Changing the combination of goods purchased will not change the slope of the budget line. Only a change in income or price of a good will change the slope of the budget line. d. At the point of consumer equilibrium what is the marginal rate of substitution? At the point of consumer equilibrium, the marginal rate of substitution is: MRS = Px / Py = $6 / $5 = -1.2 e. If the price of Good A increases by 50% from its original price which indifference curve will this consumer end up on? Will the consumer be buying more of Good Y, more of Good X, or more of both goods?
2. Assuming retail price is still the same, customer would pay $1,200 plus usage costs of 60*$161.25 = $9,675 amounting to a total of $10,875 spent over each motors lifetime Design a higher torque 5HP motor: 1. Research and development of this motor would be time consuming (5mos) and costly ($75,000 investment in engineering and testing). DMC currently has a high margin 5HP motor, costs are only 50% of resale price. This new specific purpose design with higher torque will also cost much more to manufacture, approx $665 per motor.
Are Large Firms More Efficient Than Small Firms? (25 Marks) A perfectly competitive market has five criteria that it should match. They are as follows, there should be a large number of buyers and sellers, there should be perfect information, they should sell homogenous goods, there should not be barriers to entry or exit and they should be price takers. Economic efficiency is when a firm minimises costs incurred, with minimal undesired side effects. In this essay, I will analyse whether small firms, who exist in perfectly competitive markets are efficient or not.
Answer Selected Answer: Pure monopoly Correct Answer: Pure monopoly • Question 5 0 out of 0.5 points The ________ is the sum of all goods and services produced within its boundaries. Answer Selected Answer: Productivity Correct Answer: Gross domestic product • Question 6 0 out of 0.5 points A ________ means total revenues raised by taxes equal the total proposed spending for the year. Answer Selected Answer: Budget deficit Correct Answer: Balanced budget • Question 7 0 out of 0.5 points ________ is characterized by government ownership and operation of major industries such as communications. Answer Selected Answer: Planned economy Correct Answer: Socialism • Question 8 0 out of 0.5 points The Security Exchange Commission is responsible for formulating and implementing the nation’s monetary policy. Answer Selected Answer: True Correct Answer: False • Question 9 0.5 out of 0.5 points Each nation’s policies and choices help determine its
b) create more cash ﬂow than it uses. c) reduce its investment in ﬁxed assets since ﬁxed assets require the use of cash. d) avoid payments to the government so dividends can be increased. e) avoid the issuance of debt securities Find the week 1 connect problems answers here FIN 571 Week 1 Connect Problems 5. The primary goal of ﬁnancial management is to: a) maximize current dividends per share of the existing stock.
4. One of the functions of money is as a store of value. How does inflation affect money's ability to store value? (36 sentences. 2.0 points) Answer: the expenses of materials to make the product changes and that makes the prices of goods to go up and fluctuate.
2) Earnings management might help credibly convey private information about the long-term earnings potential of the firm. 3) Earnings management is used to block communication from insiders to outside investors. 4) Earnings management is undertaken by manipulating discretionary accruals. c. Jones (1991) found that a sample of U.S. firms reported negative discretionary accruals in the year of their application for U.S. government subsidies for victims of unfair foreign competition. Which of the following positive accounting theory (PAT) hypotheses is this finding consistent with?
Is it just; is it better than capitalism? III. It isn’t; socialism is unfair to both the consumers and the producers. Thesis Statement: The three ways that capitalism is superior to socialism as a means of economic justice are that it distributes wealth on the merit of the product produced, it leaves the economic system free to innovate, and it allows the producers and consumers to meet at a fair price. Body I.
It’s suitable for Best Buy to adopt Differentiation Strategy, on of Porter’s generic strategies. Because one of Best Buy’s organizational strengths and advantages is having strong market share in retail-market. More-over, Best Buy has low cost advantage over its competitor so it don’t have to put a lot of focus on this segment. Best Buy always very good at getting high volumes of products out of its factory to its stores. But they still need to evolve, to reengineered its supply chain to improve their business.
Under first in, first out (FIFO), the first costs into inventory are the first costs assigned to costs of goods sold. Last in, last out (LIFO) costing assigns the last costs of inventory to the first costs of goods sold. A fast moving consumer goods company (FMCG) in times of rising prices would pay less income tax if it used the LIFO inventory accounting method. A FMCG in times of rising prices that uses LIFO would be selling its inventory with the highest prices. This would increase the costs of goods sold and lower the net income for the company for that accounting period.