The economic order quantity (EOQ) for the SKU can be calculated as 279 units. When the inventory level reaches this point, the firm should initiate a replenishment order to minimize inventory costs while meeting customer demand. To maintain a cycle-service level of 96%, a reorder point of 238 units should be set.
1. The firm should place orders when the inventory level reaches this point. To calculate the economic order quantity (EOQ), we use the formula EOQ = √(2DS/H), where D is the annual demand, S is the ordering cost per order, and H is the holding cost per unit per year. Substituting the given values, we have EOQ = √(2 * 19600 * 35 / 3.75) ≈ 279 units.
2. To determine the reorder point, we need to consider the lead time and the desired cycle-service level. Since the lead time is 1 week and the firm operates 52 weeks per year, the average demand during the lead time is 19600/52 = 377 units. To achieve a cycle-service level of 96%, we need to set the reorder point at the level where there is only a 4% chance of stockout during lead time. Using the standard normal table, the z-value corresponding to a 4% chance is -1.75. Therefore, the reorder point is 377 - (-1.75 * √(98)) ≈ 238 units.
3. In summary, the firm should place orders for the SKU using an economic order quantity of 279 units. To maintain a cycle-service level of 96%, the reorder point should be set at 238 units. When the inventory level reaches this point, the firm should initiate a replenishment order to minimize inventory costs while meeting customer demand.
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If an analyst wants to examine a company's current ability to generate income, which of would best be considered? Select one: O a Liquidity ob. Market share Ос. Profitability Solvency
If an analyst wants to examine a company's current ability to generate income, the best consideration would be profitability. Profitability measures the company's ability to generate profits and income from its operations. It assesses the company's ability to efficiently utilize its resources and generate a positive return.
Profitability is a key aspect of assessing a company's financial health and performance. It focuses on the company's ability to generate income and profits from its core business activities. By analyzing profitability metrics, analysts can evaluate how effectively the company is utilizing its resources and whether it has a sustainable business model.
There are various profitability measures that analysts commonly consider, such as:
1. Gross Profit Margin: This metric compares a company's gross profit (revenue minus the cost of goods sold) to its total revenue. It indicates the percentage of revenue that remains after accounting for the direct costs of producing goods or services.
2. Operating Profit Margin: This measure assesses the profitability of a company's core operations by comparing its operating income (revenue minus all operating expenses) to its total revenue. It shows the percentage of revenue that remains after deducting operating expenses.
3. Net Profit Margin: This metric evaluates the overall profitability of a company by comparing its net income (revenue minus all expenses, including taxes and interest) to its total revenue. It represents the percentage of revenue that remains as profit after all costs and expenses.
4. Return on Assets (ROA): ROA measures how efficiently a company uses its assets to generate profits. It calculates the ratio of net income to average total assets, indicating the company's ability to generate earnings relative to its asset base.
5. Return on Equity (ROE): ROE evaluates the profitability of a company from the perspective of its shareholders. It measures the return generated on shareholders' equity and is calculated by dividing net income by average shareholders' equity. It indicates how effectively the company is utilizing shareholder investments to generate profits.
By assessing profitability measures, analysts can gain insights into a company's financial performance, competitiveness, and potential for future growth. However, it's important to consider profitability in conjunction with other financial indicators like liquidity, solvency, and market share to obtain a comprehensive understanding of a company's overall financial health.
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30 23 20 15 20 Price MC ATC D 0 9 12 Quantity 15 MR a) What is the output and price where the firm's profit is maximum? What is the firm's economic profit? Show solution. b) Determine the deadweight loss for this market. What is the source of the deadweight loss in a monopoly? c) If government regulators where to ask the firm to charge a price and quantity that would be socially (or allocatively) efficient, what would these price and quantity be? At this output and price, what would happen to the consumer surplus, producer surplus and total surplus compared to the situation under monopoly. d) On the other hand, if a price ceiling of $17.50 is imposed by the government on the monopolist, estimate (based on the graph) the quantity that the monopolist will produce. In this case, does the price ceiling in a monopoly improve economic efficiency or not? Explain. e) Supposed that instead of a regular monopoly, the graph above pertains to a natural monopoly, what change must be made to the graph to depict a natural monopoly?
a) The output where the firm's profit is maximum can be found by equating the marginal cost and marginal revenue. From the given data, we have:
Price 30 23 20 15 20
Quantity 0 9 12 15
MR 30 23 20 15
MC - 12 9 15
ATC - 20.33 17.5 15
D 15
The firm's profit is maximum when its output is 9 units and price is $23. This is because at this output and price, the marginal cost is equal to marginal revenue, and the firm is earning maximum profit.
The firm's economic profit can be calculated as follows:
Total revenue = Price x Quantity = 23 x 9 = $207
Total cost = Average total cost x Quantity = 17.5 x 9 = $157.50
The deadweight loss for this market can be calculated by finding the difference between the social surplus (consumer surplus + producer surplus) at the allocatively efficient output and the monopoly output.
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Competence as a certified public accountant includes all of the following except:
A) Possessing the ability to supervise and to evaluate the quality of staff work.
B) Warranting the infallibility of the work performed.
C) Consulting others if additional technical information is needed.
D) Having the technical qualifications to perform an engagement.
Competence as a certified public accountant includes all of the following except: option B. Warranting the infallibility of the work performed.
Competence as a certified public accountant includes the ability to supervise and evaluate the quality of staff work, consulting others if additional technical information is needed, and having the technical qualifications to perform an engagement.The competence of an accountant is primarily based on their training, education, and experience. To be a competent accountant, one must possess technical skills as well as an ability to communicate effectively with clients. A competent accountant must have the necessary training and education to handle the various challenges they may encounter in their job.
Among the options provided in the question, the one option that is not included in competence as a certified public accountant is warranting the infallibility of the work performed. This is because it is impossible to guarantee that work will be infallible and competent accountants should understand that.
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In the country of Mordor, the government spent $100 million on swords. Prices do not rise at all, and GDP increases by $200 million. People in Mordor spent 70% of every dollar they received. What percent of every dollar did they spend on imported goods and services? If you think the answer is 29%, write 29. If you think the answer is zero percent, write 0. Answer:
The answer is zero percent (0) because the given information does not allow us to determine a specific percentage spent on imported goods and services.
To determine the percentage of every dollar that people in Mordor spent on imported goods and services, we need to consider the increase in GDP and the government's spending on swords.
Given that GDP increased by $200 million and the government spent $100 million on swords, we can conclude that the remaining $100 million of the increase in GDP must have come from private consumption and investment.
Since people in Mordor spent 70% of every dollar they received, we can calculate the amount of money they spent on consumption and investment. If we assume that all the additional $100 million in GDP went to private consumption and investment, then the total amount spent by the people would be $100 million * 0.7 = $70 million.
Now, to determine the percentage spent on imported goods and services, we need to know the proportion of domestic and imported goods and services consumed. Let's assume that a certain percentage of the consumption is allocated to imported goods and services.
If the percentage spent on imported goods and services is represented by 'x', then the percentage spent on domestic goods and services would be 100% - x.
To find 'x', we can set up the following equation:
(x% * $70 million) + [(100% - x%) * $70 million] = $70 million
Simplifying the equation, we get:
(x/100 * $70 million) + [(100 - x)/100 * $70 million] = $70 million
Multiplying through by 100, we get:
x * $70 million + (100 - x) * $70 million = $70 million * 100
Simplifying further, we have:
70x + 70(100 - x) = 70 millio
Solving for 'x', we find:
70x + 7000 - 70x = 70 million
7000 = 70 million
This equation is not possible since 7000 is not equal to 70 million. Therefore, the answer is zero percent (0) because the given information does not allow us to determine a specific percentage spent on imported goods and services.
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Bonita noticed that her group members responded very well to few words of praise from her. Although she viewed this simply as part of her personal management style, the positive effect on her group can be explained by the importance her group gave to Competitive workplace culture Bonus Intrinsic motivation Extrinsic motivation
The positive effect observed by Bonita, where her group members responded well to few words of praise, can be attributed to the significance her group gave to intrinsic motivation.
Intrinsic motivation refers to the internal drive and enjoyment individuals experience when engaging in a task or activity for its own sake, rather than for external rewards or incentives. When Bonita provided praise, it likely tapped into her group members' intrinsic motivation by acknowledging their efforts, skills, and achievements. This recognition and validation from a leader can boost individuals' sense of competence, autonomy, and relatedness, which are essential psychological needs for intrinsic motivation.
While competitive workplace culture, bonuses, and extrinsic motivation can also impact employee behavior and performance, they may not fully explain the positive effect observed in Bonita's case. Competitive workplace culture emphasizes achieving goals and outperforming others, and while it can drive performance, it may not necessarily foster the same level of satisfaction and engagement as intrinsic motivation. Bonuses and other forms of extrinsic motivation, such as rewards or incentives, typically rely on external factors to motivate behavior, whereas Bonita's praise appealed more to the internal motivations and personal satisfaction of her group members.
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Understand WIP, FG, MOH, etc. Answer the following questions: 1. At August 31, Work-in-Process totals $10,000 including $6,000 of Manufacturing Overhead. Manufacturing Overhead is applied at the rate of 200% of Direct Labor. How much direct material is included in Work-in-Process at August 31? 2. . You know the following Information: Cost of Goods Manufactured = $320,000 DM Used in Production = $73,800 Manufacturing Overhead is 70% of Direct Labor Cost Work-in-Process, Beginning = $109,300 Work-in-process, Ending = $104,300 What was total Direct Labor?
Manufacturing Overhead = 70% of Direct Labor Cost0.7 DL = MOHDL = MOH / 0.7 = 315000/0.7 = $450,000 Therefore, total Direct Labor = $450,000.
1. Given, Work-in-Process totals $10,000 including $6,000 of Manufacturing Overhead. Manufacturing Overhead is applied at the rate of 200% of Direct Labor.Therefore, Direct Labor cost= Manufacturing Overhead *100/200 = 6000*100/200 = $3,000.
On August 31, Work-in-Process totals $10,000. Let direct materials included in WIP on August 31 be DM.Direct Materials + Direct Labor + Manufacturing Overhead = Total Manufacturing CostsDM + 3000 + 6000 = 10000DM = 10000 - 3000 - 6000 = $1,000. Direct material included in Work-in-Process on August 31 is $1,000.2. Given:
Cost of Goods Manufactured = $320,000DM Used in Production = $73,800Manufacturing Overhead is 70% of Direct Labor CostWork-in-Process, Beginning = $109,300Work-in-process, Ending = $104,300We know that,
Direct Materials + Direct Labor + Manufacturing Overhead = Total Manufacturing CostsDirect materials used in production= DM used + Beginning WIP - Ending WIPDirect materials used in production
= 73,800 + 109,300 - 104,300 = $78,800
Total Manufacturing Cost = Cost of Goods Manufactured + Ending WIP - Beginning WIP
320,000 + 104,300 - 109,300 = $315,000
Manufacturing Overhead is 70% of Direct Labor Cost,
So, Manufacturing Overhead = 70% of Direct Labor Cost0.7 DL = MOHDL = MOH / 0.7 = 315000/0.7 = $450,000Therefore, total Direct Labor = $450,000.
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In Aggregate Demand, the biggest component is Consumption, or household spending on final goods and services, and it is generally determined by Disposable Income. At very low levels of Income, Autonomous Consumption Spending (not subject to income limits) exists. True False
The statement "At very low levels of Income, Autonomous Consumption Spending (not subject to income limits) exists" is true.
The statement, "At very low levels of Income, Autonomous Consumption Spending (not subject to income limits) exists," is a True statement. In Aggregate Demand, the biggest component is Consumption, or household spending on final goods and services, and it is generally determined by Disposable Income.
Consumption is often influenced by income levels, disposable income, and autonomous consumption spending.Income is a determinant of consumption in macroeconomics. It is commonly accepted that, ceteris paribus (all other things being equal), higher incomes result in higher consumption. However, at very low levels of Income, Autonomous Consumption Spending (not subject to income limits) exists.
There are two types of consumption in economics, namely autonomous consumption and induced consumption. Autonomous consumption is the level of consumption that takes place even when income is zero. In contrast, induced consumption is the level of consumption that changes as income changes.
Consumption that does not depend on income is known as autonomous consumption, while consumption that is affected by income is known as induced consumption. In general, autonomous consumption can occur when people have access to other sources of funding, such as savings, welfare payments, or financial support from family and friends, even if their income is low.
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Research Paper - Weightage - 14 % of total grade The main goal for this assignment is that students gain an in-depth understanding about an emerging topic in Marketing. Each student will conduct in-depth research on the topic and write the research paper. The topic for research is: Marketing in the age of Data Analytics and Artificial Intelligence This assignment is worth 14 % of your final grade. Due Date – 15 th May 2022 Please note that theme has been provided. It is not a topic. You can consider a specific marketing problem under this broad theme. Important Suggestions: 1) This is a very broad theme. It is important that you select a narrow area of research under this broad theme for better output. 2) Please review resource links provided below to help you understand how to write research papers. Link 2 is particularly useful guide. Instructions: 1) You may consider organizing the research paper as follows: • Introduction • Relevance of the topic • Objective of the Research/ Research Questions • Discussion (organize in appropriate sub sections) • Conclusions 2) The suggested word limit is 1800-2500 words. 3) Must use external academic (these include research journals; consider using your library) and relevant non-academic references. Provide in-text citations and should provide references in APA format.
Research Paper - Weightage - 14% of total grade
The main goal of this assignment is for students to develop a comprehensive understanding of an emerging topic in Marketing.
Students are required to conduct in-depth research on the topic of "Marketing in the age of Data Analytics and Artificial Intelligence" and write a research paper. This assignment holds a weightage of 14% towards the final grade and is due on 15th May 2022.
Important Suggestions:
Given that the theme is quite broad, it is crucial to narrow down the research to a specific area within this broad theme for better results.
Review the provided resource links, particularly Link 2, which offers a useful guide on how to write research papers.
Instructions:
Organize the research paper in the following structure:
Introduction
Relevance of the topic
Objective of the research/research questions
Discussion (organize into appropriate subsections)
Conclusions
The suggested word limit for the research paper is 1800-2500 words.
It is mandatory to use external academic sources (such as research journals, utilizing the library resources) as well as relevant non-academic references. In-text citations should be included, and all references should follow APA format.
By following these guidelines, students can delve into the selected area of research within the topic of Marketing in the age of Data Analytics and Artificial Intelligence, demonstrate their understanding, and present a well-structured and supported research paper.
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Grootfontein Textile Limited is a highly mechanised business manufacturing various fabrics. The following information related to the reporting period ended 31 March 2019.
N$
Direct manufacturing wages 240 000
Indirect manufacturing wages 89 000
Administration salaries 36 000
Raw materials (1 April 2018) 6 800
Raw material purchases 500 000
Raw materials (31 March 2019) 5 400
Raw material returns 1 200
Inventory of finished fabric (1 April 2018) 198 000
Inventory of finished fabric (31 March 2019) 191 400
Carriage on raw materials purchases 1 200
Plant and machinery at cost 360 000
Accumulated depreciation on plant and machinery 30 000
Factory power 4 200
Fire insurance 10 000
Supervisor's salary 25 000
Repairs and maintenance of machinery 6 000
Selling and administration expenses 36 000
Work-in-progress (1 April 2018) 5 150
Work-in-progress (31 March 2019) 5 550
Additional information:
(1). Depreciate plant and machinery at 5% p.a. on cost. Plant and machinery is used exclusively in the factory.
(ii). The supervisor spends 80% of his time supervising production and the remainder in administration.
(iii). Three quarters of fire insurance premiums paid relates to the factory.
(iv). Royalty fee for use of fabric design is charged at 20% of fabric produced. The design is patented and licensed to a South African company, it is considered a direct expense.
(v). The total for wages in the trial balance was understated by N$ 15 000.
(vi). Finished goods are transferred to sales department at cost of manufacturing plus 20%. (vii). An amount of N$ 1 500 for repairs of the factory machinery was wrongly debited to the selling administration expenses.
(viii). The fabric produced for the period ended 31 March 2019 was 90 000 metres.
YOU ARE REQUIRED TO:
1. Prepare the manufacturing statement of goods manufactured for the year ended 31 March 2019.
2. Calculate the allowance for unrealised profit in closing finished goods as at 31 March 2019.
3. Prepare the statement of financial position showing current assets section only.
Manufacturing Statement of Goods Manufactured for the year ended 31 March 2019:
Direct Manufacturing Wages N$240,000
Indirect Manufacturing Wages N$89,000
Factory Power N$4,200
Repairs and Maintenance of Machinery N$6,000
Depreciation on Plant and Machinery N$15,000
Total Manufacturing Costs N$354,200
Add: Opening Work-in-Progress (1 April 2018) N$5,150
Less: Closing Work-in-Progress (31 March 2019) N$5,550
Cost of Goods Manufactured N$353,800
Calculation of Allowance for Unrealized Profit in Closing Finished Goods as at 31 March 2019:
The allowance for unrealized profit in closing finished goods can be calculated by multiplying the cost of manufacturing by the profit percentage.
Cost of Manufacturing: N$353,800
Profit Percentage: 20% (as finished goods are transferred to sales at cost of manufacturing plus 20%)
Allowance for Unrealized Profit = Cost of Manufacturing * Profit Percentage
Allowance for Unrealized Profit = N$353,800 * 20% = N$70,760
Statement of Financial Position (Current Assets Section) as at 31 March 2019:
Current Assets:
Raw Materials (31 March 2019) N$5,400
Inventory of Finished Fabric (31 March 2019) N$191,400
Work-in-Progress (31 March 2019) N$5,550
Total Current Assets N$202,350
The current assets section of the statement of financial position includes the values of raw materials, inventory of finished fabric, and work-in-progress as of 31 March 2019. These assets represent the resources that are expected to be converted into cash or used in the production process in the near term. The total current assets amount to N$202,350.
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Prince Lee intends to use the index method to comprehensively analyze the Gongju company in the above problem. He set the weights for the important financial ratio and each financial ratio as shown in the following table, and calculated the average ratios of industries to which Gongju belongs. Fill in the blanks in the table.
Important financial ratio Weighted value Gongju Corporation (%, sashimi) Industry average (%, times) a rating
Current ratio 20 [Blank] 160 [Blank]
debt ratio 30 [Blank] 225 [Blank]
Total return on assets 20 [Blank] 37.5 [Blank]
Total Asset Turnover 20 [Blank] 2.5 [Blank]
a fixed ratio 10 [Blank] 120 [Blank]
Sum 100
financial position statement as of December 31, 2020
Current Assets
20,000
Current liabilities
10,000
Cash and cashable assets
1,000
Short-term borrowings
5,000
Short-term investment assets
3,000
Purchasing obligation
3,000
accounts receivable
4,000
Other Current Liabilities
2,000
Inventory assets
12,000
Non-current liabilities
50,000
Non-current assets
80,000
a long-term loan
10,000
Mechanical equipment
50,000
a private loan
40,000
Investment assets
20,000
capital
40,000
an intangible asset
10,000
Total Assets
100,000
Total liabilities and capital
Sales
200,000
Cost of sales
120,000
sales and administrative expenses
20,000
(Depreciation expenses)
(10,000)
Operating profit
60,000
Interest expense
10,000
Net income before corporate tax reduction
50,000
Corporate tax (40%)
20,000
Current profit
30,000
Important financial ratio Weighted value Gongju Corporation (%, sashimi) Industry average (%, times) RatingCurrent ratio 20 200% 160 5/5 Debt ratio 30 150% 225 3/5 Total return on assets 20 35% 37.5 4/5 Total Asset Turnover 20 3 2.5 4/5.
A fixed ratio 10 150% 120 4/5The above table shows the values of the weighted average financial ratios for Gongju Corporation. The rating is on a scale of 1 to 5, with 5 being the highest and 1 being the lowest, according to the industry average. The weighted average of the financial ratios for Gongju Corporation is given by the following formula:Weighted Average = Σ (Weight × Ratio Value) / Σ (Weight)
The ratings are calculated by comparing the values of the financial ratio of Gongju Corporation to the industry average and assigning a rating on a scale of 1 to 5, with 5 being the highest and 1 being the lowest.
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Match the following:
Prompts
Received from sales of services
Received from issuing g preferred shares
Payment to get land ready for use
Sale of equipment
Submitted Answers
Choose a match :
Operating
Financing
Investing
Received from sales of services - Operating, Received from issuing preferred shares - Financing, Payment to get land ready for use - Investing, Sale of equipment - Investing
In financial accounting, transactions are categorized into three main types: operating, financing, and investing activities. The matches provided correctly classify the given prompts into their respective categories.
1. Received from sales of services: This represents revenue generated from the core operations of the business, such as providing services to customers. It falls under operating activities as it relates to the primary revenue-generating activities of the company.
2. Received from issuing preferred shares: This refers to funds received by the company from issuing preferred shares to investors. It falls under financing activities as it involves raising capital through equity financing.
3. Payment to get land ready for use: This represents an expenditure made by the company to prepare land for its intended use. It falls under investing activities as it involves acquiring and improving assets that will benefit the company in the long term.
4. Sale of equipment: This refers to the proceeds received from the sale of equipment that was no longer needed by the company. It also falls under investing activities as it involves the disposal of a long-term asset.
By correctly matching these prompts to their respective categories, we can accurately classify the financial activities of the company.
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Kober Company is in the business of manufacturing electrical fans. Kober's costing system provides the following costs for a new model of fan if it is produced with excess capacity that is currently available. Direct material $20 30 Direct labour 20 Manufacturing overhead - cost pool A Manufacturing overhead-cost pool B 40 $110 An alternative means of production for the new model of fan is a computer integrated manufacturing (CIM) system. A CIM system would require a current investment of $20 million, an investment of $15 million in 3 years' time and a further investment of $10 million in 5 g time. The total CIM investment could be sold for $4 million at the end of the new fan's life which is expected to be 10 years Following are projected costs for the new model of fan if it is produced with the CIM system. Direct material $20 Direct labour 10 Manufacturing overhead-cost pool C 15 Manufacturing overhead - cost pool D 25 Total cost per fan $70 Kober Company expects to sell each fan for $250 and estimates annual sales demand of 10,000 units. REQUIRED: Calculate the present value of the capital expenditures required to allow Kober to use CIM for production of the fan. (b) Calculate the present value of the production cost savings from CIM for production of the fan. A recommendation to Kober and a discussion of any assumptions used in your analysis
(a) Calculation of present value of capital expenditures required to allow Kober to use CIM for production of the fan
1) Initial investment $20 million
2) Investment after 3 years $15 million
3) Investment after 5 years $10 million
4) Present value of total CIM investment= PV of $20 million + PV of $15 million + PV of $10 million + Present salvage value of the CIM investmentPV of $20 million= $20 million x 0.6209 = $12.418 million (at 10%)PV of $15 million= $15 million x 0.7441 = $11.1615 million (at 10%)PV of $10 million= $10 million x 0.6209 = $6.209 million (at 10%)Present salvage value of the CIM investment= $4 million x 0.386 = $1.544 million (at 10%)
Therefore, present value of total CIM investment= $12.418 million + $11.1615 million + $6.209 million + $1.544 million= $31.3325 millionHence, the present value of the capital expenditures required to allow Kober to use CIM for the production of the fan is $31.3325 million.
(b) Calculation of present value of the production cost savings from CIM for production of the fan projected production cost per fan with CIM system= $70Kober expects to sell each fan for $250 and it estimates an annual sales demand of 10,000 units. Therefore, the total revenue from sales= $250 x 10,000 units= $2.5 million
Presently, the cost of production (without CIM system)= Direct material + Direct labour + Manufacturing overhead cost pool A + Manufacturing overhead cost pool B= $20 + $20 + $40 + $30= $110 per fan.
Therefore, the present value of the production cost savings from CIM for production of the fan= (Production cost per fan without CIM system - Production cost per fan with CIM system) x Quantity of sales x PV factor at 10%+ (Investment in CIM system - Salvage value of the CIM system) x PV factor at 10%Per fan production cost savings= $110 - $70= $40Quantity of sales= 10,000 units per year over 10 years, the PV factor at 10% is 6.145
Present value of the production cost savings from CIM for production of the fan= ($40 x 10,000 x 6.145) + ($31.3325 million - $1.544 million) x 0.386= $2.458 million + $11.696 million= $14.154 millionTherefore, the present value of the production cost savings from CIM for production of the fan is $14.154 million.
A recommendation to Kober: The present value of the production cost savings from CIM for the production of the fan is greater than the present value of the capital expenditures required to allow Kober to use CIM for the production of the fan.
Therefore, Kober should invest in CIM to produce a new model of fan. Assumptions used in the analysis:
1) Annual demand is constant for 10 years
2) There is no change in the selling price for the next 10 years
3) The CIM system will be sold at the end of the new fan's life for $4 million.
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According to logic of supply and demand, the direction of the price change from last year to now (your answer in the last question) suggests there has been a of homes on the market, and there have been more than lately. Which of the following options correctly fills in the planks a. Shortage / buyers / sellers b. Surplus / buyers / sellers C. Surplus / sellers / buyers d. Shortage / sellers / buyers
The answer to the question is: d. Shortage / sellers / buyersThe price change direction from last year to now suggests that there has been a shortage of homes on the market, and there have been more sellers than buyers lately.
The logic of supply and demand helps to explain the movements in the prices of goods and services. In this case, the demand for homes is relatively high compared to the supply; as a result, the price of the houses increases. The converse is also accurate; when the supply of the homes is relatively higher than the demand, the price of the homes decreases. A shortage of homes, on the other hand, implies that there are more sellers than buyers on the market.
This means that potential buyers are eager to purchase homes, while there are relatively few homes available to meet the demand.
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managing consumer trust is a challenge for ebusinesses. which of the following is a good way to build trust when working with customers over the internet? group of answer choices be available to communicate in-person all of the choices are correct. be accessible to communicate in-person use customer testimonials that link to your client website
Managing consumer trust is a challenge for e-businesses. One of the good ways to build trust when working with customers over the internet is to use customer testimonials that link to your client website.
How to build trust when working with customers over the internet?
Working with customers online can be a challenge for e businesses. Building trust is a critical aspect of e-commerce. Trust is important to businesses because it provides customers with a sense of safety. When customers trust your business, they are more likely to make a purchase and recommend your business to others. Here are some ways that help to build trust when working with customers over the internet:
Using customer testimonials that link to your client website is a good way to build trust when working with customers over the internet. Customer testimonials can be extremely effective in persuading potential customers to make a purchase. When potential customers read positive comments from existing customers, it builds confidence in the product and increases the likelihood of making a purchase. Testimonials can be particularly effective when they link to the customer's website.
Use customer testimonials that link to your client website is an effective way to build trust when working with customers over the internet. This is because customer testimonials provide a sense of social proof. By sharing positive feedback from happy customers, businesses can demonstrate their reliability and trustworthiness. Thus, it is an effective way to build trust when working with customers over the internet.
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Explain the way to simultaneously increase international
reserve from export, remittance, FDI inflows, and tourism!
Simultaneously increasing international reserves from exports, remittances, FDI inflows, and tourism can be achieved through various strategies such as diversification of export products and markets, attracting foreign direct investment, promoting tourism, and leveraging technology for efficient remittance inflows.
Here are the key strategies to simultaneously increase international reserves from these sources:
Diversification of export products and markets: By diversifying export products and exploring new markets, a country can expand its export earnings. This can be done by identifying potential products that have a competitive advantage and targeting countries with growing demand. Increasing export earnings directly contributes to international reserves.
Attracting foreign direct investment (FDI): Encouraging FDI inflows can significantly boost international reserves. Governments can create an investor-friendly environment by implementing business-friendly policies, providing tax incentives, improving infrastructure, and reducing bureaucratic hurdles. FDI brings in capital, technology, and expertise, which enhances productivity and export capabilities.
Promoting tourism: Tourism can be a major source of foreign exchange earnings. Countries can attract tourists by developing tourist-friendly infrastructure, promoting unique attractions, enhancing marketing efforts, and improving visa facilitation processes. Increased tourism inflows lead to higher spending by tourists, thereby boosting international reserves.
Leveraging technology for efficient remittance inflows: Remittances from overseas workers can be a significant source of international reserves. To enhance remittance inflows, countries can leverage technology by promoting digital payment systems, reducing transaction costs, and improving accessibility. Encouraging overseas workers to use formal channels for remittances helps capture a larger portion of these funds and adds to international reserves.
There are no specific calculations involved in understanding these strategies. However, it is important to monitor and track key indicators such as export earnings, FDI inflows, tourism receipts, and remittance flows to assess the effectiveness of these strategies in increasing international reserves.
Simultaneously increasing international reserves from exports, remittances, FDI inflows, and tourism requires a multi-faceted approach. Diversifying export products and markets, attracting FDI, promoting tourism, and leveraging technology for efficient remittance inflows are effective strategies to achieve this goal. Governments and policymakers should focus on implementing appropriate policies and initiatives to encourage and facilitate these inflows. By diversifying revenue streams and attracting investments and visitors, countries can bolster their international reserves, contributing to economic stability and growth.
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Local customers are arriving at Supermarket Mega to buy groceries. The Supermarket Mega which has space for only 4 customers, has two exponential checkout counters, each operating at rate µ=4 customers per hour. The counters operate in the following way: i) One queue feeds both counters ii) One counter is operated by a permanent checker and the other by a stock clerk who instantaneously begins checking whenever there are three or more customers in the system. The clerk returns to stocking whenever there are fewer than three customers in the system. If the time between the arrivals of two customers is exponentially distributed with a mean value of 12 minutes; a. Define the states and the state space. Draw the rate diagram for this queueing system.
b. Write down the balance equations and calculate the steady-state probabilities.
c. What is the expected number of customers in the Supermarket Mega?
d. On the average, how many potential customers enter the system each hour?
e. What is the probability that the stock clerk will be busy in the counter?
f. What fraction of the time the first counter is idle?
There are five possible states for this queuing system and these are 0, 1, 2, 3, and 4.
It is easy to see that state zero refers to the situation when the counters are idle, while state four represents the situation when the two counters are being used at full capacity. The rate diagram for this queuing system is as shown below:
b. Write down the balance equations and calculate the steady-state probabilities.
From the rate diagram, we can write down the balance equations as shown below:
π(0)λ=π(1)μ₁π(1)λ
=π(0)μ₁+π(2)μ₂π(2)λ
=π(1)μ₁+π(3)μ₂π(3)λ
=π(2)μ₁+π(4)μ₂π(4)λ
=π(3)μ₁
where λ = arrival rate and μi is the service rate for the ith counter.
The sum of all the steady-state probabilities will be equal to 1 and therefore,
π(0) + π(1) + π(2) + π(3) + π(4) = 1.
To solve for the steady-state probabilities, we have to solve the above equations simultaneously.
However, we also know that λ/μ₁=1/4 and λ/μ₂=1/4.
Substituting these values into the above equations, we get
π(0)=1−1/2π(1)
=1/2π(2)
=1/8π(3)
=1/32π(4)
=1/32c.
The expected number of customers in the Supermarket Mega can be obtained asL = π(1) + 2π(2) + 3π(3) + 4π(4)
=1/2 + 2(1/8) + 3(1/32) + 4(1/32)
=1.125
d. On average, the number of potential customers who enter the system each hour is equal to the arrival rate, which is given as 5 customers/hour. This is because the expected time between arrivals is 12 minutes and there are 60 minutes in an hour.
Therefore, the average number of arrivals per hour is given as (60/12) × 1 = 5 customers/hour.
e. The probability that the stock clerk will be busy at the counter can be obtained as:
P(stock clerk is busy) = π(3) + π(4)
=1/32 + 1/32
=1/16
f. The fraction of the time that the first counter is idle can be obtained as:
Fraction of time that counter 1 is idle = π(0) + π(1) + π(3)
=1 − π(2) − π(4)
=1 − (1/8 + 1/32)
=3/4.
Therefore, the first counter is idle for 75% of the time.
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Which of the following contracts is most likely to be enforced by a court?
A. After drinking a beer, Brian orally agrees to roof Mary's house if she cuts his hair.
B. Kimberly orally agrees to purchase Suzie's blue Volkswagen convertible for $2700.
C. Under the threat of being fired, Tina agrees to purchase her employer's used coffee mug for $25.
D. Jason agrees in writing to paint Mrs. Smith's house for $500 when he has the time and feels up to the job.
The contract that is most likely to be enforced by a court is option D: Jason agrees in writing to paint Mrs. Smith's house for $500 when he has the time and feels up to the job.
In contract law, for a contract to be enforceable, certain elements need to be met, including offer, acceptance, consideration, and intention to create legal relations. Option D demonstrates these elements more effectively compared to the other options:
Option A: Brian and Mary's agreement lacks the element of consideration. It appears to be a casual exchange without any clear exchange of something of value (consideration) between the parties.
Option B: Kimberly and Suzie's agreement is an oral contract. While oral contracts can be enforceable, they can be challenging to prove in court without sufficient evidence or documentation.
Option C: Tina's agreement with her employer might be considered a contract under duress or coercion, which can invalidate the contract. Contracts made under threats or coercion are generally not enforceable.
Option D: Jason's agreement with Mrs. Smith is in writing, indicating a clear offer and acceptance. The consideration is the promise to paint the house, and the intention to create legal relations is evident. This written agreement provides a stronger basis for enforceability.
It's important to note that the enforceability of a contract can also depend on other factors such as statutory requirements, public policy considerations, and the specific circumstances of the case. Consulting with legal professionals is recommended for accurate assessment and advice in contract matters.
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The following table shows data on the average number of customers processed by several bank service units each day. The hourly wage rate is $10, the overhead rate is 1.1 times labor cost, and material cost is $5 per customer.
Unit Employees Customers Processed / Day
A 4 39
B 7 44
C 5 61
D 2 31
a. Compute the labor productivity and the multifactor productivity for each unit. Use an eight-hour day for multifactor productivity. (Round your "Labor Productivity" answers to 1 decimal place and "Multifactor Productivity" answers to 3 decimal places.)
Unit Labor Productivity
(customers per day per worker) Multifactor Productivity
(customers per dollar input)
A
B
C
D
b. Suppose a new, more standardized procedure is to be introduced that will enable each employee to process one additional customer per day. Compute the expected labor and multifactor productivity rates for each unit. (Round your "Labor Productivity" answers to 1 decimal place and "Multifactor Productivity" answers to 3 decimal places.)
Unit Labor Productivity
(customers per day per worker) Multifactor Productivity
(customers per dollar input)
A
B
C
D
Labor productivity is calculated by dividing the total output by the total number of labor hours, while multifactor productivity is obtained by dividing the total output by the total cost of labor, materials, and overhead.
Labor productivity is a measure of the efficiency of the workforce, while multifactor productivity reflects how efficiently a company uses its resources - labor, material, and overhead. To calculate these, we use the formulas: Labor productivity = Customers processed per day / number of employees and Multifactor productivity = Customers processed per day / total cost (labor cost + material cost + overhead). Labor cost is the number of employees times the hourly wage rate times the hours worked, material cost is $5 per customer, and overhead is 1.1 times the labor cost.
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To calculate labor productivity, divide the number of customers processed by the number of employees. To calculate multifactor productivity, divide the number of customers processed by the dollar input. After introducing a new procedure, the labor productivity increases by one additional customer processed per day for each unit.
Explanation:a. Labor Productivity:
For unit A: 39 customers / 4 employees = 9.8 customers per day per workerFor unit B: 44 customers / 7 employees = 6.3 customers per day per workerFor unit C: 61 customers / 5 employees = 12.2 customers per day per workerFor unit D: 31 customers / 2 employees = 15.5 customers per day per workerMultifactor Productivity:
For unit A: 39 customers / (4 employees x $10 wage rate + 1.1 x 4 employees x $10 wage rate + $5 x 39 customers) = 0.447 customers per dollar inputFor unit B: 44 customers / (7 employees x $10 wage rate + 1.1 x 7 employees x $10 wage rate + $5 x 44 customers) = 0.314 customers per dollar inputFor unit C: 61 customers / (5 employees x $10 wage rate + 1.1 x 5 employees x $10 wage rate + $5 x 61 customers) = 0.429 customers per dollar inputFor unit D: 31 customers / (2 employees x $10 wage rate + 1.1 x 2 employees x $10 wage rate + $5 x 31 customers) = 0.573 customers per dollar inputb. Expected Labor and Multifactor Productivity (per employee processing one additional customer per day):
For unit A: Labor Productivity = (39+1) customers / 4 employees = 10 customers per day per worker, Multifactor Productivity remains unchangedFor unit B: Labor Productivity = (44+1) customers / 7 employees = 6.4 customers per day per worker, Multifactor Productivity remains unchangedFor unit C: Labor Productivity = (61+1) customers / 5 employees = 12.4 customers per day per worker, Multifactor Productivity remains unchangedFor unit D: Labor Productivity = (31+1) customers / 2 employees = 16 customers per day per worker, Multifactor Productivity remains unchangedLearn more about Calculating Labor and Multifactor Productivity here:https://brainly.com/question/34873563
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Question 3 2.5 pts A progressive tax is a tax that falls in percentage as income rises. True False Question 4 2.5 pts A budget deficit exists when the government spends less money than it takes in. True O False
Question 3:The given statement is false
Question 4: the given statement is False.
Question 3: A progressive tax is a tax that falls in percentage as income rises. The given statement is false. A progressive tax is a type of tax that rises in percentage as income rises. A progressive tax is considered to be a fair tax system as it helps in redistribution of wealth from rich to poor.
The progressive tax system helps in reducing inequality as wealthy people have to pay more taxes as compared to poor people. On the other hand, the regressive tax system is a type of tax system in which the rate of tax decreases as the income increases. It means that poor people have to pay more taxes as compared to wealthy people.
Question 4: A budget deficit exists when the government spends more money than it takes in. Therefore, the given statement is False. A budget deficit is a situation in which the government spends more money than it collects in taxes and other revenues. The government usually borrows money to fund the budget deficit.
A budget surplus, on the other hand, is a situation in which the government collects more money than it spends. It helps in reducing the national debt and also provides a cushion for future economic downturns. A balanced budget is a situation in which the government's spending equals its revenues.
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Using expansionary demand side policies to deal with an economy in stagflation (SRAS has shifted left) has the adverse consequence of:
A. Increasing unemployment
B. Decreasing output
C. Increasing the aggregate price level
D. Depreciating the real exchange rate
The correct answer is: C. Increasing the aggregate price level
Stagflation refers to a situation where an economy experiences both stagnant economic growth (low or negative output) and high inflation (increase in the aggregate price level). In such a scenario, expansionary demand-side policies, which are typically used to stimulate economic growth, can have adverse consequences.
When the aggregate supply curve (SRAS) has shifted left, it indicates a decrease in the economy's potential output due to factors such as supply shocks or reduced productivity. In response, policymakers may implement expansionary demand-side policies, such as increasing government spending or reducing taxes, to boost aggregate demand and try to stimulate economic growth.
However, in the case of stagflation, these expansionary policies can exacerbate inflationary pressures. Increasing aggregate demand when the economy is already experiencing reduced output can lead to a situation where the demand for goods and services outpaces the economy's ability to supply them, causing prices to rise. Therefore, the adverse consequence of using expansionary demand-side policies in stagflation is an increase in the aggregate price level (C).
The other options are not necessarily adverse consequences of using expansionary demand-side policies in stagflation:
A. Increasing unemployment: While expansionary policies can potentially lead to higher employment levels, the specific impact on unemployment depends on various factors, such as the effectiveness of the policies and the structure of the labor market. It is not a necessary adverse consequence.
B. Decreasing output: Stagflation already implies a decrease in output, and expansionary policies aim to counter this by increasing output. Therefore, decreasing output would not be an adverse consequence of these policies in the context of stagflation.
D. Depreciating the real exchange rate: The impact on the real exchange rate depends on various factors, including the specific policy measures taken and the response of international markets. While expansionary policies can affect the real exchange rate, it is not an inherent adverse consequence in dealing with stagflation.
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Das Spielzeug is a profit-maximizing firm producing puzzles, which it can produce and sell in its home country, Germany, and abroad in Russia. The average cost (AC) curve on the following graph repres
As the question mentions the terms profit-maximizing firm producing puzzles and the average cost (AC) curve on a graph, it is a problem related to microeconomics. Microeconomics is a branch of economics that studies the behavior of individuals and firms in making decisions regarding the allocation of limited resources.
Das Spielzeug is a profit-maximizing firm that produces puzzles. It can produce and sell puzzles in Germany and abroad in Russia. The graph of average cost (AC) represents the relationship between the average cost of producing puzzles and the level of output. The graph looks like this: The average cost (AC) curve is the U-shaped curve that slopes downwards initially and then upwards.
At first, the curve slopes downwards due to economies of scale, and then it slopes upwards due to diseconomies of scale. Therefore, the firm should produce puzzles at the level where its marginal cost equals its marginal revenue to maximize its profit. If the marginal cost is less than the marginal revenue, the firm can increase its profit by producing more puzzles, and if the marginal cost is more than the marginal revenue, the firm can increase its profit by producing fewer puzzles.
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Question 4 (1 point) ✓ Saved Relevant pricing information for the short-run and long-run should be the same. True False Question 6 (1 point) ✓ Saved Target pricing is based on full manufacturing cost. full product cost. what customers are willing to pay. engineered cost. variable manufacturing and nonmanufacturing costs. Question 7 (1 point) Saved All costs are relevant in short-run pricing decisions. True False Peak-load pricing focuses on direct costs when setting prices for peak and nonpeak periods. True False
1. Relevant pricing information for the short-run and long-run should be the same: False
2. Target pricing is based on: what customers are willing to pay.
1. Relevant pricing information for the short-run and long-run should be the same: False
In pricing decisions, it is important to consider the time horizon and the factors that affect costs and demand. Short-run and long-run pricing decisions can differ significantly due to various factors such as fixed costs, variable costs, market conditions, competition, and customer preferences. Short-run pricing decisions are typically focused on covering variable costs and maximizing short-term profitability, while long-run pricing decisions consider fixed costs, market growth, sustainability, and the overall profitability and competitiveness of the business. Therefore, relevant pricing information for the short-run and long-run may differ.
2. Target pricing is based on what customers are willing to pay.
Target pricing is a pricing strategy that involves setting the price of a product or service based on what customers are willing to pay. It takes into account the perceived value of the product or service, customer preferences, and the competitive market. By identifying the price range that customers are willing to pay, companies can set their target price accordingly. Target pricing aims to align the price with the value perceived by customers and to achieve desired sales volumes and profit margins. It requires understanding customer behavior, conducting market research, and considering factors such as product differentiation, brand positioning, and customer affordability. Target pricing helps companies establish competitive prices that attract customers while maximizing their own profitability.
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A short-term note payable:
A. is a written promise to pay a specified amount on a definite future date within one year or the company's operating cycle, whichever is longer.
B. is a contingent liability.
C. is an estimated liability.
D. is not a liability until the due date.
E. cannot be used to extend the payment period for an account payable.
A short-term note payable is a written promise to pay a specified amount on a definite future date within one year or the company's operating cycle, whichever is longer. Therefore, Option A is the correct answer.
A note payable is a debt that the business borrows and plans to pay back within a year or the company's operating cycle, whichever is longer. The note payable may be used to finance inventories, fixed assets, and accounts payable. The note payable is a written promise to repay the debt amount borrowed, plus interest, by a certain date. The interest rate is expressed as an annual percentage rate (APR).
A short-term note payable is classified as a current liability because it is due within one year or the company's operating cycle, whichever is longer. The operating cycle is the time it takes for a company to purchase goods, convert those goods to a finished product, sell the product, and receive cash from the sale of the product.
A current liability is a debt that is due within one year or the company's operating cycle, whichever is longer. Long-term liabilities are debts that are not due within a year or the company's operating cycle, whichever is longer.A note payable is a liability because it is a debt that the business owes. Option A is the correct answer.
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Peter made sure to follow all the internal policies of his department when he completed client audits. However, he noticed that some co-workers skipped certain policies in their assessments. Peter felt strongly that policies should be followed and if anyone had a problem with a policy, they should bring it up for discussion and not simply ignore it. Peter is motivated by a sense of Felt negative inequity Distributive justice Procedural justice Felt positive equity
Peter felt strongly that policies should be followed and if anyone had a problem with a policy, they should bring it up for discussion and not simply ignore it.
Peter is motivated by a sense of procedural justice. This concept has two primary components: consistency and due process.
However, when internal procedures are established to guide organizational activities, procedural justice comes into play. This is to guarantee that everyone is treated fairly and consistently. Employees feel positive about procedural justice when they believe that the rules are fair, objective, and unbiased.
Furthermore, they are more willing to accept unfavorable decisions if they believe the procedures leading up to those decisions were impartial and objective.
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Which of the following is likely to have the most price elastic demand? a. clothing b.blue jeans C. Tommy Hilfiger jeans d. All three would have the same elasticity of demand because they are all related.
Clothing is likely to have the most price elastic demand. the most price elastic good is the one with the largest quantity response to a price change. This means that if the price of a product increases, the quantity of the product demanded will decrease by a greater percentage.
The correct option is A.
In general, goods that have more substitutes or alternatives tend to have more elastic demand. For example, if the price of coffee increases, consumers may switch to tea instead. Therefore, coffee would have a more elastic demand than a product like insulin, which has no close substitutes. Clothing is likely to have the most price elastic demand because there are many different types of clothing available, so consumers have a lot of substitutes to choose from.
Blue jeans and Tommy Hilfiger jeans are more specific types of clothing, so they would have less elastic demand compared to clothing in general. So, the clothing is likely to have the most price elastic demand. In general, goods that have more substitutes or alternatives tend to have more elastic demand. For example, if the price of coffee increases, consumers may switch to tea instead. Therefore, coffee would have a more elastic demand than a product like insulin, which has no close substitutes. Clothing is likely to have the most price elastic demand because there are many different types of clothing available, so consumers have a lot of substitutes to choose from.
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Question 5 1 pts In perfect competition there are no barriers to entry for firms. Which of the following would be a low barrier to entry? fixed costs of production are relatively low. profits in the marketplace must be zero. marginal revenues from selling goods are relatively high. it is difficult to obtain resources to produce the product. Question 6 1 pts What does price equal to marginal revenue imply in perfect competition? there must be decreasing marginal costs of production. O firms in the market are price-takers many firms must have exited the market. Othere are high fixed costs of producing the product. Question 7 1 pts In a perfectly competitive market if the price is $50, the average total cost is $60 and the average variable cost is $55 then assuming conditions remain the same, firms will shut-down in the short-run and exit in the long-run. not shut-down in the short-run and exit in the long-run. shut-down in the short-run but not exit in the long-run. not shut-down in the short-run nor exit in the long-run. Question 8 1 pts In a perfectly competitive market if the total revenue is $100 and the total variable costs are $120, assuming conditions remain the same, firms will shut-down in the short-run and exit in the long-run. O not shut-down in the short-run and exit in the long-run. not shut-down in the short-run nor exit in the long-run. shut-down in the short-run but not exit in the long-run. Question 9 1 pts In a perfectly competitive market the total revenue is $500, the total variable costs are $450 and the total fixed costs are $100. Assuming conditions remain the same, firms will o not shut-down in the short-run nor exit in the long-run. O shut-down in the short-run but not exit in the long-run. not shut-down in the short-run and exit in the long-run. shut-down in the short-run and exit in the long-run. Question 10 1 pts In a perfectly competitive market if the quantity produced by a firm is less than the optimal amount then o marginal cost is less than marginal revenue. O marginal cost and marginal revenue are undefined. O marginal cost equals marginal revenue. o marginal cost is greater than marginal revenue. Question 11 1 pts When marginal cost is greater than marginal revenue in a perfectly competitive market, then reducing production levels will increase profit. increasing production levels will increase profit. there is nothing we can say about how changing production affects profit. changing production levels will decrease profit. Question 12 1 pts When marginal cost equals marginal revenue in a perfectly competitive market then increasing production will decrease total costs. decreasing production will increase total variable costs. decreasing production will increase total revenue. o increasing production will decrease profit. Question 13 1 pts Suppose a perfectly competitive market is in equilibrium and supply of the product increases in the long-run some firms will enter the market. O in the short-run some firms will exit the market. O in the long-run some firms will exit the market. in the short-run some firms will have positive profit. Question 14 1 pts Suppose a perfectly competitive market is in equilibrium and demand for the product increases in the long-run firms will have negative profit. in the short-run firms will have negative profit. in the long-run firms will have positive profit. in the short-run firms will have positive profit. Question 15 1 pts Suppose a perfectly competitive market is in equilibrium and demand for the product decreases in the long-run some firms will exit and profit will eventually be positive. in the long-run some firms will enter and profit will eventually be positive. in the long-run some firms will enter and profit will eventually be zero. in the long-run some firms will exit and profit will eventually be zero.
In perfect competition there are no barriers to entry for firms. Which of the following would be a low barrier to entry?Fixed costs of production are relatively low is the answer to the question.
What does price equal to marginal revenue imply in perfect competition? the average total cost is $60 and the average variable cost is $55 then assuming conditions remain the same, firms will shut-down in the short-run and exit in the long-In a perfectly competitive market if the total revenue is $100 and the total variable costs are $120, assuming conditions remain the same,
n a perfectly competitive market the total revenue is $500, the total variable costs are $450 and the total fixed costs are $100. Assuming conditions remain the same, firms will not shut-down in the short-run nor exit in the long-run.
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Employment laws can vary significantly by country. For instance, in the United States, many jobs are governed by the principle of employment at-will. Employment at-will is rarer in certain countries in Europe, such as Portugal. Regulation and collective bargaining impact labor markets to a larger extent in Europe than in the United States.
How do European labor markets compare to the labor market in the United States as a result of these varying labor laws?
The labor market in Europe is less flexible than in the United States.
The hiring and firing costs are lower in Europe than the United States.
Europe has a lower rate of long-term unemployment than the United States.
During a period of increased demand, European firms are more likely to hire more workers.
European labor markets are less flexible than in the United States, as a result of these varying labor laws.
This is because Regulation and collective bargaining impact labor markets to a larger extent in Europe than in the United States. Hence, the correct option is:
The labor market in Europe is less flexible than in the United States.
What is Labor market?
A labor market is the marketplace in which businesses compete for labor, and individuals compete for employment. The most significant factors influencing labor markets are supply and demand. The supply and demand for labor are determined by several variables, including education, training, geographic location, demographics, and employment laws. When there is a high demand for workers and a limited supply of workers, businesses must raise wages and provide benefits to attract and retain qualified employees. In a situation where there are many available jobs and few employees, employers have the upper hand and can afford to pay lower wages and provide fewer benefits.
In conclusion, as per the given scenario, the European labor market is less flexible than the US labor market.
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explain the necessary factors for the Wisdom of crowds to
prevail, contrast it with groupthink
The necessary factors for the Wisdom of crowds to prevail are as follows: Independence of Members Diversity of Opinion Decentralization aggregation of Information and the Wisdom of Crowds is the phenomenon where the collective opinion of a group of individuals tends to be more accurate than that of a single expert.
It happens only when certain conditions are met. The members of the group must be independent of each other, and the group must be diverse in opinion. Decentralization is important, meaning that there shouldn't be a single leader or source of information. The information provided by each member should be aggregated, and the result will be the collective opinion of the group.
On the other hand, Groupthink occurs when a group of people gets so caught up in trying to agree with one another that they stop thinking independently. It is the phenomenon where a group of individuals tend to conform to the opinions of the group. It happens when there is a high level of cohesion in the group, and individuals don't want to rock the boat. In groupthink, independent thought is discouraged, and members conform to the group's opinions, which can result in flawed decision-making.
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Tom & Jerry Company decided to enter into toys manufacturing market and its early move will guarantee the company a long term _: [CLO 2, CLO 3, CLO 4]
• A/ Market Uncertainty
® B/ Brand and reputation
© C/ Free rider effect
© D/ Technological uncertainty
The early move by Tom & Jerry Company into the toys manufacturing market guarantees the company a long-term advantage due to market uncertainty. The correct option is option A.
The correct answer is A/ Market Uncertainty. When Tom & Jerry Company enters the toys manufacturing market early, it gains a competitive advantage by exploiting market uncertainty.
Market uncertainty refers to the lack of clear information or predictability about market dynamics, customer preferences, and competitors' actions. By being an early mover, Tom & Jerry Company can shape the market and establish itself as a leader, creating barriers to entry for potential competitors.
Being the first in the market allows Tom & Jerry Company to establish its brand and reputation, gain customer loyalty, and capture a significant market share. It can set the industry standards, develop strong distribution networks, and build relationships with suppliers and retailers.
Moreover, being an early mover helps Tom & Jerry Company to accumulate knowledge and experience, allowing it to refine its products and processes, and stay ahead of competitors.
Additionally, the early move advantage helps Tom & Jerry Company to mitigate the free rider effect. The free rider effect occurs when other companies benefit from the investments and efforts made by the early mover without incurring the same costs.
By establishing itself early, Tom & Jerry Company can create unique product features, secure patents or copyrights, and establish exclusive partnerships, making it difficult for competitors to imitate or replicate its success.
Technological uncertainty, on the other hand, refers to the lack of clarity about the direction and pace of technological advancements. While technological advancements can be an important factor in the long-term success of a company, it is not the primary reason why early moves guarantee a long-term advantage in the market.
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You are a state senator and have three new tax increase proposals to consider designed to raise tax revenues -- a tax of $1 on gasoline; a tax of $1 on a pack of cigarettes; a tax of $1 on hamburgers. a. Which one would you estimate the price elasticity coefficient to be .1? Which one to be .5? or 3.0? Why? b. Describe what impact each proposal would have on consumers, the companies in the industry, and overall tax revenues? c. Which taxes would you recommend to increase? Why?
Estimating the price elasticity coefficient for each tax increase proposal requires considering the responsiveness of demand to changes in price. A price elasticity coefficient of 0.1 indicates an inelastic demand, meaning that the quantity demanded is not very sensitive to price changes
A tax with this elasticity would likely be imposed on a necessity or a product for which consumers have limited alternatives. In this case, the tax on gasoline may have an elasticity of 0.1 as it is a necessary transportation fuel with limited substitutes.
A price elasticity coefficient of 0.5 indicates a relatively elastic demand, implying that consumers are more responsive to price changes. A tax with this elasticity would likely be imposed on a product with more substitutes or alternatives. The tax on hamburgers may have an elasticity of 0.5 as consumers have various choices when it comes to food options.
A price elasticity coefficient of 3.0 represents highly elastic demand, suggesting that consumers are very responsive to price changes. A tax with this elasticity would likely be imposed on products with many substitutes or alternatives readily available. The tax on cigarettes may have an elasticity of 3.0 as there are numerous options for smokers to switch to other tobacco products or quit smoking altogether.
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