Answer:
B. bank reserves increase by $40 million and the money supply could increase by a maximum of $160 million.
Explanation:
In this case there will multiplier effect in the economy. Central bank will pay $40 million by buying bond and it will be deposited in the bank. Bank would its reserves increase by $40 million and of that 25% will locked as reserve requirement but remaining will be circulated in the economy.
Multiplier = Deposit / Reserve Requirement
= 40/0.25
= 160
Therefore, The bank reserve will increase by $40 million and money supply will increase maximum by $ 160 million.
Suppose we observe the following rates: 1R1 = 13 percent, 1R2 = 16 percent, and E(2r1) = 10 percent. If the liquidity premium theory of the term structure of interest rates holds, what is the liquidity premium for year 2, L2?
a)8.7 percent
b)9.1 percent
c)9.7 percent
d)10.0 percent
Answer:
b)9.1 percent
Explanation:
Data provided in the question:
1R1 = 13 percent,
1R2 = 16 percent3
E(2r1) = 10 percent
Now,
The liquidity premium theory is given as:
1 + 1R2 = [tex][ ( 1 + 1R1)\times(1 + E(2r1) + L2 )]^{\frac{1}{n}}[/tex]
for year 2, n = 2
Thus,
1 + 0.16 = [tex][ ( 1 + 0.13)\times(1 + 0.10 + L2 )]^{\frac{1}{2}}[/tex]
or
1.16² = [ 1.13 × ( 1.10 + L2)]
or
1.191 = 1.10 + L2
or
1.191 - 1.10 = L2
or
L2 = 0.091
or
L = 0.091 × 100% = 9.1%
b)9.1 percent
Investment X offers to pay you $4,200 per year for eight years, whereas Investment Y offers to pay you $6,100 per year for five years.
a. Calculate the present value for Investment X and Y if the discount rate is 5 percent. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)b. Calculate the present value for Investment X and Y if the discount rate is 15 percent. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
Answer:
PVxa = $27,132.00, PVya = $26,413.00,
Explanation:
Present value (PV) is the value of the future expected cash flow. PV rests on the idea that the worth of a cash received is more than that of the cash promised to be received in the future. To calculate PV a stream of incomes to be received a number of period in the future, the following formula is used:
[tex]PV = C[\frac{1-(1+r)^{-n} }{r} ][/tex]
Where PV = present value
C = cash flow amount from the investment
r = discount rate
n = number of period, in this case years, to receive the cash flow.
The PV formula above is therefore employed to answer the question as follows:
Answer to question (a)
For Investment X in question (a)
PVxa = $4,200 * {[1-(1+r)^-n]/r}
PVxa = $4,200 * {[1-(1+0.05)^-8]/0.05}
PVxa = $4,200 * 6.463212759
PVxa = $27,145.49
For Investment Y in question (a)
PVya = $6,100*{[1-(1+r)^-n]/r}
PVya = $6,100*{[1-(1+0.05)^-5]/0.05}
PVya = $6,100 * 4.329476671
PVya = $26,409.81
Answer to question (b)
For Investment X in question (b)
PVxb = $4,200 * {[1-(1+r)^-n]/r}
PVxb = $4,200 * {[1-(1+0.15)^-8]/0.15}
PVxb = $4,200 * 4.487321508
PVxb = $18,846.75
For Investment Y in question (b)
PVyb = $6,100*{[1-(1+r)^-n]/r}
PVyb = $6,100*{[1-(1+0.15)^-5]/0.15}
PVyb = $6,100 * 3.352155098
PVyb = $20,448.15
Where PVxa, PVya, PVxb and PVyb represents PV for X and Y in questions (a) and (b).
Decisions:
1. In question (a) part where the PV of $27,145.49 of X is greater than $26,409.81 of investment Y, it is better to invest on investment X.
2. In question (b) part where the PV of $20,448.15 of Y is now greater than $18,846.75 of investment X, it is better to invest on investment Y.
The present value of Investment X at a 5% and 15% discount rate is $28,353.03 and $17,276.08 respectively, while Investment Y at the same rates is $26,320.73 and $18,716.64. The chosen discount rate significantly influences these present values.
Explanation:The subject of this question is present value calculation for investments, which falls under business, specifically financial management or economics. We start by using the present value formula for an annuity: PV = Pmt *[1 - (1 + r)^-n] / r, where PV is the present value, Pmt is the payment received each period, r is the discount rate, and n is the number of periods.
Part a: If the discount rate is 5%, the present value for Investment X is 4200 *[1 - (1 + 0.05)^-8] / 0.05 = $28,353.03 and for Investment Y is 6100 *[1 - (1 + 0.05)^-5] / 0.05 = $26,320.73.
Part b: If the discount rate is 15%, the present value for Investment X is 4200 *[1 - (1 + 0.15)^-8] / 0.15 = $17,276.08 and for Investment Y is 6100 *[1 - (1 + 0.15)^-5] / 0.15 = $18,716.64.
In conclusion, different discount rates will affect the present value of investments. A higher discount rate will result in a lower present value, all else being equal.
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Ben has two options this weekend. He could work at his job and earn $10 per hour for three hours, or he could go to a concert for that three hours. A ticket for the event costs $30. What is the opportunity cost of the event? $
Answer:
The correct answer is: $60.
Explanation:
Opportunity Cost is what a person sacrifices when they choose one option over another. It is also defined as the revenue of the chosen option over the revenue of the option that was forgone. It represents what was left on the table for deciding taking one option over another.
In Ben's case, the opportunity cost of going to the event represents what he could have earned working for three hours ($10 x 3 = $30). However, as he will have to pay for the event, he will lose $30 for the event ticket. Then, the total opportunity cost of going to the event is:
$30 + $30 = $60
The opportunity cost of Ben attending the concert is $60, which includes the $30 for the concert ticket and the $30 he could have earned from working.
Explanation:In economics, the opportunity cost represents the alternative forgone to take another action. If Ben decides to attend the concert, he is giving up the opportunity to work and earn money. So, the total opportunity cost will include the cost of the concert ticket and the money he could have earned from working. Thus, for three hours, at a rate of $10 per hour, he could have earned $30. Therefore, the total opportunity cost is $60 ($30 for the concert ticket + $30 loss of earnings).
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Rios Co. makes drones and uses the variable cost approach in setting product prices. Its costs for producing 30,000 units follow. The company targets a profit of $310,000 on this product. Variable Costs per Unit Fixed Costs Direct materials Direct labor Overhead Selling $70Overhead 40 25 15 Selling Administrative $670,000 305,000 285,000 1. Compute the variable cost per unit 2. Compute the markup percentage on variable cost. 3. Compute the product's selling price using the variable cost method 1 Variable cost per unit 2 Markup percentage 3 Selling price
Answer:
1. Variable cost per unit = $150
2. Markup percentage = 34.89%
3. Selling price = $202.33
Explanation:
Variable cost per unit = 70+40+25+15= $150
Fixed cost = 670,000+ 305,000 +285,000= $1,260,000
Fixed cost per unit = 1,260,000/30,000= $42
Profit per unit = Targeted profit
Targeted production unit
= $310,000 =$10.33
30,000
Markup percenge = Fixed cost per unit + profit per unit
Variable cost per unit
=$42+ $10.33 = 52.33 * 100 = 34.89%
$150 $150 1
Selling Price = Variable cost per unit + markup
= $150+$42+$10.33
= $202.33
Variable cost-plus pricing is calculated by determining variable costs per unit and adding mark-up which will cover fixed costs per unit and generate a targeted profit margin.
Answer: The variable cost per unit is 150, The mark up percentage on variable cost is 5%, The selling price is $192
Explanation:
To calculate variable cost per unit
= (40 + 25 + 15 + 70)
= 150
To calculate fixed cost per unit
(670,000 + 305,000 + 285,000)
=1,260,000
Fixed cost per unit
= Total Fixed cost ÷ Total unit produced
= 1,260,000 ÷ 30,000
= 42
To compute the total variable cost
=Total Variable cost = Total quantity of output × variable cost per unit of output
= 30,000 × 150
= 4,500,000
Total Cost
= TFC + TVC
= 1,260, 000 + 4,500,000
= 5,760,000
To compute the mark up percentage on variable cost
= profit/ cost price ×100
= 310,000/ 5,760,000 × 100
= 0.05 × 100
= 5%
To compute the product selling price using the variable cost method
= variable cost per unit + Fixed cost per unit
= 150 + 42
= 192
Therefore the selling price is $192 in order to cover the fixed cost.
Buy a new calculator for 400. Leave it in the original wrapping for six years. Sell it to a finance nerd for 600 at that point. What is your rate of return?
Answer:
7% per year
Explanation:
The amount invested in the calculator was $400. The future value after six years is $600. That rate of return that results in this investment is determined by:
[tex]FV = PV*(1+r)^t\\600=400*(1+r)^6\\1+r = \sqrt[6]{1.5}\\r=0.07 = 7\%[/tex]
The rate of return on the invest is roughly 7% per year.
Maxson Products distributes a single product, a woven basket whose selling price is $8 and whose variable cost is $6 per unit. The company’s monthly fixed expense is $5,500.Required:1. Solve for the company’s break-even point in unit sales using the equation method.2. Solve for the company’s break-even point in sales dollars using the equation method and the CM ratio.3. Solve for the company’s break-even point in unit sales using the formula
Answer:
Explanation:
(SP-VC)*Q
$(8-6)Q = $5500
Q=5500/2
Break even quantity = 2750 units per month
2. Sales = $8 x 2750 = $ 22,000
If Roten Rooters, Inc., has an equity multiplier of 1.45, total asset turnover of 1.33, and a profit margin of 8.50 percent. What is its ROE?
Answer:
ROE is 0.164 or 16.4 %
Explanation:
In corporate finance, return on common equity (ROE) is an index of return on equity. It constitutes one of the most concise indices of the company's economic results. It is a percentage index for which the net income (NI) produced in a year is compared to the equity (Eq): the net capital, or equity of the year , that is to the production condition of direct relevance.
ROE=NI/Eq
If we have the characteristics of profit margin, total asset turnover and equity multiplier we can arrange new formula to calculate it as well. The equity on the first formula will be transformed to the nominator instead of denominator. The net income will also equal to the multiple of profit margin(PM) and total asset turnover(TAT). Then the new formula will be:
ROE= Eq Multiplier x PM x TAT= 1.45 * 1.33 * 0.85=0.164 or 16.4 %
The [blank] view of CSR approaches business decisions with understanding that economic gains and social progress are interconnected
Answer:
Socio economic view
Explanation:
The socio economic view relates to viewing organizational decisions in the light of their both social and economic consequences.
The concept of corporate social responsibility relates to discharge of those social obligations which an enterprise owes to it's various stakeholders.
A business operates within social bounds and thus it becomes indispensable for a business to contribute to social good which could be in the form of amenities, providing better sanitation facilities or better infrastructure.
As per the socio- economic view, economic gains which represent economic profits and social gains as a measure of social betterment, both are inter related and a corporation must not view them as separate.
The WeBuild Construction Company sold $13 million of buildings in its first year of operations. The company received payments of $8.50 million for these buildings. The company's income statement would report Multiple Choice Accounts Receivable of $8.50 million Sales Revenue of $13 million Expenses of $4.50 million Sales Revenue of $8.50 million
Answer:
The company's income statement would report Sales Revenue of $13 million
Explanation:
The journal entry for the transaction will be
==================================================================
Particulars Debit Credit
==================================================================
Cash $8.50 million
Accounts receivable $4.50 million
( 13.5 million - 8.50 million)
Sales revenue $13 million
==================================================================
hence,
The company's income statement would report Sales Revenue of $13 million
Final answer:
Under the accrual basis of accounting, the WeBuild Construction Company would report Sales Revenue of $13 million for the buildings sold and Accounts Receivable of $4.50 million for the yet-to-be-received payments on the income statement.
Explanation:
The question is about how to report transactions on an income statement under the accrual basis of accounting. When WeBuild Construction Company sold buildings totaling $13 million and received payments of only $8.50 million, the correct approach is to report Sales Revenue of $13 million. This is because under the accrual accounting method, revenue is recognized when earned, regardless of when cash payments are received. The remaining $4.50 million, which is the difference between sales and payments received, would be reported as Accounts Receivable, indicating the amount of cash that is expected to be collected in the future.
Accounts Receivable represents the money owed to a company by its customers for products or services provided on credit. In this case, the correct choice for the income statement would be Sales Revenue of $13 million as this figure represents the total amount of sales made by the company.
On July 1, Morris Company paid $17,400 for two years of insurance in advance. Morris debited Prepaid Insurance. If the appropriate adjusting entry is not made at the end of the year, what will be the effect on?
Answer:
The effect shall be an understatement of expenses and overstatement of net income. The impact shall be $ 4,350.
Explanation:
The expired portion of prepaid insurance i.e 6 months from July 01 to year end needs to be adjusted. The adjustment amount shall be $ 4,350. calculated as under:
Prepaid Insurance $ 17,400
Period of benefit 24 months.
Adjustment for prepayment : 17400/24*6 = $ 4,350
The effect of not passing the entry would be an understatement of expenses and overstatement of net income
Identify whether each of the following is a flow variable or a stock variable.
The total value of all of a company's outstanding bonds
The number of Canadian immigrants living in the United States
The amount a company borrows in any given year by issuing bonds
The value of a rare coin
The number of Canadians who emigrate to the United States each year
The amount by which a rare coin increases in value each year
Answer:
Stock : 1, 2, 4 and Flow : 3, 5 ,6
Explanation:
Stock is a variable that is measured at a particular point of time. Eg: Wealth at a point of time, Capital at a point of time.
Flow is a variable that is measured for a particular period of time. Eg: Income for a period of time, Investment for a period of time.
Total value of company's outstanding bonds : Stock
The number of Canadian immigrants living in US : Stock
The company's borrowings in given year by bonds : Flow
The value of a rare coin : Stock
The no. of canadians emigrating US each year : Flow
The amount by which rare coin value increases each year : Flow
Flow variables are measured over a period of time, while stock variables are measured at specific points in time. In the provided examples, the total value of a company's outstanding bonds, the number of Canadian immigrants in the US, and the value of a rare coin are stock variables. The amount a company borrows in a year, the number of Canadians emigrating to the US each year, and the increase in a coin's value annually are flow variables.
Explanation:To understand whether these are flow variables or stock variables, we need to identify whether the data is measured at one specific point in time (stock) or over an interval of time (flow).
The total value of all of a company's outstanding bonds is a stock variable because it represents a quantity at a specific point in time.The number of Canadian immigrants living in the United States is a stock variable as it is a measure at a specific point in time.The amount a company borrows in any given year by issuing bonds is a flow variable, as it's measured over a period of time.The value of a rare coin is a stock variable because it is measured at a specific point in time.The number of Canadians who emigrate to the United States each year is a flow variable, as it is measured over an interval of time.The amount by which a rare coin increases in value each year is a flow variable since this is a measurement that occurs over a duration of time.Learn more about Flow and Stock Variables here:https://brainly.com/question/34403239
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The AFL represented: a. A Knights of Labor committee that handled the strategic planning duties and a group that supported the basic philosophy of the IWW. b. A group that supported the basic philosophy of the IWW. c. One big union that eliminated the identity of unions joining the AFL. d. A Knights of Labor committee that handled the strategic planning duties. e. A federation or service organization that unions could join and still retain their separate identities and collective bargaining concerns.
Answer:
OPTION (e) is the right answer.
Explanation:
AFL is been expressed as a federation or service organization that unions could join and still retain their separate identities and collective bargaining firms. Because the organization did not strive to organize untrained laborers, they made few profits among new laborers around the year 1920, meanwhile, the increase of the economy took place during mass productions such as rubber, automobiles, chemicals, as well as services.
When the Consumer Price Index falls from 110 to 100a. there is inflation of 9.1% and the value of money decreases.b. there is deflation of 9.1% and the value of money increases.c. there is deflation of 10% and the value of money increases.d. there is inflation of 10% and the value of money decreases.
Answer:
Option (b) is correct.
Explanation:
Inflation rate refers to the rate at which the prices of goods and services are increased.
Inflation rate:
= Percentage Change in Consumer Price Index
= (100 - 110) ÷ 110
= - 10 ÷ 110
= - 0.0909, or - 9.09%
So, this is a Deflation of 9.09% (9.1%), and a deflation means that value of money has increased.
Amaz-a-nation reported the following data for the year just ended: sales revenue, $1,820,000; cost of goods sold, $920,000; cost of goods manufactured, $566,000; and selling and administrative expenses, $173,000. Amaz-a-nation's gross margin would be: a. $1,073,000 b. $1,254,000 c. $1,081,000. d. $507000. e. $900,000.
Answer:
Option (e) is correct.
Explanation:
Given that,
sales revenue = $1,820,000;
cost of goods sold = $920,000;
cost of goods manufactured = $566,000
selling and administrative expenses = $173,000
Gross margin = Sales revenue - cost of goods sold
= $1,820,000 - $920,000
= $900,000
Therefore, the Amaz-a-nation's gross margin would be $900,000.
Central banks are responsible for the collection and the replacement of currency from circulation.
A. True
B. False
Answer:
The correct answer is letter "A": True.
Explanation:
Central banks are the financial institutions in charge of the monetary policy of their country on behalf of the central government. They regulate the money supply and the interest rates to maintain a country's economy the closest to its equilibrium level. In the United States, the central bank is the Federal Reserve (Fed). Central banks also collect and replace the currency in circulation.
A study that relies primarily on quantitative data and uses qualitative data to follow up is considered an example of a(n) ________ approach to mixed methods design.
Answer:
The correct answer is letter "D": Explanatory.
Explanation:
Explanatory research typically is carried out when preliminary research was not made successfully, is unclear or vague. Explanatory research is based on factual data -mainly numerical- that allows the researcher to support the detailed descriptions that must be reported as conclusions of the study.
A study that relies primarily on quantitative data with qualitative follow-up is an example of a quantitative-dominant mixed methods design.
A study that primarily relies on quantitative data and uses qualitative data for follow-up is considered an example of a quantitative-dominant mixed methods design. This approach effectively combines both statistical analysis and detailed contextual understanding, reflecting the evolving landscape of research methodologies that emphasize the importance of triangulation in research. Such designs demonstrate how quantitative analysis can be enriched and contextualized with qualitative insights, providing a more comprehensive understanding of the research topic.
By employing a quantitative-dominant mixed methods approach, researchers can utilize the strengths of both quantitative and qualitative data to address complex research questions. This blend allows for robust testing of theories or hypotheses with quantitative data, while qualitative data provide a deeper insight into participant experiences, adding texture and meaning to the statistical findings.
The best indicator of how well a company's strategy is working is whether the company is
Answer:
attaining its objectives
Explanation:
The organization objectives are tangible and explain clearly the activities necessary to accomplish a mission. Objectives define the strategies that your company will use to attain commercial success, quality of customer care, promotional incentives and any other tangible goals.
In other phrases, a company objective is a consequence a corporation is trying to accomplish. It also involves the techniques individuals will need to get to this place. A business goal typically includes a time period and profiles the existing resources.
(A) Suppose there exists a market for coffee that is in equilibrium at 500 cups brewed per week for $3/cup. Now suppose the demand for coffee shifts outward (to the right). What are some reasons this shift might have occurred?
(B) Now suppose that after the demand curve shifted, the supply curve shifts inward (to the left). What are some reasons this might have occurred?
(C) Now that both the demand and the supply curves have shifted, compare the new equilibrium to the original equilibrium of 500 cups for $3 each. Are the new equilibrium price and quantity greater than, less than, or equal to the original equilibrium? Do you have enough information to know for sure?
Answer:
Explanation:
A ) Demand for coffee may increase due to many reasons , like due to decrease in price ( due to price effect ) , increase in price of tea ( due to substitution effect) , due to seasonal change like in the cold season , its demand increases.
B) Supply of coffee may increase due to rise in its price , due to more company coming into market , technological improvement in plant and machinery etc.
C ) The new equilibrium price may be equal to , less than or greater than $3 each . If shift in both the lines have same magnitude , price remains stagnant . If shift in supply line is more , price decreases. If shift in demand curve is more , price increases.
Farrell wants to retire in six years. To have sufficient assets to fund retirement, Farrell needs to accumulate an additional $400,000 between today and retirement. As his planner, you assume that inflation will average 5 percent. You are also confident that you can build a portfolio that will generate an 8 percent compounded annual after-tax return. What serial payment should Farrell invest at the end of the first year to fund this goal?
Answer:
$73,070.5
Explanation:
Inflation erodes the value of money. It makes more quantity of money to required to buy the same basket of food and services in the future.
With inflation, to calculate the the quantity of Dollars needed in n years time, we use the formula;
Inflated amount = h × (1 + f)^n
h= amount required today, f - inflation rate, n- number of years
So if Farrell needs $400,000 in 6 years time in real terms, with an inflation of 5% per year, he would need to have a quantity of money equal to
1.05^6 × 400,000 = $536,038.3.
To provide for $536,038.3 in 6 years time, he would need to contribute into a sinking fund on a yearly basis, an equal amount denoted as "A" in the formula below:
FV = A × ((1+r)^n - 1)/r
FV - 536,038.3, r - 8%, n = 6
536,038.3 = A × ((1+0.08 )^(6) - 1)/0.08)
536, 038.3 = A × 7.3359
536,038.3/7.3359 = A
$73,070.5 = A
Farrell should invest at the end of every year
$73,070.5
The Loann Le Milling Company is going to purchase a new piece of testing equipment for $28,000 and a new machine for $53,000. The equipment falls in the three-year property class, and the machine is in the five-year class.
What annual depreciation will the company be able to take on the two assets?
Answer:
Equipment = 33.33% (1/3)
Machine = 20.00% (1/5)
Explanation:
Final answer:
The Loann Le Milling Company can take an annual depreciation of $9,333.33 on the testing equipment and $10,600 on the machine.
Explanation:
The annual depreciation on an asset is calculated using the straight-line depreciation method, which involves dividing the cost of the asset by its useful life. The testing equipment has a cost of $28,000 and falls in the three-year property class, so the annual depreciation can be calculated as $28,000 / 3 = $9,333.33. The machine has a cost of $53,000 and falls in the five-year property class, so the annual depreciation can be calculated as $53,000 / 5 = $10,600.
True or False: An increase in the demand for notebooks raises the quantity of notebooks demanded but not the quantity supplied.
Answer:
The statement is False
Explanation:
Generally speaking, the statement is false considering the demand and supply curve. In this curve, when there is increase in demand, its implies that the consumers of the notebook still derived satisfaction on it and as such the producer of the notebook produces more and supply to the market will increase so that equilibrium point will be achieved. Until when law of diminishing return set in, and the people are not deriving satisfaction again, that is when the product may not be readily available.
Again if the supply curve is vertical, that is the producer is producing and supplying at fixed rate without putting into consideration the demands in the market, there will not be corresponding increase in supply with demands which can make statement to true.
The given statement is false.
The following information should be considered:
When the demand for notebook increased so the demand should be shifted to rightward. The quantity supplied should be increased.Therefore, we can conclude that the given statement is false.
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Loggers are much_______- likely to supply wood to the market if property rights are not enforced.In the presence Of market failures, public policy can improve economic efficiency. Classify the source of market failure in each case listed. A person smoking in a restaurant emits second-hand smoke that harms other restaurant patrons.a. Market Power b. Externality A single grocery store is the only source of food in a small town, giving the store the ability to influence the price of food. a. Market Power b. Externality
Answer:
less;
A person smoking in a restaurant emits second-hand smoke that harms other restaurant patrons. b. Externality
A single grocery store is the only source of food in a small town, giving the store the ability to influence the price of food. a. Market power
Explanation:
Property rights are usually imposed on individuals who are able to control the resources which are of public value. When the society gets affected by the practices of those individuals or entities, property rights made by a government or regulatory body come into the picture. Therefore, those individuals need to be regulated and incentivized by property rights, or they will be less likely to conform to the market needs.
These rights protect the market from market failures, which is their main purpose.
The most common types of market failures include externalities and market power. The first example is an externality as the unwanted smoke represents the cost (or benefit) which cannot be influenced by a specific party.
The other example is typical market power, as the monopolist (grocery store) can control the price of goods, which is an essential market determinant.
The person smoking in a restaurant causing harm to others through second-hand smoke exemplifies an 'externality' as other individuals, not involved in the action, are affected. The case of a single grocery store being the only food source in a town and thus being able to influence the price of food is an example of 'market power', where a single entity determines the price or quantity of a commodity.
Explanation:In context of economic theory, the given scenarios classify two distinct forms of market failures: externality and market power.
The first scenario, where a person smoking in a restaurant creates second-hand smoke affecting other patrons, is an example of an externality. Externalities are costs or benefits that affect a third party not directly involved in the transaction. Here, the third parties (other restaurant patrons) are negatively affected by the smoker's actions, thus creating a negative externality.
In the second case, a single grocery store monopolizing food supply in a small town, indicates market power. Market power refers to the ability of a firm to control the market price or quantity of a good or service. In this scenario, the single grocery store has the power to influence the price of food, a characteristic of market power.
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According to the Porter (1996) article on Strategy, managers are so caught up in the race to make decisions on strategic fit, many do not understand the need for operational effectiveness.
a. True.
b. False.
Answer:
(b). False
Explanation:
In his article, Michael Porter discussed the co-existence of both strategy and operational effectiveness.
Operational effectiveness as per Porter refers to performing activities which are similar to rivals in a better way and outperforming the rivals.
Strategic fit refers to that strategy with which an organization aligns its resources and capabilities with that of the opportunities prevalent in the business environment.
As per Porter, managers get caught up in a bid to improve operational effectiveness that they overlook the importance of a strategy.
Thus, the given statement is false.
The vigor of IPR protection is highly related to a country's stage of ________.A) economic developmentB) cultural heterogeneityC) natural resource developmentD) standardization of patent regulations
Answer:
The correct answer is letter "A": economic development.
Explanation:
The Intellectual Property Rights (IPR) are the grants typically a government provides to individuals over their creations for a specific period. The provision promotes innovation within countries that have usually developed economies. These rights cover all tangible and intangible created within a territory and that could be subject to exploitation.
An industrial plant needs to make 100,000 parts per month to meet demand. Each month contains 20 working days, each of which allows for 3 separate 8 hour shifts. a. If a worker can produce 10 parts/hour, how many workers are needed on each shift? b. If each shift has 100 workers, what is the productivity of an individual worker? c. If material costs are $10/part, capital costs are $100,000 and labor costs are $10/hour, what is the multifactor productivity of the plant from part A?
Answer:
Part A:
Workers Needed=20.833≅21
Part B:
Productivity of individual worker=2.0833 parts/hour
Part C:
Multifactor productivity=0.0832 Parts/$
Explanation:
Part A:
Total parts =100,000
Workers needed= Total parts/(Parts per hour* hours per shift*Total Shifts)
[tex]Worker\ needed=\frac{100000}{10\ Parts/hour*8\ hours/shift*60\ shifts/worker} \\Workers\ needed= 20.833[/tex]
Workers needed=20.833≅21
Part B:
Productivity of individual worker:
[tex]Productivity\ of\ individual\ worker=\frac{100000}{100\ workers*8\ hours/shift*60\ shifts/worker} \\Productivity\ of\ individual\ worker=2.0833\ parts/hour[/tex]
Part C:
Total cost of material= $10*100,000=$1,000,000
Capital Costl= $100,000
Total labor Cost=[tex]21\ workers*8\ hours/shift*60\ shifts/worker*\$10/hour[/tex]
Total labor Cost=$100,800
Multifactor productivity=Total Parts/(Total cost of material+capital cost+Total labor Cost)
[tex]Multifactor\ productivity=\frac{100000}{\$1,000,000+\$100,000+\$100,800} \\ Multifactor\ productivity=0.08324\ Parts/\$[/tex]
The industrial plant needs approximately 21 workers per shift to meet its demand of 100,000 parts per month. An individual worker's productivity, if the shift consists of 100 workers, is 80 parts per worker-hour. The multifactor productivity, considering material, capital, and labor costs, is 0.048 parts per dollar.
Explanation:In order to answer the questions related to the industrial plant's operations, we'll need to do a few calculations. For question a, we know that there are 20 workdays in a month and that each day consists of 3 shifts of 8 hours each. That is a total of 480 hours in a month. If the plant needs to produce 100,000 parts per month and a worker can produce 10 parts per hour, we'll need 100,000 / 10 = 10,000 worker hours. Thus, since there are 480 hours in a month, the plant would need 10,000 / 480 ≈ 21 workers per shift (rounded up).
For question b, if each shift has 100 workers, and each worker can produce 10 parts per hour for 8 hours, then each worker produces 80 parts in a shift, and the 100 workers together produce 8,000 parts per shift. If we again presume 60 shifts in a month (3 shifts per day for 20 days), then 60 shifts would produce 480,000 parts, which means the productivity of an individual worker is 480,000 parts per month divided by 6,000 worker hours, or 80 parts per worker hour.
Lastly, for question c, multifactor productivity represents the output per unit of combined inputs. The combined costs of material, capital, and labor here are (10 × 100,000) + 100,000 + (10 × 21 workers × 8 hours × 20 days × 3 shifts) = 2,104,000. Therefore, the multifactor productivity is 100,000 parts / 2,104,000 = 0.048 parts per dollar.
Learn more about Workforce Productivity here:https://brainly.com/question/11535307
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Identify two characteristics of utilitarianism, two characteristics of virtue ethics, and two characteristics of deontology. Write one complete sentence for each characteristic identified.
Then, take the position that Starbucks is guided by utilitarianism and analyze how the notion of the moral good in utilitarianism leads to a unique approach to ethical problems. The way to do this is as follows:
First, present an ethical problem confronted by Starbucks.
Then, apply the characteristics of utilitarianism that you identified for this discussion in the attempt to solve this problem.
After this, analyze how the notion of the moral good present in utilitarianism, and the characteristics that you identified in particular, shape the approach to solving this problem..
Answer:
Explanation:
One claim of unethical practice done by Starbucks is that they do not give a chance for small coffee-shops and try to cease them out by acquairing them or competing aggressively. However in the case of buying the coffeeshops they evaluate the price of the shop generously.
In terms of utilitarianism, the action of buying out small shops through generous offer is considered not unethical, because if Starbucks sets up their business nearby the small shop, it will most likely suffer and by purchasing them it is actually a favor for coffeeshops.
The characteristics of utilitarianism is:
The end result of an action should be the most positive outcome for all the parties concerned
The action that leads to the end result is not as important as the result itself
Even though discussed issue is ethical in temrs of utilitarianism view, it is unethical in terms of deontology. Starbucks is causing the shut down of the local business and also discouraging its growth.
The characteristics of deontological ethics is :
The action is the most important focus of the ethical consideration
The result may not be the best but the entity/person in charge should take an ethical action
The third part is the virtue ethics. As per the virtue ethics, we cannot say that the action is ethical. This is not the only blame that Starbucks faces. They face allegation of exploiting coffee farmers, damaging the environment and mistreating their employees.
The characteristics of virtue ethics is
The moral value of the person/organization is more important than action or the result
Even if the action is unethical or the result is unethical, the moral of the person/company can still be correct.
Final answer:
Utilitarianism, Virtue Ethics, and Deontology characteristics explained in the context of Starbucks' ethical decision-making.
Explanation:
Utilitarianism assesses the moral worth of an action based on its consequences, specifically aiming for the greatest good for the greatest number.
Utilitarianism
Consequentialist: Considers outcomes to determine morality.Greatest Good: Focuses on actions that result in the greatest good for the greatest number.Virtue Ethics
Character-Centered: Emphasizes that right action stems from cultivating good character traits.Self-Perfection: Involves the development of virtues to become a good person.Deontology
Duty-Based: Centers on obligations and rules to guide actions.Absolute Duties: Defines actions as right or wrong based on adherence to moral rules.Analysis: Starbucks, guided by utilitarianism, would prioritize decisions that maximize overall happiness and well-being for the majority when faced with an ethical dilemma. This approach shapes Starbucks' actions by emphasizing the importance of considering consequences and aiming for the greatest benefit to society.
Which of the following is not one of the activities found on the statement of cash flows?
a. administrative activities
b. financing activities
c. investing activities
d. operating activities
Answer:
option A
Explanation:
Throughout financial accounting, the cash flow statement, also recognized as a cash flow statement, is indeed refers to a financial statement demonstrating how adjustments throughout balance sheet balances and sales impact cash balances and splits the report in grouping of Operating activities, financing activities and investing activities.
Particularly, the cash flow report deals with cash flow into and out of the corporation. As an academic discipline, the cash flow statement is helpful in determining a corporation's brief-term competitiveness, especially the capacity to pay expenditures.
Suppose your favorite sports team is losing by an insurmountable score. What does the shutdown condition suggest the team should do
Answer and explanation:
In Economics, the shutdown conditions refer to the situation in which a company is not able to produce profits to at least cover the variable costs of production in the short term. According to this approach, only when those costs can be covered the company should continue to operate. Otherwise, the firm must shutdown.
In that case, if a team is losing by a score that cannot be surmountable, according to the shutdown condition the team must stop playing the game.
Approximately what percentage of total health care spending goes toward hospital care?
(A) One-tenth.
(B) One-fifth
(C) One-fourth
(D) One-third
(E) One-half
Answer:
D
Explanation:
According to an article published on modernhealthcare.com on Feb-2019, around 33% of total health care spending goes to hospital care. 33% calculates as to one-third of total health care spending portion.
Consider the cash flows seen here. The Internal Rate of return on the cash flows in the screenshot below (rounded to the nearest 1%) is ____________. (Note that date is in MM/DD/YYYY format.)
Answer:
IRR = 25%
Explanation:
See the image below to get your answer.
Explanation: The question has a missing information for which Internal rate of return might change.
There was a cash flow in 2012 and then there was a cash flow in 2014. So, there was no cash flow in 2013. Whenever we have to find the IRR or NPV, we need each year's cash flow. Therefore, we have added 2013 cash flow as "0". With the help of excel, it is easy to find Internal rate of return. Just follow the image, you will find it easier.