Input either "increase" or "decrease" where relevant:
An increase in the prices of inputs will cause the equilibrium price to ...... and the equilibrium quantity to ........

Answers

Answer 1

An increase in the prices of inputs will cause the equilibrium price to increase and the equilibrium quantity to decrease.

When the prices of inputs used in the production of a good increase, the cost of production for the suppliers also increases. As a result, the suppliers are likely to pass on some or all of the increased costs to consumers in the form of higher prices. This leads to an increase in the equilibrium price of the good in the market.

Additionally, the higher input prices may make it less profitable for suppliers to produce the good, leading to a decrease in the quantity supplied. Suppliers may reduce their production levels or exit the market altogether, resulting in a decrease in the equilibrium quantity.

Overall, an increase in the prices of inputs creates upward pressure on prices and downward pressure on the quantity supplied, leading to an increase in the equilibrium price and a decrease in the equilibrium quantity of the good.

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Related Questions

Waupaca Company establishes a $350 petty cash fund on September 9 . On September 30 , the fund shows $69 in cash along with receipts for the following expenditures: transportation-in, $53; postage expenses, $66; and miscellaneous expenses, $148. The petty cashier could not account for a $14 shortage in the fund. The company uses the perpetual system in accounting for merchandise inventory.

Prepare (1) the September 9 entry to establish the fund, (2) the September 30 entry to reimburse the fund, and (3) an October 1 entry to increase the fund to $400. Journal entry worksheet Record the reimbursement of the petty cash fund. Note: Enter debits before credits.

Answers

To address the given scenario, three journal entries need to be prepared. The first entry is to establish the petty cash fund on September 9, the second entry is to reimburse the fund on September 30, and the third entry is to increase the fund to $400 on October 1. These entries will help track the petty cash transactions and maintain accurate records.

1) On September 9, the entry to establish the petty cash fund would be as follows:

  Petty Cash                             $350

  Cash                                          $350

This entry records the initial transfer of $350 from the cash account to the petty cash fund.

2) On September 30, the entry to reimburse the fund would be as follows:

  Transportation-In                      $53

  Postage Expenses                      $66

  Miscellaneous Expenses          $148

  Cash                                         $267

  Over and Short                          $14

This entry reimburses the petty cash fund by recording the expenditures for transportation-in, postage expenses, and miscellaneous expenses. The total cash disbursed is $267, and the $14 shortage is recorded in the Over and Short account.

3) On October 1, the entry to increase the fund to $400 would be as follows:

  Petty Cash                               $50

  Cash                                          $50

This entry increases the petty cash fund by an additional $50, bringing the total fund to $400.

These journal entries help maintain accurate records of petty cash transactions and ensure that the fund is properly established and reimbursed according to the expenses incurred.

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which of the following is not a required procedure for filing a voluntary bankruptcy petition?

Answers

"Attending mandatory credit counseling is not a required procedure for filing a voluntary bankruptcy petition. when filing for voluntary bankruptcy, individuals are generally required to complete several procedures.

These include preparing and filing the bankruptcy petition, providing financial information, attending a meeting of creditors, and completing a debtor education course. However, mandatory credit counseling is not a prerequisite for filing a voluntary bankruptcy petition. While credit counseling is often a helpful step in managing debt, it is not a mandatory requirement for initiating the bankruptcy process.

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1. Identify FIVE or more operations-related tasks carried out by IDL.
2. Why are organizations changing from batch (large) shipments to just-in-time(JIT) shipments?

Answers

Five operations-related tasks carried out by IDL (International Distribution and Logistics) could include:

a. Transportation Management: IDL is responsible for managing the transportation of goods, including coordinating shipments, selecting carriers, optimizing routes, and ensuring timely delivery.

b. Inventory Management: IDL handles inventory management tasks such as tracking stock levels, replenishment planning, and optimizing inventory turnover to ensure efficient supply chain operations.

c. Warehousing and Distribution: IDL manages warehousing facilities where goods are stored, organized, and distributed as per customer orders. This involves tasks like receiving, storing, picking, packing, and shipping products.

d. Order Fulfillment: IDL ensures that customer orders are accurately processed and fulfilled. This includes order processing, order picking, order packing, and order shipment, while maintaining high levels of accuracy and timeliness.

e. Supply Chain Planning: IDL engages in supply chain planning activities, which involve forecasting demand, managing procurement, coordinating with suppliers, and ensuring the availability of materials and resources for production and distribution.

f. Quality Control and Compliance: IDL carries out quality control procedures to ensure that products meet the required standards and comply with relevant regulations. This may involve conducting inspections, audits, and implementing quality assurance processes.

Organizations are changing from batch shipments to just-in-time (JIT) shipments due to several reasons:

a. Cost Reduction: JIT shipments enable organizations to reduce inventory holding costs by minimizing the need for large stockpiles of inventory. With JIT, inventory levels are kept at a minimum, reducing storage and carrying costs.

b. Increased Efficiency: JIT shipments help improve operational efficiency by reducing lead times, eliminating waste, and streamlining processes. By receiving materials or products just in time for production or customer demand, organizations can optimize their operations and reduce non-value-added activities.

c. Improved Cash Flow: JIT shipments allow organizations to free up their capital as they do not need to tie up funds in excessive inventory. This can improve cash flow and provide financial flexibility for other business investments or operational needs.

d. Enhanced Customer Service: JIT shipments enable organizations to respond quickly to customer demand. By having inventory readily available when needed, organizations can ensure timely delivery, reduce backorders, and provide better customer service.

e. Demand Variability: With increasing demand variability and shorter product life cycles, JIT shipments offer flexibility in adapting to changing market conditions. Organizations can quickly adjust their production and distribution processes to meet varying customer demands and minimize the risk of obsolescence.

f. Lean Manufacturing: JIT shipments align with the principles of lean manufacturing, which focus on eliminating waste and optimizing efficiency. By synchronizing production and supply chain activities, organizations can reduce inventory-related waste and achieve higher levels of operational excellence.

Overall, the shift from batch shipments to JIT shipments allows organizations to achieve cost savings, improve operational efficiency, enhance customer service, and adapt to the dynamic demands of the market.

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Control responsibilities include tracing, expediting and driver
hours administration Auditing and claims administration Pricing
issues Menu pricing system

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The Control responsibilities of a catering manager involve expediting and monitoring the driver hours, auditing and claims administration, pricing issues, and menu pricing system.

A catering manager is responsible for managing and supervising the daily operations of a catering service. The control responsibilities of a catering manager include several important tasks. Firstly, expediting and monitoring the driver's hours is a crucial responsibility that ensures that the catering service is efficient in delivering orders on time. Auditing and claims administration is another important responsibility of a catering manager. This involves reviewing financial records and ensuring that there are no discrepancies. A catering manager should also be able to resolve pricing issues and manage menu pricing systems. By doing so, the catering service can maximize profits while keeping customers happy. Overall, a catering manager should have excellent communication and organizational skills to manage control responsibilities effectively.

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The dollar difference in value between mutually exclusive projects can be found by calculating the ________ of the incremental cash flows.

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The dollar difference in value between mutually exclusive projects can be found by calculating the Net Present Value (NPV) of the incremental cash flows.

The Net Present Value (NPV) is a financial metric that calculates the present value of future cash flows generated by a project, taking into account the time value of money. When comparing mutually exclusive projects, the incremental cash flows represent the additional cash flows generated by choosing one project over another. By calculating the NPV of these incremental cash flows for each project and then comparing the results, one can determine the dollar difference in value between the projects.

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A company is considering a 6-year project that requires an initial outlay of $29,000. The project engineer has estimated that the operating cash flows will be $5,000 in year 1, $6,000 in year 2, $7,000 in year 3, $7,000 in year 4, $7,000 in year 5, and $8,000 in year 6. At the end of the project, the equipment will be fully depreciated, classified as 5-year property under MACRS. The project engineer believes the equipment can be sold for $4,000 at the end of the project. If the tax rate is 39% and the required rate of return is 16%, what is the net present value (NPV) of this project? (Answer to the nearest dollar.)

Answers

The net present value (NPV) of this project is approximately -$11,747.

Calculating the after-tax cash flows for each year by multiplying the operating cash flows by (1 - tax rate).

After-Tax Cash Flows:

Year 1: $5,000 × (1 - 0.39) = $3,050

Year 2: $6,000 × (1 - 0.39) = $3,660

Year 3: $7,000 × (1 - 0.39) = $4,270

Year 4: $7,000 × (1 - 0.39) = $4,270

Year 5: $7,000 × (1 - 0.39) = $4,270

Year 6: $8,000 × (1 - 0.39) = $4,880

Now calculating the present value of each cash flow and salvage value using the required rate of return (discount rate).

Present Value of Cash Flows:

Year 1: $3,050 / (1 + 0.16) = $2,634.48

Year 2: $3,660 / (1 + 0.16)² = $2,791.29

Year 3: $4,270 / (1 + 0.16)³ = $2,778.78

Year 4: $4,270 / (1 + 0.16)⁴ = $2,522.08

Year 5: $4,270 / (1 + 0.16)⁵ = $2,353.41

Year 6: $4,880 / (1 + 0.16)⁶ = $2,560.66

Present Value of Salvage Value:

$4,000 / (1 + 0.16)⁶ = $1,612.12

Total Present Value of Cash Flows = Sum of discounted cash values + Present value of salvage value

Total Present Value of Cash Flows =  $2,634.48 + $2,791.29 + $2,778.78 + $2,522.08 + $2,353.41 + $2,560.66 + $1,612.12 = $17,252.82

NPV = Total Present Value of Cash Flows - Initial Investment

NPV = $17,252.82 - $29,000 = -$11,747.18

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Provide an example of how you have dealt with opportunity cost – use your professional life, school life and/or your personal life – and discuss what the opportunity cost was/is and how you dealt with it. Are you happy with the choice you made?

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Opportunity cost is defined as the cost of a missed opportunity. In economic terms, it is defined as the cost of the next best alternative foregone.

Opportunity cost can be observed in different aspects of life such as personal life, school life, and professional life.  Opportunity cost can also be seen in different aspects of decision making, such as time, money, and effort. Here is an example of how I dealt with opportunity cost in my personal life: Example: Opportunity cost in personal life In my personal life, I had to choose between taking a job that pays well but will consume all my time, and a job that does not pay as much but has a flexible schedule. The opportunity cost was to forego my personal time and dedicate it to the job that pays well. I made because it has given me a work-life balance and allowed me to pursue other interests while still having a stable job.

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Budget constraints affect how the consumers make their decisions? Which of the following affect consumer's budget line? Change of preference (B) None of the above (C) Change of utility (D) Change of income and price ratio

Answers

The correct answer is a change of income and price ratio. change of income and price ratio.

budget constraints play a crucial role in shaping consumer decision-making. the budget line represents the different combinations of goods and services that a consumer can afford given their limited income and the prices of goods. it depicts the trade-offs consumers face when allocating their income between different goods.

changes in prices of goods also impact the budget line. if the price of one good increases while the prices of other goods and income remain constant, the budget line will rotate inward, reflecting the reduced purchasing power for that particular good. on the other hand, if the price of a good decreases, the budget line will rotate outward, indicating an increased ability to purchase more of that good.

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5. If injections are equal to leakages:

Group of answer choices

a.Unemployment will rise

b. Prices will rise

c. The economy will expand

d. The economy will neither expand nor contract

7.If the marginal propensity to consume (MPC) is 0.7, then the multiplier equals:

Group of answer choices

a.1/(1 - 0.7)

b.1/0.7

c.1/(1 - 0.3)

d.0.7

Answers

If injections are equal to leakages, the economy will neither expand nor contract (option d).

The marginal propensity to consume (MPC) of 0.7 indicates that the multiplier equals 1/(1 - 0.7) (option a).

5. When injections (such as investment, government spending, and exports) are equal to leakages (such as saving, taxes, and imports), it means that the total amount of income being injected into the economy is equal to the total amount of income being leaked out of the economy. In this case, the economy will be in a state of equilibrium, where there is no net change in the level of economic activity.

Therefore, option d, stating that the economy will neither expand nor contract, is the correct answer.

7. The multiplier is a concept used to measure the overall impact of a change in injections on the economy. It represents the multiple by which a change in injections will affect the overall income and output of the economy. The multiplier is calculated using the formula 1/(1 - MPC), where MPC is the marginal propensity to consume.

Given an MPC of 0.7, the multiplier can be calculated as 1/(1 - 0.7) = 1/0.3 = 3.33. This means that for every unit increase in injections, the overall income and output of the economy will increase by 3.33 units.

Therefore, option a, 1/(1 - 0.7), is the correct answer for the multiplier when the MPC is 0.7.

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Please help with the below questions. Thank you!

If the Fed begins buying bonds (government securities) from banks in an open market operation, then how is the money market graph affected?
a. increase in equilibrium interest rates, and increase in the equilibrium quantity of money
b. decrease in equilibrium interest rates, and decrease in the equilibrium quantity of money
c. decrease in equilibrium interest rates, and increase in the equilibrium quantity of money
d. increase in equilibrium interest rates, and decrease in the equilibrium quantity of money
e. no change in equilibrium interest rates, and no change in the equilibrium quantity of money

Answers

If the Fed begins buying bonds (government securities) from banks in an open market operation will lead to decrease in equilibrium interest rates and increase in the equilibrium quantity of money. Thus, the correct answer option is c.

When the Fed buys bonds from banks in an open market operation, it injects money into the economy. This increases the supply of money in the money market. According to the supply and demand framework, an increase in the supply of money leads to a decrease in equilibrium interest rates. This is because banks have excess reserves and are willing to lend at lower interest rates to stimulate borrowing and investment. As a result, the equilibrium quantity of money in the money market increases.

In more detail, when the Fed buys bonds from banks, it pays for the bonds with newly created money. This increases the reserves of the banks, leading to an increase in the supply of money. As the supply of money increases, the demand for money remains relatively stable, resulting in a surplus of money in the money market. To reduce their excess reserves, banks lower the interest rates they charge for loans, making borrowing more attractive. This decrease in interest rates stimulates borrowing and spending, ultimately increasing the equilibrium quantity of money in the money market.

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The liability section of the homeowners policy provides additional coverage for claim expenses, reimbursing the insured for all of the following Excert A. post-judgment interest. B. defense costs. C. punitive damages. D. lost earnings.

Answers

The liability section of the homeowner’s policy provides additional coverage for claim expenses, which reimburses the insured for defense costs. The correct option for the given statement is option B.

The homeowners' insurance liability coverage protects homeowners from lawsuits and financial losses. It is a type of insurance that covers an individual's liability for accidents and injuries that occur on their property. The liability section of the homeowner's policy provides additional coverage for claim expenses, reimbursing the insured for defense costs. If someone is injured on the property, the policy will pay for their medical bills and other expenses related to the injury.

Homeowner's liability insurance policy provides coverage for legal defense costs that result from claims of property damage or injury caused by the homeowner or their family. If someone files a lawsuit against the insured, the policy will pay for the legal fees and other associated expenses. However, it does not cover punitive damages, post-judgment interest, or lost earnings. The coverage depends on the individual's policy.

Therefore, option B is the correct answer.

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team development does not just happen.; At its core, team building is considered a process of transitioning separate individuals into a cohesive group. A group that is at once working interdependently and cooperatively to accomplish a specific set of purposes and goals. Assess the FIVE (5) stages involved in a team development (Tuckman model). Recommend the roles that the project leader should play in each stage to facilitate effective team development

Answers

Team building is an integral part of any project, and there are five stages in team development, according to the Tuckman model. These stages are forming, storming, norming, performing, and adjourning. The project leader should play a different role in each location to facilitate effective team development. Here are the five steps and the recommended parts for the project leader in each set:

1. Forming Stage: In this stage, team members get to know each other, and everyone is polite and respectful. The project leader should act as a facilitator, establishing goals and encouraging members to share their ideas. 2. Storming Stage: As team members begin to work together, they may have different opinions and approaches. Conflicts and disagreements may arise, and the project leader should act as a mediator to help resolve these issues. The leader should encourage open communication and support team members in learning to listen and respect each other's viewpoints. 3. Norming Stage: In this stage, the team starts to work together more smoothly, and everyone understands their role. The project leader should act as a mentor, providing guidance and feedback to team members. 4. Performing Stage: In this stage, the team is working together effectively, and everyone is focused on achieving the project goals. The project leader should act as a coach, helping team members stay motivated and providing support as needed. 5. Adjourning Stage: This is the final stage, where the project is completed, and the team members go their separate ways. The project leader should act as a celebrator, acknowledging the team's achievements and recognizing each member's contributions. In summary, the five stages of team development are forming, storming, norming, performing, and adjourning. The project leader should play different roles in each location to facilitate effective team development. These roles include facilitator, mediator, mentor, coach, and celebrator.

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What is the primary difference between economic analysis of climate change that recommend significant policy action, and those that recommend only a modest policy response?

Group of answer choices

The choice of the discount rate

The assumption about the extent of melting in Greenland and Antarctica

Whether the impacts in developing countries are calculated as a percent of total income or in absolute dollars

The choice of the price elasticity of demand for fossil fuels

Answers

The primary difference between economic analysis of climate change that recommend significant policy action and those that recommend only a modest policy response is the choice of the discount rate.

The discount rate is the rate at which future costs and benefits are discounted to their present value. A higher discount rate implies that future costs and benefits are given less weight than present costs and benefits, while a lower discount rate implies that future costs and benefits are given more weight than present costs and benefits.

Economic analyses that recommend significant policy action tend to use a lower discount rate, which means that they give more weight to the future costs and benefits of climate change. These analyses argue that the long-term costs of climate change are likely to be much higher than the short-term costs of reducing greenhouse gas emissions. Therefore, they recommend significant policy action to reduce greenhouse gas emissions and mitigate the impacts of climate change.

On the other hand, economic analyses that recommend only a modest policy response tend to use a higher discount rate, which means that they give less weight to the future costs and benefits of climate change. These analyses argue that the short-term costs of reducing greenhouse gas emissions are likely to be much higher than the short-term benefits. Therefore, they recommend only a modest policy response to reduce greenhouse gas emissions and mitigate the impacts of climate change.

In conclusion, the choice of the discount rate is the primary difference between economic analyses of climate change that recommend significant policy action and those that recommend only a modest policy response. The discount rate determines how much weight is given to the future costs and benefits of climate change, and therefore, it has a significant impact on the policy recommendations.

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Lita Lopez started Biz Consulting, a new business, and completed the following transactions during its first year of operations. a. Lita Lopez invested $66,000 cash and equipment valued at $32,000 in the company. b. The company purchased a bullding for $43,000 cash. c. The company purchased equipment for $5,600 cash. d. The company purchased $3,800 of supplies and $1,200 of equipment on credit. e. The company paid $940 cash for advertising expenses. f. The company completed a financial plan for a cllent and billed that client $4,600 for the service. 9. The company designed a financial plan for another client and immediately collected a $8,200 cash fee. h. L. Lopez withdrew $1,000 cash from the company for personal use. 1. The company received $3,600 cash as partial payment from the client described in transaction f J. The company made a partial payment of $600 cosh on the equipment purchased in transaction d. k. The company paid $1,900 cash for the secretary's wages for this period. Required: 1. Enter the amount of each transaction on individual items of the accounting equation. 2. Determine the company's net income. Complete this question by entering your answers in the tabs below. Determine the company's net income,

Answers

1. Some of the transactions of Biz Consulting are as follows: a) Lita Lopez invested $66,000 cash and equipment valued at $32,000, b) Purchased a building for $43,000 cash, etc.
2. The company's net income is $1,760.

1. The accounting equation represents the fundamental relationship between assets, liabilities, and owner's equity. Based on the provided transactions, the effects on the accounting equation are as follows:

Assets:

Cash: +$66,000 (transaction a) + $43,000 (transaction b) + $5,600 (transaction c) - $940 (transaction e) + $8,200 (transaction g) - $1,000 (transaction h) + $3,600 (transaction i) - $600 (transaction j) - $1,900 (transaction k) = $82,960

Equipment: +$32,000 (transaction a) + $1,200 (transaction d) = $33,200

Building: +$43,000 (transaction b) = $43,000

Supplies: +$3,800 (transaction d) = $3,800

Liabilities: None mentioned, so assumed to be $0.

Owner's Equity:

Investment: +$66,000 (transaction a)

Revenue: +$4,600 (transaction f) = $4,600

Expenses: -$940 (transaction e) -$1,900 (transaction k) = -$2,840

Withdrawal: -$1,000 (transaction h)

2. Net Income is calculated as Revenue - Expenses. In this case, $4,600 - $2,840 = $1,760. Therefore, the company's net income is $1,760.

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A higher stock price volatility should yield a _____ price for call option and a _____ price for put option. (relative to lower volatility).
A. higher; higher
B. higher; lower
C. lower; higher
D. lower; lower

Answers

A higher stock price volatility results in higher prices for both call s and put s, as stated in  a.

a. higher; higher.

a higher stock price volatility increases the potential for larger price swings in the underlying asset, leading to increased uncertainty.

This higher level of uncertainty benefits the holders of call s, as there is a greater chance of the stock price surpassing the strike price. consequently, the increased demand for call s raises their prices.

on the other hand, the holders of put s benefit from a higher stock price volatility since there is a greater likelihood of the stock price falling below the strike price. this increased demand for put s raises their prices as well. when stock price volatility is higher, it implies that there is greater uncertainty and potential for larger price swings in the underlying asset. this increased volatility affects the prices of call s and put s in different ways.

1. call options: a call  gives the holder the right, but not the obligation, to buy the underlying asset at a specified price (strike price) within a predetermined time frame. when stock price volatility is higher, there is an increased likelihood of larger upward price movements. this benefits call  holders because they have the potential to profit from the price appreciation of the underlying asset. as a result, the demand for call s increases, driving up their prices.

2. put options: a put  gives the holder the right, but not the obligation, to sell the underlying asset at a specified price (strike price) within a predetermined time frame. when stock price volatility is higher, there is an increased likelihood of larger downward price movements. this benefits put  holders because they have the potential to profit from the price decline of the underlying asset.

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Steve and Stephanie Pratt purchased a home in Spokane, Washington, for $400,000. They moved into the home on February 1 of year 1. They lived in the home as their primary residence until June 30 of year 5, when they sold the home for $700,000. (Leave no answer blank. Enter zero if applicable.)

a. What amount of gain on the sale of the home are the Pratts required to include in taxable income?

Answers

The amount of gain on the sale of the home are the Pratts required to include in taxable income.The amount of gain on the sale of the home are the Pratts required to include in taxable income is $180,000.

The gain realized from the sale of a primary residence is referred to as the home sale exclusion. The home sale exclusion allows you to exclude the profit you earned from the sale of your primary residence from your taxable income if you fulfill the eligibility criteria.

If you lived in the home as your primary residence for at least two of the previous five years before the sale and meet other requirements. The Pratts meet these eligibility criteria as they have lived in their house as their primary residence for over two years.

They also have not claimed an exclusion on another home sale within two years of the sale of this home. The home's basis is its original cost, which is $400,000. The amount of gain on the sale of the home are the Pratts required to include in taxable income is $180,000.

This is because they are eligible to exclude up to $500,000 of gain from the sale of their primary residence, and their gain was $300,000 more than the $500,000 exclusion.

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The table below shows the maximum quantities of two goods that each country can produce. If the countries follow the principle of comparative advantage, which of the following is a potential benefit of trade?

Answers

All of the answer choices provided are correct potential benefits of trade. Trade enables countries to expand consumption, reduce vulnerability, and shift production frontiers for higher levels of production.

Comparative advantage refers to the principle that countries should specialize in producing goods or services in which they have a lower opportunity cost compared to other countries.

In the given scenario, Wakanda has a comparative advantage in producing vibranium, as it can produce 8 tons of vibranium compared to Zamunda's 2 tons. On the other hand, Zamunda has a comparative advantage in producing gold, as it can produce 1 ton compared to Wakanda's 2 tons.

By following the principle of comparative advantage and engaging in trade, both countries can benefit in various ways. Firstly, trade can allow each country to increase consumption beyond its production possibilities frontier.

This means that they can access goods that they wouldn't be able to produce on their own, leading to a higher standard of living and more diverse choices for their citizens.

Secondly, trade can make countries less vulnerable to the actions of the other country.

By diversifying their sources of goods, countries can reduce their dependence on domestic production and become more resilient to disruptions or changes in the other country's policies.

Lastly, trade can lead to the expansion of the production possibilities frontier for each country.

Through specialization and trade, countries can allocate their resources more efficiently, increase productivity, and achieve higher levels of production in both goods. This allows for economic growth and the realization of higher overall welfare for both countries.

Therefore, all of the provided answer choices accurately capture potential benefits of trade when countries follow the principle of comparative advantage.

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The complete question is:

The table below shows the maximum quantities of two goods that each country can produce. If the countries follow the principle of comparative advantage, which of the following is a potential benefit of trade?

                    Vibranium (tons)     Gold (tons)

Wakanda           8 tons                  2 tons

Zamunda             2 tons                  1 ton

All of these answers are correct.

Trade can allow each country to increase consumption beyond its production possibilities frontier.

None of these answers is correct.

Trade can allow each country to become less vulnerable to the actions of the other country.

Trade can allow each country to shift its production possibilities frontier outward to higher levels of production.

HRM
journal entry on Labour relation which include Objective,
Reflective, Interpretive and decisional .

Answers

This HRM journal entry focuses on labor relations, encompassing the objective, reflective, interpretive, and decisional aspects of this field.

Labor relations play a crucial role in shaping the dynamics between employers and employees within an organization. Objectively, labor relations aim to establish a harmonious and productive working environment by promoting fair employment practices, effective communication channels, and appropriate policies and procedures. Reflectively, this entails analyzing past experiences and outcomes to identify areas for improvement, understand employee concerns, and foster positive labor-management relationships.

Interpretively, labor relations involve interpreting labor laws, collective bargaining agreements, and other relevant regulations to ensure compliance and mitigate conflicts. It also requires assessing the impact of external factors such as economic trends, technological advancements, and changing workforce demographics on labor relations strategies and practices. Decisionally, HR professionals are tasked with making informed decisions regarding labor relations, including negotiation and mediation processes, grievance handling, dispute resolution, and strategic workforce planning.

Overall, labor relations demand a comprehensive approach that encompasses the objective pursuit of fairness, reflective analysis of past experiences, interpretive understanding of legal and contextual factors, and decisional actions to manage labor-related challenges effectively. By embracing these dimensions, organizations can establish and maintain a positive and mutually beneficial relationship with their workforce, enhancing productivity, engagement, and overall business performance.

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Using the comparative advantage argument, explain how an
interest rate
swap can help investors to transform assets. Use appropriate
examples and diagrams to explain your answer.
(200word)

Answers

This question asks for an explanation of how an interest rate swap can help investors transform assets using the comparative advantage argument. The answer should include appropriate examples and diagrams to support the explanation.

An interest rate swap is a financial derivative contract between two parties that involves the exchange of interest rate payments. It allows investors to transform their assets by taking advantage of their comparative advantage in borrowing at different interest rates. To understand this concept, let's consider an example.

Suppose there are two investors, Investor A and Investor B. Investor A has a comparative advantage in borrowing funds at a fixed interest rate, while Investor B has a comparative advantage in borrowing funds at a variable interest rate. Investor A has a loan with a fixed interest rate, while Investor B has a loan with a variable interest rate. However, both investors prefer the opposite type of interest rate.

To transform their assets, Investor A and Investor B can enter into an interest rate swap agreement. In this agreement, Investor A agrees to pay Investor B the fixed interest rate payments, and Investor B agrees to pay Investor A the variable interest rate payments. By doing so, both investors can effectively transform their assets to match their preferences.

This diagram illustrates the interest rate swap arrangement:

Investor A:

Fixed Interest Rate Payments <------> Variable Interest Rate Payments

Investor B:

Variable Interest Rate Payments <------> Fixed Interest Rate Payments

Through the interest rate swap, Investor A is able to convert their fixed interest rate loan into a variable interest rate payment, which aligns with their preference. Similarly, Investor B transforms their variable interest rate loan into a fixed interest rate payment, which suits their preference.

By engaging in an interest rate swap, investors can utilize their comparative advantages to optimize their asset holdings and manage their interest rate exposure. This allows them to customize their risk and return profiles according to their specific needs and preferences.

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The only car shop in town offers two services: oil changes and tire rotations. The shop has two types of customers: one type of customer generally drives long distances on straight roads, and one type of customer generally drives short distances but makes many turns. Heavy-turn drivers are willing to pay $56 for a tire rotation and $14 for an oil change. Long-distance drivers are willing to pay $42 for a tire rotation and $42 for an oil change. Assume that the car shop can provide each of these services at a zero marginal cost. There are equal numbers of customers of each type.

Suppose the shop is able to use tying (bundling) to price oil changes and tire rotations, though it may still also sell each service individually. If the shop wants to maximize profits, how should it price the services (where Pbundle Stands for the price of the bundle, Prire stands for the price of a tire rotation, and Pol stands for the price of an oil change)?
Choose one or more:
A. Phundle $84, Ptire = $56, Poil > $42
B. Pbundle $70, Ptire = $56, Poil > $28
C. Pbundle = $84, Ptire $42, Poil = : $14
D. Pbundle = $84, Pire $56, Poil = $14
E. Pbundle = $70, Pire = $42, Poil > $28

Answers

To maximize profits, the car shop should price the services as follows: Pbundle = $84, Ptire = $56, and Poil > $42. Option A is the correct answer. This pricing strategy allows the shop to capture the maximum willingness to pay from both customer types and generate the highest possible profits. The answer will be divided into two paragraphs, with the first providing a summary and the second providing an explanation.

Option A (Phundle = $84, Ptire = $56, Poil > $42) is the correct answer. By bundling the oil change and tire rotation services together at a price of $84, the shop can capture the highest willingness to pay from both customer types. The heavy-turn drivers, who value the tire rotation at $56 and the oil change at $14, would find the bundle attractive as it offers both services at a lower price compared to their individual valuations. The long-distance drivers, valuing both services at $42 each, would also be willing to pay $84 for the bundle. By setting the price of the tire rotation at $56 and the oil change price at a level above $42, the shop can generate additional revenue from customers who prefer to purchase the services individually.

This pricing strategy maximizes the shop's profits by leveraging the different preferences of its customer segments. By offering a bundled package at a price higher than the individual valuations of heavy-turn drivers but lower than the sum of individual prices, the shop can capture surplus from both customer types. The specific pricing for the tire rotation and oil change allows the shop to extract the maximum willingness to pay from each service while still providing an attractive bundle price. Option A provides the optimal pricing strategy to maximize profits based on the given customer preferences and cost structure.

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Question 4 (4.0 + 3.5 = 7.5 Marks)
4.1. Calculate the daily earnings at risk (Dear) on a zero-coupon bond worth $500,000 with a market yield of 6.5% that matures in 6 years, if the one bad day in 20 days occurs tomorrow. A statistician estimates that the mean change in daily yields for this bond is zero and the standard deviation is 12 basis points.
4.2. What is the value at risk (VaR) over a 7-day horizon?

Answers

The value at risk (VaR) over a 7-day horizon is $5,839 (approx).

Daily earnings at risk (DEAR)DEAR is the one-day potential loss that can happen for a portfolio of assets. The steps to calculate DEAR are:

Find out the change in price of bond due to a change in the yield

Calculate the percentage of the yield change

Find out the value of DEAR Formula:

DEAR = -ΔV x p x ∆Y

where

ΔV = the size of the portfolio (∆V= $500,000)

p = the confidence interval at which DEAR is being calculated (p = 1/20 = 0.05)

∆Y = daily yield volatility

= standard deviation of the bond returns/100

= 0.12%/√252

= 0.007554%

DEAR = -ΔV x p x ∆Y

= -$500,000 x 0.05 x 0.007554%

= $188.85 or $189 (approx)

Value at Risk (VaR)The value at risk (VaR) is a popular method for quantifying market risk. It is a statistical measure of the potential loss of a portfolio of assets over a given period of time for a certain level of confidence. The formula for VaR is:

VaR = ∆V x z x ∆Y

where

ΔV = the size of the portfolio (∆V= $500,000)

z = the number of standard deviations corresponding to the confidence interval for the given time period and asset. For a 95% confidence interval,

z = 1.65.

∆Y = daily yield volatility

= standard deviation of the bond returns/100

= 0.12%/√252

= 0.007554%

Time period = 7 days

VaR = ∆V x z x ∆Y

= -$500,000 x 1.65 x 0.007554% x √7

= -$5,838.70 or $5,839 (approx)

Hence, the required solution is as follows:

Daily earnings at risk (DEAR) = $189 (approx

)Value at Risk (VaR) over a 7-day horizon = $5,839 (approx).

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Are horizontal complexity and formalization complementary
to one another? Relate your answer to the above statement in line
with relevant concepts. (Word limit 150 to 200
words).Management

Answers

The interplay between horizontal complexity and formalization is crucial for achieving a balance between structure and flexibility, coordination and innovation.

Horizontal complexity and formalization can be seen as complementary concepts in management. Horizontal complexity refers to the degree of differentiation and diversity within an organization.

In a highly horizontally complex organization, there are various departments, teams, and functions, each with their own specialized roles and tasks. This complexity can lead to coordination challenges, lack of clarity, and potential conflicts. Formalization can provide a solution by establishing standardized processes, guidelines, and communication channels.

On the other hand, excessive formalization can stifle creativity, innovation, and adaptability within an organization. It may hinder flexibility and responsiveness to changing environments. Horizontal complexity, with its diversity of perspectives and ideas, can counterbalance the rigidity of formalization.

Therefore, Organizations must carefully consider both aspects to optimize their performance and adaptability in a rapidly changing business landscape.

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Subject :investment analysis

Your broker estimates the following probabilities of return of the two shares that you are interested to invest based on the state of the economy:

State Probability Return On Share A Return on Share B

1 0.2 0.2 (0.1)
2 0.2 0.1 0.2
3 0.4 0.15 0.1
4 0.2 0.05 0.5

REQUIRED:
a) Calculate the expected return for each share.
b) Calculate the standard deviation for each share.
c) Calculate the co variance for each share.
d) In your opinion, which share is better to invest. Justify your answer.

Answers

To calculate the expected return for each share, we multiply the probability of each state by its respective return and sum them up: Ultimately The covariance measures the joint variability of two shares.

Based on the expected returns, standard deviations, and covariance, we can evaluate which share is better to invest in. A higher expected return implies a potentially higher gain, while a lower standard deviation indicates lower volatility or risk. Additionally, a negative covariance suggests the possibility of diversification benefits.To calculate the covariance for each share, we multiply the difference between each share's return and its expected return, and then multiply it by the probabilities of each state. The covariance measures the joint variability of two shares.

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What are signs of a pest infestation?

Answers

Signs of a pest infestation include visible pest sightings, damage to property or belongings, unusual sounds or odors, droppings or tracks, and nests or burrows.

Pest infestations can manifest in various ways, and being aware of the signs can help identify and address the problem promptly. One of the most apparent signs is the presence of pests themselves. Spotting live insects or rodents in your home or property is a clear indication of an infestation. Additionally, pests can cause damage to your property or belongings. Chewed wires, gnawed furniture, or holes in walls are common signs of pest activity.

Unusual sounds or odors can also indicate a pest infestation. Scratching or scurrying noises, particularly at night, may suggest the presence of rodents. Foul or musty smells can be an indicator of hidden pests or their droppings. Speaking of droppings, finding pest excrement or tracks is another telltale sign. Different pests leave distinctive droppings, such as small dark pellets for rodents or tiny black specks for bedbugs. Tracks, such as grease marks along walls or footprints in dusty areas, can reveal the presence of pests as well.

Nests or burrows are further evidence of a pest infestation. Pests like rats, mice, or birds may construct nests in hidden areas of your property, such as attics or crawl spaces. Meanwhile, burrows in your yard or garden can suggest an infestation of burrowing animals like moles or gophers.

In conclusion, signs of a pest infestation include visible pests, property damage, unusual sounds or odors, droppings or tracks, and nests or burrows. If you notice any of these signs, it is essential to take appropriate measures to address the infestation promptly. Seeking professional pest control services can help effectively eliminate the pests and prevent further damage to your home or property.

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Leslie purchased a file cabinet. Although she didn't get a written warranty, the doors of the cabinet are expected to open and close smoothly. What kind of warranty does Leslie have?

A. Limited

B. Implied

C. As is

D. Express

Answers

Leslie has an implied warranty for the file cabinet she purchased. An implied warranty is a type of warranty that is not explicitly stated but is automatically assumed by law based on the circumstances of the sale.

In this case, the expectation that the doors of the cabinet should open and close smoothly creates an implied warranty of fitness for a particular purpose. An implied warranty is a warranty that is not explicitly written or spoken but is automatically imposed by law to protect consumers. It is based on the understanding that certain expectations are inherent in the sale of goods or services. In Leslie's case, even though she did not receive a written warranty, the fact that the doors of the file cabinet are expected to open and close smoothly implies an unwritten guarantee of fitness for a particular purpose.

The implied warranty of fitness for a particular purpose arises when a seller knows or has reason to know the specific purpose for which the buyer is purchasing the goods and the buyer is relying on the seller's expertise to provide suitable products. In this situation, it is reasonable for Leslie to expect that the file cabinet she purchased should function properly and fulfill its intended purpose.

It's important to note that the specific laws regarding implied warranties may vary depending on the jurisdiction. However, in many countries, including the United States, implied warranties are generally recognized to protect consumers in situations where there is no explicit written warranty but certain expectations are reasonably assumed.

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Define the fourth industrial revolution and explain what makes it different from previous industrial revolutions.

Answers

The fourth industrial revolution refers to the ongoing transformation of industries and economies through the integration of advanced technologies such as artificial intelligence, robotics, internet of things, and big data analytics.

What sets it apart from previous industrial revolutions is the speed, scale, and scope of technological advancements and their impact on various aspects of society and the economy.

The fourth industrial revolution is characterized by the fusion of physical, digital, and biological systems. It involves the digitization and automation of processes, leading to increased efficiency, productivity, and innovation. This revolution blurs the boundaries between the physical and virtual worlds, enabling new forms of human-machine interaction and changing the way we live, work, and communicate.

Unlike previous industrial revolutions, the fourth industrial revolution is marked by the exponential growth of technology and its integration into all aspects of society, including industries, healthcare, transportation, and governance. It brings about a paradigm shift in the way businesses operate, with a focus on data-driven decision-making, interconnectedness, and personalized experiences.

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During the current year, Stan sells a tract of land for $800,000. The property was received as a gift from Maxine on March 10, 1995, when the property had a $310,000 FMV. The taxable gift was $300,000 because the annual exclusion was $10,000 in 1995. Maxine purchased the property on April 12, 1980, for $110,000. At the time of the gift, Maxine paid a gift tax of $12,000. In order to sell the property, Stan paid a sales commission of $16,000.

Read the requirements

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Question content area bottom

Part 1

Requirement a. What is

Stan's

realized gain on the sale?Select the formula, then calculate

Stan's

realized gain on the sale. (Do not round intermediary calculations. Only round the amounts you input in the cells to the nearest dollar.)

Minus:

Realized gain

Part 2

Requirement b. How would your answer to Part a change, if at all, if the FMV of the gift property was

$85,000

as of the date of the gift?

If the FMV of the gift property was $85,000 as of the date of the gift, Stan would have realized a gain on the sale of

Answers

Part(1) the realized sale on the gain is  $666,000. Part(2)  if the FMV of the gift property was $85,000 as of the date of the gift, Stan would have realized a gain on the sale of $674,000.

Part(1)

Given:
Sale price = $800,000

Price of property = $310,000

Price of tax =  $300,000

Basis = $10,000

The gift tax is given as:
T = 12000×(310,000-110,000)/(310000-10000)

T = 12000×(200,000/300,000)

T = $ 8,000

The gift tax paid is:
P = (110,000+T)

P = (110,000+8000)

P = $118,000

Realized gain = Sale price - (P+Sales commission)

Realized gain = $800,000 - ($118,000+$16,000)

Realized gain = $666,000

Hence, the realized sale on the gain is  $666,000.

Part(2)

Realized gain of basis ($110,000) is:
RG = Sale price- (Commission+Basis)

RG = $800,000 - ($110,000 - $16,000)

RG= $674,000

Hence, if the FMV of the gift property was $85,000 as of the date of the gift, Stan would have realized a gain on the sale of $674,000.

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How much must be invested in an annuity that will earn 5.9%
(compounded quarterly) where a payment of $8000 is made at the end
of each quarter for the next 5 years?

Answers

To receive $8,000 at the end of each quarter for the next 5 years with a compounded quarterly interest rate of 5.9%, one must invest approximately $154,386.50 initially.

To determine the amount that must be invested in an annuity, which will earn a compounded quarterly interest rate of 5.9%, and receive $8,000 at the end of each quarter for the next 5 years, we can use the present value of an annuity formula.

This formula calculates the initial investment required to generate a series of future cash flows. By plugging in the appropriate values, we can find the required investment amount.

The present value of an annuity formula is given by:

PV = PMT * [(1 - (1 + r)^(-n)) / r],

where PV is the present value, PMT is the payment amount, r is the interest rate per period, and n is the number of periods.

In this case, the payment amount is $8,000, the interest rate per period is 5.9% divided by 4 (since it is compounded quarterly), and the number of periods is 5 years multiplied by 4 (since there are 4 quarters in a year). Plugging in these values, we have:

PV = $8,000 * [(1 - (1 + 0.059/4)^(-5*4)) / (0.059/4)].

Evaluating this expression, we find that the required investment amount is approximately $154,386.50.

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while the porter five forces framework is built upon the structure-conduct-performance model of industrial economics, schumpeter’s view of competition as creative destruction builds upon:

Answers

Schumpeter's view of competition as creative destruction builds upon the concept of innovation and technological change.

Schumpeter's view of competition as creative destruction is based on the idea that competition in markets is not solely about price competition and market share, but rather about the transformative power of innovation and technological progress.

According to Schumpeter, competition is not just a process of firms vying for existing market positions but a dynamic force that drives economic development and growth. He believed that innovation and entrepreneurial activity are the primary drivers of economic progress. Through the introduction of new products, services, production methods, or business models, firms disrupt existing market structures and create new opportunities.

Schumpeter argued that this process of creative destruction is essential for long-term economic advancement. It involves the continuous replacement of old and inefficient firms and industries with new ones that bring forth technological advancements and productivity gains. The competitive pressure to innovate and adapt drives economic evolution, leading to higher levels of productivity, efficiency, and overall economic prosperity.

In contrast to the structure-conduct-performance model of industrial economics, which focuses on market structure and conduct as determinants of performance, Schumpeter's perspective emphasizes the central role of innovation and entrepreneurship in shaping the competitive landscape and driving economic outcomes. He viewed competition as a dynamic and transformative force that spurs progress through the constant introduction of new ideas and the destruction of outdated ones.

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Required information Use the following information for the Quick Studies below. (Algo) [The following information applies to the questions displayed below.] Equipment costing $60,000 with a 4-year useful life and an estimated $10,000 salvage value is acquired and started operating on January 1. The equipment is estimated to produce 5,000 units of product during its life. It produced 750 units in the first year.

Answers

The production efficiency for the first year is 60%.

Quick Study 1: Depreciation Expense Calculation

Depreciation expense represents the allocation of the cost of an asset over its useful life. To calculate the annual depreciation expense for the equipment:

Step 1: Determine the depreciable cost of the equipment.

Depreciable cost = Cost of the equipment - Salvage value

Depreciable cost = $60,000 - $10,000 = $50,000

Step 2: Determine the annual depreciation expense.

Annual depreciation expense = Depreciable cost / Useful life

Annual depreciation expense = $50,000 / 4 years = $12,500

Therefore, the annual depreciation expense for the equipment is $12,500.

Quick Study 2: Production Efficiency Calculation

To determine the production efficiency for the equipment:

Step 1: Calculate the expected production per year.

Expected production per year = Total units produced / Useful life

Expected production per year = 5,000 units / 4 years = 1,250 units

Step 2: Calculate the production efficiency for the first year.

Production efficiency = Actual units produced / Expected production per year

Production efficiency = 750 units / 1,250 units = 0.6 or 60%

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