Answer:
Implicit cost to company A is:
D. value of the land owned by the company A
Explanation:
Implicit costs to company A will refer to the cost of resources already owned by the firm, which the company could have put to some other use. A good example is the value of the land owned by the company. This land could be put to another use, yielding some rent. It could also be sold outright. Its cost becomes implicit when the company uses it in its business. The land is not being held for sale.
zylo inc preferred stock pays a 7.50 annual dividend. What is the maximum price you are willing to pay for one share of this stock todya is your required return is 9.75
Answer: $76.92
Explanation:
From the question, Zylo inc preferred stock pays a 7.50 annual dividend, the maximum price that will be willing to be paid for one share of this stock today if the required return is 9.75% will be calculated as:
= Dividend / Required return
= $7.50 / 9.75%
= $7.50/0.0975
= $76.92
The maximum price willing to be paid is $76.92.
What are the steps in conducting a market research?
Answer:
The marketing research process involves six steps:1: problem definition, 2: development of an approach to the problem, 3: research design formulation, 4: data collection, 5: data preparation and analysis, and 6: report preparation and presentation.Explanation:
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Answer:
D. Employees would be more motivated
Explanation:
The introduction of new technology into production process has so many benefits such as:
1. Productivity would increase: It is known that machines work faster and more accurately than man. This will increase the output of the company
2. Achieve a competitive advantage: If a producer introduces new technology to his work unlike his competitors that still uses old technology, he has more advantage over the market of the product produced because of improved standard of the product and increase in output.
3. Decrease in labor cost: The cost of using labor in production process is higher compared to the use of machines. If 5 labors can produce 100 units of goods in 5 hours, then, one machine should be able to produce more or equivalent in the same time
The disadvantage of introducing new technology is there's no motivation for workers. Salary is one of the major motivation of workers. Salaries of workers won't increase because of new technology, rather, it may decrease because they now perform less work in the production process.
D. Employees would be more motivated
Complete accounting cycle and financial statements
The city council of E. Staatsboro approved the following budget for the General Fund for fiscal year 2019.
Estimated Revenues
Property taxes $335,000
License fees 40,000
Fines and penalties 15,000
Total revenues $390,000
Appropriations
Salaries $350,000
Supplies and utilities 30,000
Debt service 3,000
Total appropriations 383,000
Budgeted Increase in Fund Balance $7,000
The postclosing trial balance for the fund, as of December 31, 2018, was as follows:
Debits Credits
Cash $15,000
Vouchers payable $8,000
Fund balance (unassigned) 7,000
$15,000 $15,000
The following transactions and events occurred during FY 2019.
1. Levied property taxes of $335,000 and mailed tax bills to property owners.
2. Borrowed $300,000 on tax anticipation notes at an interest rate of 1 percent per annum.
3. Ordered supplies expected to cost $18,000.
4. The supplies arrived, along with an invoice for $19,000; the city paid the invoice immediately.
5. Received cash ($383,000) from the following sources: property taxes ($330,000), licenses and fees ($38,000), fines and penalties ($15,000).
6. Paid cash for the following purposes: unpaid vouchers at the start of year ($8,000); salaries ($340,000); utility bills ($11,000).
7. Repaid the tax anticipation notes 6 months after date of borrowing, with interest.
8. Processed a budgetary interchange, increasing the appropriation for supplies and utilities by $2,000 and reducing the appropriation for salaries by the same amount.
9. Will pay salaries for the last few days in December, amounting to $2,000, at the end of the first pay period in January 2020; also, received in early January 2020 a utilities invoice for $1,000 applicable to December 2019.
Use the preceding information to do the following:
a. Prepare journal entries to record the budget and the listed transactions and events.
b. Prepare a preclosing trial balance.
c. Prepare a balance sheet; a statement of revenues, expenditures, and changes in fund balance; and a budgetary comparison schedule.
Suppose that the demand curve for compact disks is given by P = 600 – Q and that the supply curve is given by P = 0.5 Q, where Q is the quantity of compact disks and P is their price. What is the price elasticity of demand at the equilibrium price and quantity?
a. –2.00b. –0.02c. –0.50d. –0.05e. –0.20
Answer: -0.5
Explanation:
From the information given,
Demand curve = P = 600 – Q
Supply curve = P = 0.5Q
Equilibrium = Qd = Qs
Therefore, 600 - Q = 0.5Q
600 = Q + 0.5Q
600 = 1.5Q
Q = 600/1.5
Q = 400
Since P = 600 - Q
P = 600 - 400
P = 200
Price elasticity will be:
= (dQ/dP) × (P/Q)
=(-1) × (200/400).
= -1 × 0.5
= -0.5
The price elasticity is -0.5
Jeff owns an American put option on 100 shares of ABC stock. The option has a strike price of $32.50 and a September expiration date. The stock has recently been declining in value, currently sells for $27.65 per share, and is expected to continue declining in value. Ignore all costs and taxes. If today is Wednesday, August 14, he: Group of answer choices
Answer: b. can exercise his option and earn a profit.
Explanation:
Put options make a profit when the underlying stock sells for less than the strike price of the option. Furthermore, an American put option can be sold at any time before the option expires.
Jeff can therefore exercise the put option and make a profit today of:
= (32.50 - 27.65) * 100 shares
= $485.00
why are relative prices important in the economy
Answer:
Relative-price changes, like inflation, can cause price pressure in an economy. Relative-price changes are not a monetary phenomenon. They arise in market economies as individual prices adjust to the ebb and flow of the supply and demand for various goods. Relative-price movements convey important information about the scarcity of particular goods and services. A rising relative price indicates that demand is outstripping supply (or that supply is falling behind demand), while a falling relative price denotes just the opposite. A rising relative price induces consumers to conserve on the good in question and to look for substitutes. A rising relative price also, by increasing profit opportunities, entices producers to bring more of the good in question to market.
In this way, relative-price changes—no matter how uncomfortable they are for consumers or producers—transmit vital information necessary for the efficient allocation of resources throughout any market economy. Inflation, by contrast, contributes no information useful to our consumption, production, or labor choices. If anything, inflation can temporarily distort vital relative-price signals, leading people to make unsound economic choices. It can even cause people to shift their time and resources away from activities that foster production and long-term economic growth to activities intended to protect their wealth rather than expand it.
A corporation had the following assets and liabilities at the beginning and end of this year.
Assets Liabilities
Beginning of the year $57,000 $24,436
End of the year 115,000 46,575
a. Owner made no investments in the business, and no dividends were paid during the year.
b. Owner made no investments in the business, but dividends were $1,250 cash per month.
c. No dividends were paid during the year, but the owner did invest an additional $55,000 cash in exchange for common stock.
d. Dividends were $1,250 cash per month, and the owner invested an additional $35,000 cash in exchange for common stock.
Determine the net income earned or net loss incurred by the business during the year for each of the above separate cases:
a. b. c. d.
Beginning of the year
Answer:
The Beginning Equity is: Ending equity is:
= Assets - liabilities = 115,000 - 46,575
= 57,000 - 24,436 = $68,425
= $32,564
a. Net income if no investments:
= Ending equity - beginning equity
= 68,425 - 32,564
= $35,861
b. No investment but dividends were $1,250 per month
= Ending equity - beginning equity + dividends
= 68,425 - 32,564 + (1,250 * 12)
= $50,861
c. Investment of $55,000:
= Ending equity - beginning equity - Equity investment
= 68,425 - 32,564 - 55,000
= -$19,139
d. Dividends of $1,250 per month and Investment of $35,000:
= Ending equity - beginning equity - Equity investment + Dividend
= 68,425 - 32,564 - 35,000 + (1,250 * 12 months)
= $15,861
London Company hired some students to help count inventory during their semester break. Unfortunately, the students added incorrectly and the 2019 ending inventory was overstated by $5,000. What would be the effect of this error in ending inventory
The effect of this error in ending inventory would be decrease in cost of goods sold and increase in increasing ending inventory.
Overstating inventory decreases COGS or cost of goods sold because the surplus stock in accounting records results in a higher closing stock and lower COGS. Current assets, total assets, and retained earnings are all exaggerated as a result of overstated ending inventories.
What is inventory?All the goods, merchandise, and supplies that a company keeps on hand in anticipation of selling them for a profit are referred to as inventory. A crucial corporate asset is inventory. Businesses conduct inventories to determine how much stock they have at a given time. Work-in-process (items in various stages of completion), finished goods, and supplies needed to create new sales items are all included in inventory.
What is COGS or cost of good sold?Cost of goods sold is a value or cost involved in selling goods during a particular period.
Cost of sales or the cost of goods sold (COGS) quantify the costs incurred by a company when producing a good or service. it includes the costs of labor, raw materials, and administrative expenses related to running a production plant.
Formula for cost of goods sold is :
Starting inventory + purchases − ending inventory = cost of goods sold
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One of the factors that influence a consumer buying is?
Answer:
Many different factors can influence the outcomes of purchasing decisions. Some of these factors are specific to the buying situation: what exactly you are buying and for what occasion. Other factors are specific to each person: an individual's background, preferences, personality, motivations, and economic status.
On December 31, Hawkin's records show the following accounts. Equipment $ 3,000 Cash 2,400 Rent Expense 1,500 Accounts Receivable 600 Services Revenue 16,000 Accounts Payable 6,000 Wages Expense 8,000 Utilities Expense 700 Use the above information to prepare a December income statement for Hawkin.
Answer:
$5,800
Explanation:
Calculation to prepare a December income statement for Hawkin.
INCOME STATEMENT
Revenues:
Services revenue $16,000
Expenses:
Rent expense $1500
Wages expense $8000
Utilities expense $700
Total expenses $10200
Net income $5800
($16,000-$10,200)
Therefore December income statement for Hawkin is $5,800
Many governments around the world attempt to improve the incomes of commodity producers by taking steps to increase the commodity price in the domestic market. Although this may reduce quantity demanded for the product, the action may be effective because:
Answer:
This action may be effective because commodity demand tends to be inelastic, so the higher prices may result in higher income for commodity producers, at least in the short term.
Explanation:
Essential commodities such as basic food items, gasoline, electricity, water, and other utilities, tend to have an inelastic demand simply because consumers cannot go without them, and they tend to prioritize these commodities over other goods and services.
This means that the higher prices caused by government intervention do not necessarily result in less demand, and the same amount of people buying the same amount of commodities at a higher price simply means a higher sales revenue for commodity producers.
The payroll register of Konrath Co. indicates $13,200 of social security withheld and $3,300 of Medicare tax withheld on total salaries of $220,000 for the period. Earnings of $35,000 are subject to state and federal unemployment compensation taxes at the federal rate of 0.8% and the state rate of 5.4%. On December 31, provide the journal entry to record the payroll tax expense for the period. Refer to the Chart of Accounts for exact wording of account titles.
Answer:
Dr Payroll Tax Expense $18,670
Cr Social Security Taxes Payable $13,200
Cr Medicare Taxes Payable $3,300
Cr State Unemployment Payable $280
Cr Federal Unemployment Payable $1,890
Explanation:
Preparation of the journal entry to record the payroll tax expense for the period
December 31
Dr Payroll Tax Expense $18,670
($13,200+$3,300+$280+$1,890)
Cr Social Security Taxes Payable $13,200
Cr Medicare Taxes Payable $3,300
Cr State Unemployment Payable $280
($35,000 x 0.8% = $280)
Cr Federal Unemployment Payable $1,890
($35,000 x 5.4% = $1,890)
(Record Payroll Taxes for the pay period)
Please read a mini case on page 302, chapter 9 and provide the answers to the following questions:
What are some of the major complexities encountered in developing cooperative strategies such as strategic alliances and joint ventures?
What role does competition from rivals play in the eventual success of cooperative strategies? Please explain.
What costs are incurred in developing strategic alliances? How can these costs be managed?
Should cost minimization or opportunity maximization be the primary goal of a cooperative strategy? Can both be achieved simultaneously? Why or why not?
Answer:
Following are the solution to the given question:
Explanation:
For question 1:
The Strategic Alliance provides several multi-faceted relationships between organizations, spanning intricate, short-term collaborations to long-term, organized contracts. A split is a reflection of strategic partnerships. Because as the margin requirement concept indicates, businesses could be having problems in the process, such as deciding on the need for a coalition, to join the alliance to minimize the transaction risks incurred in a new market. A business needs to determine whether it will be prepared to invest money and cash if it can shift from a strategy to cost control towards a diverse strategy to improve productivity.
The additional complication occurs if you select a partner. The partner should respect business activities and clearly defined limits i.e. Each partnership should have defined goals, goals, or contributions. A partner can also seem opportunist, misinterpret commitment or question the availability of devoted resources. An alliance is difficult to create, but it is a hard task to manage. The cultural differences between the two companies can be a very complicated subject. For example, export privileges, taxes, scaling gaps, capabilities, decision-making type, reporting standards are the major problems.
For point 2:
Its core of competition helps to explain whether an organization's almost cooperative tactics are to avoid this rivalry. Each member must contrast the capital provided by such a partnership with the competition. It will address important issues, like businesses behind the market or before them? How are those entities trying to manage one another to continue to grow? And on and on. So, It will give a consistent purpose or reason to an alliance.
It was not a tactical but a political reply. Competing companies for the same market may develop alliances that are referred to as Co-opetition to its growth. Toyota and GMC vehicles were jointly built in such a joint venture by NUMMI, enabling Toyota & GM to improve Toyota's technology development for entry into the United States. NUMMI has been helping both businesses with economies of scale and scope.
For point 3:
Companies bear considerable costs when structuring a planned relationship and monitoring. They will exam fees whether they follow a chance maximization plan or divide the risks. For example, in and around the 1990s, Kodak and Fuji created films with Nikkor, Canon, and Konica, in collaboration with image sensors, to develop an effective camera with a picture machine. It helped the industry to expand a busy market commodity. Nevertheless, it benefited from the partnership, since it shared expenses through developing a typical market item and reduced risks if either of it had been manufactured novel, but just not suitable, prototypes.
For point 4:
It focuses on the level of trust engaged in a collaborative strategy for each participant. When one of the businesses appears to also be opportunist, cost minimization would be simple as a primary aim, as this would then implement a definite contract that would minimize any cash misuse or gain the partner's tactical skills. The research examines the time benefit of trust and the chance of success between the two organizations. This is the foundation for a chance optimization approach. The agreements are not as strict as it is in the cost reduction method and so fewer expenses are necessary to execute these.
Some of that can be encountered in developing cooperative strategies such as strategic alliances and joint ventures include conflicting goals and cultural differences.
The role that's played by competition from rivals in the eventual success of cooperative strategies is that it makes an organization produce good, quality products.The costs that are incurred in developing strategic alliances is financial costs, monitoring cost, etc.It should be noted that both cost minimization and opportunity maximization can be the primary goals of a cooperative strategy.
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Elizabeth is a highly-sought-after scientific researcher. She relocated to Europe ten years ago but is now returning to the United States. While the United States welcomes her skill level, there is also some concern regarding the contributions she made in Europe. This situation demonstrates the idea of:______.
1) groupthink.
2) reverse brain drain.
3) self-fulfilling prophecy.
4) brain drain.
Answer:
2
Explanation:
Reverse brain is a type of brain drain that occurs when a person moves from a more developed country to a less developed country. The knowledge, skills developed in the developing country can be used by the developed country from which she came from
Elizabeth moved from US (developed) to Europe (less developed). On returning to US, the government is concerned about accepting her contributions which she made in Europe
Use the following information to prepare the September cash budget for PTO Co. The following information relates to expected cash receipts and cash payments for the month ended September 30. Beginning cash balance, September 1, $43,000. Budgeted cash receipts from sales in September, $256,000. Raw materials are purchased on account. Purchase amounts are August (actual), $80,000, and September (budgeted), $109,000. Payments for direct materials are made as follows: 65% in the month of purchase and 35% in the month following purchase. Budgeted cash payments for direct labor in September, $33,000. Budgeted depreciation expense for September, $3,900. Other cash expenses budgeted for September, $55,000. Accrued income taxes payable in September, $10,100. Bank loan interest payable in September, $1,800.
Answer:
PTO Co.
Cash Budget for the month of September
Beginning cash balance, September 1, $43,000
Budgeted cash receipts from sales 256,000
Total cash available $299,000
Cash Disbursements:
Payment to suppliers $98,850
Payment to workers 33,000
Other expenses 55,000
Income tax 10,100
Bank loan interest 1,800 $198,750
Ending cash balance, Sept. 30 $100,250
Explanation:
a) Data and Calculations:
Beginning cash balance, September 1, $43,000
Budgeted cash receipts from sales in September, $256,000
Raw materials are purchased on account
Purchase amounts are August (actual), $80,000, and September (budgeted), $109,000
Payments for direct materials are made as follows:
65% in the month of purchase and
35% in the month following purchase.
Budgeted cash payments for direct labor in September, $33,000.
Budgeted depreciation expense for September, $3,900.
Other cash expenses budgeted for September, $55,000.
Accrued income taxes payable in September, $10,100.
Bank loan interest payable in September, $1,800
August September
Credit purchases $80,000 $109,000
Payments for purchases:
65% purchase month 70,850
35% ffg month 28,000
Total cash payment for purchases $98,850
On March 1, Parnell Industries purchased 2 million Platinum Gems, Inc. common shares for $124 million in cash. Parnell also paid $2 million in brokerage fees and commissions to complete the purchase. These shares represent 10% of the outstanding common stock of Platinum.
Required:
Prepare the appropriate journal entry to record this transaction.
Answer and Explanation:
The journal entry is shown below:
Common Stock $124 million
To Cash $124 million
(Being Stock of platinum gems purchased is recorded)
Here common stock is debited as it decreased the equity and the cash is credited as it also decreased the assets
The same should be relevant
The bookkeeper for Concord Corporation asks you to prepare the following accrued adjusting entries at December 31.
1. Interest on notes payable of $400 is accrued.
2. Services performed but not recorded total $2,000.
3. Salaries earned by employees of $670 have not been recorded.
Use the following account titles: Service Revenue, Accounts Receivable, Interest Expense, Interest Payable, Salaries and Wages Expense, and Salaries and Wages Payable. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) No. Date Account Titles and Explanation Debit Credit 1. Dec. 31 2. Dec. 31 3. Dec. 31 Click if you would like to Show Work for this question:
Answer:
No Date Account Titles and Explanation Debit Credit
1. Dec. 31 Interest expenses $400
Interest payable $400
(To record interest due on notes)
2. Dec. 31 Account receivable $2,000
Service revenue $2,000
(To record the service revenue earned)
3. Dec. 31 Salaries and wages expenses $670
Salaries and wages payable $670
(To record the alaries and wages expenses)
As the interest rate __________, the quantity supplied of money __________ and the quantity demanded of money __________. Group of answer choices falls; remains unchanged; falls rises; rises; rises none of the these rises; remains unchanged; falls falls; rises; falls
Answer:
rises,remains unchanged,rises
Interest rates are the specific amount charged by the lenders to the borrower when lending money. When the interest rates increase, the demand falls.
What are supply and demand?Supply and demand are the economic pillars for setting the pricing of the objects and other materials in a market. The increased interest rates discourage the demand for funds by the borrowers and the consumers.
The quantity of money remains the same as the supply is not affected but the demand for the money will fall as the consumers, corporations and the consumers will not buy funds and loans at high-interest rates.
Therefore, option D. rises; remains unchanged; falls are the correct order of the blanks.
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Stucki Holdings Corp. incurred the following expenditures: $3,400 cost to replace the transmission in a company-owned vehicle; $16,700 cost of annual property insurance on the company’s production facilities; $14,100 cost to develop and register a design patent; $62,500 cost to add a security and monitoring system to the company’s distribution center; $700 cost to repair paint damage on a company-owned vehicle caused by normal wear and tear.
Required:
Which, if any, of these expenditures should be capitalized?
Solution :
1. Nature : Cost to replace the transmission in the company owned vehicle --- $3,400
Remarks : It is a capital expenditure as the benefit of the transmission is more than 1 year.
2. Nature : cost of annual property insurance on the company’s production facilities ---- $16,700
Remarks : Insurance is considered as an annual expense of the company and the benefits of the company. It is available only for the year of insurance and therefore it is a revenue expense.
3. Nature : cost to develop and register a design patent --- $14,100
Remark : This expense should be capitalized as the benefits of the design is received for a longer period of time.
4. Nature : cost to add a security and monitoring system to the company’s distribution center --- $62,500
Remark : This expense should be capitalized as the benefits of the security as well as the monitoring is received for more than 1 year.
5. Nature : cost to repair paint damage on a company-owned vehicle caused by normal wear and tear --- $700
Remark : It is regular and is a maintenance expense. So this expense will not be capitalized.
What would be the average tax rate for a person who paid taxes of $8,016.30 on a taxable income of $63,220? (Enter your answer as a percent rounded to 2 decimal places.)
Answer: trtrtr
Explanation:rtrrtrr
Financial leverage is defined as Multiple Choice the amount of equity used in the capital structure of the firm the amount of operating assets used in the capital structure of the firm the amount of current liabilities only used in the capital structure of the firm the amount of debt used in the capital structure of the firm
Answer:
the amount of debt used in the capital structure of the firm.
Explanation:
In Financial accounting, a leverage can be defined as a process which typically involves the use of fixed-charged assets or items in a business with the intention of multiplying potential financial gains and returns.
This ultimately implies that, a financial leverage is a measure of the total amount of debt (borrowed money) used in the capital structure of an organization or business firm. Also, the capital structure of a business firm comprises of the combination of various equities and liabilities used to finance the smooth operations of the business.
Basically, financial leverage which is also known as trading on equity, is the utilization of debt (borrowed money) to acquire or purchase new assets with the intent and expectation that the income generated from these assets would exceed the cost incurred from borrowing. Thus, a business that engages in financial leveraging assumes that it would generate a higher income or capital gain from the amount of debt (borrowed money) used in its capital structure.
A company is interested in developing a quarterly aggregate production plan but they are not sure if a level strategy with backorders or a chase strategy would be better. They have the following information available regarding their production operation: Hiring Cost (per unit increase) $40 Firing (per unit decrease) $80 Inventory Cost (per unit) $40 Stockout (per unit) $150 Production (Labor) cost (per unit) $30 Subcontracting cost (per unit) $60 Previous quarter's production 1300 Previous quarter's ending inventory 0 Quarter forecasts are 4000, 3000, 4000 and 5000, respectively. Suppose that you want to use a level plan with backorders (one that produces at the average demand over the four quarters). What is the ending inventory in Quarter 2
Answer:
1000 units
Explanation:
Average demand over the next 4 quarters = (4000 + 3000 + 4000 + 5000) / 4
Average demand over the next 4 quarters = 16000 / 4
Average demand over the next 4 quarters = 4000
That is, as per the Level plan, 4000 units shall be produced in each of the next 4 quarters.
Quarter 1
Beginning Inventory = 0
Production = 4000
Demand = 4000
Ending Inventory = (Beginning Inventory + Production) - Demand
Ending Inventory = (0 + 4000) - 4000
Ending Inventory = 4000 - 4000
Ending Inventory = 0 units
Quarter 2
Beginning Inventory = 0
Production = 4000
Demand = 3000
Ending Inventory = (Beginning Inventory + Production) - Demand
Ending Inventory = (0 + 4000) - 3000
Ending Inventory = 4000 - 3000
Ending Inventory = 1000 units
The purpose or objectives of Competition policy
Answer:
Competition policy promotes market competition by regulating anti-competitive behavior undertaken by firms. The fundamental reason for competition policy is to allow the smooth functioning of the free market and the price mechanism, thus maximizing economic welfare.
Explanation:
a letter to the editor of english newspaper and about the serious issues of law and order begin faced by pakistan national. argent please solve the question in 600 world
Hi, I provided some suggestions about how you go about writing your letter.
Explanation:
Note that in this scenario, the letter is going to be addressed in a formal way since the letter is been addressed to someone holding an official office/position.
It is important for the sender to note these details as he constructs the letter to the Addressee (the person receiving the letter).
Clearly include the address of the writer (in this case your own address) Date Mention the Designation of the Addressee (in the case, The editor of the english newspaper).Should also include:
Address of the Receiver Salutation or Greeting Subject The body of the letter (which should detail the main intent or content of the letter). Conclusion, finally include Complimentary Close with the Name and Signature of the Sender.The Widget Co. can produce widgets according to the formula: q = 5K^3/4 L^1/4 where q is the output of widgets, and K, L are the quantities of capital and labor used.
a. Are there constant, increasing or decreasing returns to scale in widget production? Explain.
b. Are there, constant, increasing or decreasing marginal products of factors? Explain
c. In the short run, the amount of capital used by company A. is fixed. Derive the short-run cost function. (Note that the short-run cost function will show C as a function of Q, K and the factor prices w and r.)
d. Derive the long-run cost function.
Answer:
A) Constant Return to Scale
B) Decreasing Marginal Products
C) Short Run Cost Function = w*(Q/5)4 *(1/K`3) + rK`
D) (2Q/5)*(r3/4)*(w1/4)
Explanation:
A) Q(tL,tK) = 5*(tK)3/4*(tL)1/4
= t*Q(L,K)
Hence it exhibits constant return to scale
B) Here MPK = dQ/dK
= (3/4)* 5*L1/4*K-1/4
So dMPK/dK = (-3/16)*5*L1/4*K-5/4
Hence dMPK/dK < 0
thus exhibits decreasing Marginal Products
(Similarly for Labor also)
C) let K is fixed at K`
So Q = 5*K`3/4*L1/4
So L = (Q/5)4*(1/K`3)
So Short Run Cost Function = w*L + r*K`
C = w*(Q/5)4 *(1/K`3) + rK`
D) in long run, MRTS = MPL / MPK = w/r
So K/L = w/r
Thus rK = wL
So from production function
Q = 5*(wL/r)3/4*L1/4
= 5*(w/r)3/4*L
L* = (Q/5)*(r/w)3/4
similarly K* = (Q/5)*(w/r)1/4
so Long Run Cost Function = wL* + rK*
= (2Q/5)*(r3/4)*(w1/4)
The following price quotations are for exchange-listed options on Primo Corporation common stock.
Company Strike Expiration Call Put
Primo 61.12 55 Feb 7.25 .48
With transaction costs ignored, how much would a buyer have to pay for one call option contract. Assume each contract is for 100 shares.
Answer:
$725
Explanation:
Price of call option = Call value * Number of shares in a contract
Where Call value = $7,25, Number of shares in the contract = 100
So, Price of call option = $7.25 * 100 shares
Price of call option = $725
So, the buyer would have to pay $725 for one call option contract assuming each contract is for 100 shares.
If property rights are not well enforced, all of the following are likely to occur except;_________
A. a significant number of people will be willing to risk their funds by investing them in local businesses.
B. fewer goods and services will be produced
C. economic efficiency will be reduced
D. an economy will produce inside its production possibilities frontier.
Answer:
If property rights are not well enforced, all of the following are likely to occur except;_________
A. a significant number of people will be willing to risk their funds by investing them in local businesses.
Explanation:
Other options are likely to occur, except option A. Investors cannot risk their capital investing in the local economy. This is the fate of an economy where property rights are not protected. This also underlines the need for each government to ensure that property rights are recognized and legally protected.
A plant operates on Just-in-Time/lean principles. The total production requirements for next three days are 3000 units of X, 300 units of Y, and 1200 units of Z. Assume that the plant has enough capacity to produce all of the units within the three-day period. Which one of the following plans best represents uniform plant loading for this plant?
a. Produce 3000 units of X on day 1, 300 units of Y on day 2, and then 1200 units of Z on day 3.
b. Produce 3000 units of X first, then 300 units of Y, and then 1200 units of Z during the three-day period.
c. Produce 1500 units of X on day 1, 1500 units of X on day 2, and then 300 units of Y and 1200 units of Z on day 3.
d. none of the choices are correct
Answer:
Just-in-Time/Lean Principles
The plan that best represents uniform plant loading for this plant is:
c. Produce 1500 units of X on day 1, 1500 units of X on day 2, and then 300 units of Y and 1200 units of Z on day 3.
Explanation:
a) Data and Calculations:
Total production requirements Product X Product Y Product Z
for the next three days at the factory 3,000 300 1,200
Uniform plant loading plan:
Day 1 1,500 0 0
Day 2 1,500 0 0
Day 3 0 300 1,200
Total production on the three days 3,000 300 1,200
b) The uniform plant loading plan within the just-in-time or lean production environment ensures that wastes and disruptions are minimized. It reduces inventory of raw materials, work-in-process, and finished goods, and loss due to production stoppages and setups. Operating on this just-in-time principle, production of product X will continue from Day 1 through Day 2, while production of products Y and Z will take place on Day 3, with the same quantity of products produced each day.
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