ 0.06(x1 + x2) ... (2)0.09x1 ≥ 0.1(500,000) ... (3)x1 ≥ 0, x2 ≥ 0 ... (4)Where the objective function (1) aims to maximize the total return, which is the sum of the return of securities Hexa and Deca.The first constraint (2) ensures that the maximum combined risk should not be more than 6.The second constraint (3) states that the minimum returns on the investment should be 10%.
The last constraint (4) represents the non-negativity condition of the decision variables.(b) What is the expected return and the overall rate of return, if the optimal amount to be invested in securities Hexa and Deca are Rs. 333,000 and Rs. 167,000, respectively.The optimal solution to the problem occurs at x1 = 333,000 and x2 = 167,000. Therefore, the expected return is given as follows:Expected return = 0.09x1 + 0.15x2= 0.09(333,000) + 0.15(167,000)= 29,970 + 25,050= Rs. 55,020The overall rate of return is calculated as follows:Overall rate of return = Expected return / Total investment= 55,020 / 500,000= 0.11004 or 11.004%Therefore, the expected return is Rs. 55,020, and the overall rate of return is 11.004%.
To know more about investment plan visit:
https://brainly.com/question/29547577
#SPJ11
1. How would this analysis differ if instead of looking at the aggregate utility of all the passengers, you examined the individual utility of each passenger and their joint decision on whether to participate in the video bonus round? 2. What assumptions did this analysis make on preferences? How would varying those assumptions change the results? 3. Based on your results, what can you say about the effect of the initial vacation budget on the decision to gamble, all else held constant? What about the effect of the prize amount? 4. The framing effect is a phenomenon that describes how small changes in the wording of choices can affect decisions. For example, beef labeled "90% lean" is preferred to that labeled "10% fat," even though the quality of the beef is the same in both circumstances. How does the framing effect apply to the wording Ben Bailey could use to entice riders to go for the video bonus question?
The answers to all the questions are as follows:
1. If we look at the individual utility of each passenger and their joint decision on whether to participate in the video bonus round, then this analysis would have a different outlook. The utility level will vary for each passenger, some might be eager to participate in the game show while others might not. However, analyzing the individual utility of passengers will help to determine whether the aggregate utility is a result of an equal share of utility among passengers or some of the passengers' utility has been compromised.
2. The analysis was based on the assumption that all passengers have similar preferences. However, this is not always the case, and varying assumptions about individual preferences could affect the results. If the preferences are not taken into account while analyzing the utility levels of passengers, then the result would be flawed.
3. Based on the results, we can conclude that the initial vacation budget has a positive effect on the decision to gamble, all else held constant. Whereas the effect of the prize amount is insignificant. If the budget of passengers increases, then the probability of them taking risks increases too.
4. Framing effect can affect decision making in an important way. The wording used in the description of the video bonus round may affect the riders' decision to participate. Ben Bailey can use the framing effect to convince more passengers to participate in the video bonus round. For instance, he can change the way he describes the round to sound more appealing to the passengers, leading to a higher probability of the passengers participating.
To know more about individual utility visit:
https://brainly.com/question/28149400
#SPJ11
22 Bonney Lake Corporation issued 2,000 shares of its $1 par value common stock for $6 per share. What journal entry should be made to record this transaction? Multiple Choice Debit Account Common Stock Cash Credit 32,000 32,000 Account Debit Credit 23 Methow Corporation has 50,000 shares of $0.01 par volue common stock outstanding with a cutrent market price of $120 per share. If the corporation issues a 2-for-1 stock split, what will be the approximate market price of the stock immediately after the stock spilt? Maniper coice So $100 per share $60 per share $240 per share $80 per te 24 If bonds with a carrying value of $710,000 are retired before maturity at a cost of $730.000, is a gain or loss recorded by the Inwer, and in which Financial statement is the gain or loss reported? Multiple choice 913740 A loss; reported in the income statement A loss; reported in the balance sheet A goin; reported in the income statement Again; orted in the balance sheet
22. To record the issuance of 2,000 shares of $1 par value common stock for $6 per share, the following journal entry is made: Account Debit Credit Common Stock $2,000Cash $12,000
Common Stock (1,000 shares x $1 par value) = $1,000Common Stock (2,000 shares x $1 par value) = $2,000Cash (2,000 shares x $6 issue price) = $12,000Total = $15,00024. If bonds with a carrying value of $710,000 are retired before maturity at a cost of $730,000, a loss of $20,000 is recorded by the company. The loss is reported on the income statement, as the sale of bonds is a part of the company's normal operations.Explanation:The carrying value of bonds = $710,000Cost of retiring bonds = $730,000Loss = Cost of retiring bonds - Carrying value of bonds = $730,000 - $710,000 = $20,000.
To know more about stock visit:
https://brainly.com/question/31940696
#SPJ11
The Lucerne Chocolate Company uses standard costs and a flexible budget to control its manufacture of fine chocolates. The purchasing agent is responsible for material price variances, and the production manager is responsible for all other variances. Operating data for the past week are summarized as follows: a. Finished units produced: 2,900 boxes of chocolates. b. Direct materials: Purchases and used, 3,400 pounds of chocolate at 17.3 Swiss francs (CHF) per pound: standard price is CHF 18 per pound. Standard allowed per box produced US 1 pound. (P081002: ta C. Direct labor: actual costs, 3,925 hours at CHF 38.6, or CHF 151,505. Standard allowed per box produced is 1.25 hours. Standard price per direct labor hour is CHF 38. d. Variable manufacturing overhead: Actual costs, CHF 46,675. Budget formula is CHF 11 per standard direct-labor hour. Compute the following: i. Materials purchase-price variance ii. Materials quantity variance iii. Direct- labor price variance iv. Direct labor quantity variance bong pingg 100 lessneg nin (18 jud glad bough
The Lucerne Chocolate Company uses standard costs and a flexible budget to control its manufacture of fine chocolates. The purchasing agent is responsible for material price variances, and the production manager is responsible for all other variances.
The actual production data is used to identify the variances from the standard costs for each of the elements of cost.The following are the given data:a. Finished units produced: 2,900 boxes of chocolates.b. Direct materials: Purchases and used, 3,400 pounds of chocolate at 17.3 Swiss francs (CHF) per pound: the standard price is CHF 18 per pound. Standard allowed per box produced US 1 pound.c. Direct labor: actual costs, 3,925 hours at CHF 38.6, or CHF 151,505. Standard allowed per box produced is 1.25 hours.
Standard price per direct labor hour is CHF 38.d. Variable manufacturing overhead: Actual costs, CHF 46,675. Budget formula is CHF 11 per standard direct-labor hour.The following calculations will help to find the solution:
i. Materials purchase-price variance:The actual purchase price = CHF 17.3 per poundThe standard purchase price = CHF 18 per poundThe actual quantity purchased = 3,400 poundsStandard allowed per unit of output = 1 poundStandard quantity allowed for output produced = 2,900 boxes (i.e. 2,900 pounds)Material price variance = AQ x (AP - SP)Material price variance = 3,400 x (17.3 - 18)Material price variance = - CHF 2,720 (Favorable).
To know more about purchase visit:
https://brainly.com/question/32412874
#SPJ11
Which of the following are ways that the government can help to solve information asymmetry problems? Instructions: In order to receive full credit, you must make a selection for each option. For correct answer(s), click the option once to place a check mark. For incorrect answer(s), click the option twice to empty the box. ? Provide the missing information to the less-informed party. ?Developing programs. ? Provide the missing information to the more-informed party. ? Mandating participation in a program. Require the less-informed party to reveal information. ? Require the more-informed party to reveal information.
There are various ways that the government can help to solve information asymmetry problems. They are as follows Provide the missing information to the less-informed party Developing programs Mandating participation in a program Require the less-informed party to reveal information Require the more-informed party to reveal information The information asymmetry issue is a vital issue in the economy.
It suggests that some participants in an economy have more knowledge than others, resulting in the market's inefficiency. One of the most effective ways for the government to help resolve information asymmetry issues is by providing information to the parties who do not have it. The government can provide information about products, producers, markets, and the environment, among other things. The government can also develop programs and regulations that guarantee that all parties have access to the same knowledge.
The government may mandate that businesses and consumers participate in particular programs to improve their understanding of certain products. The government may also require that companies reveal certain information to the public, making it more transparent. Consumers may make more informed judgments when businesses reveal information about their items. Finally, the government can also require that parties who have greater knowledge reveal it to those who do not. The government might compel physicians to disclose patient information to their patients, for example. These techniques can help to address information asymmetry issues and promote a more efficient and fair market.
To know more about government visit:
https://brainly.com/question/4160287
#SPJ11
distinguish between the shareholder concept and the stakeholder concept.
The shareholder concept focuses on the interests of the owners of a company, the shareholders. It prioritizes maximizing shareholder value and returns on investment.
In contrast, the stakeholder concept recognizes that businesses have a broader impact on various stakeholders, including employees, customers, suppliers, communities, and the environment. It emphasizes considering and balancing the interests of all stakeholders in decision-making processes. The shareholder concept views shareholders as the primary stakeholders of a company, and the main goal is to increase shareholder wealth through profits and dividends. This perspective emphasizes the fiduciary duty of company management to act in the best interests of shareholders. On the other hand, the stakeholder concept acknowledges that companies operate within a larger social and economic context. It recognizes that decisions should consider the impacts on employees, customers, suppliers, communities, and the environment. This approach emphasizes long-term sustainability and corporate social responsibility, aiming for a more inclusive and balanced approach to value creation.
Learn more about the shareholder concept here:
https://brainly.com/question/22949754
#SPJ11
Write a memo that might be given to the marketing team in which you explain why it is necessary to monitor the promotional activity against the communication objectives outlined in the marketing plan. (One page)
MEMO
To: Marketing Team
From: [Your Name]
Date: [Date]
Subject: Importance of Monitoring Promotional Activity against Communication Objectives
The purpose of this memo is to emphasize the necessity of monitoring promotional activities against the communication objectives outlined in our marketing plan. By effectively tracking and evaluating our promotional efforts, we can ensure that they align with our overall marketing strategy, target the right audience, and generate the desired outcomes. This monitoring process will provide valuable insights and allow us to make data-driven decisions, optimize our campaigns, and maximize the return on investment (ROI) for our marketing initiatives.
Monitoring promotional activity against communication objectives is crucial for several reasons. Firstly, it enables us to gauge the effectiveness of our promotional campaigns. By regularly evaluating our activities, we can determine whether they are resonating with our target audience, conveying the intended message, and driving the desired response. This information allows us to identify any gaps or areas of improvement, allowing us to refine our strategies and tactics accordingly.
Secondly, monitoring helps us measure the ROI of our promotional efforts. By tracking key performance indicators (KPIs) such as sales, website traffic, social media engagement, and lead generation, we can assess the impact of our campaigns on our overall business objectives. This data-driven approach enables us to allocate resources effectively and optimize our promotional activities to achieve the best possible outcomes.
Furthermore, monitoring promotional activity against communication objectives provides valuable insights into consumer behavior and market trends. By analyzing the data collected, we can gain a deeper understanding of our target audience's preferences, needs, and purchasing patterns. This knowledge allows us to tailor our future promotional efforts to better meet their expectations and build stronger relationships with our customers.
Moreover, monitoring helps us stay agile and adapt to changing market conditions. By closely tracking the performance of our promotional activities, we can quickly identify any deviations or underperformance, allowing us to make timely adjustments or implement contingency plans. This proactive approach ensures that we stay ahead of the competition and maintain a competitive edge in the market.
Lastly, monitoring promotional activity against communication objectives provides accountability and transparency within our marketing team. By establishing clear metrics and regularly reporting on the progress and outcomes of our campaigns, we can foster a culture of responsibility and collaboration. This transparency also enables us to learn from our successes and failures, facilitating continuous improvement and innovation in our marketing efforts.
In conclusion, monitoring promotional activity against communication objectives is essential for the success of our marketing initiatives. By regularly assessing the effectiveness of our campaigns, measuring ROI, gaining consumer insights, and staying adaptable, we can optimize our promotional efforts and achieve our marketing goals. Let's ensure that we allocate the necessary resources and implement a robust monitoring system to track and evaluate our promotional activities effectively.
Should you have any questions or require further clarification, please feel free to reach out. Together, we can drive the success of our marketing campaigns.
Best regards,
[Your Name]
learn more about marketing click here;
https://brainly.com/question/27155256
#SPJ11
Topic: Economics of Illicit Drugs
Please explain why the economics of prohibition depends upon the
microeconomic theories of behavior (hint: rational or non-rational
behavior).
The economics of prohibition depends upon microeconomic theories of behavior, particularly rational or non-rational behavior, because it influences the supply and demand dynamics of illicit drugs.
1. Rational Behavior: Rational behavior assumes that individuals act in their best interest to maximize their utility. In the context of illicit drugs, prohibition creates a price premium due to the illegal nature of the market. This higher price incentivizes suppliers to enter the market and satisfy the demand. The profitability of the drug trade attracts rational actors who are motivated by financial gains, leading to an increase in drug production and distribution.
2. Non-rational Behavior: Non-rational behavior takes into account factors beyond purely rational calculations. Many drug users engage in drug consumption despite the potential negative consequences, such as health risks or legal repercussions. Prohibition creates a black market where the quality and safety of drugs are uncertain, increasing the risks for users. However, the desire for drug consumption often overrides these concerns, leading to continued demand.
Microeconomic theories of behavior, whether rational or non-rational, play a crucial role in understanding the economics of drug prohibition. Rational behavior drives the supply side of the market, with suppliers motivated by profit. Non-rational behavior influences the demand side, as drug users may prioritize their desire for drugs over other considerations. Both factors contribute to the complex economic dynamics surrounding illicit drugs and the efficacy of prohibition strategies.
To know more about economics visit :
https://brainly.com/question/17996535
#SPJ11
One method of creating equity is to support schools based on average daily attendance (ADA). Schools with poor student attendance lose funding. How could this attempt at fairness create inequity?
Using ADA for funding can create inequity by disadvantaging schools with higher student absences in low-income communities, perpetuating underfunding for already challenged schools.
While using average daily attendance as a metric for funding allocation aims to promote accountability and ensure resources are directed where they are most needed, it can inadvertently exacerbate inequities in education. Schools in economically disadvantaged areas often grapple with factors like limited access to healthcare, unstable housing, and transportation issues, which can contribute to higher student absences.
By linking funding solely to ADA, schools serving disadvantaged communities may face a funding shortfall due to factors beyond their control. This creates an inequitable situation where schools with higher rates of student absences receive less funding, despite having greater needs. Consequently, these schools may struggle to provide essential resources and support systems required to address the underlying challenges students face.
To address this potential inequity, alternative funding approaches could be explored that consider a broader range of factors impacting student outcomes, such as socioeconomic status, academic performance gaps, or specific needs related to students' well-being. This would help ensure that schools serving disadvantaged communities receive the necessary resources to support student success and foster true equity in education.
Learn more about equity here:
https://brainly.com/question/31458166
#SPJ11
Euler equation A representative household maximizes where [infinity] E 23* [log(C++j– ĐCt+j-1) – Xht+i], j=0 Ct+j + Kt+j = Wt+jht+j + rt+jKt+j−1 +It+j − T. 1. Discuss economic intuitions behind the term with 0. 2. Define Lagrangian.
The term with zero (0) is used to express the intertemporal optimality of consumption behavior for a household. A rational household considers both current and future consumption while making decisions.
1. Economic intuitions behind the term with 0:
The term with zero (0) is used to express the intertemporal optimality of consumption behavior for a household. A rational household considers both current and future consumption while making decisions. The economic intuition behind the term with zero can be understood as follows:
A key consideration for a household is whether to consume more at the present time or save and consume more in the future. This decision depends on the marginal utility of consumption, which measures the satisfaction or benefit derived from an additional unit of consumption.
If the marginal utility of consumption decreases at a higher rate, it implies that the household experiences diminishing marginal utility. In this case, it is optimal to consume more at the present time because the additional satisfaction gained from future consumption would be relatively lower.
On the other hand, if the marginal utility of consumption decreases at a lower rate, it implies that the household does not experience diminishing marginal utility as quickly. In this scenario, it is optimal to save and consume more in the future, as the additional satisfaction from future consumption is relatively higher.
The term with zero (0) captures the intertemporal optimality of consumption decisions. It reflects the idea that consumption should be optimized between the present and the future, based on the rate at which the marginal utility of consumption changes. By considering these factors, households can make decisions that align with their preferences and maximize their overall well-being.
To know more about household click here:
https://brainly.com/question/32373214
#SPJ11
what happens during the establish the business portfolio step of strategic planning?
During the establishment of the business portfolio stage of strategic planning, a company assesses its current offerings, determines successful products or services, and evaluates their contribution to overall company goals to create a successful business portfolio.
During the establishment of the business portfolio stage of strategic planning, the company seeks to determine which business portfolio will be successful. This process is critical in that the wrong decision could lead to the organization's downfall. A business portfolio is a group of products and services that a company provides to its customers.Below are some of the things that happen during the establish the business portfolio step of strategic planning:1. In order to create a business portfolio that can compete effectively, the company assesses its current offerings to determine which products or services are most successful.2. This is critical since it aids in the creation of an effective business strategy that will result in the best product or service portfolio for the organization.3. The company evaluates how each product or service contributes to the overall company goals.4. The company determines which products or services should be added to its product or service portfolio.5. The company evaluates how new goods or services might complement existing ones.6. The company develops the skills and competencies required to succeed in each business portfolio.7. The company evaluates whether the current product or service portfolio is sufficient to meet customer requirements or if new items should be added.In conclusion, during the establishment of the business portfolio stage of strategic planning, the company seeks to determine which business portfolio will be successful. To develop a successful portfolio, a company must assess its current offerings, determine which products or services are most successful, and evaluate how each product or service contributes to the overall company goals.
Learn more about business portfolio here :-
https://brainly.com/question/29418020
#SPJ11
Yousif Alm 04/06/2022, Question 10 In the partnership form of business, not income (or loss) is allocated to partners according to partnership agreement O True O False n
False. In the partnership form of business, income (or loss) is allocated to partners according to the partnership agreement.
The partnership agreement outlines how profits and losses will be distributed among the partners based on their agreed-upon sharing ratios or percentages.
This allocation is typically based on the partners' capital contributions, but it can also be determined by other factors outlined in the partnership agreement, such as the partners' roles, responsibilities, or specific agreements made among them.
To know more about partner click this link -
brainly.com/question/31624750
#SPJ11
In acceptance sampling, the number of units in the sample (n) is determined by the interaction of the acceptable quality level (AQL), the lot tolerance percent defective (LTPD), the probability of rejecting a high quality lot (alpha) and the probability of accepting a low quality lot (beta). True or False?
"In acceptance sampling, the number of units in the sample (n) is determined by the interaction of the acceptable quality level (AQL), the lot tolerance percent defective (LTPD), the probability of rejecting a high-quality lot (alpha), and the probability of accepting a low-quality lot (beta)." is True.
Acceptance sampling is a statistical method used to determine whether a batch of goods produced meets predetermined quality specifications. It's used to determine whether or not to approve or reject a batch of goods produced. It is a statistical technique used to measure and identify the quality of a product. It provides a quick indication of whether a batch of products is acceptable. AQL (Acceptable Quality Level) is the maximum acceptable proportion of defective units in a lot in an acceptance sampling plan. Acceptable quality level (AQL) is a widely accepted standard for measuring quality in the production of goods.The number of units in the sample (n) is determined by the interaction of the acceptable quality level (AQL), the lot tolerance percent defective (LTPD), the probability of rejecting a high-quality lot (alpha), and the probability of accepting a low-quality lot (beta).
To learn more about "Acceptance Sampling" visit: https://brainly.com/question/28873412
#SPJ11
A company uses a process costing system. Its Assembly Department's beginning inventory respect to direct labor and overhead. The value of beginning inventory was $350,000 which consisted of $280,000 of conversion costs and $70,000 of direct material costs. The department completed and transferred out 110,000 units this period. The ending inventory consists of 45,000 units that are 30% complete with respect to conversion costs (direct labor and overhead). All direct materials are added at the beginning of the process. The department incurred direct labor costs of $67,000 and overhead costs of $45,000 for the period. The conversion cost per equivalent unit for the month is (rounded to the nearest cent): $2.73/eu $3.17/eu $3.74/eu $3,01/eu
Option : b: Conversion cost per unit= $3.17/eu as per the information provided through calculation.
Given information:
Beginning inventory= $350,000
Value of beginning inventory consists of Conversion cost= $280,000
Direct material cost= $70,000U
nits completed and transferred out= 110,000
Ending inventory= 45,000 units
Units are 30% complete with respect to conversion cost
All direct material is added at the beginning of the process
Direct labor cost incurred= $67,000
Overhead cost incurred= $45,000
Conversion cost per equivalent unit for the month can be calculated as shown below,
Conversion cost per unit= (Cost of beginning inventory + Cost added during the period)/Total equivalent units$280,000 (Cost of beginning inventory conversion cost)+$67,000 (direct labor cost incurred during the period)+$45,000 (overhead cost incurred during the period)/Total equivalent units
Total equivalent units= Units transferred out + Units in ending inventory
Units in ending inventory = 45,000 units × 30% = 13,500 equivalent units
Total equivalent units= 110,000 units + 13,500 units= 123,500 equivalent units
Substituting the values,
Conversion cost per unit= $280,000+$67,000+$45,000/123,500
Conversion cost per unit= $392,000/123,500
Conversion cost per unit= $3.17/eu
Hence, the correct option is B) $3.17/eu.
To learn more about inventory, here:
https://brainly.com/question/31146932
#SPJ11
Complete question:
content loaded
A company uses a process costing system. Its Assembly Department's beginning inventory respect to direct labor and overhead. The value of beginning inventory was $350,000 which consisted of $280,000 of conversion costs and $70,000 of direct material costs. The department completed and transferred out 110,000 units this period. The ending inventory consists of 45,000 units that are 30% complete with respect to conversion costs (direct labor and overhead). All direct materials are added at the beginning of the process. The department incurred direct labor costs of $67,000 and overhead costs of $45,000 for the period. The conversion cost per equivalent unit for the month is (rounded to the nearest cent):
$2.73/eu
$3.17/eu
$3.74/eu
$3,01/eu
False Value Hardware began 2024 with a credit balance of $31,700 in the refund liability account. Sales and cash collections from customers during the year were $740,000 and $700,000, respectively. False Value estimates that 7% of all sales will be returned. During 2024, customers returned merchandise for credit of $20,000 to their accounts. What is the balance in the refund liability account at the end of 2024? Multiple Choice $63,500 $11,700 $71,800 $51,800
The balance in the refund liability account at the end of 2024 will be $11,700. Here’s how to calculate it:Given that False Value Hardware began 2024 with a credit balance of $31,700 in the refund liability account. Sales during the year were $740,000 and cash collections from customers were $700,000.
The estimated return percentage of sales is 7%.During 2024, customers returned merchandise for a credit of $20,000 to their accounts. The formula for calculating the balance in the refund liability account is: Beginning balance in refund liability + Sales made – Returns made – Cash refunds = Ending balance in refund liability account
Substituting the given values in the formula we get: $31,700 + $740,000 - ($740,000 x 0.07) - $20,000 - $700,000 x 0 = $11,700Thus, the balance in the refund liability account at the end of 2024 is $11,700, which is option B.
To know more about liability visit:
https://brainly.com/question/28391469
#SPJ11
Spe A fast-food restaurant serves hamburgers, cheeseburgers, and chicken sandwiches. The restaurant cours a cheeseburger an equivalent to 1.27 hamburgers and chicken sandwiches as 074 hamburger. Current employment is six full-time employees who each work a 40-hour week.. a. If the restaurant sold 740 hamburgers, 940 cheeseburgers, and 540 chicken sandwiches in one week, what is its productivity (De not round Intermediate calculations. Round your answer to 2 decimal places.) Productivity hamburger equiv per into tr b. What would its productivity have been if it had sold the same number of sandwiches (2.220), but the mix was 740 of each type? (De not round intermediate calculations. Round your answer to 2 decimal places) Productivity Thamburger equile per labor r
We can calculate the productivity: Productivity = Total hamburger equivalents / Total labor hours worked
To calculate the productivity of the fast-food restaurant, we need to determine the output and the input. In this case, the output is the total number of hamburger equivalents sold, and the input is the total labor hours worked by the six full-time employees.
a) Given the following sales data for one week:
- Hamburgers sold: 740
- Cheeseburgers sold: 940
- Chicken sandwiches sold: 540
We need to convert the cheeseburgers and chicken sandwiches into hamburger equivalents based on the given ratios:
- Cheeseburgers = 1.27 hamburgers
- Chicken sandwiches = 0.74 hamburgers
First, calculate the total hamburger equivalents:
Total hamburger equivalents = (Hamburgers) + (Cheeseburgers * 1.27) + (Chicken sandwiches * 0.74)
Total hamburger equivalents = 740 + (940 * 1.27) + (540 * 0.74)
Next, calculate the total labor hours worked:
Total labor hours worked = Number of employees * Hours per week
Total labor hours worked = 6 * 40
Now, we can calculate the productivity:
Productivity = Total hamburger equivalents / Total labor hours worked
b) If the mix was 740 of each type, the calculation is similar. The total hamburger equivalents would be:
Total hamburger equivalents = (Hamburgers) + (Cheeseburgers * 1.27) + (Chicken sandwiches * 0.74)
Total hamburger equivalents = 740 + (740 * 1.27) + (740 * 0.74)
Again, the total labor hours worked would be:
Total labor hours worked = Number of employees * Hours per week
Total labor hours worked = 6 * 40
Then, we can calculate the productivity using the same formula:
Productivity = Total hamburger equivalents / Total labor hours worked
forming these calculations will give us the productivity values for both scenarios.
for more such question on productivity visit
https://brainly.com/question/21044460
#SPJ8
Is buying shares in the pre-ipo phase and then selling on IPO day (Obviously making sure that that shares are released on the day or prior) a good way to see profits. It seems the average company increase in price 70% of the time (on ipo day) with an average gain of 26% compared to pre-ipo pricing compared to the price after day 1 close. What do you think?
Buying shares in the pre-IPO phase and selling on IPO day can potentially be a profitable strategy if the average company's price increases significantly on the day of the initial public offering (IPO). However, there are several factors to consider before drawing a conclusion.
Market Conditions: The success of this strategy heavily depends on the overall market conditions and investor sentiment. During favorable market conditions, IPOs tend to perform well, but during periods of market downturns or volatility, IPOs may struggle.
Individual Company Factors: Not all IPOs perform equally. It's essential to conduct thorough research and analysis on the specific company you're considering investing in. Factors such as the company's financials, industry outlook, competitive landscape, management team, and growth potential should be evaluated.
Pricing and Valuation: The pricing of an IPO is crucial. If the IPO price is set too high or the valuation is inflated, it may limit the potential for significant gains on the IPO day. It's important to assess whether the IPO is reasonably priced relative to the company's fundamentals and comparable companies in the market.
Lock-up Periods: Many pre-IPO investors, including venture capitalists and early employees, are subject to lock-up periods, which restrict them from selling their shares immediately after the IPO. The influx of shares into the market after the lock-up period expires can impact the stock price.
While historical data shows that IPOs, on average, experience price increases on their first day of trading, it's crucial to remember that past performance is not indicative of future results. Investing in IPOs carries inherent risks, including the potential for price declines and volatility.
In conclusion, diversification, proper risk management, and conducting comprehensive research are essential when considering any investment strategy.
To know more about Shares, visit
brainly.com/question/25818989
#SPJ11
Two strikingly different theories may be used to understand modern network economies: Benkler's "Wealth of Networks" and Zuboff's "Surveillance Capitalism". Use case studies to argue which theory best explains current market developments. MUST BE IN YOUR OWN WORDS!!!!
The idea of surveillance capitalism, as put out by Shoshana Zuboff, is motivated by a desire for financial gain and emerged as advertising firms, lead by Go-ogle's AdWords, saw the potential of exploiting personal data to more accurately target consumers.
This is typical in quantitative research, which first formulates a general theory (a hypothesis) before putting it to the test. However, qualitative or mixed-method case studies can also make use of deductive designs.
To gather user information, major tech corporations like Ama-zon, Apple, Go-ogle, and Face-book deploy surveillance capitalism. These pieces of information include keywords related to products, search histories, social media posts, physical locations, and internet of things (IoT) device microphone recordings.
To learn more about products, click here.
https://brainly.com/question/31815585
#SPJ4
If a company has the following financial ratios. What is the sustainable growth rate?
Total asset turnover = 2.65, Profit Margin = 5.7%, Equity multiplier = 1.6, Payout ratio = 70%.
The answer is 7.82%. Please show me how you get the answer in details.
Sustainable growth rate can be calculated by multiplying a company's profitability, asset efficiency, and leverage ratios. The total asset turnover, profit margin, equity multiplier, and payout ratio are the four ratios that a company can use to estimate its sustainable growth rate.
The formula for the sustainable growth rate is as follows: SGR = (Profit Margin × Total Asset Turnover × Equity Multiplier × (1 − Payout Ratio))
Sustainable growth rate (SGR) is an essential financial metric for businesses because it indicates how fast a company can expand without having to raise external capital. When a company grows at a rate that it cannot sustain, it runs the risk of becoming financially unstable. SGR provides a company with an estimate of how fast it can grow without raising external capital. The total asset turnover ratio is used to evaluate how efficiently a company uses its assets to generate revenue. Profit margin is a measure of a company's profitability. The equity multiplier reflects a company's debt level. The payout ratio is the percentage of a company's profits that are paid out as dividends to shareholders rather than being reinvested in the company. SGR is an essential financial metric for businesses because it indicates how fast a company can expand without having to raise external capital. When a company grows at a rate that it cannot sustain, it runs the risk of becoming financially unstable. SGR provides a company with an estimate of how fast it can grow without raising external capital.
to know about sustainable growth visit:
https://brainly.com/question/5452967
#SPJ11
What is a project champion and list some ways to keep a champion involved with the project.
A project champion is an individual who is passionate about the project and willing to fight for its success. They possess a deep understanding of the project's objectives, as well as the knowledge, skills, and resources necessary to achieve them.
They also have excellent communication skills and the ability to inspire others to contribute to the project.A project champion can play a crucial role in the project's success. Here are some ways to keep a champion involved in the project:1. Recognize and reward their contributions to the project.2. Keep them informed of the project's progress and milestones.3. Involve them in key decisions and problem-solving activities.4. Provide them with the resources and support they need to be successful.5. Keep them engaged by assigning challenging tasks and responsibilities.
6. Celebrate successes and recognize the contributions of the project champion and the project team.7. Encourage them to share their ideas and insights with the team.8. Ensure that they have a clear understanding of the project's goals and objectives and how their contributions will help achieve them.9. Listen to their feedback and address their concerns.10. Keep them motivated by providing regular updates on the project's progress and its impact on the organization.
To know more about knowledge visit :
https://brainly.com/question/32631309
#SPJ11
Due to the severity of COVID 19 on households, the government of Australia announced Job Keeper Allowances to be given to the labour force that had lost employment.
a. Examine the impact of Job Keeper Allowances during the COVID 19 recession on Australia’s economy.
b. Examine two reasons that could explain why the government of Australia terminated Job Keeper Allowances though COVID 19 still impacted Australia.
c. Assume the government of Australia spent AUD50 billion on allowances given to Job Keeper beneficiaries. Assume that despite the family financial stress, 15% of the Job Keeper Allowances was the total beneficiary savings. Further, assume all other factors remain constant. Calculate the total effect of the Australian government Job Keeper Allowance spending on aggregate demand for the economy.
a. The impact of Job Keeper Allowances during the COVID-19 recession on Australia's economy was significant. The allowances provided crucial support to households that had lost employment, helping them meet basic needs and sustain consumption. This injection of funds into the economy played a crucial role in mitigating the adverse effects of the recession. By providing financial assistance to individuals and families, the Job Keeper Allowances helped maintain consumer spending, supporting businesses and preventing a more severe contraction in economic activity.
b. There could be two reasons why the government of Australia terminated Job Keeper Allowances despite the ongoing impact of COVID-19. Firstly, the government may have deemed that the economic situation had improved sufficiently, and the need for direct financial support had diminished. As economic conditions recovered, businesses resumed operations, and unemployment rates declined, the government may have believed that other policy measures or forms of support were more appropriate. Secondly, the termination of Job Keeper Allowances could be a result of fiscal considerations. The program's significant cost and the government's budgetary constraints may have influenced the decision to phase out the allowances.
c. Assuming the government of Australia spent AUD50 billion on Job Keeper Allowances and 15% of the allowances was saved by beneficiaries, the total effect on aggregate demand can be calculated. The savings portion (15%) indicates the proportion of the allowances not spent on consumption. Therefore, the total effect on aggregate demand would be 85% of the Job Keeper Allowances spent on consumption. This spending would directly increase consumer expenditure, leading to a multiplier effect as the additional income circulates through the economy. The exact numerical calculation would depend on various factors, such as the marginal propensity to consume and the velocity of money, which determine the overall impact on aggregate demand.
To learn more about aggregate demand click here : brainly.com/question/32462329
#SPJ11
Why is it that economists dislike large-scale abatement
subsidies as a way of controlling carbon
emissions?
Economists generally dislike large-scale abatement subsidies as a way of controlling carbon emissions due to several reasons.
These subsidies can create market distortions and inefficiencies, leading to unintended consequences and ineffective outcomes. Additionally, economists argue that abatement subsidies may not address the root cause of carbon emissions and fail to provide the right incentives for long-term sustainable solutions.
Large-scale abatement subsidies can create market distortions by artificially altering the costs and prices of goods and services. This can lead to misallocation of resources and inefficient production decisions. Subsidies often result in an overproduction of subsidized goods and a corresponding underproduction of other goods that may have a lower environmental impact. This distortionary effect can hinder the overall efficiency of the economy and impede market forces from driving sustainable changes.
Moreover, economists emphasize the importance of providing the right incentives to reduce carbon emissions. Abatement subsidies may offer temporary relief but do not address the fundamental issue of carbon-intensive activities. Instead, economists argue for market-based mechanisms such as carbon pricing or cap-and-trade systems, which provide a price signal for carbon emissions. These mechanisms encourage businesses and individuals to internalize the environmental costs and make informed decisions based on the true costs of their actions, leading to more sustainable outcomes in the long run.
In summary, economists are generally critical of large-scale abatement subsidies as a means of controlling carbon emissions due to the potential for market distortions, inefficiencies, and a lack of long-term incentives. They advocate for market-based mechanisms that incorporate the true costs of carbon emissions, allowing for a more efficient and sustainable approach to tackling climate change.
Learn more about economy here: brainly.com/question/30131108
#SPJ11
Debbie Arts shop is a successful shop. Since it was established five years ago it has gradually increased its range of plain and cheese biscuits. The sales director has now come to the board with a proposal to expand the business. This will involve the purchase of new machinery; the initial outlay will be £150 000. The finance director and the sales director meet to discuss sales projections for the new range of chocolate biscuits. They forecast the following net cash inflows over the five-year period until the machinery will need to be replaced: £ Year 1 38,000 Year 2 50,000 Year 3 55,000 Year 4 58,000 Year 5 58,000 In addition to these inflows, it is expected that the machinery will be sold for scrap at the end of year five for £12 000. a) Calculate the payback period for the project.b) Calculate the accounting rate of return (ARR) for the project. c) Calculate the net present value (NPV) for the project. d) Discuss the results and their potential impact on the Debbie Arts shop
Debbie Arts shop invests in the project, they will recoup their initial investment of £150,000 in 2.73 years.
a) Payback period is calculated by dividing the initial investment by the cash inflow.
Payback Period = Initial investment / Annual cash inflow
Let the payback period be n= Initial Investment / Annual
Cash Inflow => £150,000/£55,000 = 2.73 or 2.73 yearsb)
The formula for accounting rate of return (ARR) is as follows:
Accounting Rate of Return (ARR) = Average Annual Profit / Initial Investment x 100%
The Average Annual profit is calculated as follows:
Average Annual Profit = Total Profit / Life span of project
ARR = (Average Annual Profit / Initial Investment) x 100% => (£204,000 / £150,000) x 100% = 136% c)
The formula for calculating Net Present Value (NPV) of the investment is as follows:
NPV = PV of Inflows - PV of Outflows
To compute present value, we multiply each year's net cash inflow by the present value factor.
The formula for calculating the present value factor is as follows:
Present value factor = 1 / (1 + r)ⁿYear 1
Present Value Factor = 1 / (1 + 10%)¹ = 0.909
Net Cash Inflow = £38,000Present Value = £38,000 x 0.909 = £34,742Year 2
Present Value Factor = 1 / (1 + 10%)² = 0.826
Net Cash Inflow = £50,000
Present Value = £50,000 x 0.826 = £41,308
Year 3Present Value Factor = 1 / (1 + 10%)³ = 0.751
Net Cash Inflow = £55,000
Present Value = £55,000 x 0.751 = £41,705Year 4
Present Value Factor = 1 / (1 + 10%)⁴ = 0.683
Net Cash Inflow = £58,000
Present Value = £58,000 x 0.683 = £39,614
Year 5Present Value Factor = 1 / (1 + 10%)⁵ = 0.621
Net Cash Inflow = £70,000 (58,000 + 12,000)
Present Value = £70,000 x 0.621 = £43,470
Net Present Value (NPV) = PV of Inflows - PV of Outflows
NPV = £34,742 + £41,308 + £41,705 + £39,614 + £43,470 - £150,000
NPV = £10,839 d) In this case, the payback period for the project is 2.73 years.
Therefore, if Debbie Arts shop invests in the project, they will recoup their initial investment of £150,000 in 2.73 years. The accounting rate of return (ARR) is 136%. Since the ARR is greater than the required rate of return of the company, the project should be accepted.
Net present value (NPV) of the project is £10,839. Since the NPV is positive, the project should be accepted. Thus, accepting the project is beneficial for the Debbie Arts shop.
Learn more about APR here:
https://brainly.com/question/13597527
#SPJ11
Kingdom Corporation has the following. Preferred stock, $10 par value, 9%, 50,000 shares issued $500,000 Common stock, $15 par value, 300,000 shares issued and outstanding $4,500,000 In 2020, The company declared and paid $30,000 of cash dividends. In 2021, The company declared and paid $150,000 of cash dividend. Required: How much is the TOTAL cash dividends that will be distributed to preferred and common stockholders over the two years, assuming cumulative
The total cash dividends that will be distributed to preferred and common stockholders over the two years, assuming cumulative, is $176,500.
The preferred stock has a par value of $10 per share and a dividend rate of 9%. This means that each share of preferred stock is entitled to a dividend of $0.90 per year. In 2020, the company declared and paid $30,000 of cash dividends. This is not enough to cover the full dividend of $45,000 that is owed to the preferred stockholders, so the preferred stockholders will receive a $0.60 per share dividend in 2021. The common stock has a par value of $15 per share and no dividend rate. This means that the common stockholders are not entitled to any dividends unless the preferred stockholders have been paid their full dividend.
In 2020, the company declared and paid $30,000 of cash dividends. This was enough to cover the full dividend of $45,000 that is owed to the preferred stockholders, so the common stockholders received no dividends.
To know more about Common stock, click here:-
https://brainly.com/question/11453024
#SPJ11
Daily 120 patients come to a walk-in clinic to visit the doctors or get tested. The clinic operates 8 hours a day, and is closed on both Saturdays and Sundays. On average, there are 5 patients in the clinic at any point in time. 3-1. What is the weekly rate of patients visit at this clinic? What is the monthly rate, considering that the clinic works 22 days a month (write down the unit for your calculated value)?
The weekly rate of patients in a clinic is close to 280 patients per week.
Any person who receives medical treatment from trained experts is referred to as a patient. Most frequently, the patient is ill or hurt and needs care from a doctor, nurse, optometrist, dentist, veterinarian, or other healthcare professional.
Originally, the word "patient" meant "one who suffers." The Latin word patients, the present participle of the deponent verb patior, which means "I am suffering," is the source of our English term. It is related to the Greek verb v and its corresponding noun (pathos).
Learn more about the Patient here:
https://brainly.com/question/32163967
#SPJ4
Requirements 1. Prepare the income statement of Blythe Spirit Consulting, Inc. for the month ended June 30, 2020. List expenses in decreasing order by amount. 2. Prepare the entity's statement of retained earnings for the month ended June 30, 2020. 3. Prepare the balance sheet of Blythe Spirit Consulting, Inc. at June 30, 2020. Financial Position Bal. Assets Accounts Cash + Receivable + Supplies + 1,250 1,450 Land 11,600 = Liabilities + Accounts Payable + 7,800 Shareholders' Equity Common Retained Shares + Earnings 3,600 2,900 T Transactions During June 2020, the business completed these transactions: a. Received cash of $9,400 and issued common shares. Performed services for a client and received cash of $6,000. Paid $4,800 on accounts payable. b. C. d. Purchased supplies on account, $1,300. e. Collected cash from a customer on account, $800. f. Consulted on the design of a business report, and billed the client for services rendered, $2,600. g. Recorded the following business expenses for the month: paid office rent, $500; paid advertising, $400. h. Declared and paid a cash dividend of $2,100. - Requirement 1. Prepare the income statement of Blythe Spirit Consulting, Inc. for the month ended June 30, 2020. List expenses in decreasing order by amount. Begin by selecting the labels for the income statement heading. Then complete the income statement by selecting the appropriate accounts and entering the amounts into the statement. Remember to list expenses in decreasing order by amount. (Use a minus sign or parentheses for a net loss.) Blythe Spirit Consulting, Inc. Income Statement For the Month Ended June 30, 2020 Revenues Expenses Service revenue Rent expense
Blythe Spirit Consulting, Inc. Income Statement For the Month Ended June 30, 2020DetailsAmount ($)RevenuesService revenue6,000ExpensesRent expense500Advertising expense400Supplies expense1,300Total expenses2,200Net income3,800Explanation:There are some additional details that have been provided for the calculation of Blythe Spirit Consulting, Inc.'s income statement.
Below are the accounts that will be used in preparing the income statement:- Service revenue- Rent expense- Advertising expense- Supplies expenseLet us now prepare the income statement for the month ended June 30, 2020. In order to calculate the net income, we need to subtract total expenses from the total revenue.
Here's how we calculate it:Blythe Spirit Consulting, Inc. Income StatementFor the Month Ended June 30, 2020DetailsAmount ($)RevenuesService revenue6,000ExpensesRent expense500Advertising expense400Supplies expense1,300Total expenses2,200Net income3,800Hence, the total expenses come to $2,200.
To know more about Consulting visit:-
https://brainly.com/question/29342787
#SPJ11
Consider a project with free cash flow in one year of $133,990 or $196,603, with either outcome being equally likely. The initial i cost of capital is 24%. The risk-free interest rate is 8%. (Assume no taxes or distress costs.) initial investment required for the project is $95,000, and the projects a. What is the NPV of this project? b. Suppose that to raise the funds for the initial investment, the project is sold to investors as an all-equity firm. The equity holders will receive the cash flows of the project in one year. How much money can be raised in this way-that is, what is the initial market value of the unlevered equity? c. Suppose the initial $95,000 is instead raised by borrowing at the risk-free interest rate. What are the cash flows of the levered equity, and what is its initial value according to M&M? a. What is the NPV of this project? The NPV is $ (Round to the nearest dollar.)
The NPV (Net Present Value) is calculated as the present value of future cash flows (positive or negative) minus the initial investment required for the project (i.e., the cost to implement the project). Therefore, the formula for the net present value (NPV) of this project is:NPV = -Initial Investment + PV of future cash flowsPV of future cash flows = [($133,990 + $196,603)/2] / (1 + 24%)= $155,296.76NPV = -$95,000 + $155,296.76= $60,296.76. Therefore, the NPV of this project is $60,296.76.
Suppose the initial $95,000 is instead raised by borrowing at the risk-free interest rate. What are the cash flows of the levered equity, and what is its initial value according to M&M?Since the $95,000 is borrowed at the risk-free interest rate, there are no interest expenses associated with the borrowed amount. Therefore, the cash flows of the levered equity are equal to the cash flows of the unlevered equity plus the interest tax shield (i.e., the tax savings due to the interest tax shield).The interest tax shield is calculated as follows:Interest tax shield = Interest expense x Tax rate= ($95,000 x 0.08) x 0= $0Since the tax rate is zero, the interest tax shield is zero. Therefore, the cash flows of the levered equity are equal to the cash flows of the unlevered equity.Cash flows of the levered equity = Expected cash flow to equity holders= $155,296.76Therefore, the initial value of the levered equity (V_l) according to M&M is:V_l = V_u + PV (interest tax shield) = $647,070.67 + 0= $647,070.67
Therefore, the initial value of the levered equity according to M&M is $647,070.67
To know more about NPV visit-
https://brainly.com/question/32720837
#SPJ11
What does Kahneman mean when he uses the term "associative
machine"?
In the book Thinking, Fast and Slow, Daniel Kahneman uses the term "associative machine" to refer to a fundamental characteristic of the human brain.
Kahneman uses the term "associative machine" to refer to the fact that the human brain is an associative machine that naturally creates links between ideas, concepts, and experiences. As a result, the brain is capable of making quick and effortless associations that can influence our perceptions, judgments, and decision-making processes. Kahneman also distinguishes between two systems of thinking that operate in the human brain, which he calls System 1 and System 2. System 1 refers to fast, intuitive, and automatic thinking, while System 2 refers to slower, more analytical, and deliberate thinking. The associative machine is a central feature of System 1 thinking, which relies heavily on the creation and use of mental associations to make sense of the world around us.
To learn more about machine, visit:
https://brainly.com/question/28651483
#SPJ11
In considering whether to accept a special order at a price less than the normal selling price of the product and where the additional sales will make use of present idle capacity, which of the following costs will not be relevant?
A) direct labor.
B)direct materials.
C)variable manufacturing overhead.
D)fixed manufacturing overhead that cannot be avoided.
In considering whether to accept a special order at a price less than the normal selling price of the product and where the additional sales will make use of present idle capacity, "fixed manufacturing overhead that cannot be avoided" will not be relevant, hence option D is correct.
A special order is an order that is not a part of regular business operations. It is a request for an individual or a company for a particular item or service. The price for special orders is usually different from the normal selling price of the product. Sales are an essential element in the success of a company, and the higher the sales, the more revenue a business generates. When additional sales will make use of present idle capacity, the company will be able to take up more orders without incurring significant costs.Additionally, when considering whether to accept a special order at a price less than the normal selling price of the product, there are many costs that must be considered. These costs include direct labor, direct materials, and variable manufacturing overhead. However, fixed manufacturing overhead that cannot be avoided will not be relevant.
To learn more about "Special Order" visit: https://brainly.com/question/20378184
#SPJ11
Identify and explain the three fundamental questions in economics. 2. Define and give an example of the law of increasing costs. 3. Identify and briefly explain the four Cs used to organize an economy. Which one is the most recent, and when did it emerge?
The three fundamental questions in economics are:
What to produce: This question refers to the allocation of resources and determining which goods and services should be produced in an economy. It involves making choices about the mix of products based on factors such as consumer demand, available resources, and production efficiency.How to produce: This question relates to the methods and techniques of production. It involves deciding the most efficient and cost-effective ways to produce goods and services using available resources and technology. It considers factors such as labor and capital inputs, production processes, and technological advancements.For whom to produce: This question pertains to the distribution of goods and services among individuals and society. It involves deciding who will receive and benefit from the produced goods and services. It considers factors such as income distribution, wealth inequality, social welfare, and individual needs.The law of increasing costs states that as the production of a particular good increases, the opportunity cost of producing an additional unit of that good also increases. In other words, as more resources are allocated to the production of a specific good, the production of additional units becomes progressively more expensive.The four Cs used to organize an economy are:
Command Economy: In this type of economy, the government or a central authority has significant control and makes all major economic decisions. It determines what goods and services are produced, how they are produced, and for whom they are produced. Examples of command economies include North Korea and Cuba.Market Economy: In a market economy, economic decisions are primarily driven by the interactions of buyers and sellers in the marketplace. Prices are determined by supply and demand, and resources are allocated based on individual choices and self-interest. Examples of market economies include the United States and most Western countries.Mixed Economy: A mixed economy combines elements of both command and market economies. It involves a blend of government intervention and market forces in economic decision-making. The government may regulate certain industries, provide public goods and services, and implement social welfare programs. Examples of mixed economies include Canada and many European countries.Cooperative Economy: A cooperative economy is based on the principles of cooperative ownership and democratic decision-making. It involves voluntary associations of individuals or businesses who work together to meet their common economic needs. Examples include cooperative businesses and organizations that operate on cooperative principles.The most recent of these economic systems is the cooperative economy. While cooperatives have existed for many years, they have gained renewed attention and significance in recent times due to their focus on cooperative ownership, sustainability, and community-driven economic models.
To know more about Economy visit-
brainly.com/question/30145425
#SPJ11
If policy makers increase spending, this will have a larger effect on output when: O the marginal propensity to import is smaller O the marginal propensity to consume is smaller O the marginal propensity to import is larger the sensitivity of investment to income is smaller O investment is unaffected by changes in income
If policy makers increase spending, this will have a larger effect on output when the marginal propensity to import is smaller.
Explanation: Marginal propensity to import (MPM) is the fraction of every additional unit of national income that is spent on imports of goods and services. This signifies that the higher the MPM, the lower the effect of an increase in government spending on output. The larger the marginal propensity to import, the smaller the effect of government spending on output. Because a large portion of the spending will be directed to import goods and services rather than local production, this is the case. This is particularly important for small open economies that rely on imports for a significant portion of their consumption and investment.
To know more about increase spending visit:
https://brainly.com/question/31750908
#SPJ11
