Monopolistic competition refers to a type of market structure that is characterized by many companies that offer products that are differentiated from one another. This market structure is known for being somewhere between pure competition and a monopoly.
In monopolistic competition, there are no restrictions on new firms entering or existing firms exiting the market. This is similar to perfect competition, where there is complete freedom of entry and exit.
In monopolistic competition, however, firms are not price takers. This means that firms have some control over the price of their product. This control is the result of product differentiation and advertising.
the most similar characteristic of monopolistic competition to perfect competition is the freedom of entry and exit. Both market structures allow for new firms to enter and existing firms to exit without any restrictions. However, monopolistic competition differs from perfect competition in terms of product differentiation and control over price.
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Why should you check the spelling by reading a document even if you used Writer's Spell Check feature? A. The Spell Check dictionary is usually out of date. B. Spell Check won't recognize mistakes you've made when you misspell a word in a way that makes another word. C. Spell Check only checks the first half of a document, so you have to check the rest yourself. D. The Spell Check suggestions are always wrong.
Answer:
B) Spell Check won't recognize mistakes you've made when you misspell a word in a way that makes another word.
Explanation:
The non-bank private sector holds $250 of currency and $8,000 in deposits. Banks hold $1,000 in currency as reserves. In this economy, the money multiplier is 6.3 6.6 None of the above. 07
None of the above. Without the reserve requirement ratio, it is not possible to determine the money multiplier in this economy based on the given information.
To calculate the money multiplier, we need to use the formula:
Money Multiplier = 1 / Reserve Ratio
To determine the money multiplier, we need to divide the total money supply by the monetary base. In this case, the monetary base consists of the currency held by the non-bank private sector and the reserves held by banks.
The currency held by the non-bank private sector is given as $250, and the reserves held by banks are $1,000. Therefore, the monetary base is $250 + $1,000 = $1,250.
However, we are not given the total money supply in this economy. Without knowing the total money supply, we cannot calculate the money multiplier.
The reserve ratio is the portion of deposits that banks are required to hold as reserves. In this case, the reserve ratio is not provided, so we cannot determine the money multiplier.
However, we can calculate the total reserves held by banks by adding the currency held as reserves ($1,000) and the currency held by the non-bank private sector ($250). So, the total reserves would be $1,000 + $250 = $1,250.
We can also calculate the total deposits in the economy by adding the currency held by the non-bank private sector ($250) and the deposits held by the non-bank private sector ($8,000). So, the total deposits would be $250 + $8,000 = $8,250.
The money multiplier can then be calculated as the ratio of total deposits to total reserves:
Money Multiplier = Total Deposits / Total Reserves
Money Multiplier = $8,250 / $1,250
Money Multiplier = 6.6
The correct money multiplier for the given scenario is 8, which differs from the options provided.
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2. Write out in Lingo the equation or equations plus any other Lingo instructions that capture the verbal problem. (10 points each) A. X need not be produced. But if X is produced at all, at least 250
The objective is to minimize the cost of production for products X, Y, and Z, represented by the equation 40A + 20B + 60C. The constraints ensure that if product X is produced, at least 250 units must be produced (3A + 2B + 6C >= 250), and a minimum of 20 products must be produced overall (A + B + C >= 20).
In Lingo, the equation or equations plus any other Lingo instructions that capture the verbal problem will be as follows: To capture the verbal problem, the following Lingo instructions are used: Minimize 40A + 20B + 60C
Subject to the constraints:3A + 2B + 6C >= 250A + B + C >= 20A, B, C >= 0
Where A, B, and C represent the number of products X, Y, and Z produced, respectively. The explanation of the problem is as follows: Let's consider the problem: "X need not be produced. But if X is produced at all, at least 250."
This means that the company can produce any quantity of products Y and Z, and they may or may not produce product X. But if the company produces product X, they must produce at least 250 of it. The mathematical equation for this problem is to minimize the cost of production, which is given by the function:40A + 20B + 60C, where A, B, and C represent the number of products X, Y, and Z produced, respectively.
The problem can be modeled using the following set of constraints: 3A + 2B + 6C >= 250: This constraint represents the condition that if the company produces product X, it must produce at least 250 of it.
A + B + C >= 20: This constraint represents the condition that the company must produce at least 20 products in total. A, B, C >= 0: These constraints represent the non-negativity condition on the number of products X, Y, and Z produced, respectively. The above equation and the instructions capture the given verbal problem.
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Deadweight losses from tariffs and quotas in high-income countries
a.can be justified by jobs protected.
b.are small enough to be ignored
c.are greater than consumer losses from tariffs and quotas.
d.have been reduced since the mid-1990s.
Deadweight losses from tariffs and quotas in high-income countries can be justified by jobs protected, which means that option (a) is correct.
Deadweight loss is a term used to describe the loss of economic efficiency that occurs when supply and demand for a product are not in equilibrium due to a tax, subsidy, or price ceiling. Deadweight losses from tariffs and quotas in high-income countries can be justified by jobs protected. For instance, a tariff may be imposed on foreign goods to protect domestic producers and workers, ensuring that the domestic industry remains competitive and profitable. The goal of these protectionist measures is to create more jobs and to make goods less expensive. Although the measure has its drawbacks, it is beneficial to some extent. The size of the deadweight loss from a tariff or quota can be substantial in some cases, and the losses for consumers, producers, and the economy as a whole can be significant. If a tariff or quota is intended to generate revenue for the government, the loss to the economy may be justified by the revenue received. If the objective is to protect jobs, the deadweight loss is justified, although there may be better alternatives. The term deadweight loss is not used in conjunction with a subsidy because it is intended to boost economic efficiency. The government may subsidize goods or industries to stimulate production and demand, which can result in a net economic benefit.
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Blanchard Company manufactures a single product that sells for $160 per unit and whose total variable costs are $120 per unit. The company’s annual fixed costs are $629,000. The sales manager predicts that annual sales of the company’s product will soon reach 39,900 units and its price will increase to $199 per unit. According to the production manager, variable costs are expected to increase to $139 per unit, but fixed costs will remain at $629,000. The income tax rate is 25%. What amounts of pretax and after-tax income can the company expect to earn from these predicted changes? Prepare a forecasted contribution margin income statement.
Answer:
Following are the solution to the given question:
Explanation:
Income statement
sales [tex]39900\times 199 \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 7940100\\\\[/tex]
The less average cost of variable [tex]39900\times 139 \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 5546100 \\\\[/tex]
margin for contribution [tex]2394000\\\\[/tex]
Lesser fixed costs [tex]629000\\\\[/tex]
Income from of the company or tax [tex]1765000 \\\\[/tex]
Lower-income tax by [tex]25\%[/tex] [tex]441250 \\\\[/tex]
after-tax revenue [tex]1323750\\\\[/tex]
What happens to the welfare of a large nation as a result of the following forms of technical progress if consumption is trade neutral?
a. Neutral technical progress in production of the exportable good.
b. Neutral technical progress in production of the importable good.
a. Neutral technical progress in the production of the exportable good can potentially enhance the welfare of a large nation through increased exports and income.
b. Neutral technical progress in the production of the importable good can potentially improve the welfare of a large nation by reducing prices and increasing consumer purchasing power.
When considering the welfare of a large nation in the context of trade and technical progress, the impact of neutral technical progress in the production of the exportable and importable goods can be analyzed.
a. Neutral technical progress in the production of the exportable good:
If there is neutral technical progress in the production of the exportable good, it implies that the productivity of resources used in producing the exportable good has improved without affecting the terms of trade. As a result, the nation's production capacity for the exportable good increases. This leads to an expansion in exports, which can benefit the nation's welfare.
With increased production and exports of the exportable good, the nation can generate higher income and potentially experience positive welfare effects. The increased export revenue can contribute to economic growth, employment opportunities, and improved living standards. Additionally, the nation may have access to more resources to allocate towards other sectors or goods, further enhancing welfare.
b. Neutral technical progress in the production of the importable good:
If there is neutral technical progress in the production of the importable good, it implies that the productivity of resources used in producing the importable good has improved without affecting the terms of trade. This leads to a reduction in the cost of producing the importable good, making it cheaper for the nation to acquire.
The reduced cost of the importable good benefits the nation's consumers by lowering prices and increasing their purchasing power. As a result, consumers can enjoy a higher standard of living and increased welfare. Additionally, the availability of cheaper importable goods can lead to a more efficient allocation of resources within the nation, which can further contribute to welfare improvements.
Overall, both forms of neutral technical progress have the potential to positively impact the welfare of a large nation. Increased production and exports of the exportable good can boost income and economic growth, while improved productivity in the production of the importable good can enhance consumer welfare through lower prices and increased purchasing power.
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Which of the following best describes the meaning of the multiplicities next to the number 4 in the preceding diagram?
1-Each stock is bought/sold at least once.
2-Each stock is bought/sold only once.
3-Each stock is bought/sold a maximum of many times.
4-Each stock is bought/sold a minimum of many times.
5-Both "Each stock is bought/sold at least once" and "Each stock is bought/sold a maximum of many times"
The correct answer is 5 - "Both 'Each stock is bought/sold at least once' and 'Each stock is bought/sold a maximum of many times'".
The multiplicities next to the number 4 indicate the number of times each stock is bought or sold.
The first part of the statement, "Each stock is bought/sold at least once," implies that every stock in the diagram has been involved in at least one transaction, meaning it has been bought or sold. The second part, "Each stock is bought/sold a maximum of many times," suggests that the maximum number of transactions for any stock is indicated by the multiplicity next to the number 4.
Therefore, the correct answer is 5, as it combines both aspects: each stock is involved in at least one transaction and can be involved in multiple transactions, up to the maximum indicated by the multiplicity of 4.
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By contract, Quality Metals Corporation forbids Resource Refining, Inc., a wholesale buyer of Quality’s products, from purchasing the products of Quality’s competitors. This is allowed
a. under any circumstances.
b. unless its effect is to cause a competitor a loss of any business.
c. unless its effect is to substantially lessen competition.
d. unless there is no effect on a competitor.
This is permissible as long as it does not lead to a material restriction of competition.
Option c is correct .
A provision in an agreement that prohibits Resource Refining, Inc. from purchasing products from Quality's competitors is anti-competitive and violates antitrust laws if it has the effect of significantly reducing competition in the marketplace. may be considered probable.
The deciding factor is the impact on competition. A provision may be deemed unlawful if it creates a monopoly or significantly reduces consumer choice or competition in the marketplace. However, it may be permitted if the provision has minimal impact on competition or if the restriction is justified (such as protection of trade secrets or product quality).
hence, Option c is correct .
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The present value of $2000 to be received 5 years from now, assuming a required rate of return of 5% a. 1567 O b. 2552.56 O c. 2100 O d. 2000
The present value is approximately $1567. Option A is the correct answer.
The present value of $2000 to be received 5 years from now, assuming a required rate of return of 5%, can be calculated using the formula for present value. The formula is:
Present Value = Future Value / (1 + Rate)^n
Where:
Future Value = $2000
Rate = 5% or 0.05
n = 5 years
Plugging in the values into the formula:
Present Value = $2000 / (1 + 0.05)^5
Calculating this expression, we find that the present value is approximately $1567. Option A is the correct answer.
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3. Answer the following questions about your own experience in the labor force a. When you or one of your friends is looking for a part-time job, how many weeks does it typically take? After you find a job, how many weeks does it typically last? 3 weeks spent looking/interviewing 26 weeks typically seasonal or during summers. b. From your estimates, calculate (in a rate per week) your rate of job finding f, and your rate of job separation, s. (Hint: the average spell of unemployment = 1/0) c. What is the natural rate of unemployment for the population you represent?
a, The rate of job finding is approximately 0.33 jobs per week, and b, the rate of job separation is approximately 0.04 jobs per week. The natural rate of unemployment is around 0.04 jobs per week.
a. Typically, it takes around 3 weeks to find a part-time job when either I or my friends are looking in the labor force. Once a job is found, it typically lasts for about 26 weeks, especially if it is seasonal or during the summer.
b. To calculate the rate of job finding (f) and the rate of job separation (s), we can use the formulas
Rate of job finding (f) = 1 / time taken to find a job = 1 / 3 weeks = 1/3 per week
Rate of job separation (s) = 1 / average duration of a job = 1 / 26 weeks = 1/26 per week
c. The natural rate of unemployment for the population represented would be the difference between the rate of job separation and the rate of job finding. Therefore, the natural rate of unemployment can be calculated as
Natural rate of unemployment = s - f = (1/26) - (1/3) per week = 0.04 per week
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Make an accounting equation for the following question.
a. Amod tarted the business with $40,000
b. Ahmed purchased office equipement with a $3000
c. Almed purchased supplies on account from Accounts payable (Lux foods) on account for $500
The accounting equation represents the relationship between a company's assets, liabilities, and owner's equity. The equation is Assets = Liabilities + Owner's Equity. Let's make an accounting equation for the following question:
a. Amod started the business with $40,000The transaction indicates that Amod has invested $40,000 as capital to start the business. Therefore, the accounting equation would be Assets = Liabilities + Owner's EquityCash = 0 + $40,000b. Ahmed purchased office equipment for $3000.The transaction indicates that the office equipment is a company asset. Therefore, the accounting equation would be:Assets = Liabilities + Owner's EquityCash + Office Equipment = 0 + $40,000 + $3,000Cash + Office Equipment = $43,000c.
Almed purchased supplies on account from Accounts Payable (Lux Foods) on account for $500.The transaction indicates that the company has an accounts payable balance of $500. Therefore, the accounting equation would be: Assets = Liabilities + Owner's EquityCash + Office Equipment = $0 + $43,000Accounts Payable = $500The final accounting equation for these transactions would be: Assets = Liabilities + Owner's EquityCash + Office Equipment = $0 + $43,000Accounts Payable = $500.
Almed acquired supplies from Lux Foods and incurred a liability of $500, which will be recorded in their accounts payable. The accounts payable account represents the amount owed to creditors or suppliers for goods or services received on credit. Almed will need to make the payment to Lux Foods at a later agreed-upon date, typically within an established credit term.
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If the price level falls, then: (a) The Aggregate Expenditure (AE) curve will shift up and there will be a movement along the Aggregate Demand curve in the direction of higher output. (b) The Aggregate Expenditure (AE) curve will shift up and the Aggregate Demand (AD) curve will shift to the right. (c) The Aggregate Expenditure (AE) curve will shift down and the Aggregate Demand (AD) curve will shift to the left. (d) The Aggregate Expenditure (AE) curve will shift down and there will be a movement along the Aggregate Demand curve in the direction of lower output.
If the price level falls, then the Aggregate Expenditure (AE) curve will shift up and there will be a movement along the Aggregate Demand curve in the direction of higher output. Option A is the correct answer.
The primary factor influencing supply and demand in the economy is the cost of products and services. Yet, the opposite is also true: variations in demand and supply have an effect on the cost of products and services. Option A is the correct answer.
The relationship between overall price levels and total demand is not always obvious or straightforward. However, in the broadest sense, rising aggregate demand is correlated with rising price levels. The entire amount of completed products and services that are wanted in an economy is measured by aggregate demand. The total amount of money traded for such products and services at a certain price point and period is how this measurement is stated.
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Using the quantity equation of money describe what would happen to prices and to the real output after an expansionary monetary policy: What would happen in the short run if the money supply increases by 8%? (mark all that are correct)
- The growth rate of prices will be close to 0%
- Output increases by about 8%
- The growth rate of output will be close to 0%
- Price level increases by about 8%
The quantity equation of money describes what happens to prices and real output after an expansionary monetary policy. If the money supply increases by 8%, the price level increases by about 8 and the growth rate of output will be close to 0%%. Therefore option (A) is the correct answer.
In economics, the quantity equation of money is used to explain the relationship between the money supply, velocity, and prices in an economy. The equation is MV = PQ, where M represents the money supply, V represents the velocity of money (i.e. the rate at which money changes hands), P represents the price level, and Q represents real output or real Gross Domestic Product (GDP).
If the money supply increases, then the quantity of money in circulation will increase. This means that there will be more money available for people to spend, which could lead to an increase in prices or real output (i.e. the quantity of goods and services produced by an economy).In the short run, if the money supply increases by 8%, then the price level will increase by about 8%.
This is because the growth rate of prices is directly proportional to the growth rate of the money supply. Output, on the other hand, may not increase by 8% because it depends on a variety of factors such as technology, capital, and labor. Therefore, the growth rate of output will be close to 0%. The growth rate of prices will be close to 0% if there is no change in the money supply. Option (A) is the correct answer.
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Beckman Engineering and Associates (BEA) is considering a change in its capital structure. BEA currently has $20 million in debt carrying a rate of 7%, and its stock price is $40 per share with 2 million shares outstanding. BEA is a zero growth firm and pays out all of its earnings as dividends. The firm's EBIT is $13.327 million, and it faces a 40% federal-plus-state tax rate. The market risk premium is 5%, and the risk-free rate is 4%. BEA is considering increasing its debt level to a capital structure with 45% debt, based on market values, and repurchasing shares with the extra money that it borrows. BEA will have to retire the old debt in order to issue new debt, and the rate on the new debt will be 8%. BEA has a beta of 0.9.
What is BEA's unlevered beta? Use market value D/S (which is the same as wd/ws) when unlevering. Round your answer to two decimal places.
To determine BEA's unlevered beta, we must first understand the concept of levered beta and unlevered beta. The term "levered beta" refers to the risk associated with a company that has debt in its capital structure, while "unlevered beta" refers to the risk associated with a company that does not have debt in its capital structure.
Levered beta can be calculated using the following formula:
βL = βU[1 + (1 - T) * D/E]
Where:
βL is the levered beta
βU is the unlevered beta
T is the tax rate
D is the amount of debt in the company's capital structure
E is the amount of equity in the company's capital structure
To find BEA's unlevered beta, we can rearrange the above formula as follows:
βU = βL / [1 + (1 - T) * D/E]
Given the following information:
- BEA currently has $20 million in debt carrying a rate of 7%.
- BEA has a beta of 0.9.
- BEA is considering increasing its debt level to a capital structure with 45% debt, based on market values, and repurchasing shares with the extra money that it borrows.
- BEA will have to retire the old debt in order to issue new debt, and the rate on the new debt will be 8%.
- BEA is a zero-growth firm and pays out all of its earnings as dividends.
- The firm's EBIT is $13.327 million, and it faces a 40% federal-plus-state tax rate.
- The market risk premium is 5%, and the risk-free rate is 4%.
- BEA's stock price is $40 per share with 2 million shares outstanding.
We can start by calculating BEA's market value of equity and debt:
Market value of equity = Stock price * Shares outstanding = $40 * 2 million = $80 million
Market value of debt = $20 million
Based on the new capital structure, BEA's market value of equity and debt will be:
Market value of equity = Total value of the firm * Proportion of equity
= ($80 million + $22.5 million) * 0.55 = $56.375 million
Market value of debt = Total value of the firm * Proportion of debt
= ($80 million + $22.5 million) * 0.45 = $46.125 million
The amount of debt in BEA's new capital structure is $46.125 million - $20 million = $26.125 million. The amount of equity in BEA's new capital structure is $56.375 million - $26.125 million = $30.25 million.
Next, we can calculate BEA's levered beta:
βL = 0.9
D/E = $26.125 million / $30.25 million = 0.862
T = 40%
βL = βU[1 + (1 - T) * D/E]
0.9 = βU[1 + (1 - 0.4) * 0.862]
0.9 = βU[1.3012]
βU = 0.9 / 1.3012 = 0.6919
Therefore, BEA's unlevered beta is 0.69 (rounded to two decimal places).Answer: Unlevered beta = 0.69 (rounded to two decimal places). More than 100 words.
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A rightward shift in a demand curve and a leftward shift in a supply curve both result in a
Select one:
a. Higher equilibrium price.
b. Lower equilibrium quantity.
c. Lower equilibrium price.
A rightward shift in a demand curve and a leftward shift in a supply curve both result in a Higher equilibrium price. The correct option is a.
A shift to the right in a demand curve indicates that there is more demand for the product being measured. This change shows that customers are more likely to buy more of the product at each price point. A leftward shift in a supply curve, on the other hand denotes a reduction in a product's supply. This change implies that producers are supplying less of the product at each price point.
The equilibrium price, which is the price at which supply and demand converge, will rise in both situations. The increased equilibrium price reflects either a rise in demand or a fall in supply for the good. The correct option is a.
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Timberly Construction makes a lump-sum purchase of several assets on January 1 at a total cash price of $800,000. The estimated market values of the purchased assets are building, $460,800: land, $307,200; land improvements, $28.800; and four vehicles. $163,200. Required: 1-a. Allocate the lump-sum purchase price to the separate assets purchased. 1-b. Prepare the journal entry to record the purchase. 2. Compute the first-year depreciation expense on the building using the straight-line method, assuming a 15-year life and a $30.000 salvage value. 3. Compute the first-year depreciation expense on the land improvements assuming a five-year life and double-declining-balance depreciation.
1-a. To allocate the lump-sum purchase price to the separate assets purchased, we need to determine the proportionate value of each asset relative to the total estimated market value of all the assets.
Total estimated market value of the assets = $460,800 + $307,200 + $28,800 + $163,200 = $960,000
Allocation of the purchase price:
Building:
Proportionate value = ($460,800 / $960,000) x $800,000 = $384,000Land:
Proportionate value = ($307,200 / $960,000) x $800,000 = $256,000Land improvements:
Proportionate value = ($28,800 / $960,000) x $800,000 = $24,000Vehicles:
Proportionate value = ($163,200 / $960,000) x $800,000 = $136,0001-b. The journal entry to record the purchase would be:
Date: January 1
Assets:
Building $384,000
Land $256,000
Land Improvements $24,000
Vehicles $136,000
Cash $800,000
2. To compute the first-year depreciation expense on the building using the straight-line method, we need to subtract the salvage value from the cost and divide it by the useful life.
Cost of the building = $384,000Salvage value = $30,000Useful life = 15 yearsDepreciation expense per year = (Cost - Salvage value) / Useful lifeDepreciation expense per year = ($384,000 - $30,000) / 15 = $21,600Therefore, the first-year depreciation expense on the building using the straight-line method would be $21,600.
3. To compute the first-year depreciation expense on the land improvements using the double-declining-balance method, we need to determine the depreciation rate and apply it to the initial cost.
Cost of the land improvements = $24,000Useful life = 5 yearsDepreciation rate = 2 / Useful life = 2 / 5 = 40%First-year depreciation expense = Depreciation rate x Initial costFirst-year depreciation expense = 40% x $24,000 = $9,600Therefore, the first-year depreciation expense on the land improvements using the double-declining-balance method would be $9,600.
About MarketMarkets are the institutions, procedures, social relations and infrastructure where businesses sell goods, services and labor for people in exchange for money. Goods and services sold using legal means of payment such as fiat money. This activity is a part of economic.
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12 01:26:39 Fill in the blank: The manager of a(n). Mutiple Choice cost center profit center Investment center has control over costs and revenues in their department, but not over the use of i stment
Fill in the blank: The manager of an Investment center has control over costs and revenues in their department, but not over the use of investment. An investment center is a unit or division within an organization that is responsible for generating both revenues and costs.
The manager of an investment center has control over costs and revenues in their department but not over the use of investments. The manager of an investment center is accountable for the profits, capital, and investment utilization of the center. A profit center is responsible for generating revenue but is not responsible for allocating expenses or making investments.
A cost center is responsible for managing expenses and keeping them as low as possible. The manager of a cost center is accountable for the cost of running the department. The manager of a cost center, on the other hand, does not generate income for the organization. An investment center is responsible for managing revenue, expenses, and investments.
The manager of an investment center is accountable for the profit, capital, and investment utilization of the center. Investment centers have a high level of autonomy and are typically managed by senior executives. Because investment centers manage their own investments, they must evaluate the cost of capital and take risks.
As a result, investment centers have a greater potential for generating profits and contributing to the success of the organization.
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The IVplast Corporation uses an injection molding ma- chine to make a plastic product, 239, after receiving firm orders from its customers. IVplast estimates that it will receive 40 orders for 239 during the coming year. Each order of Z39 will take 120 hours of machine time. The annual machine capacity is 6,800 hours. 1. Calculate (a) the average amount of time that an order for 239 will wait in line before it is processed and (b) the average manufacturing cycle time per order for Z39. 2. IVplast is considering introducing a new product, Y28. The company expects it will receive 20 orders of Y28 in the coming year. Each order of Y28 will take 50 hours of machine time. Assuming the demand for 239 will not be affected by the introduction of Y28, calculate (a) the average waiting time for an order received and (b) the average manufacturing cycle time per order for each product, if IVplast introduces Y28.
a) The average waiting time for Y28 = (2.75 ÷ 0.364) − 50 = 31.58 hours and b) The average cycle time for Y28 = processing time + waiting time = 50 hours per order + 31.58 hours per order = 81.58 hours per order.
(a) The average amount of time that an order for 239 will wait in line before it is processed
Waiting time is calculated using Little’s law, which states that the expected number of units in the queue equals the expected time in queue multiplied by the expected processing rate.
The expected number of units in the queue = traffic intensity × (average cycle time + average waiting time)
For 239, the expected number of units in the queue = λ × W = (40 orders per year) ÷ (365 days per year) × (120 hours per order) = 4.11
The expected processing rate = C ÷ T = 6800 hours per year ÷ (40 orders per year × 120 hours per order) = 1.79
The traffic intensity (ρ) = λ × T = (40 orders per year) ÷ (365 days per year) × (120 hours per order) ÷ (6800 hours per year) = 0.18
The average waiting time (W) = ρ × (average cycle time) ÷ (1 − ρ) = 0.18 × [(120 hours per order) + (0.5 × 120 hours per order)] ÷ (1 − 0.18) = 33.5 hours
Therefore, the average amount of time that an order for 239 will wait in line before it is processed = 33.5 hours
(b) The average manufacturing cycle time per order for 239
The average cycle time for 239 = processing time + waiting time = 120 hours per order + 33.5 hours per order = 153.5 hours per order.
2. IV plast is considering introducing a new product, Y28.
The company expects it will receive 20 orders of Y28 in the coming year. Each order of Y28 will take 50 hours of machine time. Assuming the demand for 239 will not be affected by the introduction of Y28, calculate
(a) the average waiting time for an order received and (b) the average manufacturing cycle time per order for each product, if IVplast introduces Y28.
(a) The average waiting time for an order received
Let’s first calculate the expected number of units in the queue for each product.
For Z39, the expected number of units in the queue = traffic intensity × (average cycle time + average waiting time) = 0.18 × (120 + 33.5) = 24.93
For Y28, the expected number of units in the queue = traffic intensity × (average cycle time + average waiting time) = 0.055 × (50 + 0) = 2.75
The expected processing rate for Z39 is 1.79, and for Y28 it is 0.364Therefore, the average waiting time for Z39 = (24.93 ÷ 1.79) − 120 = 0.52 hours
The average waiting time for Y28 = (2.75 ÷ 0.364) − 50 = 31.58 hours
(b) The average manufacturing cycle time per order for each product, if IVplast introduces Y28.
The average cycle time for Z39 = processing time + waiting time = 120 hours per order + 0.52 hours per order = 120.52 hours per order
The average cycle time for Y28 = processing time + waiting time = 50 hours per order + 31.58 hours per order = 81.58 hours per order.
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To confirm your grasp of the key points in this chapter, try answering the following questions. 1. Why does a corporate entity need a constitution? 2. Explain the difference between governance and management. 3. What are the two aspects of the board's work that can provide a paradox for the unitary board? 4. Describe the scope of corporate governance. 5. What sort of companies might have an all-executive board?
The statement "To confirm your grasp of the key points in this chapter, try answering the following questions" means that you should try to answer the following questions to determine if you have fully understood the main points in the chapter. Here are the answers to the questions:1. A corporate entity requires a constitution because it is a fundamental document that governs the company's activities, describes the company's objectives, and sets out the limits within which the company's operations must be conducted.2. Governance refers to the way that an organisation is managed, controlled, and directed, whereas management refers to the act of managing or supervising people, processes, and resources to achieve a particular goal. Governance is responsible for overseeing management activities.3. The two aspects of the board's work that can provide a paradox for the unitary board are:
Monitoring the effectiveness of management and making strategic decisions.
Acting as both a representative of the shareholders and as an independent decision-making body.
4. Corporate governance is the set of principles, practices, and procedures that govern how companies are managed and controlled. The scope of corporate governance includes everything from the board's structure and composition to the way that the company's objectives are set and achieved.5. An all-executive board is a board of directors composed entirely of executives from the company. Smaller companies that are closely held, and companies that are at an early stage of development, may have an all-executive board.
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Market Research conducted a survey to find out whether people who earn more money purchase more expensive goods. The following graph indicates the relationship between income the survey subjects earned and the price of the home that they purchased. 500 450 400 350 300 PRICE (Thousands of dollars per home) Slope: 2.5 Y-Intercept: 50 200 150 100 50 0 90 100 10 20 30 00 50 50 70 00 INCOME (Thousands of dollars per year) 300 250 PRICE (Thousands of dollars Slope: 2.5 Y-Intercept: 50 200 150 100 0 0 10 100 20 40 70 INCOME (Thousands of dollars per year) The variable shown on the horizontal axis i price The units for the variable on the vertical axis are thousands of dollars per year There are two ways to view the information presented on the graph. First, the graph tells us the amount a person with a certain income is likely to spend on a home, and second, it tells us the probable income of a person who spent a certain amount on a home. For example, if an individual earned $60,000 last year and purchased a new home, you would expect that person to have paid about_$250 for the home. Similarly, if someone just paid $200,000 for a home, you could use this graph to estimate that this person's income was probably around $60,000
The given graph illustrates the relationship between income and the price of homes purchased. It provides two perspectives: estimating the amount a person with a certain income is likely to spend on a home and estimating the probable income of a person who spent a certain amount on a home.
For example, if an individual earned $60,000 last year and purchased a new home, based on the graph's trendline, it would be expected that the person paid around $250,000 for the home. Similarly, if someone recently paid $200,000 for a home, the graph suggests that their income was likely around $60,000.
The slope of the graph, which is 2.5, indicates that for every increase of $1,000 in income, the price of the home increases by $2,500. The y-intercept of 50 represents the baseline price for homes when income is zero.
By analyzing the graph, we can make estimations and observations about the relationship between income and home prices.
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what key question might an entrepreneur ask during the exploit phase of an entrepreneurial venture?
Key Question: "How can we scale our business and maximize profitability while maintaining a competitive advantage in the market?"
During the exploit phase of an entrepreneurial venture, the focus shifts towards growth and maximizing the potential of the business. The entrepreneur needs to consider various factors to ensure the long-term success of the venture. By asking the key question above, the entrepreneur seeks to identify strategies and opportunities that will allow the business to expand its operations, increase market share, and generate higher profits. They need to evaluate factors such as market demand, production scalability, cost optimization, competitive positioning, and effective marketing and sales strategies. This question helps the entrepreneur navigate the challenges of growth and make informed decisions that drive the sustainable success of the entrepreneurial venture.
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At
what price does Monica sell her handbags to the independent retail
channnel distributor?
11. Should Monica propose the Grand* Mart deal as suggested? Or should she take a pass and stay exclusively with the independent retailer channel? Or should she renegotiate the initial 2,000 bag deal
The information provided does not include specific details about Monica's handbags, their production cost, or the terms of the proposed deal with Grand Mart. Without this information, it is not possible to determine the price at which Monica should sell her handbags to the independent retail channel distributor.
Regarding whether Monica should propose the Grand Mart deal, take a pass and stay exclusively with the independent retailer channel, or renegotiate the initial 2,000 bag deal, it depends on various factors such as the potential benefits and risks associated with each option, Monica's business goals and priorities, and the specific terms and conditions of the proposed deals. A thorough evaluation of these factors and careful consideration of Monica's business strategy and objectives is necessary to make an informed decision.
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Gamboa, Inc. sold 120 selfie sticks for $15 each. If producing the selfie sticks had an average cost of $3, how much profit did the company make? Provide your answer below:
If producing the selfie sticks had an average cost of $3, the company made a profit of $1440.
As the company sold 120 selfie sticks for the price of $15 each, the total sale would be
120 x 15 = $1800.
And the production cost of one selfie stick was average $3. So, production cost for all 120 sticks would be
120 x 3 = $360
The profit of the company would be total sale amount minus the total production cost
$1800 - $360 = $ 1440
Profit is the term used to describe the financial gain experienced when the revenue from a commercial activity exceeds the costs, costs, and taxes associated with maintaining that activity.
Any profits generated are returned to the company's owners, who can decide whether to keep the money for themselves, pay dividends to shareholders, or reinvest it in the company. The money a business keeps after deducting all costs is known as profit.
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Today is t = 0. You have just bought a five-year zero-coupon Treasury bond with $1,000 face value. You paid $920.
(a) What is the annually compounded yield to maturity on the bond?
(b) Suppose that yields at all maturities increase to 2% immediately after you have purchased the bond. Calculate the annualized holding period return if you sell the bond one year after you have purchased it, at t = 1.
(c) Suppose instead that you did not sell the bond at t = 1 and held it to maturity. What is the annualized holding period return for the five year investment?
a. The annually compounded yield to maturity on the bond is 1.7%.
b. The annualized holding period return after one year is 8.7%.
c. If the bond is held to maturity, the annualized holding period return for the five-year investment would be the same as the yield to maturity calculated in part (a), which is 1.7%.
(a) To calculate the annually compounded yield to maturity (YTM) on the bond, we can use the formula:
YTM = ((Face Value / Purchase Price) ^ (1 / Years to Maturity)) - 1
In this case, the face value of the bond is $1,000, and the purchase price is $920. The bond has a maturity of five years. Plugging in these values into the formula:
YTM = (($1,000 / $920) ^ (1 / 5)) - 1
= (1.08695652174 ^ 0.2) - 1
= 0.017 - 1
= 0.017 or 1.7%
Therefore, the annually compounded yield to maturity on the bond is 1.7%.
(b) If yields at all maturities increase to 2% immediately after purchasing the bond and you sell it after one year, the annualized holding period return can be calculated using the formula:
Holding Period Return = ((Selling Price / Purchase Price) ^ (1 / Holding Period)) - 1
Since the bond is a zero-coupon bond, the selling price after one year would be the face value of $1,000. Plugging in the values:
Holding Period Return = (($1,000 / $920) ^ (1 / 1)) - 1
= (1.08695652174 ^ 1) - 1
= 0.08695652174 or 8.7%
Therefore, the annualized holding period return after one year is 8.7%.
(c) If the bond is held to maturity, the annualized holding period return for the five-year investment would be the same as the yield to maturity calculated in part (a), which is 1.7%.
Holding the bond to maturity means receiving the face value of $1,000 at the end of the five-year period, and the return is based on the initial investment of $920. The return is earned through the discount or difference between the purchase price and the face value.
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What assumption in the food industry did Howard Moskowitz change?
Answer:
"By evolving from a one-size-fits-all approach to one that embraces customer diversity, Moskowitz was able to improve customer experiences with food products from coffee to cola to spaghetti sauce and beyond."
this is what I found online
Moskowitz was able to improve consumer experiences with culinary goods ranging from coffee to soda to spaghetti sauce and beyond by shifting from a one-size-fits-all approach to one that welcomes customer variety.
What is food industry?The food industry is a complex, global network of various businesses that provides the majority of the world's food.
The word "food industries" refers to a wide range of manufacturing, distribution, processing, and conversion operations, preperation, transport and many other facilities.
Thus, Moskowitz was able to improve consumer experiences.
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ct. Bank reconciliation Prepare a bank reconciliation as of October 31 from the follow- Exercise 5.7 ing information: LO 3 ✓a. The October 31 cash balance in the general ledger is $1,688. ✓✓b. The October 31 balance shown on the bank statement is $746. ✓c. Checks issued but not returned with the bank statement were No. 462 for $26 and No. 483 for $100. -d. A deposit made late on October 31 for $900 is included in the general ledger bal- ance but not in the bank statement balance. Returned with the bank statement was a notice that a customer's check for $150 that was deposited on October 25 had been returned because the customer's account was overdrawn. f. During a review of the checks that were returned with the bank statement, it was noted that the amount of Check No. 471 was $64 but that in the company's records supporting the general ledger balance, the check had been erroneously recorded as a payment of an account payable in the amount of $46. X4 46 18
The reconciled balances per books and per bank statement should now be equal.
Bank Reconciliation: Bank Reconciliation is a comparison between the cash balance in the company's accounting records and the balance on the bank statement. The primary objective of preparing a bank reconciliation is to identify the differences between the two balances and make corrections where necessary. Hence, it helps in ensuring the accuracy of the company's financial records. Steps to prepare bank reconciliation as of October 31 are as follows: Add any deposits in transit to the balance per books Deduct any outstanding checks from the balance per books Adjust the balance per books for any bank errors. Compare the adjusted balance per books to the balance per bank statement Add or deduct any bank memoranda to the balance per bank statement. The reconciled balances per books and per bank statement should now be equal.
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X Corp. is located in State A and also has income from its business in State B. Residence State A tax rate is 22%. Source State B tax rate is 27%. X Corp. has income of 20,000 USD in State A, and 13.000 USD in State B.
Required: Taking into account above information and using the ordinary tax credit method, calculate the corporate income tax paid in residence State A by X Corp. (10 points)
X Corp. would have paid $890 in corporate income tax in residence State A using the ordinary tax credit method, taking into account the income earned in both State A and State B and the respective tax rates in each state.
To calculate the corporate income tax paid by X Corp. in residence State A using the ordinary tax credit method, we need to determine the taxable income in each state and apply the respective tax rates. Here's the breakdown:
Income in State A: $20,000
Income in State B: $13,000
Calculate the tax liability in State A:
Taxable income in State A: $20,000
State A tax rate: 22%
Tax liability in State A: $20,000 * 0.22 = $4,400
Calculate the tax liability in State B:
Taxable income in State B: $13,000
State B tax rate: 27%
Tax liability in State B: $13,000 * 0.27 = $3,510
Determine the amount of tax credit for taxes paid to State B:
Tax credit for State B taxes: Lesser of State B tax liability or income in State B
Tax credit for State B taxes: Min($3,510, $13,000) = $3,510
Calculate the corporate income tax paid in residence State A:
Tax paid in State A: Tax liability in State A - Tax credit for State B taxes
Tax paid in State A: $4,400 - $3,510 = $890
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Which of the following is an example of a critical incident question? O Tell me about a time when you put in extra effort to finish a project on time" O "If the CEO was here right now and asked you how to improve the company, what would you say? O Would you be willing to travel to South Africa two or three times a year? O "How would you handle an employee who is habitually 5 or 10 minutes late for his shift? QUESTION 3 Surveys of interviewers and small business owners showed that when these groups were presented with a list of llegal job int mistakenly o hardly any of them O about half of them a large majority
The example of a critical incident question from the options provided is: "How would you handle an employee who is habitually 5 or 10 minutes late for his shift?"
A critical incident question is designed to assess a candidate's ability to handle specific workplace situations or challenges. It aims to elicit responses that reveal the candidate's problem-solving skills, decision-making abilities, and their approach to handling difficult scenarios. In this case, the question about handling an employee who is habitually late for their shift is an example of a critical incident question because it presents a specific workplace situation that requires the candidate to provide a thoughtful and strategic response. The question assesses the candidate's potential conflict resolution skills, communication abilities, and their understanding of managing employee behavior in a professional setting.
Critical incident questions are valuable in the interview process as they allow employers to gauge a candidate's practical experience and problem-solving capabilities. By presenting real or hypothetical scenarios, employers can assess how candidates would respond to challenging situations in the workplace. These questions provide insight into a candidate's decision-making processes, interpersonal skills, and their ability to handle conflict or difficult employee situations effectively.
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If a firm has at least some control over the price of its product, then the fimm cannot be in which market model: a. Oligopoly b. Pure monopoly c. Pure competition d. Monopolistic competition
Each company in a market with perfect competition is a price taker, which means that it has no control over the price. So, C is the best choice.
A monopolist is seen as a price maker since it has the power to determine the cost of the goods it sells. Demand, often known as consumer willingness and ability to buy the commodity, places restrictions on the monopolist.
Because they are price takers, businesses in a completely competitive market have no control over the cost of their goods. In a market with perfect competition, supply and demand forces control pricing. In a perfectly competitive market, businesses can only modify their output in an effort to increase profits.
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Consider again Mockingbird Airlines’ problem as described in the overbooking case study in Chapter 9.of Making Hard Decisions.
Construct a simulation model of the system, and use it to find Mockingbird’s optimal policy regarding overbooking. Compare this answer with the one based on the analysis done in Chapter 9.
The optimal policy regarding overbooking for Mockingbird Airlines in the simulation model may differ from the one based on the analysis in Chapter 9.
The simulation model provides a more accurate representation of the system dynamics and allows for experimentation with different policies, considering various factors such as passenger no-show rates, cancellation rates, and revenue. By running the simulation multiple times with different policies, it is possible to find the policy that maximizes Mockingbird Airlines' expected profit. This approach takes into account the inherent uncertainties and variability of the system, providing a more robust and realistic solution compared to the analysis in Chapter 9, which relies on assumptions and simplifications.
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