Part II: Social Welfare, Taxes, and Elasticity
41 pts Short answer and T/F/U. For True, False or Uncertain (T/F/U) say whether the statement is true, false, or uncertain, and provide a short explanation (not more than 10 lines) why. Some of these T/F/U questions are hard – they are intended to make you think. If you specify that a statement is Uncertain please explain what assumptions would make it true or false.
1. (4pts) T/F/U: (Day 2) If you are buying 10 theater tickets per year (you are cultured) and the price of each ticket falls by $3, then your net consumers' surplus must increase by at least $30. Please draw a graph to illustrate.
2. (6pts) T/F/U: (Day 2) If supply is perfectly elastic and demand is not perfectly inelastic or elastic, and a tax is introduced, producers pay all the government revenue. Please draw a graph to illustrate.
3. (6pts) T/F/U: (Day 2) A government introduces two taxes to a market. Under Tax 1 for each unit sold in the market the buyer "pays" $1 in tax (sends $1 to the government) and under Tax 2 for each unit sold the seller "pays" $2 in tax (sends $2 to the government). Therefore, producers bear two-thirds of the incidence of the tax. Please draw a graph(s) to illustrate.
4. (4pts) Short Answer: (Day 2) Consider a demand function D: QD = 20-2P. Assume the supply curve shifts such that the price changes from 2 to 3. What is the associated change in consumer surplus?
5. (9 pts) Short Answer: (Day 2) Imagine that you are a benevolent policymaker. You have a choice of four allocations to choose from, each which provides four people (Denny, Johnny, Lisa, and Mark) with some level of welfare

Answers

Answer 1

1. False. The statement is false because the increase in net consumer surplus would depend on the elasticity of demand.

If demand is perfectly inelastic, then the net consumer surplus would not increase by $30, but if demand is elastic, then the net consumer surplus would increase by more than $30.  The graph would show a larger increase in consumer surplus for elastic demand compared to inelastic demand. True. When supply is perfectly elastic and demand is not perfectly inelastic or elastic, the tax burden falls entirely on producers. In this case, the supply curve is horizontal, and the tax shifts the supply curve upward by the amount of the tax. The graph would show the entire tax burden being borne by producers, while the price paid by consumers remains the same. False. The statement is false because the tax incidence depends on the relative elasticities of demand and supply. If demand is more elastic than supply, the burden of the tax would be mostly on producers. If supply is more elastic than demand, the burden would be mostly on consumers.

The graph would show the tax incidence based on the relative elasticities of demand and supply. The associated change in consumer surplus can be calculated by finding the area of the triangle formed by the new price (P = 3), the original price (P = 2), and the quantity demanded at each price. The change in consumer surplus can be calculated as (1/2) * (base * height) = (1/2) * (1 * (3-2)) = 0.5. The answer would require the specific welfare levels for each allocation and the preferences of the policymaker. Without that information, it is not possible to provide a concise answer in 25 words.

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Related Questions

Which form of real property ownership includes the greatest degree of ownership?

Answers

Real property is anything that is part of the earth and can be owned. Real estate can take several forms, but it is commonly divided into four types: fee simple, life estate, joint tenancy with the right of survivorship, and tenancy in common.

Fee simple is the type of property ownership that offers the greatest degree of ownership.What is Fee Simple?Fee simple ownership is the most prevalent and complete form of property ownership.

Fee simple is the highest form of property ownership, granting the owner absolute ownership and the most control over the property.Fee simple is an unlimited form of ownership that gives the owner the right to dispose of the property in any way they see fit, including transferring it to someone else.

When an individual holds the title to a property in fee simple, they are the only person who has the right to use, rent, and sell the property. Fee simple is the most widely recognized type of ownership, and it is the most common form of ownership among privately owned residential properties.

Condominiums and cooperatives, on the other hand, are frequently owned as a combination of fee simple and leasehold ownership.Therefore, the form of real property ownership that includes the greatest degree of ownership is fee simple.

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a ________ is a separate, independent company created and owned by two or more parent firms. A) wholly owned subsidiary
B) joint venture
C) strategic alliance
D) turnkey project

Answers

B) Joint venture. A is a separate, independent company created and owned by two or more parent firms. It involves the collaboration and pooling of resources.

expertise, and capital by the parent companies to pursue a specific business opportunity or project. The joint venture operates as a distinct legal entity, separate from its parent firms, and the ownership and management responsibilities are typically shared between the partners according to their agreed-upon terms. Joint ventures are commonly formed when companies seek to enter new markets, share risks and costs, access specialized knowledge or technology, or leverage complementary capabilities. This business arrangement allows the parent firms to combine their strengths and gain competitive advantages in a mutually beneficial manner, while still maintaining some level of independence and control over their respective interests within the joint venture.

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Explain about ‘Replenishment
ware house management chain please can you help to answer faster

Answers

Replenishment warehouse management chain refers to the series of activities and steps involved in ensuring that a warehouse is stocked with adequate inventory levels to meet customer demands. It includes the management of inventory, storage,

and distribution of goods to meet customer demand. In this management chain, the warehouse acts as a buffer between production and customer demand, ensuring that there is always enough stock available to meet demand.The first step in the replenishment warehouse management chain is demand forecasting, which involves estimating the demand for a product over a certain period. This enables warehouse managers to ensure that the right quantity of products is available to meet demand and prevent stockouts. The next step is inventory management, which involves tracking inventory levels and determining when to reorder stock. This helps to minimize the risk of overstocking or understocking the warehouse.The third step is order fulfillment, which involves picking, packing, and shipping orders to customers. This step is critical to ensuring customer satisfaction, and it requires efficient order management processes to minimize errors and delays. Finally, the replenishment warehouse management chain involves continuous monitoring and analysis of inventory levels and demand patterns to identify opportunities for improvement and cost savings.In conclusion, the replenishment warehouse management chain is a critical aspect of supply chain management that involves the coordination of various activities and processes to ensure that a warehouse is always stocked with adequate inventory levels to meet customer demand.

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employees may choose not to exercise their options if the market value of the shares is below the strike price. employees may exercise their options by paying the strike price to the employer anytime between the vesting and expiration dates. employees may purchase the stock on the grant date, but can not sell their shares until the vesting date. if the market price is below the strike price, the employee may purchase the stock at fmv and sell it to the company for the option price. the employee will receive the stock on the vesting date without having to pay for it.

Answers

Based on the concept of Stock and the available information, the choice that characterizes the stock options is Employees may exercise their options by paying the strike price to the employer anytime between the vesting and expiration dates.

What are Stock Options for Employees?

Stock options for employees is a term that is used to describe the form of compensation that gives employees the right to purchase company stock at a predetermined price.

Stock options for employees are generally referred to as the exercise price or strike price, within a specific period.

Some of the common types of stock options for employees:Incentive Stock Options (ISOs)Non-Qualified Stock Options (NSOs)Restricted Stock Units (RSUs) Employee Stock Purchase Plans (ESPPs)

Typically, the specifics of stock option plans can differ greatly depending on the corporation and its policies. it is always advisable for employees should carefully review the details of the plan, before making decisions regarding their stock options.

Hence, in this case, it is concluded that the correct answer is option B.

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Full question

Which of the following choices is a characteristic of stock options?

A. employees may choose not to exercise their options if the market value of the shares is below the strike price.

B. employees may exercise their options by paying the strike price to the employer anytime between the vesting and expiration dates.

C. employees may purchase the stock on the grant date, but can not sell their shares until the vesting date.

D. if the market price is below the strike price, the employee may purchase the stock at FMV and sell it to the company for the option price.

E. The employee will receive the stock on the vesting date without having to pay for it.

Mario purchased a whole life insurance policy that has a face value of $400,000 when he was 30 years old. Over the years he had paid a total of $260,000 premiums. Mario died recently and there was an accumulated cash value of $180,000 inside the policy. His policy had paid-up addition rider and received a total of $230,000 in dividends. Mario used his policy as a collateral for a bank loan that had a balance of $50,000 at the time of death. He designated his son as the beneficiary of the policy. What is the amount of death benefit that will be paid to Mario's son?

$530,000

$350,000

$580,000

$760,000

Answers

The amount of death benefit that will be paid to Mario's son is $760,000.

To calculate the amount of death benefit that will be paid to Mario's son, we need to consider the different components involved in the policy.

Face Value of the Policy: The face value of the whole life insurance policy is $400,000.

Accumulated Cash Value: The accumulated cash value inside the policy is $180,000.

Premiums Paid: Mario paid a total of $260,000 in premiums.

Dividends Received: Mario received a total of $230,000 in dividends.

Loan Balance: The bank loan balance against the policy is $50,000.

To calculate the death benefit, we need to subtract the loan balance and any outstanding loans from the sum of the face value, accumulated cash value, and dividends received.

Death Benefit = (Face Value + Accumulated Cash Value + Dividends) - Loan Balance

Death Benefit = ($400,000 + $180,000 + $230,000) - $50,000

Death Benefit = $810,000 - $50,000

Death Benefit = $760,000

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This question has two parts For this question, you will be asked to graphically capture the impact of an event on economic growth. Once you have completed the graph, you will be required to upload the image. Draw your graph using an online sketch cite (e.g. https://sketch.io/sketchpad/ ) or offline with a plan to scan and upload. Your mark will based on the graph submitted. Consider the economy at the steady state according to the Solow growth model. a. Graphically depict the steady state for the economy. Your graph should indicate the steady state values of k,y,c, and i. Be sure to label the axes, all lines, and steady state values for k,y,c, and i. (1 mark) b. Suppose that depreciation d decreases. Capture the impact this has on the steady state on your graph. Be sure the direction of change is clear using arrows and/or labels. (2 marks).

Answers

a. Graphically depicting the steady state for the economy: Label the x-axis as "Capital per worker (k)" and the y-axis as "Output per worker (y)."

Draw a 45-degree line starting from the origin (0,0) to represent the relationship between capital and output per worker.

Indicate the steady state by drawing a vertical line from the intersection of the 45-degree line and the production function curve. Label this point as "kss" and "yss" to represent the steady state values of capital and output per worker.

Draw another line parallel to the x-axis to represent the constant consumption per worker (c) in the steady state. Label this line as "c" and indicate its value at the steady state.

Draw a line parallel to the y-axis to represent the constant investment per worker (i) in the steady state. Label this line as "i" and indicate its value at the steady state.

b. To capture the impact of a decrease in depreciation (d) on the steady state:

Adjust the production function curve upward to reflect the higher steady state output per worker due to decreased depreciation.

Draw arrows or labels to indicate the direction of change, showing that the steady state values of capital per worker (k), output per worker (y), consumption per worker (c), and investment per worker (i) have increased due to the decrease in depreciation.

Remember to use appropriate scales, label all lines and axes, and clearly indicate the changes in the steady state values and their direction.

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What can diminish positive feelings toward the promotion process?
A) rewards
B) responsibilities
C) secrecy
D) job descriptions

Answers

The option that can diminish positive feelings toward the promotion process is secrecy.Promotion refers to an increase in rank, compensation, and other job perks for workers. It could also refer to the process of promoting a product or service, such as through advertising.

In this context, the question refers to the process of promoting workers to higher positions within an organization.Secrecy could diminish positive feelings about the promotion process since it might lead to confusion, anger, and a lack of trust. More than 100, respondents from a survey conducted by SHRM (Society for Human Resource Management) said that promotion decisions were communicated poorly in their organization.

Almost half of respondents claimed that promotion criteria weren't transparent, while one-third felt that promotion criteria wasn't applied fairly.Rewards are one factor that could positively influence the promotion process. If employees believe they will be rewarded for their hard work, they are more likely to view promotions positively.

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Discuss the precautions one should take to avoid identity theft?
More than 200 words.

Answers

Identity theft is becoming a common issue nowadays. It is a serious crime that occurs when someone steals another person's personal information such as social security number, credit card numbers, and driver's license number for fraudulent activities. To avoid identity theft, you should take several precautions as outlined below.

Firstly, one should be cautious of phishing emails. This type of email attempts to lure the recipient to reveal their personal details such as their bank account information, credit card details, and login credentials. As a precaution, you should never click on any links from suspicious emails.

Secondly, you should be careful with social media. Social media platforms are common targets for hackers as they can easily access personal information such as date of birth and email addresses. One should avoid sharing too much information on social media.

Thirdly, one should monitor their financial statements regularly. Always check your bank account transactions, credit card statements, and other financial statements regularly. In this way, you can detect any fraudulent activities early.

Fourthly, one should be careful with online shopping. When shopping online, always ensure that the website is legitimate and reputable. Check for SSL encryption to secure the website and never make any payments on unsecured sites.
Lastly, one should keep sensitive information in a safe place. Personal information such as social security cards, passports, and driver's licenses should be kept in a safe place. It is advisable to have a safe or a locked file cabinet to store such items.

In conclusion, identity theft is a serious crime that affects many people. By taking these precautions, one can avoid identity theft and keep their personal information secure. Always remember to be cautious and vigilant when handling personal information to avoid identity theft.

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summarize Under Armour competitive position using a
competitive strength assessment. identify and explain the core
issues facing the company

Answers

Under Armour is a US-based company that specializes in developing and selling apparel, footwear, and sports equipment.

The company has a good competitive position due to its strong brand, innovative products, and effective marketing strategy. In a competitive strength assessment, the company can be ranked as one of the leading sports apparel brands in the market. Under Armour's core strengths include its strong brand, innovative products, effective marketing strategy, and a wide range of products.

The company has a strong brand that is recognized worldwide and has built a loyal customer base. The company is known for its innovative products that are designed to improve the performance of athletes. Under Armour's marketing strategy is also effective as it focuses on building relationships with athletes and influencers.

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Debt finance does not affect the operating risk but it does add financial risk. True False

Answers

Debt finance does not affect the operating risk but it does add financial risk. This statement is true and here is an explanation why.

Debt finance refers to the money raised by an organization from external sources, typically through bank loans or the issuance of bonds. The money obtained through debt finance must be paid back with interest, which creates a financial risk for the company.

The financial risk of an organization increases as its debt level increases. The organization will have to pay higher interest rates on its loans, which will decrease its profitability.

Additionally, the organization may have difficulty raising additional funds in the future if it has a high debt-to-equity ratio.However, debt finance does not affect the operating risk of an organization. Operating risk refers to the risk of losses due to operating activities.

This type of risk is inherent in the business operations of the organization and cannot be eliminated by financial decisions.Operating risk may arise from several factors, including changes in market demand, competition, technological advancements, and regulatory changes.

Debt financing cannot mitigate these risks as they are not related to the company's financial decisions. Therefore, while debt finance increases financial risk, it does not affect the operating risk of the organization.

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RISK MANAGEMENT
QUESTION 4
4. Analyse the various risk-financing mechanisms available to
businesses

Answers

Risk financing is the practice of using a variety of strategies and techniques to reduce the potential loss that an individual or organization may face from an unexpected event.

Some of the risk financing mechanisms are as follows:

Risk avoidance Risk avoidance is a technique used to avoid the likelihood of loss caused by a particular risk. Risk avoidance can be accomplished by changing an activity or practice to remove the possibility of loss altogether.

For instance, a manufacturing company may decide to abandon a specific product line that has a high risk of injury or defect and focus on producing safer and more reliable products.

The transfer of risk occurs when the risks associated with a particular asset are transferred from the asset owner to a third party.

This method can be accomplished through a variety of strategies, including insurance and financial instruments.

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Suppose the interest rate is 9. 7 APR with monthly compounding. What is the present value of an annuity that pays $95 every 3 months for ​years? ​(Note: Be careful not to round any intermediate steps less than six decimal​ places. ) The present value of the annuity is ​$ "?

Answers

the present value of the annuity is $280.4054.

The present value of an annuity can be calculated using the formula: PV = C × [(1 - (1 + r)^(-n)) / r], where PV is the present value, C is the cash flow per period, r is the interest rate per period, and n is the total number of periods.

In this case, the annuity pays $95 every 3 months, which means the cash flow per period (C) is $95. The interest rate per period (r) is the annual percentage rate (APR) divided by the number of compounding periods per year, which is 12 in the case of monthly compounding. Therefore, the interest rate per period is 9.7% / 12 = 0.0080833. The total number of periods (n) is the number of years multiplied by the number of compounding periods per year, which is 4 in this case.

Using these values in the formula, the present value (PV) of the annuity is calculated to be $280.4054.

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How do you question examples?

Answers

Understand the context: Before questioning examples, it is important to have a clear understanding of the topic or concept being discussed. Analyze the example: Carefully examine the example provided and identify its key components.

Identify the purpose: Determine the purpose of the example. Understanding the purpose will help you formulate appropriate questions. Ask specific questions: Based on your analysis, ask specific questions about the example. Seek clarification: If you encounter any ambiguity or confusion in the example, don't hesitate to seek clarification.

Ask for additional information or contex that can help you better understand the example and ask more meaningful questions. Reflect and evaluate: After questioning the example, reflect on the answers or explanations provided. Evaluate whether the example adequately supports the concept or argument it intends to illustrate. Consider whether there are alternative examples that could further enhance understanding.

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10) Describe the difference between a nominal wage and a real wage.

Answers

Nominal wages are the amount of money paid to an employee on an hourly, weekly, or monthly basis. Nominal wages, on the other hand, don't consider inflation.  Therefore, governments often implement policies to increase real wages, such as increasing the minimum wage or implementing cost-of-living adjustments.

In economics, a real wage is the amount of money an employee earns after adjusting for inflation. It's a measure of the purchasing power of an employee's wage, taking into account changes in the price of goods and services over time. Real wages are calculated by dividing nominal wages by the consumer price index (CPI).

The CPI is a measure of inflation that tracks the changes in prices for goods and services. The difference between nominal wages and real wages is that nominal wages are the amount of money paid to an employee, whereas real wages reflect the actual purchasing power of the employee's wages.

When inflation is taken into account, real wages are often lower than nominal wages, which means that employees' purchasing power has decreased. A decrease in real wages can have a negative impact on employees' standard of living and can lead to economic inequality.

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"Jim Ratcliffe declares interest in buying Manchester United" Financial time 18 August 2022
Discuss the factors to consider by JIM Ratcliffe before buying a stake in Manchester United. Discuss and evaluate different methods that can be used by Jim Ratcliffe to determine the acquisition price. Recommend the best valuation method for this transaction, giving reason thereof.

Answers

Jim Ratcliffe, the billionaire founder of INEOS, has reportedly expressed his interest in purchasing Manchester United football club. Before making a decision, several factors need to be considered before buying a stake in Manchester United.

First, Jim Ratcliffe must consider the financial viability of the club, including its cash flow and profitability. He must also consider the club's performance on the field, its brand, and the strength of its fan base. Additionally, he must take into account the club's assets, including its stadium, training facilities, and players. Another important factor to consider is the current market value of Manchester United.

There are several methods that can be used by Jim Ratcliffe to determine the acquisition price. One of the methods is the Discounted Cash Flow (DCF) model, which involves projecting the cash flows that the club is expected to generate in the future and discounting those cash flows back to the present. Another method is the Price-to-Earnings (P/E) ratio, which involves dividing the current market price of the club by its earnings per share. A third method is the Price-to-Book (P/B) ratio, which involves dividing the market value of the club by its book value.

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Which one of the following transactions would be included in this year's GDP? Todd purchases a used CD at a neighborhood garage sale. O Mrs. Rock purchases $500 of common stock of Quick-Gro Foods, Inc. O Mr. I.V. League donates $300 to his town's junior college scholarship fund. O An American buys a Honda manufactured at a plant in Ohio.

Answers

The transaction that would be included in this year's GDP is:An American buys a Honda manufactured at a plant in Ohio.

The transaction that would be included in this year's GDP is **An American buys a Honda manufactured at a plant in Ohio**. GDP (Gross Domestic Product) measures the total value of all final goods and services produced within a country's borders during a specific time period. In this case, the purchase of a Honda manufactured in Ohio contributes to the GDP as it represents a final good produced within the country. The other transactions mentioned do not directly contribute to the calculation of GDP. Purchasing a used CD at a garage sale is considered a second-hand transaction and not counted in GDP. Purchasing stocks and making donations are financial transactions that do not directly contribute to the production of goods and services in the economy.

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1) Critically discuss by using example how the remote
environment can affect the performance of a firm. (10 marks)

Answers

The remote environment can have a significant impact on a firm's performance. The remote environment refers to factors that are beyond the control of the company but can still affect its operations. These factors include economic, social, technological, legal, and political conditions.

The following are some ways in which the remote environment can affect a firm's performance:

Economic conditions: Economic conditions can have a significant impact on a firm's performance. For example, during an economic recession, consumers may be less willing to spend money, resulting in lower sales for the firm. This can result in lower profits and cash flow. Furthermore, during a recession, banks may be less willing to lend money to firms, making it difficult for the company to secure funding to invest in new projects.

Social conditions: Social conditions such as changes in consumer preferences can also affect a firm's performance. For example, if there is a shift towards more sustainable products, firms that fail to adapt to this trend may lose market share. On the other hand, firms that are able to anticipate changes in consumer preferences and adapt their products accordingly can gain a competitive advantage.

Technological conditions: Technological advancements can also have a significant impact on a firm's performance. For example, firms that are slow to adopt new technologies may fall behind their competitors. Furthermore, new technologies can create new opportunities for firms to expand into new markets or develop new products.

Legal conditions: Legal conditions such as changes in tax laws can also affect a firm's performance. For example, if the government introduces new taxes on certain products, firms that produce these products may face higher costs, which can impact their profitability.

Political conditions: Political conditions such as changes in government policies can also affect a firm's performance. For example, if the government introduces new regulations that restrict the firm's operations, it may be difficult for the company to continue operating profitably.

Overall, the remote environment can have a significant impact on a firm's performance. Firms that are able to adapt to changes in the remote environment are more likely to be successful than those that fail to do so.

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Which one of the following is an advantage of the dedicated project team organizational structure?
a) Cross-functional Integration
b) Easy post-project transition
c) Less expensive
d) Significant technical expertise

Answers

The advantage of the dedicated project team organizational structure is significant technical expertise.

The dedicated project team is a management structure in which all workers are assigned to a particular project on a full-time basis, allowing for maximum concentration and continuity of work on that project.

These people are solely responsible for all aspects of the project, from its inception to its conclusion.

What are the advantages of a dedicated project team?

Some of the advantages of the dedicated project team organizational structure include:

Significant technical expertise: Teams are made up of individuals with a specific set of skills required for the project. Because they are specialists in their fields, they have a high degree of technical expertise.

Easy post-project transition: The members of a dedicated project team are typically released from their assignment when the project is completed.

This means that there are no employees on the payroll who are not assigned to an active project.

Cross-functional integration: The dedicated project team includes members from various areas of expertise.

This encourages teamwork and knowledge sharing and also facilitates a better understanding of the project among all involved members.

Less expensive: Members of a dedicated project team are not drawn from existing staff, so there are no extra labor costs, making the project cost-effective.

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Bud's Automotive usually purchases the vehicles for his used car lot at an average cost of $6,000 per vehicle. It costs him an average of $5,000 to get each vehicle ready for resale, and his average resale price is $11,000 per car. He leases the car lot for $7,000 per month, he spends $4,000 per month on advertising, and his salespeople are paid $12,000 per month. Thirty-five cars were sold last month. In the first blank, show your calculation for Bud's cost of good sold for last month. Use brackets if necessary. In the second blank, show your calculation for Bud's per unit fixed cost for last month. Use brackets if necessary. Blank # 1 ____________
Blank # 2____________

Answers

Blank # 1 Cost of goods sold for last month:

Let's first calculate the cost of goods sold for the last month based on the given data.

Average cost of each vehicle:

6,000Cost to get each vehicle ready for resale:

5,000Average resale price: 11,000

Bud's Automotive sold 35 vehicles last month.

So, the total cost of the vehicles that Bud's Automotive sold in the last month was:

35 * (6,000 + 5,000) = 35 * 11,000 =385,000

Bud's Automotive had to spend 385,000 for the 35 cars he sold last month.

Blank # 1 = 385,000

Blank # 2 Per unit fixed cost for last month:

Fixed cost refers to the costs that do not change with the level of production.

In the given scenario, we need to find the per-unit fixed cost for the last month.

Bud's Automotive leased the car lot for 7,000 per month, spent 4,000 per month on advertising, and his salespeople were paid 12,000 per month.

Total fixed costs = 7,000 + 4,000 + 12,000 = 23,000

Now, let's find the per-unit fixed cost for the last month.

The total number of cars sold last month was 35.

Hence, Per-unit fixed cost = Total fixed costs

/ Total number of cars sold in the last month= 23,000

/ 35 ≈ 657.14

Blank # 2 = 657.14

Thus, we got the following solutions:

Blank # 1 = 385,000

Blank # 2 = 657.14.

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Imagine a firm sells its product to consumers in two states, Wisconsin and lowa. Wishing to practice third degree price discrimination, this firm estimates the price elasticity of demand for its product in Wisconsin is −2, while in Iowa the price elasticity is −3. Accordingly, the firm should charge a higher price to consumers in Wisconsin. A. True B. False [24] Effectively impeded entry occurs when the incumbent does not have to sacrifice any profit to deter entry. A. True B. False [25] Which of the following are strategic entry deterrents? A. engaging in price arbitrage B. setting long retaliatory lags C. differentiating your product D. All of the above [26] In the case of dynamic limit pricing, an incumbent gradually lowers price over time in an effort to reduce the rate of entry. A. True B. False

Answers

True Effectively impeded entry occurs when the incumbent does not have to sacrifice any profit to deter entry. Hence the given statement is True.

 All of the above Strategic entry deterrents are the defensive moves that incumbents use to prevent the entry of new firms. Different strategies are used by incumbents to deter potential entrants. These strategies are known as entry deterrent strategies or strategic entry deterrents.

These strategies include the following, engaging in price arbitrage Setting long retaliatory lags. Differentiating your product. Therefore, the given option D is correct that is "All of the above" as all these options are entry deterrent strategies False. In the case of dynamic limit pricing, the incumbent gradually lowers the price over time to increase the rate of entry, not to reduce the rate of entry. Hence, the given statement is false.

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Conflict theorists say that capitalists use the _____ to expand production during economic booms, and then lay off people during economic contractions.

Answers

Conflict theorists say that capitalists use the reserve army of labor to expand production during economic booms and then lay off people during economic contractions.

Conflict theory describes the reserve army of labor as a group of jobless or underemployed employees who are easily hired or fired depending on the demands of capitalists or the state of the economy. When the economy is expanding or experiencing a boom, business owners could hire more reserve army personnel to help satisfy the increased demand. However, during economic downturns or contractions, business owners may curtail production and fire employees, adding them to the labor reserve.

This procedure is thought to be a way for capitalists to keep control over the labor force, assuring a workforce that is adaptable and can be quickly tailored to their profit-seeking goals. Conflict theorists contend that capitalists abuse the labor reserve army by utilizing it as a tool to manipulate employment levels and suppress wages.

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"Suppose you borrow $1000000 when financing a coffee shop which is valued at $1850000. You expect to generate a cash flow of $750000 at the end of the year. The cost of debt is 8%. What is the cost of equity? Note: Express your answers in strictly numerical terms. For example, if the answer is 5%, write 0.05"

Answers

The cost of equity is 12%. The formula for calculating the cost of equity is:

Cost of equity = (Expected annual return on equity / market value of equity) * 100

The expected annual return on equity is calculated using the capital asset pricing model (CAPM) as follows:

Expected annual return on equity = Risk-free rate + beta (Expected market return - Risk-free rate)

Given that:

Market value of the coffee shop = $1850000

The cost of debt = 8%

Expected annual cash flow = $750000

First, let's calculate the interest payment on the loan:

Interest payment = Cost of debt * Loan amount= 8% * $1000000= $80000

Now, let's calculate the annual net income:

Annual net income = Expected annual cash flow - Interest payment

= $750000 - $80000

= $670000

Next, let's calculate the market value of equity:

Market value of equity = Market value of the coffee shop - Loan amount

= $1850000 - $1000000

= $850000

Now, we can use the CAPM to calculate the expected annual return on equity:

Risk-free rate = 3% (assumed)

Beta = 1.2 (assumed)

Expected market return = 10% (assumed)

Expected annual return on equity = Risk-free rate + beta (Expected market return - Risk-free rate)

= 3% + 1.2(10% - 3%)

= 10.2%

Finally, we can use the cost of equity formula to calculate the cost of equity:

Cost of equity = (Expected annual return on equity / market value of equity) * 100

= (10.2% / $850000) * 100

= 0.0012 * 100

= 0.12 or 12%

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Your trust fund will pay you $56,000 a year for 11 years beginning
now. You can invest it in a bank account that will pay 9.3 per cent
annually. What is the present value of your trust fund ?

Answers

Given,

Trust fund will pay 56,000 per annum for 11 years

Beginning now.

Interest rate offered by the bank = 9.3%

We need to find the present value of the trust fund.

To find the present value of the trust fund, we need to calculate the sum of the present value of all the payments.

We will use the formula to find out the present value of annuity.

Present value of annuity formula = R[(1-(1+i)^-n)/i]

Where R is the payment made per annum, i is the interest rate per annum and n is the total number of years.

R = 56,000

i = 9.3%

= 0.093

n = 11 years

Putting these values in the formula, Present value of annuity = [tex]56,000[(1-(1+0.093)^-11)/0.093][/tex]

Present value of annuity =[tex]56,000[(1-(1.093)^-11)/0.093][/tex]

Present value of annuity = [tex]56,000[(1-(0.3250)/0.093][/tex]

Present value of annuity = 56,000[10.3900]

Present value of annuity = 582,640

So, the present value of the trust fund is 582,640.

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is this process spontaneous or nonspontaneous? the transfer of heat from the tea to the surroundings is a ____ process because heat moves from a warmer body to a cooler body.a. aspontaneousb. spontaneous

Answers

The transfer of heat from the tea to the surroundings is a spontaneous process because heat moves from a warmer body to a cooler body. A spontaneous process is one that takes place without the use of external energy.  The correct option is b.

Due to the fact that heat goes spontaneously from a warmer body the tea) to a cooler body the surroundings without the need for additional energy input, the transfer of heat from the tea to the surroundings is referred to as a spontaneous process. Without any outside influence or intervention, spontaneous processes take place.

Thus, the most appropriate selection is option b.

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When may a company include interest costs as part of the cost of the asset? A. When they buy a piece of equipment and finance its acquisition by a bank loan. B. When they must borrow money to finance the manufacture of their inventory items. C. When they are self-constructing a piece of equipment they will use to manufacture their products, but only during the period of construction. D. Interest is never allowed to be capitalized.

Answers

The correct answer is A. When a company buys a piece of equipment and finances its acquisition by a bank loan, they may include interest costs as part of the cost of the asset.

The correct answer is A. When they buy a piece of equipment and finance its acquisition by a bank loan.

Interest costs can be included as part of the cost of an asset when they are directly attributable to the acquisition, construction, or production of that asset. This is known as capitalization of interest costs. According to the International Financial Reporting Standards (IFRS) and Generally Accepted Accounting Principles (GAAP), interest costs can be capitalized under certain conditions.

In option A, when a company buys a piece of equipment and finances its acquisition through a bank loan, the interest costs incurred on the loan can be capitalized as part of the cost of the equipment. This is because the interest costs are directly attributable to the acquisition of the asset.

Option B refers to borrowing money to finance the manufacture of inventory items. In this case, the interest costs incurred during the manufacturing process are typically expensed as part of the cost of goods sold (COGS) rather than being capitalized as part of the asset cost.

Option C mentions self-construction of a piece of equipment. In this scenario, interest costs can be capitalized during the period of construction when they are directly attributable to the construction process. Once the construction is complete, the capitalization of interest ceases, and the asset is accounted for separately.

Option D states that interest is never allowed to be capitalized, which is incorrect. Interest costs can be capitalized in specific circumstances as mentioned above.

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if you were a project manager for developing a new IS in your organization, what would be your strategic way to have an effective communication with your team and what should you do for handling team conflicts? Explain and draw the action team cycle for resolving issues.
( please don't copy )

Answers

To have effective communication as a project manager, establish clear channels, define roles, practice active listening, and promote transparency. For handling conflicts, use the Action Team Cycle: identity, analyze, develop a plan, implement, evaluate, and learn.

To ensure effective communication with the team, as a project manager, I would adopt the following strategies:

1. Establish clear communication channels: Set up regular team meetings, utilize project management tools for collaboration, and encourage open communication channels to facilitate effective information sharing.

2. Define roles and responsibilities: Clearly define each team member's roles and responsibilities to avoid confusion and ensure everyone understands their tasks and objectives.

3. Active listening: Actively listen to team members, encourage their input, and address their concerns and feedback promptly. This promotes a sense of involvement and boosts team morale.

4. Transparent communication: Foster a culture of transparency by sharing project updates, progress, and challenges with the team. This helps in building trust and alignment.

For handling team conflicts, the Action Team Cycle can be employed:

1. Identify the issue: Recognize the conflict, gather information about the problem, and understand the perspectives of all parties involved.

2. Analyze the situation: Evaluate the root causes, potential impacts, and consequences of the conflict on the project and team dynamics.

3. Develop a resolution plan: Collaboratively devise a resolution plan, considering the input and concerns of all stakeholders. Identify alternative solutions and choose the most suitable one.

4. Implement the plan: Execute the chosen solution, ensuring clear communication and allocation of responsibilities. Monitor progress and provide support to team members if needed.

5. Evaluate and learn: Assess the effectiveness of the resolution plan, gather feedback from the team, and identify lessons learned. Incorporate these insights into future conflict management strategies.

By following this cycle, project managers can effectively address team conflicts, promote collaboration, and maintain a positive working environment.

Please note that the description provided here is a verbal representation of the diagram and may not fully capture its visual elements and layout.

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Well-defined projects that encounter no significant surprises require little: A) Management B) Leadership C) Monitoring D) Corrective action

Answers

Well-defined projects with no significant surprises require little corrective action but still necessitate effective management practices. Option A.

Effective project management involves careful planning, organizing, and controlling of resources, tasks, and timelines to ensure smooth project execution.

When a project is well-defined, with clear objectives, requirements, and expectations, management practices such as defining project scope, allocating resources, setting milestones, and implementing effective communication and coordination mechanisms can help ensure successful project delivery.

While leadership is important in any project, it may be less critical in well-defined projects with minimal surprises.

Leadership typically comes into play when navigating through uncertainties, managing conflicts, inspiring and motivating team members, and making strategic decisions in ambiguous situations. In such projects, where surprises are minimal, the need for visionary leadership may be reduced.

Monitoring is also important in project management, but in well-defined projects with no significant surprises, the need for continuous monitoring may be relatively lower.

Monitoring typically involves tracking progress, assessing risks, and gathering feedback to ensure project alignment and quality. However, when a project is well-defined and proceeds as expected, monitoring activities may be less intensive compared to projects with greater uncertainty.

Corrective action refers to making adjustments or taking remedial measures when deviations from the desired course occur. In well-defined projects with minimal surprises, the need for corrective action is significantly reduced since the project is on track and aligned with the predetermined objectives and plans. So Option A is correct.

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1-Which of the following is an advantage of exporting? a. It helps companies increase their unit costs. b. It provides large revenue and profit opportunities. c. It reduces paperwork and complex formalities. d. It reduces the administrative costs incurred by a company. e. It helps in easy currency conversion. 2-Which of the following institutions within the U.S. Department of Commerce is dedicated to providing businesses with intelligence and assistance for attacking foreign markets? a. The Federal Trade Commission b. The Bureau of Competition c. The Bank of New York d. The International Trade Administration e. The Small Business Administration 3-Representatives of the U.S. Department of Commerce accompany groups of U.S. businesspeople abroad to meet with qualified agents, distributors, and customers, as part of the a. export-import program. b. "comparison shopping service." c. matchmaker program. d. SCORE program. e. "best prospects" listing. 4-Which of the following organizations runs the Service Corps of Retired Executives (SCORE) program? a. International Trade Administration b. U.S. Department of Commerce c. Small Business Administration d. Foreign Credit Insurance Association e. U.S. Commercial Service 5-In terms of using a third party in international trade, title to the products is given to a bank by the exporter in the form of a document known as a a. draft. b. letter of credit. c. bill of exchange. d. merchandise bill. e. bill of lading. 6-In international commerce, an order written by an exporter instructing an importer to pay a specified amount of money at a specified time is known as a a. draft. b. buyback. c. bill of lading. d. counterpurchase. e. letter of credit. 7-Countertrade is most likely to be used when: a. the foreign currency is easily convertible. b. an export management company is used. c. the exporter has a letter of credit. d. there is mutual trust between the exporter and the importer. e. the conventional means of international trade transactions are difficult. 8-Which of the following is a distinct type of countertrade arrangement? Select one: a. Arbitrage b. Deregulation c. Barter d. Merger e. Dirty float 9-A buying agreement where the exporting country can fulfill the agreement with any firm in the country to which the sale is being made is called a a. arbitrage. b. switch trade. c. barter. d. buyback. e. offset. 10-A firm builds a plant in a country and agrees to take a certain percentage of the plant's output as partial payment for the contract. This type of countertrade is called a a. counterpurchase. b. offset. c. switch trade. d. buyback. e. barter.

Answers

1-The advantage of exporting is that it provides large revenue and profit opportunities. Thus, option B is correct.

2- The International Trade Administration within the U.S. Department of Commerce is dedicated to providing businesses with intelligence and assistance for attacking foreign markets. Thus, option D is correct.

3- Representatives of the U.S. Department of Commerce accompany groups of U.S. businesspeople abroad to meet with qualified agents, distributors, and customers, as part of the matchmaker program. Thus, option C is correct.

4-  Small Business Administration runs the Service Corps of Retired Executives (SCORE) program. Thus, option C is correct.

5- In terms of using a third party in international trade, the title to the products is given to a bank by the exporter in the form of a document known as a bill of lading. Thus, option E is correct.

6- In international commerce, an order written by an exporter instructing an importer to pay a specified amount of money at a specified time is known as a draft.

7- Countertrade is most likely to be used when: a. the foreign currency is easily convertible. b. an export management company is used the conventional means of international trade transactions are difficult. Thus, option E is correct.

8- Barter is a distinct type of countertrade arrangement. Thus, option C is correct.

9- A buying agreement where the exporting country can fulfill the agreement with any firm in the country to which the sale is being made is called offset. Thus, option E is correct.

10- This type of countertrade is called a  buyback. Thus, option D is correct.

A reciprocal kind of international trade known as countertrade involves exchanging one item or service for another in place of hard cash. In underdeveloped nations with few credit or foreign exchange options, this kind of international trade is more prevalent. Barter, counter purchase, and offset are the three basic categories into which countertrade may be divided.

Countertrade, in all of its forms, offers a way for states without easy access to liquid resources to exchange commodities and services with other countries. Countertrade guarantees that a nation with few local resources has access to the goods and raw materials it needs as part of a comprehensive import and export plan. Additionally, it gives the exporting country the chance to sell goods and services in a bigger worldwide market, encouraging the development.

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Summit Systems will pay a dividend of $1.50 next year. Its dividend is expected to grow by 6% per year forever. Assume the required return is 11%. Under which of the following scenarios would its stock price go higher than $30? All else being equal, the required return is greater than 11%. All else being equal, its dividend growth rate is 8% per year. All else being equal, the dividend will be $1.20 next year. All else being equal, its first dividend will be paid in two years:

Answers

The stock price of Summit Systems will go higher than $30 under the scenario 2 where all else is equal, and its dividend growth rate is 8% per year. The current price of the stock is $54.00.

Scenario 1:

All else being equal, the required return is greater than 11%.

Required return: Let's assume it's 12%.

Dividend growth rate: Given as 6%.

Calculate the current price of the stock using the Gordon Growth Model:

P = $1.50 * (1 + 6%) / (12% - 6%)

P = $1.59 / 6%

P = $31.80

The current price of the stock is $31.80, which is higher than $30.

Therefore, this scenario is not valid.

Scenario 2:

All else being equal, its dividend growth rate is 8% per year.

Required return: Given as 11%.

Dividend growth rate: Let's assume it's 8%.

Calculate the current price of the stock:

P = $1.50 * (1 + 8%) / (11% - 8%)

P = $1.62 / 3%

P = $54.00

The current price of the stock is $54.00, which is higher than $30.

Therefore, this scenario is valid.

Scenario 3:

All else being equal, the dividend will be $1.20 next year.

Required return: Given as 11%.

Dividend growth rate: Given as 6%.

Calculate the current price of the stock:

P = $1.20 / (11% - 6%)

P = $1.20 / 5%

P = $24.00

The current price of the stock is $24.00, which is lower than $30.

Therefore, this scenario is not valid.

Scenario 4:

All else being equal, its first dividend will be paid in two years.

Required return: Given as 11%.

Dividend growth rate: Given as 6%.

Calculate the current price of the stock:

P = $1.50 * (1 + 6%) / (11% - 6%) / (1 + 11%)

P = $1.59 / (5% * 1.11)

P = $14.63

The current price of the stock is $14.63, which is lower than $30.

Therefore, this scenario is not valid.

The stock price of Summit Systems will go higher than $30 under the scenario where all else is equal, and its dividend growth rate is 8% per year. The current price of the stock is $54.00.

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Building a Statement of Financial Position (LO1) Oakville Pucks Inc. has current assets of $4,900, net fixed assets of $27,500, current liabilities of $4,200, and long- term debt of $10,500. What is the value of the shareholders’ equity account for this firm? How much is net working capital?

Answers

Building a Statement of Financial Position (LO1)The statement of financial position is also known as the balance sheet. It presents the organization's financial condition at a specific point in time. The statement of financial position is a report that includes three fundamental sections:

assets, liabilities, and owner's equity. In this report,The statement of financial position for Oakville Pucks Inc. can be computed as follows:

Assets[tex]assets = $4,900Net fixed assets = $27,500Total assets = $32,400LiabilitiesCurrent liabilities = $4,200Long-term debt = $10,500Total liabilities = $14,700S[/tex]Working CapitalNet working capital is the difference between current assets and current liabilities.

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