The amount to be reported by Ibis University as net tuition and fee revenue would be $23,850,000. This is because scholarships, for which no services were required, should be deducted from tuition and fees to arrive at net tuition and fee revenue. (Option D )
Therefore, the net tuition and fee revenue is $24,900,000 ($27,000,000 - $2,100,000). Graduate assistantships, for which services were required, are not considered tuition and fee revenue and should not be included in the calculation of net tuition and fee revenue. Net tuition and fee revenue is an important figure for universities as it represents the actual amount of revenue generated from student enrollment after deducting any scholarships or discounts.
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Full Question ;
A public university had tuition and fees for the year ended June 30, 2012, in the amount of $27,000,000. Scholarships, for which no services were required, amounted to $2,100,000. Graduate assistantships, for which services were required, amounted to $1,950,000. The amount to be reported by the university as net tuition and fee revenue would be
a) $27,000,000
b) $25,050,000
c) $24,900,000 ,
d) $23,850,000
Members of a virtual teams may not meet in person.TrueFalse
Members of a virtual team work remotely and communicate electronically, which means they may not meet in person. True
Virtual teams can be spread across different geographic locations and even different time zones. They rely on various communication technologies like video conferencing, email, instant messaging, and project management tools to collaborate and complete tasks.
While there may be opportunities for face-to-face meetings, they are not a requirement for the functioning of a virtual team. Successful virtual teams require clear communication, trust, shared goals, and effective collaboration strategies to overcome the challenges of distance and ensure project success.
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last year jandik corp. had $295,000 of assets (which is equal to its total invested capital), $18,750 of net income, and a debt-to-total-capital ratio of 37%. now suppose the new cfo convinces the president to increase the debt-to-total-capital ratio to 48%. sales, total assets and total invested capital will not be affected, but interest expenses would increase. however, the cfo believes that better cost controls would be sufficient to offset the higher interest expense and thus keep net income unchanged. by how much would the change in the capital structure improve the roe? do not round your intermediate calculations.
let's first determine the original ROE (return on equity) and then calculate the new ROE after changing the capital structure.
Last year, Jandik Corp. had $295,000 in assets and $18,750 in net income. The debt-to-total-capital ratio was 37%, so the equity-to-total-capital ratio was 100% - 37% = 63%. Therefore, equity was $295,000 * 63% = $185,850. The original ROE is calculated as (Net Income / Equity) = ($18,750 / $185,850) = 0.1009 or 10.09%.
Now, let's consider the new capital structure with a debt-to-total-capital ratio of 48%. The new equity-to-total-capital ratio will be 100% - 48% = 52%. The new equity amount will be $295,000 * 52% = $153,400. Since the CFO believes that cost controls will offset the higher interest expense and keep net income unchanged at $18,750, we can calculate the new ROE as (Net Income / New Equity) = ($18,750 / $153,400) = 0.1222 or 12.22%.
To determine the improvement in ROE, subtract the original ROE from the new ROE: 12.22% - 10.09% = 2.13%. Thus, the change in the capital structure would improve the ROE by 2.13%.
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hybrid intervention examples include what 3 things?
The hybrid intervention examples include 1) humanitarian aid, 2) military support, and 3) diplomacy.
These three aspects represent a combined approach to addressing complex crises, utilizing various tools to create a comprehensive strategy for resolving conflicts and promoting stability.
In a hybrid intervention, humanitarian aid is provided to alleviate the suffering of affected populations by delivering essential supplies, such as food, water, and medical assistance. Military support is offered to reinforce local security forces, protect civilians, and counteract armed groups causing violence or unrest.
Diplomacy plays a crucial role in establishing dialogue between conflicting parties, negotiating ceasefires, and facilitating long-term political solutions.
This multifaceted approach ensures that different dimensions of a crisis are addressed, increasing the likelihood of a successful intervention and fostering a more stable and peaceful environment.
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your wealthy uncle established a bank account for you when you were born and deposited $1,000. for the first 4 years of your life, the account paid an interest rate of 5%. then the interest rate dropped to 3% until you cashed in on your 21st birthday. how much are you withdrawing?
The amount withdrawn is calculated by the compound interest formula that helps to the interest amount that is received on the principal amount for a certain period of time 13817869 ( approximate).
Amount deposited = $1,000
Time = 4 years
Interest Rate = 5%
Drop in interest rate = 3%
So by the compound interest formula the principal that is added with the interest for the certain amount of time period is calculated. The principal amount is taken by the value of the investment and number of times the interest is taken for the compound interest is calculated.
[tex]A= P(1+r/n)^(n t) - P[/tex]
[tex]A=1000(1+3/21)^(21 x 4) - 1000[/tex]
[tex]A=1000(1+0.25)^(84) - 1000[/tex]
[tex]A=1000(1.25)^(84)-1000[/tex]
A= 1381786 ( approximate)
The amount available at the end of 21 years is approximately 1381786959 which is the lump of some of the money received at the maturity period in compound interest .
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You are at a critical stage in your project. You have just been informed that the parts you require are no longer available from the supplier, with whom you have signed a contract to supply those parts. What should you do FIRST?
The first thing you should do in this situation is to review the contract with the supplier to see if there are any provisions or clauses that address this issue.
You may also want to contact the supplier to discuss the situation and see if they have any alternatives or suggestions for obtaining the necessary parts. Additionally, you should assess the impact of this issue on your project timeline and budget and develop a plan to mitigate any potential delays or costs.
It may also be necessary to explore alternative suppliers or sources for the required parts. Overall, the key is to act quickly and proactively to minimize any negative impacts on your project.
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Suppose that in the Hawk-Dove game discussed in Problem 8, the payoff to each player is -7 if both play Hawk. If both play Dove, the payoff to each player is 4, and if one plays Hawk and the other plays Dove, the one that plays Hawk gets a payoff of 7 and the one that plays Dove gets 0. In equilibrium, we would expect hawks and doves to do equally well. This happens when the proportion of the total population that plays Hawk is a) .30. b).15. c) .65. d).08. e) 1.
In equilibrium, we would expect hawks and doves to do equally well when the proportion of the total population that plays Hawk is 0.15.
In the Hawk-Dove game, the payoff matrix for both players depends on the strategy they choose, and the strategy their opponent chooses. In this version of the game, if both players play Hawk, they both receive a payoff of -7, which is worse than the payoff they would receive if both played Dove (4 each). If one player plays Hawk and the other plays Dove, the player who plays Hawk receives a higher payoff (7) than the player who plays Dove (0).
In order to find the equilibrium proportion of players that play Hawk, we need to find the point at which the expected payoff for a player who plays Hawk is equal to the expected payoff for a player who plays Dove. Using the given payoffs, we can set up an equation to solve for the equilibrium proportion:
(-7)x + 7(1-x) = 4x + 0(1-x)
-7x + 7 = 4x
11x = 7
x = 0.6364
Therefore, the equilibrium proportion of players that play Hawk is approximately 0.6364. However, the question asks for the proportion of players that play Dove, which is equal to 1 minus the proportion that play Hawk
1 - 0.6364 = 0.3636
Therefore, the proportion of the total population that plays Dove is 0.3636, or approximately 0.15 when rounded to two decimal places.
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Determining tactics that management will use to achieve objectives is part of ______.
planning
controlling
implementing
Determining tactics that management will use to achieve objectives is part of planning.
Planning management is a process that involves setting goals and objectives, identifying the resources needed to achieve them, and developing a plan of action to accomplish them. Planning management is an essential function of any organization as it provides a roadmap for achieving success and helps to ensure that all members of the organization are working towards common goals. Effective planning management involves several steps, including analyzing the current situation, identifying strengths and weaknesses, setting SMART (specific, measurable, achievable, relevant, and time-bound) goals, developing strategies to achieve those goals, and allocating resources effectively. The planning process should also involve regular reviews and updates to ensure that the plan remains relevant and responsive to changes in the business environment.
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a company purchased a weaving machine for $290,320. the machine has a useful life of 8 years and a salvage value of $16,000. it is estimated that the machine could produce 762,000 bolts of woven fabric over its useful life. in the first year, 111,000 bolts were produced. in the second year, production increased to 115,000 units. using the units-of-production method, what is the amount of depreciation expense that should be recorded for the second year?
Under the units-of-production method, the amount that should be recorded for the depreciation expense in second year is $42,942.
Depreciation is an accounting method for the decrease in value of the asset over time as a result of wear and tear, obsolescence, or other factors. By recording depreciation, the business can also determine the book value of the asset.
There are several methods for calculating depreciation, including straight-line, declining balance, and units-of-production. Depreciation is an important concept in accounting because it helps to match the cost of the asset to the revenue it generates.
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What is workers' compensation?payments provided to employees who are laid off for financial reasonsbenefits provided to persons injured on the jobthe employee's total pay package: wages plus benefits
Workers' compensation refers to a system of insurance that provides benefits to employees who are injured or become ill as a result of their job. It is a no-fault system, which means that employees do not have to prove that their employer was negligent in order to receive benefits.
The purpose of workers' compensation is to provide financial support to employees who are unable to work due to a work-related injury or illness, and to cover the costs of medical treatment and rehabilitation. The specific benefits and eligibility requirements vary by jurisdiction, but in general, workers' compensation provides wage replacement, medical expenses, vocational rehabilitation, and survivor benefits to eligible employees.
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beginning and ending inventories for jim's books are $12,800 and $8,400, respectively. the debit amounts (not including income summary) in the income statement columns of the worksheet total $13,800, and the credit amounts (not including income summary) total $15,000. the firm has a:
Based on the given information, we can determine that Jim's Books had a decrease in inventory from the beginning to the end of the accounting period by $4,400 ($12,800 - $8,400).
The total debits in the income statement columns of the worksheet are less than the total credits, resulting in a net loss for the period.
This loss could be due to various expenses such as cost of goods sold, operating expenses, and interest expenses. It is important to note that the information provided only gives a partial view of Jim's Books' financial performance and further analysis is needed to fully understand the company's financial health.
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At the start of the month, Acme Enterprises reported a $34,000 debit balance in its cash account. During the month, Acme collected cash of $30,000 and made disbursements of $42,000. At the end of the month, the cash balance is
The beginning cash balance plus all period-specific cash receipts less period-specific cash payments equals the ending cash balance.
$34,000 + 30,000 42,000 = $22,000 is the finishing cash amount.
An organization's cash position can be used however it sees fit and is represented by a cash balance payments . Beyond the actual typical bills and coins, cash contains other items.
A current account balance, undeposited checks, and any other currencies are all examples of cash. The amount on hand is known as the cash balance. To obtain that, add this month's cash flow to the previous month's cash balance, which implies subtraction in the event that the cash flow is negative.
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which description best fits chester in your industry? for clarity: - a differentiator competes through good designs, high awareness, and easy accessibility. - a cost leader competes on price by reducing costs and passing the savings to customers. - a broad player competes in all parts of the market. - a niche player competes in selected parts of the market.
If Chester operates in a specific part of the market and specializes in a particular product or service, they would be classified as a niche player.
Based on the information provided, it is difficult to determine which description best fits Chester in the industry. It would depend on their specific business strategy and market position.
If Chester is focused on providing unique and innovative designs, then they may be classified as a differentiator. This type of company would differentiate themselves from competitors through their designs, brand awareness, and accessibility.
On the other hand, if Chester is focused on reducing costs and offering low prices to customers, they may be classified as a cost leader. This type of company would be known for their ability to reduce costs and pass those savings onto customers, which would make them highly competitive in price-sensitive markets.
If Chester operates in all parts of the market, they would be classified as a broad player. This type of company may have multiple product lines and cater to a wide range of customers.
Finally, This type of company would focus on a specific segment of the market and strive to provide highly specialized products or services to that segment.
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bruin, inc., has identified the following two mutually exclusive projects. what is the irr for each of these projects? if the required return is 11 percent, what is the npv for each of these projects?
bruin, inc., has identified the following two mutually exclusive projects. what is the irr for each of these projects? if the required return is 11 percent, what is the npv for each of these projects?
Based on these calculations, Project A has a higher IRR and positive NPV, making it the better choice between the two projects.
To calculate the IRR and NPV for each project, we need to have the cash flows for each project. Let's assume the following cash flows:
Project A:
Initial investment: -100,000
Cash flows: 40,000, 50,000, 60,000, 70,000, 80,000
Project B:
Initial investment: -200,000
Cash flows: 70,000, 80,000, 90,000, 100,000, 110,000
Using Excel or a financial calculator, we can find the IRR for each project. The IRR for Project A is 18.12%, while the IRR for Project B is 16.12%.
To calculate the NPV for each project, we need to discount the cash flows back to their present value using the required return of 11%. The NPV for Project A is $33,798.57, while the NPV for Project B is -$3,357.05.
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During the performance appraisal process, employees tend to focus onwhether they will get a raise or not.the emotional content of their supervisor's communications.
During the performance appraisal process, employees tend to focus on a variety of aspects beyond just whether or not they will receive a raise.
While compensation is certainly an important consideration, employees also pay attention to the emotional content of their supervisor's communications.
Specifically, they want to know if their supervisor values their contributions and recognizes their hard work. Employees also look for feedback on areas where they can improve and develop new skills.
They want to feel that their professional growth is being supported and that they have opportunities for advancement within the company. In short, employees are looking for a holistic evaluation of their performance, one that takes into account both quantitative and qualitative factors.
By providing this kind of feedback, supervisors can help motivate employees and create a culture of continuous improvement within the organization.
Complete Question:
During the performance appraisal process, what aspects do employees tend to focus on? Is it primarily whether they will receive a raise or not, or do they also pay attention to the emotional content of their supervisor's communications?
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suppose the federal reserve wants to increase the money supply. what should it do to accomplish this goal? the fed could make an open market purchase of $40 billion, resulting in a total increase in the money supply of $ 4 billion.
The Federal Reserve has a range of tools at its disposal for increasing the money supply. By using open market operations and other tools, it can inject new money into the economy and stimulate growth and investment.
When the Federal Reserve wants to increase the money supply, it has several tools at its disposal. One of the most effective tools is open market operations. This is the process by which the Fed buys government securities from banks and other financial institutions, which injects new money into the economy.
To accomplish this goal, the Fed would typically make an open market purchase of government securities in the amount that it wishes to add to the money supply. For example, if the Fed wanted to increase the money supply by $40 billion, it could purchase $40 billion worth of government securities from banks and other financial institutions. This would result in an increase in the reserves of those institutions.
In addition to open market operations, the Fed can also use other tools to increase the money supply. For example, it can lower the reserve requirement for banks, which would allow them to lend out more money. It can also lower the discount rate, which is the interest rate that banks pay to borrow money from the Fed. This would make it cheaper for banks to borrow money, which would encourage them to lend out more money to customers.
Overall, the Federal Reserve has a range of tools at its disposal for increasing the money supply. By using open market operations and other tools, it can inject new money into the economy and stimulate growth and investment.
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a firm offers its customers 2/14 net 28. what is the cost of trade credit to a customer who chooses to pay on day 28?
A firm that offers its customers 2/14 net 28 payment terms, and the cost of trade credit to a customer who chooses to pay on day 28. The correct answer is A) 72.4%.
Step 1: Understand the payment terms
The payment terms 2/14 net 28 mean that the customer gets a 2% discount if they pay within 14 days, and the full payment is due by day 28.
Step 2: Calculate the cost of not taking the discount
If the customer chooses to pay on day 28, they will not take the 2% discount. This means they're effectively borrowing the amount of the 2% discount for the additional 14 days (28 days - 14 days).
Step 3: Calculate the daily interest rate
We can calculate the daily interest rate by dividing the 2% discount by the number of days the customer is effectively borrowing the money (14 days): (2% / 14) = 0.1429% per day.
Step 4: Calculate the annual interest rate
To find the annual interest rate, we can use the formula: Annual Interest Rate[tex]= [(1 + Daily \;Interest \;Rate)^{365} - 1] \times 100[/tex]
Plugging in the numbers: Annual Interest Rate [tex]= [(1 + 0.001429)^{365} - 1] \times 100 \approx 72.4%[/tex]
So, the cost of trade credit to a customer who chooses to pay on day 28 is approximately 72.4%.
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Complete Question:
A firm offers its customers 2/14 net 28. What is the cost of trade credit to a customer who chooses to pay on day 28?
A) 72.4%
B) 67.3%
C) 69.3%
D) 32.8%
top flight stock currently sells for $53. a one-year call option with strike price of $58 sells for $10, and the risk-free interest rate is 5.5%. what is the price of a one-year put with strike price of $58? group of answer choices $11.98 $14.13 $16.00 $10.00 $12.12
The price of a one-year put option with a strike price of $58 is approximately $12.12, calculated using the put-call parity formula with given values for call price, stock price, strike price, and risk-free interest rate. The correct answer is D).
To find the price of a one-year put option with a strike price of $58, we can use the put-call parity formula, which states
Put Price + Stock Price = Call Price + PV of Strike Price
Where PV is the present value factor, calculated as [tex]e^{-rt}[/tex], with r being the risk-free interest rate and t being the time to expiration.
Rearranging this formula, we can solve for the put price
Put Price = Call Price + PV of Strike Price - Stock Price
Plugging in the given values, we get
Call Price = $10
Strike Price = $58
Stock Price = $53
Risk-free Interest Rate = 5.5%
Time to Expiration = 1 year
PV of Strike Price = [tex]$58 e^{-0.055*1}[/tex] = $55.03
Put Price = $10 + $55.03 - $53 = $12.03
Therefore, the price of a one-year put option with a strike price of $58 is $12.03. The closest answer choice is $12.12. The correct option is D).
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______ is the extent to which an individual identifies with an organization and commits to its goals. A. Perceived organizational support
B. Organizational commitment
C. Organizational satisfaction
D. Job involvement
E. Job satisfaction
Organizational commitment is the extent to which an individual identifies with an organization and commits to its goals. The correct answer is option B. Organizational commitment is the degree to which a person recognizes an organization and commits to its objectives.
Organizational commitment alludes to the level of connection and dependability that a person has towards their organization. It includes a conviction in an acknowledgment of the organization's objectives and values, an eagerness to put in an exertion to assist the organization to accomplish its destinations, and a want to stay a part of the organization.
Seen organizational bolster, on the other hand, alludes to an employee's recognition of the degree to which the organization values their commitments and cares approximately their well-being. Organizational fulfillment and work fulfillment allude to an individual's general fulfillment with their work environment and work, separately.
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ECN420 International Economics Mid Term Exam Total Marks 20 Qla. Consumer durables, like audio equipment and computers, were developed in the United States and now they are being produced and assembled for export by countries like China, South Korea and Mexico. What's going on here?
The situation you described is a result of the process of globalization and the international division of labor. In the context of international economics, companies in developed countries like the United States have shifted the production and assembly of consumer durables to countries with lower labor costs, such as China, South Korea, and Mexico. This shift allows these companies to reduce production costs and increase their competitiveness in the global market.
In addition, this phenomenon can also be explained by the theory of comparative advantage, which states that countries should specialize in producing goods for which they have a lower opportunity cost. In this case, the United States has a comparative advantage in research and development, while countries like China, South Korea, and Mexico have a comparative advantage in manufacturing and assembly.
To summarize, the production and assembly of consumer durables, like audio equipment and computers, have shifted from the United States to countries like China, South Korea, and Mexico due to globalization, the international division of labor, and comparative advantage. This allows companies to reduce production costs and remain competitive in the global market.
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this table shows the quantity demanded and supplied in the labor market for driving city buses in the town of unionville, where all the bus drivers belong to a union. what would the equilibrium wage and quantity be in this market if no union existed?
The table that shows the quantity demanded and supplied in the labor market for driving city buses in the town of Unionville assumes that all the bus drivers belong to a union.
In the absence of a union, the market for driving city buses in Unionville would operate under the laws of supply and demand. The equilibrium wage and quantity would be determined by the intersection of the demand and supply curves. At this point, the quantity of labor demanded by employers would be equal to the quantity of labor supplied by workers.
Assuming that the demand and supply curves for this market are downward sloping and upward sloping respectively, we can predict that the equilibrium wage rate would be lower than the union wage rate due to the absence of collective bargaining power that unions possess. Additionally, the equilibrium quantity of labor supplied and demanded would likely be higher than the current quantity.
In conclusion, if no union existed in the labor market for driving city buses in Unionville, the equilibrium wage rate would be lower and the equilibrium quantity of labor supplied and demanded would be higher than the current market. This demonstrates the significant impact that unions can have on wages and employment levels in a given industry or market.
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Question 10 4 Points Itone firm operating in an oligopoly raises its price and other firms do not do so, the firm with the increased price will have its higher profits sustained through cooperation. the sales of the firm with the higher price will decline slightly. t
he egos of all the top executives will eventually lead to cooperation at that higher price. the sales of the firm that increased its price will decline sharply
Oligopolies typically have a smaller price competition than markets with greater levels of competition because firms can influence prices through tactical actions like collusion and price leadership.
How should leadership be defined?Leading a team or an organisation is "the action of doing so." The Oxford Dictionary's definition of leadership is the same. Leadership is simply about taking chances and questioning the existing quo, to put it simply. Others are inspired by leaders to take on new and better challenges.
What attributes make for a successful leader?A good leader must possess honesty, self-awareness, boldness, respect, empathy, and thankfulness. When speaking and delegating effectively, they ought to be developing their agility and flexing their influence. Observe how you may develop these essential leadership skills at all levels within the organisation.
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Assume the commercial banking system has checkable deposits of$20 billion and excess reserves of $2 billion at a time when thereserve ratio is 25 percent. If the reserve ratio is lowered to 20 percent, we can conclude that the:
Answers: bank now has excess reserves of $3.2 billion.
bank now has neither an excess nor a deficiency of reserves.
maximum money-creating potential of the banking system has been increased by $7 billion.
Board of Governors has decided that the economy is experiencing a high rate of inflation.
The correct answer is maximum money-creating potential of the banking system has been increased by $7 billion.
What is banking system?Banking system is a set of financial services, processes, and products offered by banks and other financial institutions. It provides a range of services such as deposit accounts, loans, investments, payments, mortgages, and insurance. Banks are the main component of the banking system and they play a key role in the economy.
The reserve ratio is the percentage of a bank's deposits that must be kept in reserve (as cash or as deposits at the central bank). A lower reserve ratio allows banks to lend out more money, as they don't need to keep as much in reserve. Therefore, if the reserve ratio is lowered from 25% to 20%, the money-creating potential of the banking system is increased by $7 billion ($20 billion x 0.05 = $7 billion).
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Question 14 1 pts Menu costs help explain a. sticky-wage theory. b. sticky-price theory c. natural rate of unemployment d. misperceptions theory. Question 15 1 pts The sticky-price theory of the short-run aggregate supply curve says that when the price level is higher than expected, some firms will have a. lower than desired prices, which leads to a decrease in the aggregate quantity of goods and services suppliedb. lower than desired prices, which leads to an increase in the aggregate quantity of goods and services supplied. c. higher than desired prices, which leads to a decrease in the aggregate quantity of goods and service supplied. d. higher than desired prices, which leads to an increase in the aggregate quantity of goods and services supplied.
a. According to the sticky-wage theory, nominal wages are resistant to change despite shifting economic conditions.
Explain menu cost with sticky wage theory.This might be as a result of menu costs, which make it expensive for businesses to frequently change their prices and pay rates. Therefore, businesses may decide to maintain wage levels even if doing so results in real wages that are momentarily too high or too low.
b. According to the sticky-price theory, firms may delay changing their prices in response to shifts in supply or demand because doing so would incur additional costs. As a result, when the price level is higher than anticipated, some businesses may have prices that are lower than desired, which lowers the overall amount of goods and services supplied.
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Martin Shkreli (called by some people the 'Most-Hated' CEO inthe world) is the founder and was the chief executive of TuringPharmaceuticals. In September 2015, he raised the price of the drugDaraprim to almost $800 a tablet from almost $10 (overnight!), bringing the annual cost of treatment for some patients to hundreds of thousands of dollars. Daraprim, known generically as pyrimethamine, is used mainly for people with compromised immune systems, like AIDS patients and certain cancer patients. Assume that the quantity demanded for this good was two million tablets per year (Q1) when the price for each tablet was $10. (Throughout this question, use the standard method of computing elasticities.)
a. What is the minimum expected quantity demanded (Q2) that still reasonably justifies this price increase (if the objective is to increase revenue)?
b. What is the maximum percentage change in the quantity demanded (which in fact indicates a reduction in the quantity demanded) that still justifies this price increase?
c. Obtain the maximum numerical value of the price elasticity of demand that still justifies this price increase.
d. Roughly speaking, what type of demand curve do you call a demand curve with this numerical value for its elasticity? Is this a common type of demand curve that you normally expect to see for vital drugs like Daraprim?
the maximum percentage change in the quantity demanded is 200%, which means that the quantity demanded would need to decrease by at most 200% (i.e., a 4-fold decrease) to still justify the price increase.
the minimum expected quantity demanded (Q2) that still justifies the price increase would be 25,000 tablets per year
the maximum numerical value of the price elasticity of demand that still justifies this price increase is -0.0026.
a. To determine the minimum expected quantity demanded (Q2) that still justifies the price increase, we need to calculate the revenue before and after the price increase and compare them. Before the price increase, the annual revenue from selling two million tablets of Daraprim at $10 per tablet would be:
$10 x 2,000,000 = $20,000,000
After the price increase, the new price of $800 per tablet would result in a new annual revenue of:
$800 x Q2 = $20,000,000
Solving for Q2, we get:
Q2 = $20,000,000 / $800 = 25,000 tablets per year
.
b. The maximum percentage change in the quantity demanded that still justifies the price increase can be determined by calculating the price elasticity of demand at the original price of $10 per tablet. Assuming that the price elasticity of demand is constant over the relevant price range, we can use the following formula to calculate the percentage change in quantity demanded:
% Change in Quantity Demanded = Price Elasticity x (% Change in Price)
Let's assume that the price elasticity of demand for Daraprim is -0.5 (in absolute value). Then, the maximum percentage change in the quantity demanded that still justifies the price increase can be calculated as follows:
-0.5 x (% Change in Price) = 1
% Change in Price = -2
c. To obtain the maximum numerical value of the price elasticity of demand that still justifies this price increase, we can use the midpoint formula:
Price Elasticity of Demand = (% Change in Quantity Demanded) / (% Change in Price)
Let's assume that the quantity demanded decreases from 2 million tablets per year (Q1) to 1.5 million tablets per year (Q2) as a result of the price increase. Then, the percentage change in quantity demanded can be calculated as:
% Change in Quantity Demanded = [(Q2 - Q1) / ((Q1 + Q2) / 2)] x 100%
% Change in Quantity Demanded = [(1.5 million - 2 million) / ((1.5 million + 2 million) / 2)] x 100%
% Change in Quantity Demanded = -25%
The percentage change in price is
% Change in Price = [(New Price - Old Price) / ((New Price + Old Price) / 2)] x 100%
% Change in Price = [($800 - $10) / (($800 + $10) / 2)] x 100%
% Change in Price = 9800%
Using these values in the formula, we get:
Price Elasticity of Demand = (-25% / 9800%) = -0.0026
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3. Net Working Capital. IN our capital budgeting examples, we assumed that a firm would recover all of the working capital it invested in a project. Is this a reasonable assumption? When might it not be valid?
This assumption may be reasonable in some cases, particularly: when the project has a definite end date, and the company can effectively manage its working capital components, including accounts receivable, accounts payable, and inventory.
However, this assumption may not be valid in certain situations. For example, if a project has an uncertain end date or continues indefinitely, the firm might not be able to recover all the working capital invested.
Additionally, in cases where there are significant fluctuations in the working capital requirements, the assumption might not hold true. Another scenario where this assumption might not be valid is when the firm faces difficulties in liquidating its assets or collecting its receivables.
In conclusion, the assumption that a firm will recover all the working capital it invested in a project can be reasonable under certain conditions.
However, it may not be valid when there are uncertainties related to the project's end date, significant fluctuations in working capital requirements, or challenges in liquidating assets and collecting receivables. It is essential for companies to assess the specific circumstances of each project to determine the validity of this assumption.
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n the short run, the marginal cost curve crosses the average total cost curve at a. a point just below the average fixed cost curve. b. the minimum point on the average total cost curve. c. the maximum point of the average variable cost curve. d. all of the above points
The correct answer is b. the minimum point on the average total cost curve.
What is Marginal Coast?
Marginal cost (MC) is the additional cost incurred by a firm or producer when it increases its output by one unit. It is the change in total cost resulting from producing one more unit of a good or service.
The average total cost (ATC) curve, which is the firm's total cost divided by its output, is U-shaped. This curve is the sum of the average fixed cost (AFC) and the average variable cost (AVC) curves. The AFC curve continuously declines as output increases, while the AVC curve increases at an increasing rate as output increases.
Therefore, in the short run, the marginal cost curve crosses the average total cost curve at the minimum point on the average total cost curve. Option b is the correct answer
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Lynda is teaching her client proper vendor workflow.
What is the correct workflow?
The correct workflow for vendor management is:
Purchase Order > Receive the Goods or Services > Verify the Invoice > Record the Invoice > Pay the Bill.
Create a Purchase Order (PO): This is a document that specifies the items or services to be purchased, the quantities, and the agreed-upon price.
Receive the Goods or Services: Once the vendor delivers the goods or services, the receiving department checks them against the PO to ensure they are correct.
Verify the Invoice: The vendor sends an invoice that specifies the items or services delivered, the quantity, and the agreed-upon price.
Record the Invoice: The invoice is recorded in the accounting system as an account payable.
Pay the Bill: The accounting department pays the vendor according to the payment terms specified on the invoice.
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T/F. One of the top five drivers of employee engagement for organizations in North America is pay. FALSE
True. One of the top five drivers of employee engagement for organizations in North America is pay.
According to a survey conducted by TINYpulse, a leading employee engagement platform, pay is one of the top five drivers of employee engagement for organizations in North America.
The survey found that while pay was not the number one driver of engagement, it did play a significant role in how engaged employees felt with their work and their organization.
Other factors that were identified as key drivers of engagement included opportunities for professional growth and development, good communication and feedback from managers, a sense of purpose and meaning in the work being done, and recognition and appreciation for a job well done.
While pay is not the only factor that contributes to employee engagement, it is an important consideration for organizations looking to attract and retain top talent.
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graham corporation has 1,000 cartons of oranges that were harvested at a cost of $26,600. the oranges can be sold as is for $30,320. the oranges can be processed further into orange juice at an additional cost of $12,525 and be sold at a price of $46,350. the incremental income (loss) from processing the oranges into orange juice would be: multiple choice
To determine the incremental income (loss) from processing the oranges into orange juice, we need to compare the additional revenue generated from selling the orange juice with the additional cost of processing.
Additional revenue from selling orange juice = Price of orange juice × Number of cartons
= $46,350 × 1,000 = $46,350,000
Additional cost of processing = Cost of processing × Number of cartons
= $12,525 × 1,000 = $12,525,000
Incremental income (loss) = Additional revenue - Additional cost
= $46,350,000 - $12,525,000
= $33,825,000
Therefore, the incremental income from processing the oranges into orange juice is $33,825,000.
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An information systems manager:
A) writes software instructions for computers.
B) acts as liaison between the information systems group and the rest of the organization.
C) translates business problems into information requirements.
D) manages data entry staff.
E) oversees the company's security policy
An information systems manager acts as liaison between the information systems group and the rest of the organization. The answer is OPTION B
An information systems manager is well-versed in hardware and software. Their major duty is to develop, manage, and monitor information systems by supervising a team of professionals that install and maintain hardware and software upgrades in a business or organization.
While Information Systems Management is primarily concerned with how raw data can be managed and processed in systems to solve business problems and create new business opportunities, Information Technology Management is more concerned with the implementation of processes that ensure IT is used as effectively and efficiently as possible. An information systems manager is well-versed in hardware and software. The answer is OPTION B
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