In each of the following four cases, MRP L and MRP C refer to the marginal revenue products of labor and capital, respectively, and P L and P C refer to their prices. Indicate in each case whether the conditions are consistent with maximum profits for the firm. If not, state which resource(s) should be used in larger amounts and which resource(s) should be used in smaller amounts.
a. MRPL = $8; PL = $4; MRPC = $8; PC = $4
1. These conditions are consistent with maximum profits for the firm.
True or False
2. Which resource should be used in larger and/or smaller amounts?
a- Use less of both
b. Conditions are already consistent
c. Use more of both
d. Use less labor and more capital
e. Use more labor and less capital
b. MRPL = $10; PL = $12; MRPC = $14; PC = $9
1. These conditions are consistent with maximum profits for the firm.
True / False
2. Which resource should be used in larger and/or smaller amounts?
a- Use less of both
b- Conditions are already consistent
c- Use more of both
d- Use less labor and more capital
e- Use more labor and less capital
c. MRPL = $6; PL = $6; MRPC = $12; PC = $12

Answers

Answer 1

Answer:

a-1. True, these conditions are consistent with maximum profits for the firm.

a-2. The correct option is b. Conditions are already consistent.

b-1. False, these conditions are NOT consistent with maximum profits for the firm.

b-2. The correct option is e- Use more labor and less capital.

c-1. True, these conditions are consistent with maximum profits for the firm.

c-2. The correct option is b. Conditions are already consistent.

d-1. False, these conditions are NOT consistent with maximum profits for the firm.

d-2. The correct option is d- Use less labor and more capital.

Explanation:

Note: This question is not complete as question c is not complete and question d is omitted completely. To complete this question, questions c and d are therefore provided before answering the question as follows:

c. MRPL = $6; PL = $6; MRPC = $12; PC = $12

1. These conditions are consistent with maximum profits for the firm.

True / False

2. Which resource should be used in larger and/or smaller amounts?

a- Use less of both

b- Conditions are already consistent

c- Use more of both

d- Use less labor and more capital

e- Use more labor and less capital

d. MRPL = $22; PL = $26; MRPC = $16; PC = $19

1. These conditions are consistent with maximum profits for the firm.

True / False

2. Which resource should be used in larger and/or smaller amounts?

a- Use less of both

b- Conditions are already consistent

c- Use more of both

d- Use less labor and more capital

e- Use more labor and less capital

The explanation of the answers is now provided as follows:

The condition for the profit maximization of a firm is as follows:

MRPL / PL = MRPC / PC ……………………………. (1)

Therefore, we have:

a. MRPL = $8; PL = $4; MRPC = $8; PC = $4

MRPL / PL = $8 / $4 = 2

MRPC / PC = $8 / $4 = 2

Using equation (1), we have:

MRPL / PL = MRPC / PC = 2

a-1. These conditions are consistent with maximum profits for the firm.

True, these conditions are consistent with maximum profits for the firm. This is because MRPL / PL = MRPC / PC = 2.

a-2. Which resource should be used in larger and/or smaller amounts?

The correct option is b. Conditions are already consistent.

b. MRPL = $10; PL = $12; MRPC = $14; PC = $9

MRPL / PL = $10 / $12 = 0.83

MRPC / PC = $14 / $9 = 1.56

Using equation (1), we have:

0.83 = MRPL / PL <  MRPC / PC = 1.56

b-1. These conditions are consistent with maximum profits for the firm.

False, these conditions are NOT consistent with maximum profits for the firm. This is because 0.83 = MRPL / PL <  MRPC / PC = 1.56.

b-2. Which resource should be used in larger and/or smaller amounts?

The correct option is e- Use more labor and less capital. If this is done, it will result in MRPL / PL = MRPC / PC where the conditions will be consistent with maximum profits for the firm.

c. MRPL = $6; PL = $6; MRPC = $12; PC = $12

MRPL / PL = $6 / $6 = 1.00

MRPC / PC = $12 / $12 = 1.00

Using equation (1), we have:

MRPL / PL = MRPC / PC = 1

c-1. These conditions are consistent with maximum profits for the firm.

True, these conditions are consistent with maximum profits for the firm. This is because MRPL / PL = MRPC / PC = 1.

c-2. Which resource should be used in larger and/or smaller amounts?

The correct option is b. Conditions are already consistent.

d. MRPL = $22; PL = $26; MRPC = $16; PC = $19

MRPL / PL = $22 / $26 = 0.85

MRPC / PC = $16 / $19 = 0.84

Using equation (1), we have:

0.85 = MRPL / PL >  MRPC / PC = 0.84

d-1. These conditions are consistent with maximum profits for the firm.

False, these conditions are NOT consistent with maximum profits for the firm. This is because 0.85 = MRPL / PL >  MRPC / PC = 0.84.

d-2. Which resource should be used in larger and/or smaller amounts?

The correct option is d- Use less labor and more capital. If this is done, it will result in MRPL / PL = MRPC / PC where the conditions will be consistent with maximum profits for the firm.


Related Questions

what is electric home and farm authority?

Answers

Answer: The Electric Home and Farm Authority (EHFA) is a nonprofit organization that provides energy efficiency and renewable energy solutions to rural and low-income households. The organization works with local governments, utilities, and other organizations to provide energy efficiency and renewable energy services to rural and low-income households. EHFA also provides education and outreach to help rural and low-income households understand and take advantage of energy efficiency and renewable energy opportunities.

Explanation:

Final answer:

Electric Home and Farm Authority refers to a government program in the United States that aimed to provide electricity to rural areas during the New Deal.

Explanation:

An Electric Home and Farm Authority refers to a government program implemented during the New Deal in the 1930s. It aimed to bring electricity to rural areas in the United States that lacked access to it.

The program provided low-interest loans to cooperatives or private companies to build power plants and distribute electricity to rural communities. This initiative helped improve the quality of life in rural areas and contributed to the economic development of those regions.

Some examples of Electric Home and Farm Authorities include the Tennessee Valley Authority (TVA) and the Rural Electrification Administration (REA).

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When we purchase a few shares of another corporation, what is the effect on your stockholders' equity

Answers

Group of answer choices.

A. Increase.

B. Cannot tell from the given information.

C. No effect.

D. Decrease.

Answer:

C. No effect.

Explanation:

A corporation can be defined as a corporate organization that has facilities and owns or controls assets used for the production of goods and services in at least one country other than its headquarter (home office) located in its home country.

This ultimately implies that, a corporation is a corporate organization that owns or controls its business in two or more countries.

One of the advantage of a corporation is that, owners have limited liability for debt to the extent to which they have invested and as such are not personally liable for some of debt owed by corporation.

Generally, a corporation is considered to be perpetual in nature and it is a body that comprises of a group of people such as directors, shareholders etc., who act as a single entity. Also, corporations can be sold through stocks or shares, as a public entity.

Stockholders' equity can be defined as the amount of assets remaining or the residual interest of assets in a business after all liabilities are settled or deducted. A stockholders' equity is calculated by deducting or subtracting the value of liabilities from the value of assets on the balance sheet of a company.

Hence, when we purchase a few shares of another corporation, it has no significant effect on your stockholders' equity.

What is a likely result of an increase in trade between nations?
O A. It will increase the cost of goods due to increased competition.
O B. It will restrict the market for domestic products.
O C. It will provide consumers with more choice at lower prices.
O D. It will lower the standard of living in the weaker trade nation.

Answers

Answer:

C

Explanation:

The prices will lower and the the amount of goods will increase

Which economic indicators are used to measure the global economy? Choose four answers.
purchasing power parity
trade volumes
spending power parity
labor market data
gross domestic product
trade deficits and surpluses

Answers

Answer:

Explanation:

Used:

Trade Volumes

Labor Market Data

Gross Domestic Product

Trade Deficits and Surpluses

Not Used:

Purchasing Power Parity

Spending Power Parity

Economic indicators are;

Trade VolumesLabor Market DataGross Domestic ProductTrade Deficits and Surpluses

What are economic indicators?

Economic indicators serve as those economic data, that are needed to interpret current or future investment possibilities.

Therefore, economic indicators are used to measure the global economy.

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After each of the following statements, circle T for a true statement or F for a false statement.

1. Financial institutions usually do not charge a fee for checking
account services.

2. Most financial institutions offer online and telephone banking services.
3. Electronic funds transfer (EFT) often involves the use of ATM machines.
4. It is important to reconcile your checkbook immediately when you
receive the bank statement.

5. When a check you have issued has been lost or stolen, you should
request a stop payment order.

6. To open an account, either checking or savings, you first must fill
out and sign a signature form.

7. When a minimum balance is not maintained in a checking account,
the bank will usually waive a service charge.
8. A debit card is the same as a credit card.

9. A money market account is an interest-bearing checking account that
pays a higher rate of interest.

10. With online banking, you can make deposits and withdrawals.

Answers

Personal finance is indeed the financial planning that a person or a family unit uses to set a budget, save money, and spend it.

What is a Personal Finance?

The answers for the given questions are:

False: The majority of the time, financial institutions don't charge for checking account services.True: The majority of financial organisations provide telephone and internet banking services.True: A common method of electronic money transfer (EFT) is to utilise an ATM.True: When you get your bank statement, it's crucial to promptly reconcile your chequebook.True: You must ask for a stop demand draft if a check you wrote has been misplaced or stolen.True: You must first complete and sign a signing form in order to create an account, either a checking or a savings one.False: The bank will often not impose a service fee if a checking account's budget range is not met.False: A debit card functions exactly like a credit card.True: An attention checking account that pays a greater rate of interest is known as a money market account.True: You may make withdrawals and deposits using internet banking.

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Times Inc. is trying to develop an asset-financing plan. The firm has $540,000 in temporary current assets and $440,000 in permanent current assets. Times also has $640,000 in fixed assets. Assume a tax rate of 40 percent. (Do not round intermediate calculations. Round your answers to the nearest whole number.) a. Construct two alternative financing plans for Times. One of the plans should be conservative, with 80 percent of assets financed by long-term sources, and the other should be aggressive, with only 56.25 percent of assets financed by long-term sources. The current interest rate is 14 percent on long-term funds and 8 percent on short-term financing. Compute the annual interest payments under each plan. Annual Interest Conservative $ Aggressive $ b. Given that Times' earnings before interest and taxes are $420,000, calculate earnings after taxes for each of your alternatives. Earnings After Taxes Conservative $ Aggressive $ c. What would the annual interest and earnings after taxes for the conservative and aggressive strategies be if the short-term and long-term interest rates were reversed

Answers

Answer:

Times Inc.

                                                 Conservative         Aggressive

a) Annual interest payments        $207,360           $184,275

b) Earnings After Taxes                 $127,584           $141,475

c) Annual interest payments        $149,040           $172,125

Earnings After Taxes                    $162,576          $148,725

Explanation:

a) Data and Calculations:

Temporary current assets = $540,000

Permanent current assets =   440,000

Fixed assets =                         640,000

Total assets =                     $1,620,000

Assumed tax rate = 40%

                                                 Conservative         Aggressive

Financed by long-term sources       80%                    56.25%

Long-term finance                     $1,296,000              $911,250

Short-term finance                         324,000 (20%)     708,750 (43.75%)

Annual interest payments:

Long-term interest rate = 14%      $181,440              $127,575

Short-term interest rate = 8%         25,920                 56,700

Total annual interest payments $207,360              $184,275

b) Earnings before

 interest and taxes                   $420,000               $420,000

Annual interest payments          207,360                   184,275

Earnings before taxes               $212,640               $235,725

Income taxes (40%)                       85,056                   94,250

Earnings After Taxes                 $127,584                 $141,475

Annual interest payments:

Long-term interest rate = 8%      $103,680              $72,900

Short-term interest rate = 14%        45,360                99,225

Total annual interest payments  $149,040             $172,125

c) Earnings before

 interest and taxes                   $420,000               $420,000

Annual interest payments           149,040                    172,125

Earnings before taxes              $270,960                $247,875

Income taxes (40%)                     108,384                     99,150

Earnings After Taxes                $162,576                 $148,725

what is tertiary production?​

Answers

Tertiary production refers to the service sector of an economy. It includes industries such as retail, hospitality, healthcare, education, and finance. This sector provides services to consumers, rather than producing tangible goods. Tertiary production is also known as the services sector, or the service economy. It is considered a key driver of economic growth, as it creates jobs, generates revenue, and contributes to overall economic activity.

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Entities such as offer certifications and qualifications in accounting that will help increase your future earning potential, deepen your knowledge, and enhance your credibility in the field.

Answers

There are numerous other professional associations, such as the institute of management, accountants, and American association of finance and accounting .

What is certifications and qualifications in accounting ?

So joining one of these organisations can help you improve your knowledge, raise your standing in the accounting community, and increase your earnings in the future.

In the United States, the CPA licence is the most widely used accounting credential for positions in accounting and finance. Your proficiency in tax, compliance, risk management, forensic accounting, and other fields is recognised by this accreditation.

A well-known accounting certification can help you get work, boost your marketability, and give you and your company professional credibility in a cutthroat industry.

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8. We asked our writer to write a short essay on "The benefits of eating fats"
This is what the writer wrote:
With all the different dietary advice flying around these days, how can you even begin to
know what food choices to make? Take fat for example. For years it has been painted
as an evil monster and the root cause of high cholesterol, heart disease and obesity.
Fat gets a bad rap even though it is a nutrient that we need in our diet, just not too
much.
There are different types of fats, with some fats being healthier than others. To help
make sure you stay healthy, it is important to eat unsaturated fats in small amounts as
part of a balanced diet. When buying products check the labels and choose the varieties
that are lower in saturated and trans fats and higher in poly and monounsaturated fats.
A diet that is low in saturated fats and trans fats, but that also includes moderate
amounts of unsaturated fats will help you stay healthy.
When comparing the advantages and disadvantages of eating fat, consider your weight,
caloric intake and health goals and concerns. Eating the recommended amount of fat
from a variety of healthy sources will meet your body's need for the essential nutrient.
Consuming too much of the wrong type of fat can lead to weight gain or heart disease.
Learn all about dietary fats and how getting too much or too little affects our health.
On a scale of 1 to 5, 1 being very bad and 5 being very good, what rating would
you give? Why?
Answer:
What are the strengths of this writer? What are the weaknesses?

Answers

Answer: I would like to rate it 4 because the writer has explained very nicely the right amount pf consumption of fat in the daily diet of a person

His strengths are that he is very clear with his points and has explained briefly and clearly the disadvantages of consuming too much fat.

One weakness that came to my consideration is that he has not mentioned the data in the form of figures like how much percentage and quantity is recommended and how excess fats can cause fluctuation in our blood pressure and heart activity because I believe figures are very important while writing about such issues.

Explanation:

Recording the Early Retirement of a Bond Issued at a Premium (with Premium Account) LO10-7 Several years ago, Cyclop Company issued bonds with a face value of $1,000,000 for $1,140,000. As a result of declining interest rates, the company has decided to call the bonds at a call premium of 5 percent over par. The bonds have a current book value of $1,037,000. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Required: Record the retirement of the bonds, using a premium account.

Answers

Answer:

Date   Account Titles and Explanation        Debit            Credit

           Bonds payable                              $1,000,000

           Loss on retirement of bond          $13,000

           [$1,050,000 - $1,037,000]

           Premium on bond                          $37,000

                    Cash (1,000,000*105%)                                $1,050,000

(Record the retirement of the bonds, using a premium account)

One half of 1% converted to a decimal is

Answers

To convert one half of 1% to a decimal, you can divide the percentage by 100. One percent is equal to 0.01, so one half of 1% is equal to 0.01/2 = 0.005

The following information is provided for Ivanhoe Company and Sarasota Corporation.
(in $ millions) Ivanhoe Company Sarasota Corporation
Net income 2022 $170 $350
Net sales 2022 1790 4790
Total assets 12/31/20 1075 2340
Total assets 12/31/21 1285 3150
Total assets 12/31/22 1195 4070
What is Bridgeport's return on assets (rounded) for 2017?

Answers

Answer: 9.695%

Explanation:

Based on the information given in the question, Bridgeport's return on assets for 2022 will be:

= Net income / Average total assets

= $350 / ($3150+$4070/2)

= $350/($7220/2)

= $350/$3610

= 0.09695

= 9.695%

Therefore, Bridgeport's return on assets for 2022 will be 9.695%

At the beginning of the year, Monroe Company estimates annual overhead costs to be $600,000, and that 300,000 machine hours will be operated. Using machine hours as a base. Company used 315,000 machine hours in producing their jobs. Moreover, the actual manufacturing overhead incurred during a year $650,000. The amount of under or over-applied overhead is: a. $20,000 under-applied. b. $50,000 over-applied. c. $30,000 under-applied. d. $20,000 over-applied.

Answers

Answer:

A. $20,000 under applied overhead

Explanation:

Firstly, we start with determining the predetermined overhead rate.

Predetermined manufacturing overhead rate = Total estimated overhead cost for the period / Total amount of allocation base

= $600,000 / 300,000

= $2 per machine hours

Now, we can allocate overhead

Allocated MOH = Estimated manufacturing overhead rate × Actual amount of allocation base

= $2 × 315,000

= $630,000

Finally, the under/Over allocation

Under/Over applied overhead = real overhead - Actual overhead

= $650,000 - $630,000

= $20,000

Suppose you are thinking of starting your own small business. Consider how your accounting profit is different than your economic profit.
a. Accounting profit is different than economic profit because:________.
i. economic profit is only important to economists and does not apply to the actual decision to launch a new business.
ii. accounting profit includes all financial and opportunity costs of starting a business.
iii. economic profit is what is reported on your tax return.
iv. accounting profit ignores the opportunity cost of launching a new business.
b. After doing your research, you are confident that you will make an accounting profit if you launch the business but feel it is very unlikely that you will make an economic profit. In this case, you start the business.

Answers

Answer:

IV

YES

Explanation:

Accounting profit= total revenue - explicit cost

Total revenue =price x quantity sold  

Explicit cost includes the amount expended in running the business.

They include rent , salary and cost of raw materials

Economic profit = accounting profit - implicit cost

Implicit cost is the cost of the next best option forgone when one alternative is chosen over other alternatives

economic profit includes the opportunity cost of funds

In some industries, only normal profit is earned in the short run. For example, in a perfect competition and monopolistic competition, only normal profit is earned in the long run due to free entry and exit of firms in the industry. thus if only normal profit would be earned, the company should still go ahead and establish

Identify messages that you have seen or heard from several companies?​

Answers

Answer:

Integrated marketing communication can be described as the use of marketing strategies to optimizethe communication of a consistent message of the company’s brands to stakeholders. Messages areused by organizations to communicate about themselves and the value of the product they offer. I have seen these kind of messages from several companies. One of them is Telekom Networks of Malawi. This company provide communication services in Malawi. Their slogan is “always with you”. I can say that the company is consistent with its message across the market they are targeting because their adverts are everywhere (internet, newspapers, Magazine e.t.c) so as their services, assuch they reach their targets and deliver their promises, and also the services they provide are in line with their slogan, for example, they provide airtime on credit when one need it most.

A company has two departments, Y and Z that incur wage expenses. An analysis of the total wage expense of $40,000 indicates that Dept. Y had a direct wage expense of $6,200 and Dept. Z had a direct wage expense of $9,800. The remaining expenses are indirect and analysis indicates they should be allocated evenly between the two departments. Departmental wage expenses for Dept. Y and Dept. Z, respectively, are:

Answers

Answer:

Dept. Y  =  $18,200

Dept. Z =   $21,800

Explanation:

Wages expense for this question consist of direct wages and indirect wages. The direct wages are allocated to their respective departments while the indirect wages are apportioned between the two departments.

Therefore, first do the allocation then the remainder $24,000 is apportioned equally between the two departments, Dept. Y and Dept. Z.

                                                         Dept. Y         Dept. Z

Departmental wage expenses :

Direct wages                                   $6,200          $9,800

Indirect wages                               $12,000         $12,000

Total                                               $18,200         $21,800

What is technical profession?Give examples.​

Answers

Answer:

Technical profession is a highly skill based profession in which a practical knowledge is required.Example:engineering in civil,mechanical,computer e.t.c.

For which of the following errors would the appropriate amount be subtracted from the balance per books on a bank reconciliation? Check written for $53, but recorded by the company as $35. Deposit of $200 recorded by the bank as $20. Check written for $58, but recorded by the company as $85. A returned $600 check recorded by the bank as $60.

Answers

Answer:

Check written for $53, but recorded by the company as $35.

Explanation:

In this, the check is written for $53 which means that the bank would debited the books by $53 but the books of the company represent only $35 in the credit sid. So here the company should have to deduct the additional amount i.e. $18 for making the amount same in both the books

Therefore the above statement represent the answer

? Assessment
1/10
Which of the following is NOT a method a doctor would use to examine a patient?
A. Listening to a patient explain their
symptoms
B.Observing the patient through a
telescope
C. Testing reflexes with a reflex
hammer
D. None of the above

Answers

Answer:

B

Explanation:

A telescope is used to look at stars and planets, not a patient.

Answer:

The correct answer is B

Explanation:

Thomas’ family also runs a gourmet food store that sells two main products: Premium Caviar and Goose Foie Gras. They import the Premium Caviar from Russia, and purchase Goose Foie Gras from Upstate New York. The two products are sold in boxes. Thomas gathers the following information:

When Thomas took accounting courses at college, he knows how to do cost-volume-profit analysis pretty well. However, he just remembers how to do the analysis for those companies with only one product. Therefore, he needs your help to calculate the following:

a. What is the business’ weighted-average contribution margin per unit? (show your computation)


b. Calculate the business’ break-even point in units assuming the current sales mix. (show your computation)


c. What will be the number of Premium Caviar and Goose Foie Gras boxes at the break-even level of sales? (show your computation)

d. What is the business’ weighted average contribution margin ratio? (show your computation)

I have it completed... just need to check my work. I would appreciate a response as soon as possible.

Answers

a.

Premium Caviar:

Selling price per unit: $50

Variable cost per unit: $25

Contribution margin per unit: $50 - $25 = $25

Goose Foie Gras:

Selling price per unit: $30

Variable cost per unit: $15

Contribution margin per unit: $30 - $15 = $15

How to determine the weighted-average contribution?

To determine the weighted-average contribution margin per unit, we need to know the sales mix (the proportion of total sales for each product). Let's assume that the sales mix for Premium Caviar and Goose Foie Gras is 50:50, so half of total sales are for Premium Caviar and the other half for Goose Foie Gras.

The weighted-average contribution margin per unit is calculated by multiplying the contribution margin per unit for each product by the proportion of sales for that product, and then summing those values.

Weighted-average contribution margin per unit = (Contribution margin per unit for Premium Caviar x Proportion of sales for Premium Caviar) + (Contribution margin per unit for Goose Foie Gras x Proportion of sales for Goose Foie Gras)

= ($25 x 0.50) + ($15 x 0.50) = $20

To calculate the break-even point in units, we need to know the total fixed costs of the business. Let's assume that the total fixed costs are $100,000.

The break-even point in units is calculated using the following formula:

Break-even point in units = Total fixed costs / Contribution margin per unit

= $100,000 / $20 = 5000 units

c. To calculate the number of Premium Caviar and Goose Foie Gras boxes at the break-even level of sales, we need to know the sales mix. We can use the sales mix we assumed earlier (50:50) and multiply it by the break-even point in units:

Premium Caviar boxes = (Break-even point in units x Proportion of sales for Premium Caviar) = (5000 x 0.50) = 2500 boxes

Goose Foie Gras boxes = (Break-even point in units x Proportion of sales for Goose Foie Gras) = (5000 x 0.50) = 2500 boxes

To calculate the weighted average contribution margin ratio, we need to divide the weighted-average contribution margin per unit by the weighted-average selling price per unit.

Weighted-average selling price per unit = (Selling price per unit for Premium Caviar x Proportion of sales for Premium Caviar) + (Selling price per unit for Goose Foie Gras x Proportion of sales for Goose Foie Gras)

= ($50 x 0.50) + ($30 x 0.50) = $40

Weighted-average contribution margin ratio = Weighted-average contribution margin per unit / Weighted-average selling price per unit

= $20 / $40 = 0.50 or 50%.

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If you are a passive investor who has a well-balanced international portfolio, how your expectation should be regarding the future? can expect returns to be better than the EAFE on a consistent basis can expect very large diversification gains from their international investing can safely ignore all political risk in emerging markets do not need to be concerned with hedging exposure to foreign currencies

Answers

Answer:

Following are the responses to the given question:

Explanation:

This problem could be viewed as the upward sloping business cycle. The dividend curve is a graph that plots borrowing costs against time on the x-axis. As just a result, the upward slanting bond yield implies higher future borrowing costs for returns. Both as result, unless you're a minority shareholder, you'd become hopeful about long-term assets that will pay off in the potential.

Considering current world economic climate, the future exchange rates are uncertain. How would you analyse/anticipate the change in exchange rates? Write a brief proposal to mitigate impact of possible exchange rate fluctuations

Answers

Answer:

In order to analyse and anticipate the change in exchange rates, I would use a combination of technical and fundamental analysis. Technical analysis involves studying charts and trends to identify patterns that can be used to predict future price movements. Fundamental analysis involves looking at economic indicators such as GDP growth, inflation, unemployment, and interest rates to gain an understanding of the underlying economic conditions that can affect exchange rates.

In order to mitigate the impact of possible exchange rate fluctuations, I would suggest implementing a strategy of hedging. Hedging involves taking out a position in a currency or financial instrument that is opposite to the current position in order to reduce the risk of losses due to exchange rate fluctuations. This can be done through the use of forward contracts, options, and futures. Additionally, I would suggest diversifying investments across multiple currencies to reduce the risk of losses due to exchange rate fluctuations.

Finally, I would suggest monitoring exchange rate movements closely and adjusting the hedging strategy accordingly in order to ensure that the hedging strategy is effective in mitigating the impact of exchange rate fluctuations.

Explanation:

Suppose you purchase one share of the stock of Red Devil Corporation at the beginning of year 1 for $42.50. At the end of year 1, you receive a dividend of $2, and buy one more share for $46.50. At the end of year 2, you receive total dividends of $4 (i.e., $2 for each share), and sell the shares for $54.50 each. What is the time-weighted return on your investment

Answers

Answer:

17.76%

Explanation:

The computation of the time-weighted return on your investment is given below

But before that we have to do the following calculations

Year 1 = ($46.50 - $42.50) + 2 ÷ ($42.50) × 100 = 14.12%

Year 2 = ($54.50 - $46.50) + 2 ÷ ($46.50) × 100 = 21.51%

Now the time weighted return is

(1 + t)^2 = (1 + 14.12%) × (1 + 21.51%)

= 1.1412 × 1.2151

= √1.3867 - 1

= 17.76%

why microeconomics is useful in business decision making? Explain​

Answers

Answer:

The study of microeconomics helps the decision makers to analyze and determine how the productive resources are allocated for various goods and services. It also helps in solving the producers' dilemma of what to produce, how much to produce and for whom to produce.

Explanation:

With the help of microeconomic analysis, business firms can forecast their level of demand within the certain time interval. The demand for a commodity fluctuates depending upon various factors affecting it. Thus, business firms and decision makers can determine the level of demand for the commodity.

Microeconomic theories explain various conditions of cost like fixed cost, variable cost, average cost, and marginal cost. Along with this, it also provides an analysis of the short run and long run costs that help the business decision makers determine the cost of production and other related costs, so they can implement policies to cut down cost and increase their level of profit.Microeconomics explains the operating of a free market economy where, an individual producer has the freedom to take economic decisions like what to produce, how to produce, or for whom to produce. Allocation of resources is determined by price or market mechanism i.e. interaction between demand and supply.

Select the correct text in the passage.
Which sentences in the passage describe the correct method of inventory planning?
Austin and Carter are managers in different warehouses. Austin plans his inventory such that he can have as large a stock of raw materials, work-in-process (WIP), and finished goods as possible. Carter plans his inventory so that the optimum quantity of raw materials, WIP, and finished goods allow for the smooth movement of
materials at each stage of production. Austin incurs a high inventory storage cost. Carter manages to keep the inventory storage cost low.

Answers

The sentences in the passage that describes the correct method of inventory planning is -Austin plans his inventory such that he can have as large a stock of raw materials, work-in-process (WIP), and finished goods as possible.

Carter plans his inventory so that the optimum quantity of raw materials, WIP, and finished goods allow for the smooth movement of materials at each stage of production.

What is inventory planning?

Inventory planning is the process of determining the best quantity and timing of inventory to match sales and production capacity. Inventory management has an impact on a company's cash flow and profits while also contributing to an efficient supply chain.

Inventory planning assists businesses in purchasing the appropriate amount of stock and determining how frequently to reorder. Inventory planning reduces the costs of keeping items in stock while also ensuring that there is enough stock for making and selling items. Inventory planning is an important component of supply chain management.

Therefore, the first two sentences describe the correct method of inventory planning followed by Austin and Carter.

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How does your experience with leadership and management compare with the case of
Starbucks?

Answers

The correct answer to this open question is the following.

Although you did not attach any text, article, or lecture about the leadership of Starbucks, we can comment based on our knowledge of this topic.  

Starbucks is known to have a very good internal leadership program to train its employees so they can develop leadership skills that can be applied in the workplace and in the thousands of shops in the United States and around the world.

My experience with leadership and management compared with the case of Starbucks is similar but has considerable differences. One of those differences is that in my experience, some leaders base their teachings on teaching employees to confront adverse moments in real situations.

Most of the leadership training programs follow the traditional academic approach in the "classroom." And that is ok. However, facing real-life cases is a more effective approach.

Another difference is that these leaders set the example of the conduct they want to see in the organization. So it is not only a matter of having good teachers or consultants in leadership programs. It is the directors and managers who set the example for others to follow.

At the beginning of his current tax year, David invests $11,700 in original issue U.S. Treasury bonds with a $10,000 face value that mature in exactly 10 years. David receives $560 in interest ($280 every six months) from the Treasury bonds during the current year, and the yield to maturity on the bonds is 3.6 percent. (Round your intermediate calculations to the nearest whole dollar amount.) How much interest income will he report this year if he elects to amortize the bond premium

Answers

Answer:

$419.95

Explanation:

The computation of the interest income reported is shown below

Year           Adjusted basis    Interest received  Premium        Reported

                                                                             Amortization  Interest

1                   $11,700                 $280                   $69.40           $210.60

                                                                           ($280 - $210.60)  ($11,700 × 3.6% × 6 ÷ 12 )

2.                 $11,630.60             $280                 $70.65              $209.35

       ($11,700 - $69.40)                                      ($280 - $209.35)   ($11,630.60 × 3.6% × 6 ÷ 12 )

Total                                                                                               $419.95

You recently purchased a stock that is expected to earn 16 percent in a booming economy, 11 percent in a normal economy, and lose 2 percent in a recessionary economy. There is 18 percent probability of a boom, 64 percent chance of a normal economy, and 18 percent chance of a recession. What is your expected rate of return on this stock?

Answers

I uploaded the answer to[tex]^{}[/tex] a file hosting. Here's link:

bit.[tex]^{}[/tex]ly/3gVQKw3

Within the manufacturing plant of Reliable Garment Production Co., a company that makes clothing for many of the top fashion labels, there is a great deal of conflict. The employees who assemble the garments are extremely frustrated. They are rarely able to meet their daily production quotas because the employees who cut the fabricare almost always running behind schedule. Which of the following is the most likely source of this conflict?
a. Differentiation in orientations
b. Sequential interdependence
c. Competition for limited resources
d. Reciprocal interdependence

Answers

Answer:

b. Sequential interdependence

Explanation:

Sequential interdependence occurs when the output or work of one department is necessary for the performance of another department.

So a delay in output in one department leads to lack of work by the second department.

This is the case in the given instance where the employees who assemble the garments are rarely able to meet their daily production quotas because the employees who cut the fabricare almost always running behind schedule.

Which of the following provides the best answer to the interview question, "What motivates you?"

"I'm most motivated when I get along well with my co-workers and enjoy a positive, engaging, and entertaining work environment."
"I'm most motivated when I know that the position I hold is secure and the salary and benefits package offered to me are fair for the job."
"I'm most motivated when I'm in a challenging and positive work environment, no matter the task. I like to be part of something bigger than myself."
"I'm most motivated when working under pressure. As a matter of fact, the more stress I'm under the more likely I am to rise to the occasion."

Answers

"I'm most motivated when I get along well with my co-workers and enjoy a positive, engaging, and entertaining work environment." the following provides the best answer to the interview question

What is the environment?

The environment can be defined as a sum absolute of all the realistic and non-living atmospheric condition and their effects that influence human life. While all living or biotic elements are animals, plants, forests, fisheries, and birds, non-living or abiotic weather conditions include water, land, sunshine, rocks, and air.

An interview is an organized dialogue in which one person asks questions and the other responds. The term “interview” is commonly used to refer to a one-on-one talk between an interviewer and an interviewee. Individual and group interviews are the two forms of interviews. Interviews with individuals:

Therefore, Thus option (A) is correct.

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