Availability of alternatives and replaceability of personnel are the factors influence the extent to which substitutability is available to a subunit.
What is substitutability?In economics and consumer theory, a substitute, or substitutable good, is a good that consumers perceive to be substantially similar to or sufficiently equivalent to another item. A replacement is a product that can be used in place of another.
There are two ways that a product could be substituted. Product B cannot replace Product A, whereas Product A can be substituted in a one-way or unidirectional fashion.
Thus, Availability of alternatives and replaceability of personnel.
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the track length and the ride time for the 10 roller coasters in another park are given below. create a scatterplot of the data with time on the y y-axis, and track length on the x x-axis. track length (ft) ride times (seconds) 3250 3250 110 110 2500 2500 80 80 2900 2900 145 145 3500 3500 120 120 920 920 95 95 3000 3000 210 210 2690 2690 170 170 1900 1900 105 105 1610 1610 80 80 2060 2060 170 170 a few of the points (red) are already plotted, along with the least squares regression line. plot the rest (blue). clear
Plotting the blue values (3250,120), (2500,70),(3500,120), (3000,210) as follows with a blue dot = 0.025
Workings:
The regression equation represents:
Predicted value, y^ = Intercept+slope*x.
A second example is falling from a roller coaster. This is an example of a parabola, and the water droplet is shaped like a parabola moving up and down. The Macaulay Duration calculates the weighted average time it takes a bondholder to receive a bond's cash flows.
Conversely modified duration measures a bond's price sensitivity to changes in its yield to maturity. Most roller coasters obey the laws of inertia. A stationary object is stationary, so you must push or pull all the coasters to start.
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_______________ is the total amount of energy. Often one associates this term with the chemical energy available in bonds. Select only ONE answer choice.
a. Endargonic b. Enthalpy c. Entropy d. Exergonic
b. Enthalpy is the total amount of energy. Often one associates this term with the chemical energy available in bonds.
A thermodynamic system's enthalpy (/nlpi/; listen) property is the sum of the system's internal energy and the product of its pressure and volume.
It is a state function that is frequently employed in measurements of chemical, biological, and physical systems at constant pressure, which the sizable surrounding environment conveniently provides.
The pressure-volume concept describes the effort needed to create space for the system by displacing its surrounds in order to determine its physical dimensions.
For solids and liquids under typical conditions, the pressure-volume term is relatively tiny, whereas it is only somewhat small for gases.
Therefore, enthalpy serves as a stand-in for energy in chemical systems; enthalpy differences are what are commonly referred to as bond, lattice, and solvation "energies" in chemistry.
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researchers have found that employees may be less likely to report ethical problems to management if they are intently focused on achieving a task. t/f
Researchers have discovered that if employees are completely concentrated on completing a task, they may be less inclined to report ethical problem to management. The statement is true.
How can businesses stop their staff from acting unethically?Employers can deter unethical behavior in their workforce by performing routine audits and sporadic spot checks. An employee's unethical behavior is frequently justified by the notion that it will never be discovered, hence it is safe.
What is moral behavior and immoral behavior?When people act in a good, moral, just, and appropriate manner, it is ethical behavior. People that act in a terrible, immoral, unjust, or improper manner are engaging in unethical behavior. Business ethics determine whether a company's actions are moral or immoral.
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Wearing a seat belt in an automobile to protect yourself against injury is an example of ____________ risk.
A) reducing
B) assuming
C) pooling
D) shifting
E) avoiding
Answer: reducing
Wearing a seat belt in an automobile to protect yourself against injury is an example of reducing risk.
By lowering the possibility and severity of a prospective loss, risk reduction seeks to mitigate potential losses. For instance, a risk-averse investor who is considering buying oil equities may decide against doing so due to the political and credit risk associated with the commodity.
It strengthens the stability of the organization and lowers its legal responsibility. - It helps an organization feel more confidence and aids in helping it make the best business decisions. It safeguards the participants and the business against any potential harm.
The alpha, beta, R-squared, standard deviation, and Sharpe ratio are the five main risk indicators.
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as mentioned earlier, gladstone corporation is about to launch a new product. depending on the success of the new product, gladstone may have one of four values next year: $150 million, $135 million, $95 million, and $80 million. these outcomes are all equally likely, and this risk is diversifiable. suppose the risk-free interest rate is 5% and that, in the event of def
Gladstone Corporation's new product launch is a risky venture, with four possible outcomes of the company's value next year: $150 million, $135 million, $95 million, and $80 million.
The risk of these outcomes is diversifiable, meaning that the company could spread the risk among different investments or strategies, such as diversifying their portfolio, hedging, or using insurance.
If Gladstone takes no action to mitigate the risk associated with their new product launch, the expected return on their investment is the risk-free rate of 5%. However, if they choose to diversify their risk, they may be able to increase their expected return if they can successfully spread their risk across a variety of investments. Additionally, if Gladstone purchases insurance to protect themselves from the downside of their new product launch, their expected return could be higher than the risk-free rate.
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which one of the following sectors grew at the fastest rate in the three years leading up to 2015? group of answer choices
Since the question does not have choices, I will discuss the various Economic sectors which had higher growth rates in 2015 in India.
There are many sectors in India mainly the primary, secondary, and tertiary sectors. The primary sector includes all those activities the end purpose of which consists in exploiting natural resources: agriculture, fishing, forestry, mining, and deposits. The secondary sector covers all those activities consisting of the processing of raw materials (manufacturing, construction industries).
The tertiary sector consists of the provision of services instead of end products it is also called the service sector. During the year 2013-2015, the service sector of India found a very high growth rate of nearly 57.03% growth in the GDP. In 2013-2014 the country's industrial sector had an increased growth rate of 24.77% in the GDP and the agricultural sector with a rate of 18.20%.
In 2014-2015 the agricultural sector only had a growth rate of 1.1 % lower than the previous year. So, we can conclude by saying that the Tertiary sector had the highest growth rate in India from 2013-2015.
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which of the following statements are correct? contracts are complete in both competitive goods markets and labour markets. social norms do not affect the outcomes in either goods markets or in labour markets. in a competitive goods market the buyers are price-takers, while in a labour market the buyers of employment (the firms) are price-setters. there is no economic rent for either the buyers or the sellers in competitive goods markets. in contrast, in labour markets the sellers receive economic rents.
The following statements " In a competitive goods market the buyers are price-takers, while in a labor market the buyers of employment (the firms) are price-setters and There is no economic rent for either the buyers or the sellers in competitive goods markets. In contrast, in labor markets the sellers receive economic rents" are True.
Understanding the operation and dynamics of the markets for paid labor is the goal of labor economics. The commodity of labor is provided by workers, often in return for a salary demanded by employers.
Labor economics must take into consideration social, cultural, and political factors because these workers are a part of a social, institutional, or political system. Employers and employees interact to drive labour markets, or employment markets. In order to understand the pattern of wages, employment, and income that results, labor economics examines the providers and consumers of labor services.
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on november 1, eli co. received a $6,000, 60-day, 6% note from a customer as payment on his $6,000 account. eli's journal entry to record this transaction on november 1, would include a: (check all that apply.)
Credit of $6,000 to Accounts Receivable a $6000 debit to notes payable Eli Co. must document the likely cash inflow and outflow in the account document for the supplied report.
The amount that the business got is recorded as a credit to its account, while the amount that it will repay the lender is recorded as a debit. Later, the debit will be paid. A maker of furniture who has supplied furniture to a retail business is an example of an account receivable. Payment due is noted under accounts receivable once the manufacturer bills the retailer for the furniture. The maker of the furniture is awaiting payment from the retailer.
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everything else equal, an increase in the government budget deficit would: increase the government's demand for funds shift the demand curve for funds to the left increase the interest rate in the economy
Everything else equal, an increase in the government budget deficit would Increase the government's demand for funds and Increase the interest rate in the economy
An overrun in spending over income results in a budget deficit, which can be a sign of a nation's financial stability. The phrase is frequently used to describe government spending rather than that of companies or people. Budget deficits have an impact on the total amount a nation owes to creditors, the total of its annual budget deficits, and the national debt.
The government experiences losses during times of poor economic development or economic recession. Workers who leave their jobs pay less in taxes, which reduces the government's revenue.
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the best approach to budgeting is objective and task budgeting, whereby the company determines its promotion objectives, outlines the tasks to accomplish these objectives, and multiple choice asks the ad agency for an estimate. surveys customers to determine what spending levels they think are appropriate. asks the media to propose a program. determines what spending level top management will allow for the proposed program. determines the promotion cost of performing these tasks.
The best approach to promotion is task and objective budgeting method whereby the company determines its promotion objectives, outlines the tasks to accomplish these objectives.
Give a brief account on promotion.Any sort of marketing communication designed to persuade target audiences of the relative qualities of a given good, service, brand, or issue is referred to in the marketing world as promotion. Marketing professionals can use either a cognitive or an emotional approach to help buyers remember their brand. The purpose of promotion is to raise brand awareness, pique interest, bring in business, or foster brand loyalty. It is a fundamental component of the market mix, which also comprises the four P.s. : product, price, location, and promotion.
Another component of the promotional mix or marketing strategy is promotion. Personal selling, advertising, sales promotion, direct marketing publicity, word of mouth, event marketing, exhibitions, and trade shows are some of these. Each component of the promotional mix should receive a certain amount of attention, and a promotional plan outlines how much of the cash should go toward each component.
Promotion includes all of the communication techniques a marketer does to spread the word about their product. Both verbal and visual information is possible.
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The complete question is mentioned below :
The best approach to promotion is _______ budgeting method whereby the company determines its promotion objectives, outlines the tasks to accomplish these objectives, and determines the promotion cost of performing these tasks.
FILL IN THE BLANK. in a barter economy, people are to specialize in the production of one good or service, compared to in a money economy.
People are less likely to specialize in the production of a single commodity or service in a barter system than in a money economy.
What is the barter system?Barter is an exchange system in which participants directly trade commodities or services for other goods or services without the use of a medium of exchange such as money. Economists contrast barter economies with gift economies in a variety of ways; for example, barter offers instantaneous reciprocal transaction rather than one that is delayed in time. Bartering is normally done bilaterally, but it may also be done multilaterally. Only to a limited extent does barter operate alongside monetary systems in most developed countries.
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If the price elasticity of demand for a good is 0.8, then which of the following events is consistent with a 4 percent decrease in the quantity of the good demanded?
a. A 0.2 percent increase in the price of the good,
b. A 3.2 percent increase in the price of the good,
c. A 4.8 percent increase in the price of the good,
d. A 5 percent increase in the price of the good.
If the price elasticity of demand for a good is 0.8, then a 5 percent increase in the price of the good is consistent with a 4 percent decrease in the quantity of the good demanded. Therefore, the option D holds true.
The price elasticity of demand can be referred to or considered as the total resistance to change shown by a change in the price level of a good. When there is an increase in the price levels, then there is also a decrease in the demand for the good, which will be proportionate to the prevailing price elasticity of that good.
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The Labor Market - End of Chapter Problem Consider the labor market for workers who build boats. For each of the given scenarios, graphically show the effect on the market for boat-builders. a. Boat manufacturers begin using more efficient robots on the assembly line, and the substitution effect dominates the scale effect. Labor supply Wage ($ per hour) X Labor demand b. There is an increase in the wage of automobile manufacturing workers (assume boat-builders and automobile workers have similar skills and can work in both industries). Labor supply X Labor demand c. There is a decrease in unemployment benefits. Labor supply x Labor demand
The effect on market for boat-builders is that there is an increase in wage of the automobile manufacturing workers.
What is manufacturing?The process of generating or producing goods using resources like equipment, labor, tools, chemicals, or biological formulas is known as manufacturing. The secondary sector of the economy revolves around it. The expression can be used to represent a range of human activity, from handicraft to high-tech, but it is most usually associated with industrial design, which requires the extensive transformation of the raw materials from primary sector into finished goods. Planning and streamlining the processes that turn raw materials into final things fall within the purview of the engineering field known as "manufacturing engineering." The initial stages of production involve product design and material specifications. By transforming these elements into various shapes, the finished product is produced.
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denny corporation is considering replacing a technologically obsolete machine with a new state-of-the-art numerically controlled machine. the new machine would cost $290,000 and would have a ten-year useful life. unfortunately, the new machine would have no salvage value. the new machine would cost $48,000 per year to operate and maintain, but would save $89,000 per year in labor and other costs. the old machine can be sold now for scrap for $29,000. the simple rate of return on the new machine is closest to (ignore income taxes.):
The simple rate of return on the new machine is closest to 17.2%. This rate of return is calculated by taking the net annual savings from the new machine ($41,000 = $89,000 - $48,000) and dividing it by the initial cost of the machine ($290,000). $41,000/$290,000 = 0.14103 = 14.1%.
Taking into consideration the initial cost of the old machine ($29,000), the total initial cost of the new machine comes at $261,000. Dividing the annual savings ($41,000) by the revised initial cost ($261,000) results in a simple rate of return of 17.2%. This rate of return takes into account the savings associated with the new machine as well as any scrap value that could be gained from the old machine.
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assume that the price of good x decreases from $10 to $9 per unit and that the quantity demanded of good x increases from 25 to 30 units. in this price range, the demand for good x is group of answer choices
Good X has an elastic demand.
What is elastic demand?An elastic demand is one where there is a significant shift in the quantity sought as a result of a price change.
Which 3 elasticity types are there?Elasticity is a term used to describe how responsive one economic variable is to changes in another economic variable. Prices, cross-price elasticity, and income elasticity of demand are the three main types of elasticity.
What are elasticity's several types?Price Elasticity of Demand (PED), Cross Elasticity of Demand (XED), and Income Elasticity are the three basic categories under which demand elasticity is divided based on factors influencing the quantity demanded for a product
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Businesses that sell services rather than merchandise don't have a line for _____ on their statements. A. operating expenses B.sales expenses C. Interest Expenses D. Cost of goods sold
Businesses that sell services rather than merchandise don't have a line for Cost of goods sold on their statements.
So, option D. Cost of goods sold is correct answer
The direct costs of producing the products that a business sells are referred to as its cost of goods sold (COGS). The cost of the labor and materials directly employed to make the good are also included in this sum. It doesn't include indirect expenditures like those associated with the sales staff and distribution.
The phrase "cost of sales" is another term for "cost of goods sold."
Cost of goods sold is typically not included in the income statement of service businesses. When a company sells commodities, the cost of goods sold (COGS) is computed (=ending inventory + purchases - beginning inventory).
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Using a supply and demand analysis show first the labour market in equilibrium, and then
show
a) the effect of a reduction in the demand for labour as a consequence of a pandemic.
b) The effect of a government subsidy to producers to restore the employment of labour.
Provide a diagram with clear axis details. Make sure to explain what sort of assumptions you
are making on the elasticities of demand and supp.
If there is a decrease in labor demand as a result of a pandemic, the labor demand curve will shift to the left.
If the government offers a subsidy to producers in order to restore labor employment, the quantity supplied for labor will shift to the right.
What is the demand?The term “demand” relies on people's needs and wants to the amount of goods and services. Demand is an economic notion that deals with the connection between consumer demand for goods and services and their market prices.
If there is a decrease in labor demand as a result of a pandemic, the labor demand curve will shift to the left. This indicates that companies will be ready to hire fewer staff at any given salary rate.
If the government offers a subsidy to companies in order to restore labor employment, the quantity supplied for labor will shift to the right. This suggests that workers will be prepared to provide additional labor at any given wage rate.
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Crane Company combines its operating expenses for budget purposes in a selling and administrative expense budget. For the first 6 months of 2018, the following data are available.
1. Sales: 20,800 units quarter 1; 22,100 units quarter 2.
2. Variable costs per dollar of sales: sales commissions 5%, delivery expense 2%, and advertising 3%.
3. Fixed costs per quarter: sales salaries $10,900, office salaries $6,160, depreciation $4,490, insurance $2,080, utilities $880, and repairs expense $670.
4. Unit selling price: $24.
The budgets for all non-manufacturing departments, including the ones for sales, marketing, accounting, engineering, and facilities, make up the selling and administrative expense budget. Usually, the budget is submitted either monthly or quarterly.
This budget merits a great deal of attention because, taken as a whole, it can be comparable to the amount of the production budget. For a distinct sales and marketing budget and a separate administration budget, it can also be divided into segments.
This budget's data is not directly taken from any other budgets. Instead, managers choose the proper level of spending based on the overall level of corporate activity. To ascertain which activities are likely to be required more or less as sales levels and capital expenditures change, activity-based costing analysis may be used. Additionally, bottleneck operations may have some influence on the total amount of expenses in this budget (especially if the bottleneck is in the sales department). It is helpful to identify the activity levels at which step costs may be incurred and to include them in the budget when developing this one.
For the given question, the required budget has been attached in the form of images.
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an investment adviser with an office in state a has no office located in state b, but has registered in state b and has 19 customers located in state b. the administrator of state b is:
It is legal for the administrator of state b to look into any documents kept in the adviser's office in state a.
An administrator supports teams or individuals with office chores, which is crucial for the smooth operation of a business. They might be in charge of filing, word processing, creating spreadsheets and presentations, greeting visitors, directing them where to go, and answering phones. The tasks of an administrator include planning and managing an institution's or organization's daily operations. An administrator is someone who is in charge of making sure a company runs smoothly. They could have various duties depending on the kind of organisation, team, or body they work for. Above all, administrators need to be organised and proficient communicators. a person who oversees the management of a business or organisation.
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Identify the true statements about Kaizen Improvement.
Kaizen refers to eliminating inventories. Both lean systems and just-in-time (JIT) systems can benefit from kaizen. Cost reduction can be achieved by kaizen.
What does "Kaizen Improvement" mean?Since the term's introduction as a systematic method for company improvement, businesses who use KAIZENTM have consistently produced better outcomes. Continuous improvement costing is referred to as kaizen costing. This method concentrates on examining the expenses incurred.
Kaizen, also known as continuous improvement, asserts that an organization can only succeed in the long run if every employee seeks out and implements improvements on a daily basis.
The pursuit of minor changes encourages reflection on the procedure and how it is being run.
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question:-
Identify a true statement about kaizen.
O It involves a huge financial investment.
O It is performed on a part-time basis.
O It is an intense, rapid improvement process.
O It is based on the concept of continuous improvement.
Which of the following pricing techniques is most appropriate when developing targeting strategies based on the 80/20 rule observed in few industries?
Market-skimming pricing
Cost-plus pricing
Compensation-based pricing
Market-skimming pricing is most appropriate when developing targeting strategies
Price skimming is a method of product pricing in which a company sets its starting price as high as its target market would bear before gradually lowering it. The company reduces the price to appeal to a different, more price-sensitive portion of the population as the demand of the initial clients is met and competition enters the market.
The "skimming" of successive layers of cream, or client segments, as prices decline over time gives the skimming technique its name.
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on january 15, ross furniture, inc., accepts a $5,000, 180-day, 10 percent note from a customer at the time of a product sale. prepare the january 15 entry for ross furniture by selecting the account names from the drop-down menus and entering the dollar amounts in the debit or credit columns.
The two accounts will be notes receivable account and sales revenue account. The notes receivable account will be debited by $5000 and the sales revenue will be credited by $5000.
In a journal, business transactions are recorded in a chronological fashion. Recording journals is the first step in the creation of final accounts.
A customer's $5,000 note was accepted on January 15.
There are two accounts at play here: Sales revenue and Notes receivable
Both sales revenue and notes receivable are revenue items.
Entry:
Notes receivable account will be debited by $5000.
Sales revenue account will be credited by $5000.
Date Particulars Debit Credit
Jan- 15 Notes receivable account 5000
To sales revenue account 5000
(Being record of notes accepted
on sale)
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efferson City Computers has developed a forecasting model to estimate its AFN for the upcoming year. All else being equal, which factor is most likely to lead to an increase of the additional funds needed?
a. a sharp increase in its forecasted sales
b. a sharp reduction in its forecasted sales
c. a reduction in its dividend payout ratio
d. excess capacity in its fixed assets
A: a sharp increase in its forecasted sales is the most likely factor to lead to an increase in the additional funds required.
Sales forecasting is a process to express expected sales revenue. A sales forecasting method estimates how much a company plans to sell within a certain time period (like a quarter or year). The best sales forecasting performs this estimation with a high degree of accuracy.
In the given scenario where a forecasting model has been developed by Jefferson City Computers in order to estimate its AFN for the year to come; the most likely factor to lead to an increase in the additional funds required is a sharp increase in its forecasted sales.
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TRUE/FALSE: If a firm moves into joint ventures and direct investments, it will eventually need to create an export department.
The statement " If a firm moves into joint ventures and direct investments, it will eventually need to create an export department." is true.
Give a brief account on joint ventures.Common ownership, common returns and risks, and common control are generally characteristics of a joint venture (JV), an entity formed by two or more parties. Joint ventures are typically operated by companies for one of four reasons:
Share the risks of large investments and projects, access skills and capabilities, combine assets and operations to achieve economies of scale, and access new markets, especially emerging markets. . The claim that joint ventures reduce downside risks is refuted by Reuer and Leiblein's research. According to Gerard Baynham of Water Street Partners, joint ventures have received a lot of notoriety, but objective data shows joint ventures outperform wholly owned and controlled subsidiaries. is shown to exist.
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carlos is single and required to file a return. during the year, he received $900 in interest from a certificate of deposit held with his local bank. he also received $725 in interest from u.s. treasury securities and $300 in municipal bond interest. where on his tax return will carlos report this income? form 1099-int. directly on form 1040, page 1. the qualified dividends and capital gain tax worksheet. schedule b.
Carols will be required to be using Form 1099-INT to publicly release the interest.
What exactly is a bank?
A bank is an institution that lends or borrows money. It even gives loans to people who need them, and the money that is deposited earns interest. A bank is a bank that interacts in money as well as its substitutes and offers other financial services.
Briefing:
The diploma of deposit interest is $900.
The interest rate on US Treasury securities is $725.
The involvement on municipal bonds is $300.
Other wage income of $81,000
Carlos must file form 1099-INT to report all interest-related income.
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he following cost information pertained to the violin division of stringing music company and was based on monthly demand and sales of 100 units: per-unit costs variable production costs: direct materials $ 170 direct labor 200 variable factory overhead 110 fixed production costs: depreciation (equipment) 70 factory rent 98 other 22 total production cost $ 670 variable selling $ 46 per unit Fixed selling & administrative costs $ 58 per unit Assume that the Violin Division was evaluating whether it would accept a special sales order for 65 violins at $500 per unit. For this purpose, total relevant cost per unit (given the costs stated above) is:
Based on monthly demand and sales of 100 pieces, the cost data below for the violin division of the stringing music company was as follows: cost per unit variable costs of production direct resources Direct labor costs of $170, $200 in variable manufacturing overhead, and 110 in fixed production costs.
$430. Selling price per unit minus variable cost per unit is $1,360. Contribution margin per unit on regular (i.e., recurring) sales = (given) Variable selling and administrative cost per unit = $1,360 ($300 + $330 + $240) $60 = $1,360 $870 $60 = $430. Variable production cost per unit .
Costs that are fixed are those that don't change based on volume. The majority of fixed costs are expenses that depend more on time than they do on how much your company produces or sells. Rent and leasing charges, salary, energy prices, insurance, and loan repayments are a few examples of fixed costs.
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identify which type of sampling is being used: a market researcher randomly selects 500 people from each of 10 cities.
If a market researcher randomly selects 500 people from each of 10 cities is an example of random sampling is collection of data.
What is Stratified sampling?Stratified random sampling is a type of probability sampling using which a research organization can branch off the entire population into multiple non-overlapping, homogeneous groups (strata) and randomly choose final members from the various strata for research which reduces cost and improves efficiency.
A research organization can branch off the total population into numerous groups and randomly choose final participants from the various strata for research using stratified random sampling, which lowers costs and increases efficiency.
Thus the aforesaid is an example of stratified sampling.
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which of the following statements about the federal gift tax is false? multiple choice the donor's basis in the gifted property carries over to become the donee's basis. the tax is imposed on the donor. the tax is based on the fair market value of the gifted property. an individual can give away $10 million (adjusted annually for inflation) every year without being subject to tax.
The solution is Option A: In 2018, the annual exception for gift tax is $15,000. That suggests the maximum amount a person may transfer tax-free is $15,000 each year. Option A is incorrect, thus. The other choices are all valid.
A tax is a necessary fee or financial charge that a government imposes on a person or a business in order to raise money for public projects like building the greatest infrastructure and services. Different public spending initiatives are then funded with the funds that have been raised. Its root word, taxare, is Latin for "to assess." Before then, the cognate term "task," which is derived from Old French, was used in English. "Task" and "tax" were both often used for a while; the first required labor, the second money. The word "tax" later came to describe anything tiresome or difficult. Your tax bracket and the proportion of your income that is taxed increase as your income does.
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rosebud corp. reported the following items in the 2019 pension footnote for its defined benefit plan. service cost ............................................. $1,610 benefits paid to retirees ............................ 220 interest cost ............................................. 780 actual returns on pension plan assets ........ 1,140 expected returns on pension plan assets .... 1,200 actuarial gain ........................................... 62 how much is the increase in the company's pension obligation during the year?
The increase in company's pension obligation during year is $60.
What is a pension?A pension is a fund that accumulates contributions over the course of an employee's employment and is drawn upon periodically to finance the employee's retirement. Pensions and severance pay are two distinct concepts that shouldn't be mixed up. While the latter is often paid as a regular amount after retirement, the former is typically offered as a fixed payment following an involuntary termination of employment before to retirement. Employers, insurance companies, the government, or other groups like employer associations or labor unions may all establish retirement programs. Retirement benefits typically come in the form of a guaranteed life annuity, mitigating the risk of longevity.
Increase in pension= $1200-$1140=$60
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The owner of a car wash is trying to decide on the number of people to employ based on the following short-run production function:
Q=6L−0.5L2
where, Q = number of car washes per hour and L = number of workers.
(a.) Generate a schedule showing total product (TP), average product (AP) and marginal product (MP).
(b.) Suppose the price of a basic car wash (no undercoating, no wax treatment, etc.) in his area of business is $5. How many people should he hire if he pays each worker $6/hour?
(c.) Suppose he considers hiring students on a part-time basis for $4/hour. Do you think he should hire more workers at this lower rate? Explain.
Given the short-run production function of the Car wash entity, we can solve the given questions. For a detailed explanation of MP, AP, MRP, MLC etc refer to the answer below:
Before, giving the schedule for, the Total product (TP), Average product(AP) and Marginal product(MP), we state the formulas for these three
We will calculate TP by the Production function given: Q=6L-0.5L^2 (1)
Now, Calculating Marginal product=dTP/dL
MP= d(6L-0.5^2)/dL
We get, MP = 6 - L (2)
Average product = Q/L, we put (1) in this Equation,
AP= (6L-0.5^2)/L = 6-0.5L (3)
Now we draw the schedule ( we take values of L from 0 to 5)
L TP MP AP
0 0 6 6
1 5.5 5.0 5.5
2 10 4.0 5
3 13.5 3.0 4.5
4 16 2.0 2
5 17.5 1.0 3.5
b. A firm's choice of how many units of a variable input to employ for its fixed input is guided by the rule (MRP=MLC).
According to the regulation, the company must use a certain input up to the point where the revenue contribution of the additional input equals the expense incurred by the company to use this specific unit.
L TRP MRP TCL MLC
(TP*$5) (L*$6/h)
0 0 0 0 0
1 27.5 27.5 6 6
2 50.0 22.5 12 6
3 67.5 17.5 18 6
4 80.0 12.5 24 6
5 87.5 7.5 30 6
So we find the amount of labour at which MRP=MPL (approx) Which is 5 labours.
c. A firm is guided by the rule (MRP=MLC) when deciding how many units of a variable input to employ for its fixed input.
According to the rule, the company must use a specific input up to the point when its cost to employ it is equivalent to the additional input's income contribution.
Here also, the Firm continues to hire 5 people. Therefore, the car wash owner will not care whether students or other individuals work there.
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