The incorrect answer concerning horizontal and vertical integration is: "Vertical integration combined different but related industries under one monopoly to create economies of scale."
This statement is incorrect because vertical integration involves combining different stages of production within a single industry, rather than different industries.
Horizontal integration refers to the merger or acquisition of companies operating in the same industry or at the same stage of production. In the given example, Exxon purchasing Standard Oil demonstrates horizontal integration as both companies operate in the oil industry.
Vertical integration, on the other hand, involves the merger or acquisition of companies operating at different stages of the production process within the same industry. The example of Standard Oil purchasing a railroad demonstrates vertical integration as it involves combining the oil production industry with the transportation industry.
Vertical integration allows companies to control various stages of production, from raw materials to distribution, which can help streamline operations, reduce costs, and increase efficiency. In contrast, horizontal integration aims to expand market share and eliminate competition within the same industry.
Therefore, the incorrect statement is the one stating that vertical integration combines different but related industries under one monopoly to create economies of scale. Vertical integration, in fact, combines different stages of production within the same industry to achieve synergies and control over the supply chain.
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Current stage of Cadbury Dairy Milk development. Explain
Cadbury Dairy Milk is currently in a mature stage of development. It is an established and well-known brand in the market, with a strong presence and a loyal customer base. The focus is on maintaining market share, sustaining profitability, and adapting to changing consumer preferences and trends.
Cadbury Dairy Milk has been in the market for many years and has achieved a significant level of market penetration. It has established itself as a leading brand in the chocolate industry, known for its high-quality products and iconic taste. The brand has built a loyal customer base through effective marketing strategies and continuous product innovation. In the current stage of development, Cadbury Dairy Milk's primary focus is on maintaining its market share and sustaining profitability. This involves strategic brand management, consistent product quality, and effective distribution channels to ensure widespread availability. The company also adapts to changing consumer preferences and market trends by introducing new flavors, variations, and packaging options to cater to diverse consumer demands. Additionally, Cadbury Dairy Milk continues to invest in marketing and advertising campaigns to reinforce brand loyalty and attract new customers. The company also engages in corporate social responsibility initiatives to enhance its reputation and connect with consumers on a deeper level. Overall, Cadbury Dairy Milk's current stage of development as a mature brand involves a combination of brand management, product innovation, and adaptation to changing market dynamics to maintain its position as a leading player in the chocolate industry.
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Nike places a high emphasis on R&D and marketing and tries to reach a broad target market. Based on this information, Nike is using a
Question 10 options:
differentiation business-level strategy.
focused differentiation business-level strategy.
integrated cost leadership/differentiation business-level strategy.
cost leadership business-level strategy.
focused cost leadership business-level strategy.
Nike's emphasis on research and development (R&D) and marketing, along with its goal of reaching a broad target market, suggests that the company is employing a differentiation business-level strategy.
A differentiation business-level strategy focuses on creating unique and superior products or services that differentiate a company from its competitors. Nike's emphasis on R&D indicates its commitment to developing innovative and technologically advanced products, which sets them apart from other competitors in the athletic footwear and apparel industry. By investing in R&D, Nike aims to offer products with distinctive features, superior quality, and enhanced performance that appeal to customers.
Furthermore, Nike's strong focus on marketing is another characteristic of a differentiation strategy. The company invests heavily in marketing campaigns, endorsements by high-profile athletes, and creating a strong brand image. These efforts are aimed at building a unique and desirable brand identity, which helps differentiate Nike from its competitors and attracts a broad target market.
While Nike does consider cost factors in its operations, such as supply chain efficiency and manufacturing processes, its primary focus is on delivering differentiated products and experiences rather than achieving the lowest cost. This distinguishes Nike from companies following a pure cost leadership business-level strategy, where the primary goal is to offer products at the lowest possible price.
In summary, based on Nike's emphasis on R&D, marketing, and targeting a broad market, it can be concluded that the company is using a differentiation business-level strategy. By offering unique and superior products, Nike aims to create a competitive advantage and establish a strong brand presence in the global athletic footwear and apparel industry.
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Write brief information on International business management and
import-export and present your presentation in PPT which will be
for 15 minutes.
International Business Management refers to the study and application of business concepts, strategies, and practices in a global context.
It involves the management of operations, resources, and personnel across national borders to achieve organizational objectives and compete in the international marketplace.
The field of international business management encompasses various aspects such as international trade, foreign investment, global marketing, cross-cultural management, and international finance.
Import-export, on the other hand, refers to the buying and selling of goods and services across national borders. It involves the movement of products from one country to another, either for consumption or for further processing and re-export.
Import-export plays a significant role in international business as it facilitates global trade and allows businesses to access a wider market and diverse range of products.
In a 15-minute PowerPoint presentation on International Business Management and Import-Export, you can cover the following key points:
Introduction: Provide an overview of international business management and the importance of import-export in global trade.
International Business Management: Explain the key concepts, challenges, and opportunities in managing international operations, such as cultural differences, legal frameworks, global supply chains, and strategic decision-making.
Benefits of Import-Export: Highlight the advantages of engaging in import-export activities, including market expansion, access to resources, cost savings, and diversification.
International Market Entry Strategies: Discuss various market entry modes, such as exporting, licensing, franchising, foreign direct investment (FDI), and strategic alliances. Explain their advantages and considerations.
International Trade Regulations: Provide an overview of trade agreements, customs regulations, tariffs, and non-tariff barriers that impact import-export activities. Discuss the importance of compliance and staying updated with international trade laws.
Risk Management in International Business: Address the risks and challenges associated with conducting business globally, including political instability, currency fluctuations, trade disputes, and cultural differences. Discuss strategies for mitigating these risks.
Case Studies and Examples: Present real-world examples of successful international business ventures and import-export activities to illustrate the concepts discussed.
Conclusion: Summarize the main points covered and emphasize the significance of international business management and import-export for businesses in the global economy.
Remember to use visuals, graphs, and relevant statistics in your PowerPoint presentation to enhance understanding and engage the audience effectively.
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Mr.
Bora’s disposable income is 10 000 TL. per month. His zero level
autonomous consumption is 1000 TL and we know that he consumes 8200
TL each month. Can we find his MPC and MPS ?
Mr. Bora's marginal propensity to consume (MPC) is 0.72, indicating that he spends approximately 72% of each additional unit of income, while his marginal propensity to save (MPS) is 0.28, indicating that he saves approximately 28% of each additional unit of income.
Given Mr. Bora's disposable income of 10,000 TL per month, his zero level autonomous consumption of 1000 TL, and his monthly consumption of 8200 TL, we can calculate his marginal propensity to consume (MPC) and marginal propensity to save (MPS). The MPC represents the proportion of each additional unit of income that Mr. Bora spends, while the MPS represents the proportion that he saves.
To calculate the MPC, we need to determine the change in consumption divided by the change in income. In this case, Mr. Bora's consumption increases from 1000 TL (autonomous consumption) to 8200 TL as his income increases from 0 TL to 10,000 TL. Therefore, the change in consumption is 8200 TL - 1000 TL = 7200 TL, and the change in income is 10,000 TL - 0 TL = 10,000 TL. Thus, the MPC is 7200 TL / 10,000 TL = 0.72.
To calculate the MPS, we subtract the MPC from 1. Therefore, the MPS is 1 - 0.72 = 0.28.
In conclusion, Mr. Bora's marginal propensity to consume (MPC) is 0.72, indicating that he spends approximately 72% of each additional unit of income, while his marginal propensity to save (MPS) is 0.28, indicating that he saves approximately 28% of each additional unit of income.
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Copy equipment was acquired at the beginning of the year at a cost of $46,000 that has an estimated residual value of $4,200 and an estimated useful life of five years. It is estimated that the machine will output an estimated 1,045,000 copies. This year, 256,000 copies were made. Determine the (a) depreciable cost, (b) depreciation rate, and (c) units-of-activity depreciation for the year. Round "depreciation rate" to two decimal places. a. Depreciable cost b. Depreciation rate c. The units-of-output depreciation for the year per cop
The depreciable cost is $41,800, the depreciation rate is approximately 0.03997, and the units-of-activity depreciation for the year is approximately $10,230.72 per copy.
To calculate the depreciable cost, depreciation rate, and units-of-activity depreciation for the year, we can follow these steps:
(a) Depreciable Cost: Depreciable cost is the cost of the equipment minus the estimated residual value.
Depreciable Cost = Cost of Equipment - Residual Value
Depreciable Cost = $46,000 - $4,200
Depreciable Cost = $41,800
(b) Depreciation Rate: Depreciation rate is calculated by dividing the depreciable cost by the estimated total units of activity.
Depreciation Rate = Depreciable Cost / Estimated Total Units of Activity
Depreciation Rate = $41,800 / 1,045,000
Depreciation Rate ≈ 0.03997 (rounded to two decimal places)
(c) Units-of-Activity Depreciation for the Year: Units-of-Activity Depreciation for the Year is calculated by multiplying the depreciation rate by the actual units of activity for the year.
Units-of-Activity Depreciation for the Year = Depreciation Rate * Actual Units of Activity for the Year
Units-of-Activity Depreciation for the Year = 0.03997 * 256,000
Units-of-Activity Depreciation for the Year ≈ $10,230.72
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Haver Company currently pays an outside supplier $15 per unit for a part for one of its products. Haver is considering two alternative methods of making the part. Method 1 for making the part would require direct materials of $5 per unit, direct labor of $8 per unit, and incremental overhead of $3 per unit. Method 2 for making the part would require direct materials of $5 per unit, direct labor of $2 per unit, and incremental overhead of $7 per unit. Required: 1. Compute the cost per unit for each alternative method of making the part. 2. Should Haver make or buy the part? If Haver makes the part, which production method should it use? Complete this question by entering your answers in the tabs below. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the cost per unit for each alternative method of making the part. Cost per unit Make with Method 1 Make with Method 2 Buy Cost per unit Compute the cost per unit for each alternative method of ma Cost per unit Make with Method 1 Make Meth Cost to buy Direct labor < Required Direct materials Overhead Complete this question by entering your answers in the tabs below. Required 1 Required 2 Should Haver make or buy the part? If Haver makes the part, which production method should it use? Should Haver make or buy the part? If Haver makes the part, which production method should it use?
To compute the cost per unit for each alternative method of making the part, we need to consider the direct materials, direct labor, and overhead costs.
Method 1:
Direct materials: $5 per unit
Direct labor: $8 per unit
Incremental overhead: $3 per unit
Cost per unit with Method 1 = Direct materials + Direct labor + Incremental overhead
= $5 + $8 + $3
= $16
Method 2:
Direct materials: $5 per unit
Direct labor: $2 per unit
Incremental overhead: $7 per unit
Cost per unit with Method 2 = Direct materials + Direct labor + Incremental overhead
= $5 + $2 + $7
= $14
To determine whether Haver should make or buy the part, we compare the cost per unit for each method with the cost of buying the part, which is currently $15 per unit.
If Haver makes the part using Method 1, the cost per unit is $16, which is higher than the cost of buying ($15). Therefore, it is not cost-effective to make the part using Method 1.
If Haver makes the part using Method 2, the cost per unit is $14, which is lower than the cost of buying ($15). Therefore, it is cost-effective to make the part using Method 2.
Based on these calculations, Haver should make the part internally, and the preferred production method would be Method 2 as it offers a lower cost per unit compared to both Method 1 and buying from the outside supplier.
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You must write down all steps in your working. 1. In 2010, M1 was $1,832.2 billion, M2 was $8,816.4 billion, and nominal GDP was $14,660.2 billion. Please find velocity for both definitions of the money supply.
The velocity of the money supply can be defined as the number of times that the money supply is used to buy goods and services within a given time period.
The velocity of money can be calculated using the equation:
velocity = nominal GDP / money supply
Using the given data, we can calculate the velocity for both M1 and M2: Velocity for M1: velocity = nominal GDP / M1 = $14,660.2 billion / $1,832.2 billion = 8.00Velocity for M2: velocity = nominal GDP / M2 = $14,660.2 billion / $8,816.4 billion = 1.66
Therefore, the velocity of M1 is 8.00 and the velocity of M2 is 1.66. It is important to write down all the steps in the working in order to show how the answer was obtained.
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: Saylind Molding paid $1,320,000 in rent for the year. The company's three departments are Headrests, Armrests, and Floor Mats. The accountant has identified two possible cost drivers. The number of employees in each department and the square footage of space occupied by each department. The number of employees working in each department includes 80 in the Headrest Department, 50 in the Armrest Department and 130 in Floor Mats Department. The departments occupy 15,000, 16,300, and 12,700 square feet, for Headrests, Armrests, and Floor Mats respectively. How much of the rent cost should be allocated to the products made in the Floor Mats department? Multiple Choice $381,000 $450,000 $489,000 $492,000
The rent cost that should be allocated to the products made in the Floor Mats department is $1,320,000.
There are two possible cost drivers that the accountant has identified: the number of employees in each department and the square footage of space occupied by each department.
Let's find out how much of the rent cost should be allocated to the products made in the Floor Mats department.There are 130 employees working in the Floor Mats Department and it occupies 12,700 square feet of space.
To allocate the rent cost, we need to determine the rate per cost driver for each department.Rate = Rent Cost / Cost Driver
For the number of employees:Headrest Department rate = $1,320,000 / 80 = $16,500 per employeeArmrest Department rate = $1,320,000 / 50 = $26,400 per employeeFloor Mats Department rate = $1,320,000 / 130 = $10,154 per employee
For the square footage of space:Headrest Department rate = $1,320,000 / 15,000 = $88 per square footArmrest Department rate = $1,320,000 / 16,300 = $81 per square foot
Floor Mats Department rate = $1,320,000 / 12,700 = $104 per square footNext, we need to use the rate per cost driver to allocate the rent cost to the products made in the Floor Mats department. We have two rates for Floor Mats Department; one for the number of employees and one for the square footage of space.
We need to choose the higher rate and use it for allocation since it will result in a higher allocation of rent cost to the products made in the Floor Mats department. The higher rate is $104 per square foot.
Floor Mats Department allocation = Square footage of Floor Mats Department × Rate per square foot= 12,700 × $104= $1,324,800
Therefore, the rent cost that should be allocated to the products made in the Floor Mats department is $1,324,800 or approximately $1,324,000. The closest option from the given multiple choices is $1,320,000 so we should choose the closest value which is $1,320,000.The answer is $1,320,000.
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Mark owns a machine shop. In reviewing the shop's utility bills for the past 12 months, he found that the highest bill of $2,600 occurred in August when the machines worked 1,200 machine hours. The lowest utility bill of $2,300 occurred in December machines worked 600 machine hours. Read the requirements. Requirement 1. Use the high-low method to calculate the variable cost per machine hour and the total fixed utility cost. First, calculate the variable cost per machine hour. Select the formula labels, then enter the amounts and compute the variable cost per machine hour. (Use the high-low method. Round your answer to the nearest cent.) Variable cost per machine hour Calculate the total fixed cost. Select the formula labels, then enter the amounts and compute the total fixed cost. (Use the highest point.) Requirement 2. Show the equation for determining the total utility cost for the machine shop. ( Total fixed cost X Total utility cost Requirement 3. If Mark anticipates using 800 machine hours in January, predict the shop's total utility bill using the equation from Requirement 2. Select the items needed and compute the shop's total utility bill predicted for January. ) + Requirements 1. Use the high-low method to calculate the variable cost per machine hour and the total fixed utility cost. 2. 3. Show the equation for determining the total utility cost for the machine shop. If Mark anticipates using 800 machine hours in January, predict the shop's total utility bill using the equation from Requirement 2. Print Done
Variable cost per machine hour: Variable cost per machine hour = Total cost at the highest level - Total cost at the lowest level ÷ Number of machine hours at the highest level - Number of machine hours at the lowest level.
How to find?We can calculate the total variable cost at the highest level as follows:Total variable cost = Variable cost per machine hour × Number of machine hours at the highest level= $0.50 × 1,200= $600.
Thus, Total cost at the highest level = Total fixed cost + Total variable cost= Total fixed cost + $600Substituting the value of the total cost at the highest level ($2,600) in the above equation, we have:$2,600 = Total fixed cost + $600Total fixed cost = $2,600 - $600 = $2,000.
Therefore, the total fixed cost is $2,000.Requirement 2:The equation for determining the total utility cost for the machine shop is: Total utility cost = Total fixed cost + (Variable cost per machine hour × Number of machine hours)Requirement 3:Total utility cost = Total fixed cost + (Variable cost per machine hour × Number of machine hours)Total fixed cost = $2,000 (as calculated earlier)Variable cost per machine hour = $0.50.
Number of machine hours in January = 800Thus,Total utility cost = $2,000 + ($0.50 × 800) = $2,400.
Therefore, the shop's total utility bill predicted for January is $2,400.
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Good X is a normal good because the income effect is illustrated by a decrease in quantity demanded as real income decreases when the price rises from po to p₁. Po c. Is Good Y a normal or an inferior good? Explain. Good Y is an inferior good because the income effect is illustrated by an increase in quantity demanded as real income decreases when the price rises from po to p₁. d. For each of Goods X and Y, explain whether the income effect is working in the same direction or the opposite direction as the substitution effect. For Good X, the income effect is working in the same direction as the substitution effect because the change in quantity demanded from Q to Q₁ is in the same direction as the change in quantity demanded from Qo to Q. For Good Y, the income effect is working in the opposite direction as the substitution effect because the change in quantity demanded from Q* to Q₁ is in the opposite direction as the change in quantity demanded from Qo to Q*. e. For Good Y, how large would the income effect need to be for this to be a Giffen good? What would the demand curve look like in this case? The income effect would need to be more than . In this case, the demand curve would be Price Price P₁ Por- P1 Po Q₁ Good X Quantity Good Y Qo Quantity
For Good Y to be considered a Giffen good, the income effect would need to be larger than the substitution effect. In this case, as the price of Good Y rises from Po to P₁, the income effect would have to be significant enough to cause a substantial increase in quantity demanded, overpowering the substitution effect.
If Good Y were a Giffen good, the demand curve would have a positive slope, which is contrary to the usual negative slope associated with demand curves. This positive slope indicates that as the price of Good Y increases, the quantity demanded also increases. This unique behavior occurs when the income effect dominates the substitution effect, leading to a situation where individuals consume more of the inferior good as their income decreases.
However, it is important to note that Giffen goods are rare and often theoretical in nature. Empirical evidence for Giffen goods is limited, and real-world examples are uncommon.
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You borrowed $284,000 with an adjustable rate mortgage with a 30 year term.The initial period is 1 year and then the loan adjust every 12 months.The margin is 2.5% and the index is the 5-year Treasury CMT, which is 2% at origination. The initial rate is set at 4%.What is the payment during the second year of the loan assuming that the index rises to 2.5% on the first reset date?There are no caps on this loan.
Expert
To calculate the payment during the second year of the loan, we need to determine the new interest rate based on the index value and margin at the time of reset.
Given:
Loan amount: $284,000
Term: 30 years
Initial period: 1 year
Margin: 2.5%
Index (at origination): 5-year Treasury CMT = 2%
Initial rate: 4%
Index rate on reset: 2.5%
First, let's calculate the new interest rate:
New interest rate = Index rate + Margin
New interest rate = 2.5% + 2.5%
New interest rate = 5%
Now, we can use the new interest rate to calculate the payment for the second year of the loan. We'll use the formula for a fixed-rate mortgage payment:
Payment = Loan amount * (Interest rate / (1 - (1 + Interest rate)^(-n)))
Where:
n = Total number of payments
Since the loan term is 30 years, the total number of payments will be 30 * 12 = 360.
Payment = $284,000 * (0.05 / (1 - (1 + 0.05)^(-360)))
Calculating the expression inside the brackets:
(1 + 0.05)^(-360) ≈ 0.056839
Payment = $284,000 * (0.05 / (1 - 0.056839))
Payment ≈ $17,582.23
Therefore, the payment during the second year of the loan, assuming the index rises to 2.5% on the first reset date, is approximately $17,582.23.
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Consider the following claim: "In a two-person game, where each player has at most three pure strategies, every strategy profile that survives the iterative elimination of strongly dominated actions is a pure strategy Nash equilibrium." If this claim is TRUE, then provide a proof. If it is FALSE, then prove your argument by providing an example. [Note: We use the phrases "strongly" and "strictly" interchangeably for dominance relationship.]
The claim is FALSE. To prove this, we need to provide a counterexample where the claim does not hold.
Consider a two-person game where each player has at most three pure strategies. Let's construct a specific game and demonstrate that there exists a strategy profile that survives the iterative elimination of strongly dominated actions but is not a pure strategy Nash equilibrium.
Suppose we have the following payoff matrix for Player 1 and Player 2:
Player 2
Strategy A Strategy B Strategy C
Player 1
Strategy X (3, 1) (2, 4) (0, 0)
Strategy Y (1, 2) (5, 3) (0, 0)
In this game, Player 1 has two pure strategies (X and Y), and Player 2 also has two pure strategies (A and B). The claim states that every strategy profile surviving the iterative elimination of strongly dominated actions is a pure strategy Nash equilibrium. However, we will show that the strategy profile (X, B) survives the elimination of strongly dominated actions but is not a pure strategy Nash equilibrium.
To begin, we analyze the dominant strategies. Looking at the payoffs, Strategy C is strictly dominated for both players as they always receive a payoff of 0 when choosing it. Therefore, Strategy C can be eliminated.
The resulting reduced game is as follows:
Player 2
Strategy A Strategy B
Player 1
Strategy X (3, 1) (2, 4)
Strategy Y (1, 2) (5, 3)
Now, there are no strongly dominated strategies left to eliminate.
The strategy profile (X, B) survives the elimination of strongly dominated actions since there are no such actions remaining. However, it is not a pure strategy Nash equilibrium. Player 1 can deviate from Strategy X to Strategy Y and improve their payoff from 3 to 5, considering Player 2's choice of Strategy B. Similarly, Player 2 can deviate from Strategy B to Strategy A and improve their payoff from 4 to 5, considering Player 1's choice of Strategy X. Hence, (X, B) is not a pure strategy Nash equilibrium.
This counterexample demonstrates that the claim is false. The surviving strategy profile after eliminating strongly dominated actions does not necessarily guarantee a pure strategy Nash equilibrium in a two-person game with at most three pure strategies for each player.
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ABC is a global company that sells copiers. ABC currently sells 10 variants of a copier, with all inventory kept in finished –goods form. The primary component that differentiate the copiers is the printing subassembly. An idea being discussed is to introduce commonality in the printing subassembly so that the final assembly can be postponed and inventories kept in component form. Currently, each copier costs 1,000 TL in terms of components. Introducing commonality in the print subassembly will increase component costs to 1,024 TL. Weekly demand of the variants is normally distributed, with a mean of 1,000 and a standard deviation of 200. ABC aims to provide a 95 percent level of service. Replenishment lead time for components is 4 weeks. Copier assembly can be completed in a matter of hours. ABC manage all inventories using a continuous review policy and uses a holding cost of 20 percent
a) How much safety inventory of each variant must ABC keep without component commonality? What is the annual holding cost?
b) How much safety inventory must be kept in component form if ABC uses common components for all variants? What is the annual holding cost? What is the increase in component cost using commonality?
please write descriptor and write all math operations.
Reorder point without commonality = 4000 and Safety stock without commonality = 1312 and Annual holding cost without commonality = 100 and Reorder point with commonality = 4000 and Safety stock with commonality = 1312 and Annual holding cost with commonality = 102.4 and Increase in component cost using commonality = 24.
a) How much safety inventory of each variant must ABC keep without component commonality? What is the annual holding cost?
Given data:
Mean demand = 1000
Standard deviation = 200
Replenishment lead time = 4 weeks
Holding cost = 20% = 0.2
Hence, Reorder point = mean demand * lead time = 1000 * 4 = 4000 units
Safety stock = z × σ × LT
Where z is the standard normal deviation and LT is the lead time.
We need to provide a 95% level of service. So the standard normal deviation is 1.64 for a 95% service level (from standard normal tables).
So safety stock = 1.64 × 200 × 4 = 1312 units
The annual holding cost = (unit cost * holding cost rate) / 2
The current cost per unit is 1000, and holding cost rate is 0.2. So,
Annual holding cost = (1000 * 0.2) / 2= 100
b) How much safety inventory must be kept in component form if ABC uses common components for all variants? What is the annual holding cost? What is the increase in component cost using commonality?
With commonality, the component cost is increased to 1024. Hence,
Reorder point = mean demand * lead time = 1000 * 4
= 4000 units
Safety stock = z × σ × LT
Where z is the standard normal deviation and LT is the lead time.
We need to provide a 95% level of service. So the standard normal deviation is 1.64 for a 95% service level (from standard normal tables).
So safety stock = 1.64 × 200 × 4 = 1312 units
The annual holding cost = (unit cost * holding cost rate) / 2
The current cost per unit is 1024, and holding cost rate is 0.2.
So,
Annual holding cost = (1024 * 0.2) / 2= 102.4
Hence, the increase in component cost is (1024-1000) = 24.
Answer:
Reorder point without commonality = 4000
Safety stock without commonality = 1312
Annual holding cost without commonality = 100
Reorder point with commonality = 4000
Safety stock with commonality = 1312
Annual holding cost with commonality = 102.4
Increase in component cost using commonality = 24
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For the car loan described, give the following information.
A car dealer will sell you the $30,650 car of your dreams for
$6,000 down and payments of $668.06 per month for 60 months.
(a) amount to be
Answer:The amount to be borrowed is $24,650. The total cost of the car is $46,083.6 and the total amount of interest paid is $21,433.6.
Given information: A car dealer will sell you the $30,650 car of your dreams for $6,000 down and payments of $668.06 per month for 60 months.(a) Amount to be borrowed:The amount of the car that the dealer is selling is $30,650.The down payment is $6,000.Therefore, the amount to be borrowed is:$30,650 − $6,000 = $24,650(b) Total cost of the car:Monthly payment = $668.06Number of payments = 60Total payments = 60 × $668.06 = $40,083.6Down payment = $6,000Therefore, the total cost of the car is:$40,083.6 + $6,000 = $46,083.6(c) Total amount of interest paid:Total payments = $40,083.6Down payment = $6,000Total amount paid = $46,083.6Total interest paid = $46,083.6 − $24,650 = $21,433.6
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1. The production function of a firm is F(K, L) = √KL. The firm can buy inputs (K, L) at competitive prices wk
and wl.
a) What returns to scale have the firm’s production function?
b) State the long-run cost minimization problem.
c) What is the long-run compensated demand function for each input?
d) What is the firm’s long-run total cost function
In the short-run the firm can only hire K¯ = 4 units of capital.
e) State the short-run cost minimization problem.
f) What is the short-run compensated demand function for each input?
g) What is the firm’s short-run total cost function
h) How does the short-run and long-run total cost function compare to each other?
i) For which input prices (wk, wL) and desired quantity q they are the same?
a) Returns to scale: F(λK, λL) = λ√KL (square root of λ times square root of K times L).Since this is greater than λ when λ is greater than 1, the production function exhibits increasing returns to scale.
When λ is equal to 1, it exhibits constant returns to scale. Decreasing returns to scale are exhibited when λ is less than 1.b) Long-run cost minimization problemThe long-run cost minimization problem entails determining the minimum cost of producing a given level of output when both inputs, capital and labor, are variable. This entails selecting the appropriate combination of inputs that minimizes the cost for any level of production.c) Long-run compensated demand function for each input:The compensated demand functions can be derived by solving the cost minimization problem of the firm.
The compensated demand function can be derived by inverting the first-order conditions and solving for K and L in terms of their prices.d) Long-run total cost function of the firmThe long-run total cost (LTC) function for the firm is C(q) = min {wk/r, wl/r} × q2/3 × [wk2/3 + wl2/3]3/2.
This is due to the fact that the firm uses both capital and labor to generate output, and both are variable in the long run.e) Short-run cost minimization problemThe short-run cost minimization problem entails determining the minimum cost of producing a given level of output when only one of the inputs, in this case, capital, is variable. This entails selecting the appropriate amount of capital that minimizes the cost for any level of production.f) Short-run compensated demand function for each input
The compensated demand functions can be derived by solving the cost minimization problem of the firm. The compensated demand function can be derived by inverting the first-order conditions and solving for K and L in terms of their prices.g) Short-run total cost function of the firmThe short-run total cost function of the firm is given as: C(q) = wk/4q + 2wlq/3 h) Comparison of long-run and short-run total cost functions
The long-run total cost (LTC) function for the firm is greater than the short-run total cost (STC) function for the firm since in the long run, the firm has access to both inputs and can use the most efficient combination of capital and labor to produce output.i) The same input prices and quantities are used for the short-run and long-run total cost functions.
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The third step in the project control process of the measurement and evaluation of project performance is to:
A. Review the baseline plan with top management
B. Analyze inputs to the control system
C. Compare the plan against actual performance
D. Measure both progress and performance
E. Review spending with team members
The third step in the project control process of the measurement and evaluation of project performance is to compare the plan against actual performance. Option C is the correct answer.
Comparing the plan against actual performance is crucial to ensure that the project is staying on track and progressing as expected. It helps to identify any deviations from the plan, including scope creep, delays, or cost overruns that may impact the project. The comparison also helps to determine whether corrective action is necessary and what the corrective actions should be.I n the third step of the project control process, it is essential to measure both progress and performance. Progress measurement is concerned with the activities and tasks that have been completed, while performance measurement is concerned with the results and outcomes of the project. By comparing the planned progress and performance with the actual progress and performance, one can determine whether the project is on track or not. This information is critical in making decisions about corrective actions, re-planning, and resource allocation.
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Question 3 Discuss with necessary diagram(s) how the long run equilibrium is achieved in a perfectly competitive market.
In a perfectly competitive market, a long-run equilibrium is achieved when the market demand curve is equal to the market supply curve, and firms earn normal profits. Here’s how the long-run equilibrium is achieved in a perfectly competitive market
Long-run equilibrium in a perfectly competitive marketA perfectly competitive market is where there are a large number of buyers and sellers of a homogeneous product. Each firm in the market has no market power, meaning that they cannot influence the price of the product. The market price is set by the intersection of market demand and supply, and firms take this price as given.The long-run equilibrium of a perfectly competitive market is reached when the following conditions are met: 1. All firms in the market are operating at minimum efficient scale (MES), which means that they are producing at the lowest point on their long-run average total cost (LRATC) curve. 2. There is no incentive for firms to enter or exit the market. 3. Firms in the market are earning normal profits, which means that they are earning a return on their investment that is equal to the opportunity cost of capital (the return they could earn in their next best alternative).4. The market demand curve is equal to the market supply curve.The diagram below illustrates the long-run equilibrium in a perfectly competitive market:Image credit: Introduction to Microeconomics by OpenStax, CC BY 4.0In the diagram above, the market demand curve (D) intersects the market supply curve (S) at point E, which determines the market price (P*). At this price, each firm in the market produces the quantity Q*, which is where its long-run average total cost curve (LRATC) is at its minimum point. This is the point where the firm is producing at the most efficient level, and there is no incentive for new firms to enter the market or for existing firms to exit the market. As a result, all firms in the market earn normal profits.
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on 28 bonds sell for $850, have a 5% coupon rate paid annually, $1,000 par value, and 8 years until maturity. What is the after-tax cost of debt for G's bonds if 02 has a marginata ce of 2 6.05% 5.68% 5.30% 4.54% 7.57%
Content loaded on 28 bonds sell for $850, has a 5% coupon rate paid annually, $1,000 par value, and 8 years until maturity. According to the solving, the after-tax cost of debt for G's bonds is approximately 8.26%.
To find: After-tax cost of debt for G's bonds Formula used to calculate the after-tax cost of debt is as follows:
The after-tax cost of debt = Pre-tax cost of debt × (1 - Tax rate)
The calculation of Pre-tax cost of debt is as follows:
The pre-tax cost of debt = (Annual interest payment ÷ Bond price) + Yield to maturity
Annual interest payment = Coupon rate × Par value
Annual interest payment = 5% × $1,000 = $50
Yield to maturity is calculated using the IRR function in Excel. IRR function helps to find out the annual interest rate on investment over some time (8 years in this case). The syntax for the IRR function is as follows:
IRR(values, guess)where values = cash flows (must contain at least one negative and one positive value),
guess = estimate of the rate of return.
Assume cash outflows as negative and cash inflows as positive. In this case, the bond price ($850) is a cash outflow and the annual interest payment ($50) is a cash inflow.
Since the bond is held until maturity, the cash inflow will be followed by a cash outflow of the bond price. So, the cash flows are -$850, $50, $50, ..., $50, $1050.
The calculation of Yield to maturity using the IRR function is as follows:
Yield to maturity = IRR(-850, 50, 50, 50, 50, 50, 50, 50, 1050)
Yield to maturity ≈ 6.05%
Substitute all the values in the above formulas to calculate the after-tax cost of debt for G's bonds:
Pre-tax cost of debt = ($50 ÷ $850) + 6.05%Pre-tax cost of debt
≈ 12.71%Assume that the tax rate is 35%.
The after-tax cost of debt = 12.71% × (1 - 35%)
After-tax cost of debt ≈ 8.26 %
Therefore, the after-tax cost of debt for G's bonds is approximately 8.26%.
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using the information below, calculate the cost of goods manufactured for the period: beginning raw materials inventory $ 37,000 ending raw materials inventory 28,600 beginning work in process inventory 67,000 ending work in process inventory 76,000 beginning finished goods inventory 98,000 ending finished goods inventory 79,000 cost of goods sold for the period 552,000 sales revenues for the period 1,266,000 operating expenses for the period 244,000
Cost of Goods Manufactured (COGM) refers to the total cost of manufacturing finished goods. It comprises the cost of direct materials used, direct labor and factory overhead, and is calculated to determine the value of inventory production for a specific period.
Calculating Cost of Goods ManufacturedBeginning Raw Materials Inventory = $37,000Ending Raw Materials Inventory = $28,600Direct Materials Purchased = $37,000 - $28,600 = $8,400Direct Materials Used in Production = $8,400 + (Total Raw Materials) - $37,000 = $28,800Beginning Work in Process (WIP) Inventory = $67,000Ending Work in Process (WIP) Inventory = $76,000Direct Labor Used = Total Manufacturing Cost - Overhead - Direct Materials = COGM - Overhead - Direct MaterialsDirect Labor Used = $190,000Beginning WIP + Direct Materials Used + Direct Labor Used + Manufacturing Overhead = COGMManufacturing Overhead = Total Manufacturing Cost - Direct Materials - Direct LaborManufacturing Overhead = $256,000COGM = $67,000 + $28,800 + Direct Labor Used + $256,000COGM = $67,000 + $28,800 + ($190,000 - $256,000) = $29,800Therefore, the cost of goods manufactured for the period is $29,800.
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Which key obstacle to innovation is defined as delayed strategic change in the face of environmental change? Multiple Choice inertia intervention crowdsourcing force field A(n). is a coherent set of interdependent processes and structures that dictates how the company searches for novel problems and solutions, synthesizes ideas into a business concept and product designs, and selects which projects get funded. Multiple Choice innovation system organizational development human resource inventory organizational behavior Although they may be subtle, when considering forces for change, job dissatisfaction, absenteeism, and low productivity represent Multiple Choice human resources concerns. managers' behavior. technological advancements. demographic characteristics.
The key obstacle to innovation that is defined as delayed strategic change in the face of environmental change is:- Inertia
The coherent set of interdependent processes and structures that dictates how the company searches for novel problems and solutions, synthesizes ideas into a business concept and product designs, and selects which projects get funded is:
- Innovation system
When considering forces for change, job dissatisfaction, absenteeism, and low productivity represent:- Human resources concerns.
key obstacle to innovation is defined as delayed strategic change in the face of environmental change.
Forces for change: Forces for change refer to the factors or influences that drive or necessitate change within an organization. Job dissatisfaction, absenteeism, and low productivity are examples of human resources concerns that can act as forces for change. These issues may indicate underlying problems within the organization's human resources practices, such as ineffective leadership, lack of motivation, or poor working conditions, which can prompt the need for change and improvement.
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Consider two hypothetical firms, Sony and JVC, which compete in the same industry. Both firms are considering investing in an innovation project that involves a developing a new product. Each firm has two possible strategies: 'Innovate' and 'Do not innovate'. If both firms decide to innovate, the payoffs are low as the market is not large enough for both innovations to be profitable. If one firm innovates and the other does not, the former earns more profit while the latter loses profit. The matrix below describes the hypothetical payoffs. Sony Innovate Do not innovate -0.5 0 -0.5 0 Find the Nash equilibrium(s) of this game. Provide your reasoning by referring to the payoff matrix above. Your reasoning must include the best responses of each firm. Question 8 [Max 200 words, 6 marks] Keep considering the same game and the payoff matrix from the previous question. Discuss whether the game between Sony and JVC is an invisible hand game. Your discussion must start by explaining what an invisible hand game is. JVC Innovate Do not innovate -1.0 -1.0 2 2
To find the Nash equilibrium(s) in this game between Sony and JVC, we need to identify the best response of each firm given the strategies chosen by the other firm. The Nash equilibrium occurs when no player has an incentive to unilaterally change their strategy.
Looking at the payoff matrix:
Sony:
- If JVC innovates, Sony's best response is to not innovate (payoff of 0).
- If JVC does not innovate, Sony's best response is to innovate (payoff of -0.5).
JVC:
- If Sony innovates, JVC's best response is to not innovate (payoff of 2).
- If Sony does not innovate, JVC's best response is to not innovate (payoff of -1).
Considering these best responses, we can identify the Nash equilibrium(s) by finding the intersection of the best responses for both firms.
In this case, the Nash equilibrium occurs when Sony chooses to innovate, and JVC chooses not to innovate. This results in payoffs of -0.5 for Sony and 2 for JVC, which are the highest possible payoffs for each firm given the choices of the other firm. Any unilateral deviation from this strategy would result in a lower payoff for the deviating firm.
Moving on to the second part of the question:
An invisible hand game refers to a situation in game theory where individual actions, driven by self-interest, lead to an overall socially optimal outcome. In such a game, the pursuit of self-interest by individual players indirectly benefits the collective or society as a whole.
In the game between Sony and JVC, we do not have an invisible hand game. The reason is that both firms choosing to innovate does not lead to a socially optimal outcome. In this scenario, the market is not large enough for both innovations to be profitable, resulting in low payoffs for both firms. The socially optimal outcome would be for one firm to innovate while the other does not, which would lead to higher profits for the innovating firm and avoid unnecessary duplication of efforts.
Therefore, the game between Sony and JVC is not an invisible hand game as the pursuit of individual self-interest does not lead to the socially optimal outcome.
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Canvas XA Help Center? Peter Corporation reported the following transactions for 2013: 1.. 2. 3. 4. 5. 6. 7. FI ! 1 8. 9. skle Sold equipment for a loss of $2,000. The original cost was $15,000; the book value is $6,000 Issued 2,000 shares of $5 par value common stock for $12 per share Paid $3,000 for an Insurance policy which goes into effect in February 2014. The Prepaid Insurance account balance was $5,000 on 1/1/13 and $3,500 on 12/31/13 Reported Net Income of $12,000 on the Income Statement dated 12/31/13 Reacquired 300 shares of its own $5 par common stock at $20 per share Recorded depreciation expense for $5,000 Paid $3,000 of dividends to common stockholders Acquired a building with a market value of $250,000 by issuing 20,000 shares of common stock. Paid salaries of $18,000 Repaid a loan, which included $5,000 of the principal and $1,000 in interest MacBook Air 6 10. The net cash flow from operating activities is: $34,000 $37,000 $17,000 $10,000
The correct answer for the given question is option B. $37,000. The given transactions of Peter Corporation for 2013 are:Sold equipment for a loss of $2,000.
The original cost was $15,000; the book value is $6,000Issued 2,000 shares of $5 par value common stock for $12 per share.Paid $3,000 for an Insurance policy which goes into effect in February 2014. The Prepaid Insurance account balance was $5,000 on 1/1/13 and $3,500 on 12/31/13.Reported Net Income of $12,000 on the Income Statement dated 12/31/13.Reacquired 300 shares of its own $5 par common stock at $20 per share.Recorded depreciation expense for $5,000.Paid $3,000 of dividends to common stockholders.
Acquired a building with a market value of $250,000 by issuing 20,000 shares of common stock.Paid salaries of $18,000.Repaid a loan, which included $5,000 of the principal and $1,000 in interest.To calculate the net cash flow from operating activities, we will have to add back the depreciation amount as it is a non-cash expense and deduct the loss on sale of equipment as it is a non-operating expense. Therefore,Net cash flow from operating activities = Net income + Depreciation expense - Loss on sale of equipment = $12,000 + $5,000 - (- $2,000) = $19,000 + $2,000 = $21,000Therefore, option B. $37,000 is the correct answer.
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Can clearly assigned property right lead to efficient allocation of personal information?
a. Not necessarily, because the disclosure decision of an individual also reveals personal information.
b. Yes, because the parties can trade over personal information, personal information will be allocated to the side for whom it is more valuable.
c. Yes, if firms and consumers trade over consumers’ personal information through a monopolist data broker.
d. Not necessarily. it only leads to efficient allocation of personal information when the firm benefits from getting consumers’ personal information.
The correct option is: b
Personal information is the information that pertains to a specific person or can be used to identify that person. The protection of personal information is critical, and the allocation of personal information is critical. Property rights assigned clearly can contribute to the efficient allocation of personal information.Let's take a look at the given statements.
a. Not necessarily, because the disclosure decision of an individual also reveals personal information: This is correct because an individual's decision to reveal personal information does not always result in the efficient allocation of personal information.
b. Yes, because the parties can trade over personal information, personal information will be allocated to the side for whom it is more valuable: This statement is correct because the efficient allocation of personal information is made feasible by the exchange of personal information.
c. Yes, if firms and consumers trade over consumers’ personal information through a monopolist data broker: This statement is true because the consumers can engage in trade with monopolist data brokers to allocate personal information efficiently.
d. Not necessarily. It only leads to efficient allocation of personal information when the firm benefits from getting consumers’ personal information: This statement is also correct, as the allocation of personal information only leads to efficiency when the firm benefits from receiving personal information.Thus, the correct option is: b. Yes, because the parties can trade over personal information, personal information will be allocated to the side for whom it is more valuable.
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An investor will receive an annuity of $4,000 a year for ten years. The first payment is to be received five years from today. At a 9% discount rate, this annuity's worth today is closest to:
Group of answer choices
a. $25,671
b. $18,186
c. $16,684
The closest option is (a) $25,671.To calculate the present value of an annuity
we can use the formula:
PV = PMT * (1 - (1 + r)^(-n)) / r
Where:
PV = Present value
PMT = Payment per period
r = Discount rate
n = Number of periods
In this case, the payment per period (PMT) is $4,000, the discount rate (r) is 9%, and the number of periods (n) is 10.
Plugging these values into the formula, we get:
PV = $4,000 * (1 - (1 + 0.09)^(-10)) / 0.09
Calculating this, we find that the present value of the annuity is approximately $25,671.
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Explain why this outcome is inefficient in comparison to the competitive omom. 2. A nospillet for a market demand curve gives by Q-70-P The monopolet's marginal vse function is given by MR-70-20 An 4 If the sonopolist can peodice at constant asg and marginal costs of AC MC-6, what output level will the monopolist choose in order to maximise pendin? What is the price at this put level? What are the monopolist's profit? Au intend that the monopolist has a structure where total costs are described by TC-0250-50+300 and marginal cost is given by MC 050-5 With the monopolet facing the same market demand and marginal revenue, what price-quantity contation will be chosen se to maximise profite? What will profits be? A now that a third coet structure explain the monopolat's position, with total costs g TO-BQ²-Q²+Q+ 100 MC-0000-20+ price-quity ination that matinio profits. What will al and the qudratie forma or simple factoring and marginal at gives by Agais, olate the wond profits be? (Hats MCMIL ve the expation Q.) 4. Graph the market de curve, the Mil car, and the three marginal cost cure butts parts. part 1 and part . Setien that the monopoliat's prot-making ability in matenby (1) market demand curve it face (along with its acted MR e), and (2) the struct NOR P R FL % 5 V H T G 6 B Y H & 7 N U .00 8 J NO M ( 9 K DO O V I of O L comma 4. Consider a Cournot duopoly with the inverse demand P = 200-2Q. Firms 1 and 2 compete by simultaneously choosing their quantities. Both firms have constant marginal and average cost MC = AC = 20. a. Find each firm's best response function. b. Find the Cournot-Nash equilibrium quantities, profits and market price. c. Plot the best response functions (label the axes q1 and 92) and illustrate the equilibrium point.. d. Suppose that instead of choosing their quantities simultaneously, firm 1 chooses first and firm 2 follows, find the Stackelberg equilibrium quantities, profits and market price. e. Returning to the case in which the firms choose simultaneously, suppose that for firm 1, MC = AC 20 but for firm 2, MC 10. How would this affect your answers to part h?
The Stackelberg equilibrium quantities, profits and market price is 2.
Given demand curve is Q = 70 - P.
Marginal revenue function is MR = 70 - 2Q.
Cost function is AC = MC = 6.
The monopolist maximizes profit where MR = MC.
70 - 2Q = 6Q
= 32/8
= 4
At Q = 4,
P = 70 - 4
= 66
Total revenue = 4 × 66
= 264
Total cost = 6 × 4
= 24
Profit = 264 - 24
= 240
Therefore, output level should be 4 and the price at this output level is 66.
Monopolist's profit is 240.
The monopolist's structure is TC = 250 + 50Q + 300 logically, the firm is facing the same market demand and marginal revenue, and only the cost function has changed.
Hence, at
MR = MC:70 - 2Q
= 50 + 6QQ
= 5P
= 70 - 5
= 65
Total revenue = 5 × 65
= 325
Total cost = 250 + 50(5) + 300
= 800
Profit = 325 - 800
= -475
Therefore, price-quantity combination that will maximize the profit is at a price of 65 and output level of 5.
Monopolist's profit is -475.
With a third cost structure, the monopolist's position is
TC = BQ² - Q² + Q + 100.
MC = 2BQ - 2Q + 1.
At MR = MC:70 - 2Q
= 2BQ - 2Q + 1B
= 34/5Q
= 288/85
≈ 3.39P
= 70 - 3.39
= 66.61
Total revenue = 3.39 × 66.61
= 225.86
Total cost = (34/5)(3.39²) - 3.39² + 3.39 + 100
= 98.35
Profit = 225.86 - 98.35
= 127.51
Therefore, price-quantity combination that will maximize the profit is at a price of 66.61 and output level of 3.39.
Monopolist's profit is 127.51.
Graphing:Best response function for firm 1:
q1 = (200 - q2)/3
Best response function for firm 2:
q2 = (200 - q1)/3
Setting the two best response functions equal to each other:
q1 = (200 - q2)/3q2
= (200 - q1)/3
Solving for q1 and q2 gives the Cournot-Nash equilibrium quantities:
q1 = q2 = 50
Market quantity: Q = 100
Market price:
P = 200 - Q
= 100
Total cost for each firm:
TC = 20q
= 20(50)
= 1000
Total revenue for each firm:
TR = 100(50)
= 5000
Profit for each firm:
π = TR - TC
= 4000
Best response functions:For the Stackelberg equilibrium, firm 1 is the leader and firm 2 is the follower.
Thus, firm 1 takes into account the reaction of firm 2 when choosing its quantity.
The best response function for firm 2 is still q2 = (200 - q1)/3, while the best response function for firm 1 is now
q1 = (200 - (1/2)q2)/2.
Substituting q1 into firm 2's best response function gives:
q2 = (200 - (1/2)q2)/6q2
= 50
Substituting q2 = 50 into firm 1's best response function gives:
q1 = 50
Profit for each firm is:
π1 = (200 - 1/2q2)q1 - 20q1
= 2500π2
= (200 - 1/2q1)q2 - 20q2
= 1250
When the cost for firm 2 is reduced to 10, the best response function for firm 2 becomes:
q2 = (200 - q1)/6
And for firm 1:
q1 = (200 - (1/2)q2)/2
Substituting the best response function for firm 2 into firm 1's best response function and solving for q1 gives:
q1 = 100/3q2 = 100/3
Profit for each firm is:
π1 = (200 - 1/2q2)q1 - 20q1
= 3888.89π2
= (200 - 1/2q1)q2 - 10q2
= 3888.89
Thus, reducing the cost for firm 2 results in higher profits for both firms.
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Solare Company acquired mineral rights for $539,200,000. The diamond deposit is estimated at 33,700,000 tons. During the current year, 1,210,000 tons were mined and sold. a. Determine the depletion rate. $ per ton b. Determine the amount of depletion expense for the current year. c. Journalize the adjusting entry to recognize the depletion expense. Dec. 31
The entry is made on December 31 to recognize the expense for the entire year. The specific dollar amounts should be filled in based on the calculations in parts a and b.
a. The depletion rate can be calculated by dividing the acquisition cost of the mineral rights by the estimated total tons of the deposit.
Depletion rate = Acquisition cost / Estimated tons = $539,200,000 / 33,700,000 tons
b. The amount of depletion expense for the current year can be calculated by multiplying the depletion rate by the number of tons mined and sold.
Depletion expense = Depletion rate * Tons mined and sold = Depletion rate * 1,210,000 tons
The debit to Depletion Expense represents the expense for the current year, and the credit to Accumulated Depletion is used to accumulate the total depletion expense over time.
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A business contemplating going international usually has a choice of whether to export or set up operations in a foreign market. What are the factors that need to be taken into account in deciding which path to choose and what are the options that relate to each?
When a business considers going international, they have to choose between two alternatives, exporting and setting up operations in a foreign market. It is important to consider the factors that need to be taken into account when making this decision.
Here are some factors to consider:
1. Economic conditions: A business must analyze the economic environment in the target country. This should include inflation rates, exchange rates, and tax regimes. This information will help the business determine the costs associated with exporting and setting up operations.
2. Marketing: When deciding to export or set up operations in a foreign market, a business must consider the marketing challenges of the target country. A business that exports its goods or services to a foreign market should be familiar with the target country's language, customs, and cultural values.
3. Resources and capabilities: A business needs to evaluate its resources and capabilities before making a decision to export or set up operations in a foreign market. A business that chooses to export should ensure it has the necessary resources to manage the logistics of exporting. If a business chooses to set up operations in a foreign market, it should consider the resources needed to establish a local operation, such as staffing, technology, and infrastructure.
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Moving to another question will save this response. Question 29 of 32 Jestion 29 1 points Save Artswer There are several types of market. When products trade over a range of prices rather than a single market price, selers try to develop differentiated offers for different customer segments. and sellers use branding, advertising, and personal selling to set their offers apart, then this represents O a Pure competition Ob. Monopolistic competition Oc. Pure monopoly O d. Oligopolistic competition
When products trade over a range of prices rather than a single market price, and sellers use branding, advertising, and personal selling to set their offers apart, then this represents monopolistic competition.
In this type of competition, each seller tries to create its brand image by offering slightly differentiated products to customers with a range of prices.Monopolistic competition is a type of competition where a large number of small firms sell differentiated products, and each firm has some market power to set its own prices and outputs. Sellers use advertising, product differentiation, and branding to set their products apart from others, which leads to the creation of a monopolistic market.The seller uses branding, advertising, and personal selling to set their offers apart.
Sellers in a monopolistic competition may have to spend more on advertising and product differentiation to make their products unique. Moving on, oligopolistic competition exists when there are only a few firms in the market. Each firm's action can have a significant impact on the other firms, and so firms must be careful when competing. In pure competition, there are many sellers, and no single seller has any significant market power to affect the price of the product.
The market price is determined by the forces of supply and demand. In conclusion, when products trade over a range of prices rather than a single market price, and sellers use branding, advertising, and personal selling to set their offers apart, then this represents monopolistic competition.
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A business owner by Chary was short of cash and she decided to form a partnership with Deli and Ellen. Deli was able to contribute cash thrice the interest of Chary in the partnership while Ellen was able to contribute cash twice the interest of Deli in the Partnership. Chary contributed the following: Cash P18,000 Accounts Receivable P378,000 w/ allowance for doubtful accounts of P12,000 . Inventory P840,000 • store equipment with accumulated depreciation of P30,000 but with a current worth of P250,000 and agreed value of P200,000 Chary, Deli and Ellen agreed that the allowance for doubtful accounts was inadequate and should be P20,000. They also agreed that the FV of the inventory is P920,000. How much did Ellen contribute? 7,880,000 1,496,000 8,976,000 4,488,000
The amount that Ellen contributed to the partnership between Deli and Ellen is C. $ 8,976,000 .
How to find the amount contributed ?According to the information given, Chary contributes:
Cash: P18,000
Accounts Receivable:
P378,000 - P20,000 (the agreed allowance for doubtful accounts)
= P358,000
Inventory: The agreed fair value of the inventory is P920,000
Store Equipment: The agreed value of the equipment is P200,000
So, the total contribution of Chary is:
= P18,000 (cash) + P358,000 (net accounts receivable) + P920,000 (inventory) + P200,000 (equipment)
= P1,496,000
Deli's contribution :
= P1,496,000 x 3
= P4,488,000
Ellen's contribution is twice this :
= P4,488,000 x 2
= P8,976,000
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What is a Capital Gain Tax (CGT) Asset? Give at least one example for each of the three types of assets
A capital gains tax (CGT) asset is any asset that is capable of generating a capital gain or loss when it is disposed of. It is calculated as the difference between the asset's cost base and the proceeds from its disposal. Any capital losses are offset against capital gains and can also be carried forward to offset future gains.
There are three types of CGT assets, namely:1. Shares: Shares are the most common type of CGT asset. For example, if you purchase a share for $1 and sell it for $2, you will have made a $1 capital gain, which will be subject to CGT.2. Real property: This includes land, buildings, and other structures that are not personal property. For example, if you purchase an investment property for $500,000 and sell it for $800,000, you will have made a $300,000 capital gain, which will be subject to CGT.3. Collectibles: Collectibles are items that are considered to have a high value due to their rarity, historical significance, or artistic merit. These can include things like coins, stamps, art, and antiques. For example, if you purchase a rare painting for $100,000 and sell it for $150,000, you will have made a $50,000 capital gain, which will be subject to CGT.
A CGT asset is any asset that can produce a capital gain or loss when it is sold. Capital gains tax (CGT) is the tax imposed on the net capital gain, which is the difference between the cost of the asset and the proceeds from selling it. It is charged when a person sells an asset and makes a profit. The CGT rate is based on the length of time the asset was held before it was sold.There are three types of CGT assets, namely, shares, real property, and collectibles. Shares are the most common type of CGT asset. For example, if you purchase a share for $1 and sell it for $2, you will have made a $1 capital gain, which will be subject to CGT.Real property includes land, buildings, and other structures that are not personal property. For example, if you purchase an investment property for $500,000 and sell it for $800,000, you will have made a $300,000 capital gain, which will be subject to CGT.Collectibles are items that are considered to have a high value due to their rarity, historical significance, or artistic merit. These can include things like coins, stamps, art, and antiques. For example, if you purchase a rare painting for $100,000 and sell it for $150,000, you will have made a $50,000 capital gain, which will be subject to CGT.
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