Two athletes of equal ability are competing for a prize of $10,000. Each is deciding whether to take a dangerous performance-enhancing drug. If one athlete takes the drug, and the other does not, the one who takes the drug wins the prize. If both or neither take the drug, they tie and split the prize. Taking the drug imposes health risks that are equivalent to a loss of X dollars
Required:
a. Draw a $2 payoff matrix describing the decisions the athletes face.
b. For what X is taking the drug the Nash equilibrium?
c. Does making the drug safer (that is, lowering X) make the athletes better or worse off? Explain.
Answers
Answer:
a) attached below.
b) for $x < $5000 will cause taking the drug to be part of the Nash equilibrium
c) will make the athletes feel better because the value their payoff will increase
Explanation:
a) 2 * 2 payoff matrix describing the decision faced by the athletes
attached below
when both players take the drug the payoff for each player = $5000 - x
when neither player takes the drug the payoff for each player = $5000
When only one player takes the drug his payoff = $10000 - x
b) If we consider the value of $x to be involved in the Nash equilibrium then
; $5000 - $x > 0 becomes the best response
hence for $x < $5000 will cause taking the drug to be part of the Nash equilibrium
c) Lowering the negative effect of the drug ( i.e. when the value of x is reduced )
will make the athletes feel better because the value their payoff will increase
Related Questions
If the real U.S. GDP was $7,636.4 billion in 1998 and the U.S. population was 295 million, the per capita real GDP would have been approximately:_________-
Answers
Answer:
25,886 per person
Explanation:
The real US GDP in the year 1998 is 7636.4 billion
The US population was 295 million
Therefore thecapitapital real GDP can be calculated as follows
= 7636.4 billion/295 million
= 25,886 per person
Direct Labor Variances Advanced Micro Devices develops high-performing computing products. Assume one of its processors, Ryzen 7 Pro, has a standard labor time of 0.25 hours and a standard labor rate of $20 per hour. During February, the following activities pertaining to direct labor for Ryzen 7 Pro were recorded: Direct labor hours used 64,000 Direct labor cost $1,248,000 Units of Ryzen 7 Pro manufactured 250,000
(a) Determine the labor rate variance.
(b) Determine the labor efficiency variance.
(c) Determine the total flexible budget labor cost variance.
Answers
Answer and Explanation:
The computation is shown below:
a. The labor rate variance is
= (standard rate - actual rate) × actual labor hours
= ($20 - $19.50) × 64,000
= $32,000 favorable
b. The labor efficiency variance is
= (standard hours - actual hours) × standard rate
= (62,500 - 64,000) × $20
= -$30,000 unfavorable
c. the total flexible budget variance is
= standard cost - actual cost
= ($1,250,000 - $1,248,000)
= $2,000 favorable
. A new bond issue is being issued at a market price of $922 with a 11.4% interest rate and will be due in 16 years. If the firm has a 32 percent tax rate, calculate the after-tax cost of debt.
Answers
Answer:
8.53%
Explanation:
Par value = $1000
Current bond = $922
Coupon = 1000*11.4% = $114
Years = 16
Pretax cost of debt = YTM(Nper, PMT, -PV, FV)
Pretax cost of debt = YTM(16, 114, -922, 1000)
Pretax cost of debt = 0.1255
Pretax cost of debt = 12.55%
After tax cost of debt = Pretax cost of debt * (1 - Tax rate)
After tax cost of debt = 12.55% * (1 - 32%)
After tax cost of debt = 0.1255 * 0.68
After tax cost of debt = 0.08534
After tax cost of debt = 8.53%
Which of the following statements is most correct concerning a project with normal cash flows (i.e., a cash outflow in Year 0 followed by cash inflows in all subsequent years)?
a) If the NPV of a project is positive then the payback period rule will always accept the project.
b) If the NPV of a project is negative, then the profitability index of the project will always be greater than one.
c) If the profitability index of a project is greater than one, then the IRR will always be less than the project’s cost of capital.
d) If the NPV of a project is zero, then the IRR of the project will be equal to the discount rate for the project.
e) If the discount rate of a project is zero, then the project will always be accepted.
Answers
Answer: D. If the NPV of a project is zero, then the IRR of the project will be equal to the discount rate for the project.
Explanation:
Net present value (NPV) refers to the difference that exist between the present value of the cash inflows and that of the cash outflows for a particular period of time.
The net present value is used in capital budgeting to determine if a projected investment or project will be profitable or not. For a project with normal cash flows, if the NPV of a project is zero, then the IRR of the project will be equal to the discount rate for the project.
Therefore, the correct option is D.
You are selling an asset. you can earn an interest rate of 7% per yer on your savings. You receive the following two (risk less) offers:
Offer 1: receive $400,000 today
Offer 2: Receive $500,000 in 4 years
a. Which offer should you choose?
b. At what interest rate would you be indifferent between the two offers?
Answers
Answer:
Option 1
5.737126344%
Explanation:
to determine which option i would prefer today, i would need to determine the present value of offer 2
Present value is the sum of discounted cash flows
[tex]\frac{500,000}{1.07^{4} }[/tex] = $381,447.61
I would prefer the first option because its present value is greater than that of option 2
The interest rate that would make me indifferent between either options would be the interest at which the present value of $500,000 in 4 years is $400,000
$400,000 = [tex]\frac{500,000}{(1 + x)^{4} }[/tex]
$400,000[tex](1 + x)^{4}[/tex] = $500,000
500,000 / 400,000= (1 + x)^{4}
1.25 = (1 + x)^{4}
[tex]1.25^{0.25}[/tex] = 1 + x
x = 5.737126344%
You are calculating the volume quantity needed for material that will compact to 95% of its original undisturbed volume. You know that you will need to fill a void with a volume of 1,487 cubic yards. What is the volume of material needed from the borrow pit to equal this amount when fully compacted
Answers
Answer:
Volume = 1565.56 cubic yards
Explanation:
The computation of the volume of material required is shown below:
95% × volume = 1,487 cubic yards
Volume = 1565.56 cubic yards
Basically 95% of volume is equivalent to the 1487 cubic yards
So according to this we determined the volume
Hence, the same should be considered
A thief uses a bag of sand to replace a gold statue that sits on a weight sensitive alarmed pedestal. The bag of sand and the statue have exactly the same volume 1.75 L. Assume that the mass of the bag is negligible. Calculate the mass of each object.
Answers
Answer:
No, the thief didn't set off the alarm. As the mass of the gold statue and the bag of sand is different, the alarm clock will start ringing once the statue is replaced with the bag of sand. Thus, the thief screwed up the operation.
No, the robber did not activate the alarm. The alarm clock will begin to sound as soon as the gold statue is swapped out for the sand bag because of the differences in mass. As a result, the theft went wrong.
What is the role of density in sand and the statue?The density of a substance quantifies how much mass is contained in each unit volume of that substance.
From this definition, we can infer that it is an intrinsic parameter, meaning that its value is unaffected by the size of the sample of the material under consideration.
Therefore, No, the thief didn't set off the alarm. The alarm clock will begin to sound as soon as the gold statue is swapped out for the sand bag because of the differences in mass. As a result, the theft went wrong.
Learn more about thief here:
https://brainly.com/question/4248290
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Over the last year, Calzone Corporation paid a quarterly dividend of $0.10 in each of the four quarters. The current stock price of Calzone Corporation is $39.78. What is the dividend yield for Calzone stock
Answers
Answer: 1.0%
Explanation:
Dividend yield = Annual dividend / Current stock price
Annual dividend = (0.10 * 4 quarters)
= $0.40
Dividend yield = 0.40 / 39.78
= 1.0%
Identify and explain each of the situational influences that are described in this scenario: Which situational influence was not described? Ruth, who has no children, wants to buy a special baby gift for her best friend's baby shower, which is this evening. Since she won't have any time between work and the baby shower, she must go today during her lunch break. She is planning on taking her sister with her to help make the selection. Ruth knows she will be ready to buy every baby-oriented product she sees because she wishes that she too was having a baby.
Answers
Answer:
Physical surroundings.
Explanation:
Ruth wants to buy special gift for her best friend's baby shower party. She has invited her sister to help her out with the selection in the shopping. Situational influence is described but there is no hint of physical surrounding. Author has not mentioned anything about the physical surrounding in the passage.
The secret to effective sales is to have a
unique selling proposition.
good personality.
memorized pitch.
fantastic product.
Answers
Answer:
unique selling proposition.
Explanation:
Marketing can be defined as the process of developing promotional techniques and sales strategies by a firm, so as to enhance the availability of goods and services to meet the needs of the end users or consumers through advertising and market research. Thus, it comprises of all the activities such as, identifying, anticipating set of medium and processes for creating, promoting, delivering, and exchanging goods and services that has value for customers. It typically, involves understanding customer needs, building and maintaining healthy relationships with them in order to scale up your business.
Generally, the secret to effective sales is to have a unique selling proposition that makes consumers patronize you.
Suppose that many stocks are traded in the market and that it is possible to borrow at the risk-free rate, rƒ. The characteristics of two of the stocks are as follows: Stock Expected Return Standard Deviation A 10 % 25 % B 18 % 75 % Correlation = –1 a. Calculate the expected rate of return on this risk-free portfolio? (Hint: Can a particular stock portfolio be substituted for the risk-free asset?) (Round your answer to 2 decimal places.) b. Could the equilibrium rƒ be greater than 12.00%?
Answers
Answer:
a. The expected rate of return on this risk-free portfolio is 12%.
b. No, the equilibrium rƒ CANNOT be greater than 12.00%. This is because the equilibrium rƒ must be equal to the expected rate of return on this risk-free portfolio.
Explanation:
Given:
The characteristics of two of the stocks are as follows:
Stock Expected Return Standard Deviation
A 10% 25%
B 18% 75%
Correlation = –1
a. Calculate the expected rate of return on this risk-free portfolio?
SDA = Standard Deviation of Stock A = 25%, or 0.25
SDB = Standard Deviation of Stock B = 75%, or 0.75
WA = Weight of Stock A = ?
WB = Weight of Stock B = (1 - WA)
Portfolio standard deviation = (WA * SDA) – ((1 - WA) * SDB) = (WA * 0.25) – ((1 - WA) * 0.75)
With a perfect negative correlation, Portfolio standard deviation has is taken to be zero. Therefore, we have:
0 = (WA * 0.25) - ((1 - WA) * 0.75)
0 = 0.25WA - (0.75 - 0.75WA)
0 = 0.25WA - 0.75 + 0.75WA
0.75 = 0.25WA + 0.75WA
WA = 0.75
Therefore, we have:
WB = 1 - WA = 1 - 0.75 = 0.25
Portfolio expected rate of return = (WA * Expected Return of Stock A) + (WB * Expected Return) = (0.75 * 10%) + (0.25 * 18%) = 0.12, or 12.00%
Therefore, the expected rate of return on this risk-free portfolio is 12%.
b. Could the equilibrium rƒ be greater than 12.00%?
No, the equilibrium rƒ CANNOT be greater than 12.00%. This is because the equilibrium rƒ must be equal to the expected rate of return on this risk-free portfolio.
Which of these is NOT a barrier to trade?
a) Tariff
b) Quota
C) All the options are correct
D) Embargo
Answers
Answer:
All the options are correct
A US Treasury is quoted at $137.111 based on $100 par. Today is 12/31/2020. Assume that transaction date and settlement date is the same. The coupon rate is 8%. The bond has 30-year maturity. What is the yield-to-maturity
Answers
Answer: 5.46%
Explanation:
You can use excel to solve for this.
Number of periods = 30
Coupon = Payment = 8% * 100 = $8
PV = $137.11
FV = $100 par value
Do this and the YTM would be: 5.46%
This makes sense because the bond is trading at a premium which means that the YTM is less than the coupon rate.
An outside supplier offers to provide Factor with all the units it needs at $44.45 per unit. If Factor buys from the supplier, the company will still incur 70% of its overhead. Factor should choose to:
Answers
Answer:
Factor must opt to agree as well as purchase the deal from the provider. A further explanation is provided below.
Explanation:
The given problem seems to be incomplete. Find the attachment of the complete question below.
Given:
Direct material,
= $8.70
Direct labor,
= 24.70
Overhead,
= 43.50
Now,
If the offer is accepted, the cost per unit will be:
= [tex]44.45 + (43.50\times 70 \ percentage)[/tex]
= [tex]44.45 + 30.45[/tex]
= [tex]74.90[/tex] ($)
Thus the above is the correct answer.
On December 15, 2016, the board of directors of Cross Corporation declared a cash dividend, payable on January 8, 2017, of $0.94 per share on the 2,000,000 common shares outstanding. On December 15, 2016, Cross Corporation should:__________.a. not prepare a journal entry because the event had no effect on the corporation's financial position until 2017.b. decrease cash $1.88 million and decrease retained earnings $1.88 million.c. decrease retained earnings $1.88 million and increase expenses $1.88 million.d. decrease retained earnings $1.88 million and increase liabilities by $1.88 million.
Answers
Answer:
d. decrease retained earnings $1.88 million and increase liabilities by $1.88 million
Explanation:
On January 1, 2013, the balance in Tabor Co.'s Allowance for Bad Debts account was $13,546. During the first 11 months of the year, bad debts expense of $21,399 was recognized. The balance in the Allowance for Bad Debts account at November 30, 2013, was $9,859. Required: (a) What was the total of accounts written off during the first 11 months
Answers
Answer: $25,086
Explanation:
The bad debt written off is calculated by:
= Opening balance in Allowance for bad debts account + Bad debt expense - Closing balance in Allowance for bad debt
= 13,546 + 21,399 - 9,859
= $25,086
A justification for job training programs is that they improve worker productivity. Suppose that you are asked to evaluate whether more job training makes workers more productive. However, rather than having data on individual workers, you have access to data on manufacturing firms in Ohio. In particular, for each firm, you have information on hours of job training per worker (training) and number of non-defective items produced per worker (output).
Required:
a. Carefully state the ceteris paribus thought experiment underlying this policy question.
b. Does it seem likely that a firm’s decision to train its workers will be independent ofworker characteristics? What are some of those measurable and unmeasurable workercharacteristics?
c. Name a factor other than worker characteristics that can affect worker productivity.
d. If you find a positive correlation between output and training, would you haveconvincingly established that job training makes workers more productive? Explain.
Answers
Solution :
a). There is a way to state the question :
If there are two firms, firm A and firm B. Both the forms are same in all the respects but differ in only one thing, that firm A provides job training 1 hour per worker more than the number of hours of training of firm B, by how much the output of firm A would differ than the output from firm B?
b). The manufacturing firms that are located in Ohio will provide the job training based on the characteristics of workers. Some of the determining factors includes years of schooling, experience in a particular job, etc. The firms can even consider the worker's age, race or gender. The training will be provided to the less efficient workers based on their ability.
c). The amount of the capital as well as the technology that is available to the workers would affect the output of the firm. Thus the firms having the same kind of employees would have different outputs when the firms used different technology or different amount of capital.
d). No, unless the training is randomly assigned. The factors are listed above which can contribute to the finding of a positive correlation between the output and the training even when the job training does not improve the productivity of the worker.
I am buying a firm with an expected perpetual cash flow of $1,000 but am unsure of its risk. If I think the beta of the firm is 0, when the beta is really 1, how much more will I offer for the firm than it is truly worth? Assume the risk-free rate is 4% and the expected rate of return on the market is 10%. (Input the amount as a positive value.)
Answers
Answer:
$15,000
Explanation:
Value of a perpetuality = cash flow / r
According to the capital asset price model: Expected rate of return = risk free + beta x (market rate of return - risk free rate of return)
4 + 0 (10 - 4) = 4
1,000/ 0.04 = 25,000
4 + 1 (10 - 4) = 10
1000 / 0.1 = 10,000
25,000 - 10,000 = 15,000
If the coupon rate on a bond is higher than the yield to maturity, Multiple Choice the bond sells at a discount. the coupon rate on the bond has decreased. interest rates have probably increased since the bond was issued. the current yield on the bond is lower now than when the bond was originally issued.
Answers
Answer:
the current yield on the bond is lower now than when the bond was originally issued.
Explanation:
A bond can be defined as a debt or fixed investment security, in which a bondholder (investor or creditor) loans an amount of money to the bond issuer (government or corporations) for a specific period of time. The bond issuer are expected to return the principal (face value) at maturity with an agreed upon interest (coupon), which are paid at fixed intervals.
A yield to maturity can be defined as the bond's total rate of return required by the secondary market while the coupon rate is defined as the annual interest of a bond divided by its face value.
Hence, if the coupon rate on a bond is higher than the yield to maturity, the current yield on the bond is lower now than when the bond was originally issued.
g A person with a diminishing marginal utility of income: Group of answer choices will be risk neutral will be risk averse will be risk loving
Answers
Answer: Risk averse
Explanation:
A person with a diminishing marginal utility of income will derive less utility from income as income increases. A risk averse person is one who would rather avoid risk but still prefers a high income.
Such a person will have a diminishing marginal utility in income because income increases more when there is more risk. A risk averse person does not want that risk and so will go for a lower income which means that they don't want more income as it is riskier to them.
On Mar 3, Lyons Company paid dividends of $1,000. Use your knowledge of what a correct journal entry should look like to identify what would be include
Answers
Answer:
Debit : Dividend $1,000
Credit : Cash $1,000
Explanation:
The Journal entry to record dividend payment include a Debit to Dividend Account and a Credit to Cash Account to depict the outflow of cash.
A company purchased property for $100,000. The property included a building, a parking lot, and land. The building was appraised at $60,000; the land at $46,600, and the parking lot at $18,400. Land should be recorded in the accounting records with an allocated cost of
Answers
Answer:
$37,280
Explanation:
We use the appraised values to apportion the Purchase Cost of the Property to determine the Cost of Land as follows :
Land Cost = $46,600 / $125,000 x $100,000
= $37,280
Land should be recorded in the accounting records with an allocated cost of $37,280.
Pottery Ranch Inc. has been manufacturing its own finials for its curtain rods. The company is currently operating at 100% of capacity, and variable manufacturing overhead is charged to production at the rate of 61% of direct labor cost. The direct materials and direct labor cost per unit to make a pair of finials are $4 and $5, respectively. Normal production is 26,400 curtain rods per year.
A supplier offers to make a pair of finials at a price of $13.30 per unit. If Pottery Ranch accepts the supplier’s offer, all variable manufacturing costs will be eliminated, but the $40,400 of fixed manufacturing overhead currently being charged to the finials will have to be absorbed by other products.
Required:
Prepare the incremental analysis for the decision to make or buy the finials.
Answers
Answer:
Pottery Ranch Inc.
Incremental Analysis
Make Buy Incremental
Production costs:
Variable manufacturing costs per unit:
Direct materials per unit $4.00
Direct labor per unit $5.00
Variable manufacturing per unit $3.05
Total variable manufacturing costs $12.05 $13.30 $1.25
Annual units of curtain rods 26,400 26,400 26,400
Variable manufacturing costs $318,120 $351,120 $33,000
Explanation:
a) Data and Calculations:
Production capacity = 100%
Variable manufacturing overhead = 61% of direct labor cost
Direct materials per unit = $4
Direct labor per unit = $5
Variable manufacturing per unit = $3.05 (61% of $5)
Total variable manufacturing cost per unit = $12.05
Normal production per year = 26,400 units
Total variable manufacturing costs = $318,120 ($12.05 * 26,400)
Fixed manufacturing overhead = $40,400
Suppose the economy is in long-run equilibrium. Concerns about pollution cause the government to significantly restrict the production of electricity. At the same time, the value of the dollar falls. What would we expect to happen in the short run?
a. The price level will rise, and real GDP might rise, fall, or stay the same.
b. The price level will fall, and real GDP might rise, fall, or stay the same.
c. Real GDP will rise, and the price level might rise, fall, or stay the same.
d. Real GDP will fall, and the price level might rise, fall, or stay the same.
Answers
Answer:
the price level will rise, and real GDP might rise, fall, or stay the same.
Explanation:
Short run
In microeconomics, it is simply defined as the timeframe when all resource prices (including wages) are constant not changing.
Long run
This is also known as the period of time when all resource prices (including wages) change/is altered or do not remain the same.
Long-run equilibrium can change with constant long run aggregate supply (LRAS) and potential output thereby leading to changes only in the price level and this can cause inflation. Due to the changing LRAS, causing an increase in potential output leading to economic growth or decreasing potential output leading to negative growth.
Economists use the term inflation to describe a situation in which a. some prices are rising faster than others. b. the economy's overall price level is rising. c. the economy's overall price level is high, but not necessarily rising. d. the economy's overall output of goods and services is rising faster than the economy's overall price level.
Answers
Answer:
b
Explanation:
Inflation is a persistent rise in the general price levels
Types of inflation
1. demand pull inflation – this occurs when demand exceeds supply. When demand exceeds supply, prices rise
2. cost push inflation – this occurs when the cost of production increases. This leads to a reduction in supply. Higher prices are the resultant effect
Shoe leather cost is when people try to spend money immediately so they would not be holding money for a long time. This is because money loses its value in an inflation.
Menu costs are the costs of changing price constantly as a result of inflation, When there is inflation, prices increases regularly. As a result prices needs to be updated regularly.
According to the results, if a CEO in the Financial industry and a CEO in the Health Care industry both have 88 years of experience, what is the estimated difference in annual salary between the two CEOs
Answers
Answer: $19,032.79
Explanation:
There is some data missing that I was unable to find so I will answer a similar question and can use your data to answer this using mine as a reference.
Because the healthcare industry is the base industry, the estimated difference in the annual salary is:
= 0 - Coefficient of Financial industry
= 0 - (-19,032.787112)
= 0 + 19,032.787112
= $19,032.79
Aaron Company estimates direct labor costs and manufacturing overhead costs for the coming year to be $800,000 and $500,000, respectively. Aaron allocates overhead costs based on machine hours. The estimated total labor hours and machine hours for the coming year are 16,000 hours and 10,000 hours, respectively. What is the predetermined overhead allocation rate?
a. $0.00 per machine hour
b. $81.25 per labor hour
c. $50.00 per machine hour
d. $51.25 per labor hour
Answers
Answer:
c. $50.00 per machine hour
Explanation:
Calculation to determine the predetermined overhead allocation rate
Using this formula
Predetermined overhead allocation rate=Manufacturing overhead costs/Machine hours
Let plug in the formula
Predetermined overhead allocation rate=$500,000/10,000
Predetermined overhead allocation rate=$50.00 per machine hour
Therefore Predetermined overhead allocation rate is $50.00 per machine hour
If there is a greater quantity supplied than the quantity demaded ( an excess supply of a good or service) you are most likely dealing with:_______.
A- price ceiling set below the equilibrium price
B- price floor set above equilibrium price
Answers
11. (-/1 Points] DETAILS BRECMBC9 5.11.010.
MY NOTES
Set up and solve an equation for the following business situation.
Pitt's Pit Stop sold $16,003.50 worth of gasoline yesterday. Regular sold for $3.30 a gallon and premium sold for $3.45 a gallon. If the station sold 370 more gallons of regular than premium, answer the
following questions.
(a) How many gallons of each type of gasoline were sold?
regular
gal
premium
gal
(b) If the profit on regular gas is $0.15 per gallon and on premium is $0.18 per gallon, what was the station's total profit (in dollars)?
$
Answers
Answer:
2190 ; 2560 ;
$778.2
Explanation:
Total worth of gasoline sold = 16003.50
Cost of regular = 3.30
Cost of premium = 3.45
Let :
premium Gallon sold = x
Regular gallon sold = 370 + x
Hence, mathematically;
(3.45*x) + (3.30 * (x + 370)) = 16003.50
3.45x + 3.30x + 1221 = 16003.50
6.75x = 16003.50 - 1221
6.75x = 14782.5
x = 14782.5 / 6.75
x = 2190
Premium Gallon sold = 2190 gallons
Regular gallon sold = 2190 + 370 = 2560 gallons
Profit per regular gallon sold = $0.15
Progit per premium Gallon sold = $0.18
Total profit = (2190 * 0.18) + (2560 * 0.15) = $778.2
The country of Arcadia has clusters of associated businesses and suppliers which include individual dye and textile manufacturing firms, chemical plants, and leather manufacturing companies, most of which are well reputed and internationally competitive. This has made Arcadia a major force in the global economic market. Which of the following factors of Michael Porter's diamond model is responsible for giving Arcadia an edge over its competitors?
A) Related and supporting industries
B) Demand conditions
C) Company strategy, structure and rivalry
D) Factor conditions
Answers
Answer:
A) Related and supporting industries
Explanation:
Competitive advantage is the edge an entity has over others that results in higher profit margins.
According to Michael Porter there are 4 factors that gives national advantage in the international environment:
- firm strategy' structure and rivalry
- related supporting industries
- demand conditions
- factor conditions.
Related supporting industries refers to the presence of supporting industries that helps a company to thrive.
Forms depend on others for high productivity. When the presence of other supporting companies is adequate production will be maximised.
This is the case in the given instance where the country of Arcadia has clusters of associated businesses and suppliers which include individual dye and textile manufacturing firms, chemical plants, and leather manufacturing companies, most of which are well reputed and internationally competitive. This has made Arcadia a major force in the global economic market