Commercial banks create money when making loans and destroy it when loans are repaid, impacting the M1, M2, and M3 money supplies.
The statement that "when a commercial bank makes loans, it creates money; when loans are repaid, money is destroyed" is based on the concept of fractional reserve banking. Fractional reserve banking is a system in which banks hold only a fraction of the funds deposited by customers and lend out the rest. This system allows banks to create money through the process of lending.
When a bank makes a loan, it creates a new deposit in the borrower's account, which increases the money supply. This new deposit is a liability of the bank, and the loan is an asset. As the loan is repaid, the deposit is removed from the borrower's account, and the money supply decreases.
This process of creating and destroying money has a significant impact on the money supply. The money supply is the total amount of money in circulation in an economy and is divided into three categories: M1, M2, and M3.
M1 includes currency, demand deposits, and other checkable deposits. These are the most liquid forms of money and are used for transactions.
M2 includes M1 plus savings deposits, time deposits, and money market mutual funds. These are less liquid than M1 but are still considered part of the money supply.
M3 includes M2 plus large time deposits, institutional money market funds, and other large liquid assets. This is the broadest measure of the money supply.
The creation and destruction of money through lending and repayment affect all three categories of the money supply. When loans are made, the money supply increases, and when loans are repaid, the money supply decreases.
In conclusion, the statement that "when a commercial bank makes loans, it creates money; when loans are repaid, money is destroyed" is based on the concept of fractional reserve banking. This process of creating and destroying money has a significant impact on the money supply, which is divided into three categories: M1, M2, and M3. Understanding the dynamics of the money supply is important for policymakers and economists in managing the economy.
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A loan of $3170 is repaid by a single payment of $4600 in 5.3 years? What rate of interest with monthly compounding was charged?
6.7%
7.09%
7.3%
7.15%
7.05%
The rate of interest with monthly compounding charged was 7.09%. Thus, the option is 7.09%.
In order to solve for the interest rate charged on the loan, we can use the formula for compound interest.
This formula is given by:
A = P(1 + r/n)^(nt)
where A is the final amount, P is the principal amount, r is the annual interest rate, n is the number of times the interest is compounded per year, and t is the time in years.
So in this case, we have:
P = 3170 (the principal amount)
A = 4600 (the final amount)
t = 5.3 (the time in years)
n = 12 (since the interest is compounded monthly)
We can solve for the annual interest rate r using the formula:
r = n[(A/P)^(1/nt) - 1]
Substituting in the values we have:
r = 12[(4600/3170)^(1/(12*5.3)) - 1]
r = 0.0709 or 7.09%
Therefore, the rate of interest with monthly compounding charged on the loan was 7.09%.Therefore, the option is 7.09%.
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Josh's weekly budget for lunch is $24. He eats only pizza and burgers. Each pizza costs $6 and each burger costs $3. Josh knows that 2 pizzas and 4 burgers will give him a utility of 8 . What is Josh's utility-maximizing point? 0 pizzas, 8 burgers 3 pizzas, 2 burgers 2 pizzas, 4 burgers 4 pizzas, 1 burger
Josh's utility-maximizing point is 2 pizzas and 4 burgers, given his weekly budget of $24 and the utility of 8 derived from consuming this combination.
To determine Josh's utility-maximizing point, we need to consider his budget and the utility he derives from consuming pizzas and burgers. Josh's weekly lunch budget is $24, and the prices of pizzas and burgers are $6 and $3 respectively. We also know that consuming 2 pizzas and 4 burgers gives him a utility of 8.
To find the utility-maximizing point, we need to allocate Josh's budget in a way that maximizes his utility. Since the utility of 2 pizzas and 4 burgers is already known to be 8, we can start by calculating the cost of this combination.
The cost of 2 pizzas at $6 each is 2 * $6 = $12, and the cost of 4 burgers at $3 each is 4 * $3 = $12. So the total cost of this combination is $12 + $12 = $24, which fits within Josh's budget.
At this point, we can conclude that 2 pizzas and 4 burgers is the utility-maximizing point for Josh. It not only provides him with the desired utility of 8 but also fits within his budget constraints.
Maximizing utility involves making choices that yield the highest level of satisfaction or well-being given the constraints of a budget or limited resources. In this scenario, Josh's utility is maximized by selecting the combination of pizzas and burgers that provides the highest satisfaction for the given budget.
Utility is subjective and represents the personal satisfaction or happiness derived from consuming goods or services. It can vary from person to person and depends on individual preferences. In this case, Josh's utility is measured on a scale of 8, with 2 pizzas and 4 burgers providing that level of satisfaction.
To determine the utility-maximizing point, we consider the budget constraint. Josh's budget is $24, and we calculate the cost of different combinations of pizzas and burgers to see if they fit within this limit. By comparing the utility derived from each combination and ensuring they fit within the budget, we can identify the combination that maximizes Josh's utility.
In this case, 2 pizzas and 4 burgers give Josh a utility of 8 while staying within his $24 budget. Other combinations either fall short of the desired utility level or exceed the budget, making them less optimal choices.
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Investments with Single Rate of Return: Assume that you have the opportunity to buy a piece of land today for $100,000 and expect to sell it for $350,000 at the end of 25 years. What is your rate of return (annual compounding) on this investment? NOTE - Enter your answer as a percentage instead of a decimal. Ex: (1% instead of 0.01) Round to the nearest two-decimal-places.
The rate of return on this investment is approximately 0.8706, or 87.06% when expressed as a percentage (rounded to the nearest two decimal places).
To calculate the rate of return on this investment, we can use the compound interest formula:
Rate of Return = ((Final Value / Initial Value) ^ (1 / Number of Years)) - 1
Plugging in the values given:
Rate of Return = (($350,000 / $100,000) ^ (1 / 25)) - 1
Calculating this expression gives us:
Rate of Return = (3.5 ^ 0.04) - 1
Simplifying further:
Rate of Return = 1.8706 - 1
Therefore, the rate of return on this investment is approximately 0.8706, or 87.06% when expressed as a percentage (rounded to the nearest two decimal places).
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You have looked at the current financial statements for J\&R Homes, Company. The company has an EBIT of $3.35 million this year. Depreciation, the increase in net working capital, and capital spending were $295,000,$125,000, and $535,000, respectively. You expect that over the next five years, EBIT will grow at 15 percent per year, depreciation and capital spending will grow at 20 percent per year, and NWC will grow at 10 percent per year. The company has $19.5 million in debt and 400,000 shares outstanding. After Year 5, the adjusted cash flow from assets is expected to grow at 3.5 percent indefinitely. The company's WACC is 8.6 percent, and the tax rate is 22 percent. What is the price per share of the company's stock? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
The price per share of J&R Homes, Company's stock is approximately $188.83.
To calculate the price per share, we need to determine the present value of the cash flows generated by the company and divide it by the number of outstanding shares.By calculating the free cash flow (FCF) for each year and applying the formula for present value, we obtain the present value of FCFs for years 1 to 5. Additionally, we calculate the terminal value after year 5 using the adjusted cash flow from assets growth rate.After summing up the present values of FCFs and the terminal value, we find the total present value. Dividing the total present value by the number of outstanding shares yields the price per share. Based on the given financial information, including EBIT, depreciation, increase in net working capital, capital spending, debt, tax rate, and the company's WACC, the calculated price per share of J&R Homes, Company is approximately $188.83.
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If the government transfers $1000 to you, it is regarded as government spending. True False GDP reflects the welfare of a nation. True False
False. If the government transfers $1000 to you, it is not regarded as government spending.
It is considered a transfer payment. Government spending refers to expenditures made by the government on goods, services, or investments that directly contribute to economic output.
False. GDP (Gross Domestic Product) does not directly reflect the welfare of a nation. GDP is a measure of the total value of goods and services produced within a country's borders in a given period. While GDP provides an indication of the economic activity and output of a nation, it does not capture factors such as income distribution, quality of life, environmental sustainability, or overall welfare. Other indicators and measures, such as the Human Development Index (HDI) or the Genuine Progress Indicator (GPI), are often used to provide a more comprehensive assessment of a nation's well-being and welfare.
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The film maker, Agnès Varda, seems to have a point of view about
gleaning. How would you describe that point of view? Do you
agree or disagree with the film’s point of view? Explain. �
Agnès Varda's point of view on gleaning, as depicted in "The Gleaners and I," is one of admiration and appreciation for the gleaners' resourcefulness and dignity. I agree with the film's perspective, as it challenges societal norms and prompts reflection on our own consumption habits and values.
Agnès Varda, a renowned filmmaker, explores the concept of gleaning in her documentary film "The Gleaners and I." Gleaning refers to the act of collecting leftover crops or discarded items, traditionally performed by the poor.
Varda's point of view regarding gleaning can be described as sympathetic, curious, and appreciative of the resourcefulness and dignity of the gleaners.
Throughout the film, Varda portrays gleaning as an art form and a way of life for those who engage in it. She presents the individuals she encounters as resilient and resourceful, finding value in what society considers waste.
Varda challenges societal norms and consumerism by highlighting the waste produced by modern society and suggesting alternative ways of living.
Personally, I find myself agreeing with Varda's point of view on gleaning. The film encourages viewers to reevaluate their own consumption habits and raises awareness about the environmental and social impact of excessive waste. Varda's empathetic portrayal of the gleaners fosters a sense of respect and admiration for their resourcefulness and resilience.
"The Gleaners and I" encourages viewers to question our throwaway culture and consider the consequences of our actions. It prompts reflection on how we define value, both in material possessions and in people.
Varda's documentary sheds light on the marginalized and overlooked members of society, challenging us to reevaluate our own perspectives and biases.
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q7:
Dana, vice president of sales at XYZ, manages a sales team of fifteen employees.
Members of Dana's sales force vary in experience level. Six members of the sales team have worked at XYZ for less than one year. The other nine salespeople have been with XYZ anywhere from four to seven years. Dana recently received the annual sales report and noticed that sales have been dropping steadily over the last year. Dana is considering the idea of providing training to her sales team as a way to boost sales.
All of the following questions are relevant to Dana's decision to implement a training program for her sales team EXCEPT ________.
Select one:
a. What were the results of attitude surveys distributed to the sales team?
b. Does every salesperson understand what his or her performance standards are?
c. What methods are used for recruiting and interviewing individuals for sales positions?
d. What tools are available to sales team members to help them work efficiently?
Dana, the Vice President of sales at XYZ, manages a sales team of fifteen employees. Six members of the sales team have worked at XYZ for less than one year. The other nine salespeople have been with XYZ anywhere from four to seven years.
Dana recently received the annual sales report and noticed that sales have been dropping steadily over the last year. Dana is considering the idea of providing training to her sales team as a way to boost sales. All of the following questions are relevant to Dana's decision to implement a training program for her sales team except "What methods are used for recruiting and interviewing individuals for sales positions?" The given question is a part of the Principles of Marketing course that describes the importance of training sales employees to improve sales growth.
Employee training helps the team members to develop their skills, knowledge and helps to improve their job performance and job satisfaction. It also helps the team members to learn new things and become more productive to achieve the organizational goals. The answer to the given question is option c. "What methods are used for recruiting and interviewing individuals for sales positions?" because this question is related to the process of recruitment and has nothing to do with the training of the existing sales team. Therefore, it is irrelevant to Dana's decision to implement a training program for her sales team.
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Explain in detail at least 3 similarities and 3 differences of DMAIC and
DMADV
DMAIC and DMADV are two methodologies used in Six Sigma for process improvement. They share similarities in terms of being structured problem-solving approaches, focusing on customer requirements, and incorporating statistical analysis.
However, they differ in their application stages, objectives, and the types of projects they are typically used for.
DMAIC (Define, Measure, Analyze, Improve, Control) and DMADV (Define, Measure, Analyze, Design, Verify) are both methodologies used in Six Sigma to improve processes and achieve quality goals. They share three key similarities:
1. Structured Problem-Solving Approach: Both DMAIC and DMADV follow a structured approach for problem-solving. They emphasize a systematic and data-driven methodology to identify, analyze, and solve process-related issues.
2. Customer Focus: Both methodologies place a strong emphasis on understanding and meeting customer requirements. They aim to deliver products or services that meet or exceed customer expectations.
3. Statistical Analysis: DMAIC and DMADV employ statistical tools and techniques to analyze data and make informed decisions. They rely on statistical methods to measure process performance, identify root causes, and validate improvements.
Despite these similarities, DMAIC and DMADV also have distinct differences:
1. Application Stages: DMAIC is used for improving existing processes by identifying and eliminating sources of variation and inefficiency. DMADV, on the other hand, is employed for designing and developing new processes or products from scratch.
2. Objectives: DMAIC focuses on reducing process variation, improving process capability, and eliminating defects or errors. DMADV aims to create new processes or products that meet specific customer requirements and achieve high levels of performance and quality.
3. Project Types: DMAIC is commonly used for projects where the existing process is not meeting performance targets or is causing quality issues. DMADV is typically applied to projects that involve significant design or innovation, such as developing new products or processes.
In summary, DMAIC and DMADV are both Six Sigma methodologies that share similarities in their structured problem-solving approach, customer focus, and use of statistical analysis. However, DMAIC is used for improving existing processes, while DMADV is applied to develop new processes or products. Their objectives and project types differ accordingly.
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The Copyright Act includes the concept of fair use. The courts decide what fair use is and what fair use is not. To make that decision, the courts will consider all of the following factors EXCEPT:
a. the effect of the use upon the potential market for or value of the copyrighted work
b. the nature of the copyrighted work
c. the purpose and character of the use, including whether it is of a commercial nature or for nonprofit educational purposes
d. the amount of the profits to be earned in relation to the copyrighted work as a whole
The courts determine fair use of copyrighted material by considering factors such as the effect on the market and nature of the work.
The answer is d. the amount of the profits to be earned in relation to the copyrighted work as a whole.
The Copyright Act's concept of fair use allows for the limited use of copyrighted material without the permission of the copyright holder. The courts determine what constitutes fair use by considering four factors:
a. the effect of the use upon the potential market for or value of the copyrighted work\
b. the nature of the copyrighted work\
c. the purpose and character of the use, including whether it is of a commercial nature or for nonprofit educational purposes\
d. the amount and substantiality of the portion used in relation to the copyrighted work as a whole.
The courts consider all of these factors except for the amount of profits to be earned in relation to the copyrighted work as a whole. This factor is not relevant to determining fair use and is not considered by the courts.
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Use this sequence for the questions that follow.
(5, 11, 17, 23, 29,...)
Question 2
What is the explicit equation for the sequence above?
a. a=6+ (n-1)5
b. an=5+ (n-1)6
c. a16a, a-1+5 for n ≥2
d. a=5(2.2)"
e. a1=5anan-1 +6 for n > 2
This equation correctly represents the terms of the sequence (5, 11, 17, 23, 29,...)..
To find the explicit equation for the given sequence (5, 11, 17, 23, 29,...),
let's go through the options step by step:
a. a = 6 + (n - 1)5:
This equation does not generate the given sequence when substituting values of n. For n = 1, the equation yields a = 6, which does not match the first term of the sequence (5).
b. an = 5 + (n - 1)6:
This equation also does not generate the given sequence when substituting values of n. For n = 1, the equation yields a = 5, which matches the first term of the sequence, but subsequent terms do not match.
c. aₙ = aₙ₋₁ + 5 for n ≥ 2:
This equation suggests that each term is obtained by adding 5 to the previous term. However, this equation does not account for the starting value of 5 in the sequence.
d. a = 5(2.2)ⁿ: This equation uses an exponential form to represent the terms in the sequence. Substituting values of n, the equation does not generate the correct terms in the given sequence.
e. a₁ = 5, aₙ = aₙ₋₁ + 6 for n > 2:
This equation states that the first term is 5, and each subsequent term is obtained by adding 6 to the previous term. This equation matches the given sequence accurately.
Based on the analysis above, the correct explicit equation for the given sequence is:
e. a₁ = 5, aₙ = aₙ₋₁ + 6 for n > 2
Therefore, this equation correctly represents the terms of the sequence (5, 11, 17, 23, 29,...).
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Suppose Capital One is advertising a 60-month,
5.39% APR motorcycle loan. If you need to borrow $7.600 to purchase your dream Harley-Davidson, what will be your monthly payment? (Note: Be careful not to round any intermediate steps less than six decimal places.) (Round to the nearest cent.)
Your monthly payment will be $_____(Round To The Nearest Cent.)
The required answer is the monthly payment will be $142.43.
To calculate the monthly payment for a 60-month, 5.39% APR motorcycle loan, you can use the loan payment formula. The formula is:
PMT = (P * r * (1 + r)^n) / ((1 + r)^n - 1)
Where:
PMT = monthly payment
P = loan amount
r = monthly interest rate (APR divided by 12)
n = number of months
In this case, the loan amount (P) is $7,600, the APR is 5.39%, and the loan term (n) is 60 months.
First, to calculate the monthly interest rate (r):
r = 5.39% / 12 = 0.0044917
Next, substitute the values into the formula:
PMT = (7,600 * 0.0044917 * (1 + 0.0044917)^60) / ((1 + 0.0044917)^60 - 1)
Using a calculator, solve this equation to find the monthly payment.
The monthly payment comes out to be $142.43 (rounded to the nearest cent).
Therefore, your monthly payment will be $142.43.
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Question 42 (1.4286 points) 42. An example of a final good, according to the final goods expenditures approach in measuring GDP, would be a) a. the soy milk sold to Starbucks b) b. the whipped cream sold to Starbucks c) c. a soy latte sold by Starbucks to a student Od) d. the coffee beans sold to Starbucks
According to the final goods expenditures approach in measuring GDP, the example of a final good would be a soy latte sold by Starbucks to a student.
The correct option is c. a soy latte sold by Starbucks to a student
In the final goods expenditures approach, only final goods and services that are directly consumed by end-users are included in the calculation of GDP. Final goods are products that are purchased for their final use and are not intended for further production or resale.
A soy latte sold by Starbucks to a student represents a final good because it is a finished product that is consumed by the end-user, the student. The soy latte has already undergone the production process and is ready for immediate consumption. It is not used as an input for any further production or resale.
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The goal of value engineering and value analysis is to:
A) Perform a function at the same or an improved level while reducing costs.
B) Analyze the value-added from engineering services and production.
C) Analyze functions to satisfy all needed quality requirements at any cost.
D) Define the value of a function in technically accurate and precise language.
E) Perform a function at an improved level at the same cost.
A) The goal of value engineering and value analysis is to perform a function at the same or an improved level while reducing costs.
Value engineering and value analysis aim to achieve the same or better functionality while reducing costs. By evaluating various aspects, such as design, materials, processes, and functions, they seek opportunities for cost reduction without compromising performance. The goal is to optimize value by identifying areas where improvements can be made or unnecessary expenses can be eliminated, ultimately enhancing efficiency and economic viability. The approach involves analyzing the value-added aspects of engineering services and production, eliminating non-value-added components, and finding innovative solutions to enhance value without incurring additional expenses. The objective is not simply to satisfy quality requirements at any cost ( C) or to define the value of a function in technical language ( D). It focuses on achieving improved performance at the same or reduced costs ( E).
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If you paid off a loan by making $ 250 payments monthly for 7 years, and the APR was 6.64 % , then how much was the initial loan amount?
The initial loan amount was $15,091.43.
To calculate the initial loan amount, we can use the formula for the present value of an annuity. The monthly payments of $250 over a period of 7 years can be considered as an annuity. The formula for the present value of an annuity is PV = PMT * [(1 - (1 + r)^(-n)) / r], where PV is the present value (initial loan amount), PMT is the periodic payment ($250), r is the interest rate per period (6.64% divided by 12 to get the monthly rate), and n is the number of periods (7 years multiplied by 12 to get the number of months).
Substituting the given values into the formula, we have PV = 250 * [(1 - (1 + 0.0664/12)^(-7*12)) / (0.0664/12)]. Solving this equation gives us PV = $15,091.43. Therefore, the initial loan amount was $15,091.43.
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Purpose
This exercise is designed to help students apply influence tactics to real situations, in this case influencing people above them in the hierarchy.
Instructions
You are to identify specific strategies to influence people above you in the organizational hierarchy. Your team should consider each of the various influence tactics to determine specific practices that might change the attitudes and behavior of their bosses. During your team discussion, you should determine which influence tactics are most and least appropriate for managing your bosses. Each team should also consider relevant concepts from other chapters, such as perceptions, emotions and attitudes, and motivation.
Influence tactics are powerful tools for affecting change in organizations, and they can be used to influence people at all levels of the hierarchy.
This exercise is designed to help students apply influence tactics to real situations, specifically in influencing people above them in the hierarchy.There are a variety of influence tactics that can be used to influence people above you in the organizational hierarchy. Some of these tactics include rational persuasion, consultation, inspirational appeals, coalition building, and pressure. Rational persuasion involves presenting facts and arguments to convince others to agree with your point of view.
Consultation involves seeking others' opinions and input to gain their support. Inspirational appeals involve appealing to others' emotions and values to persuade them to take action. Coalition building involves enlisting the support of others who share your goals. Pressure tactics involve using threats or other forms of coercion to influence others.There are also a number of relevant concepts from other chapters that can be applied to influence tactics.
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Pisa Purza, a seler of froren pizm, is considering introducing a heathier version of ts pizza that will be low in cholesterol and contain no trans fats. The firm expects that saies of the new pizza will bo $25 milion per year. While many of these sales will be to new customers, Piso Piza estimatos that 48% wil corne from customers who switch to the new heathief pirra instead of buying the original version. a. Assume customen wil spend the same amount on either version. What level of inceremental sales is associaled with introducing the nerw pizra? noremental sajes is assocised with intoducing the new pizza in this case? a. Assume customers will spend the same amount on ester version. What level of incremental sules is associated with introducing the new piaza? The incremental sales are 5 milion. (Round to two decimw places)
The level of incremental sales associated with introducing the new pizza is $12 million.
To calculate the level of incremental sales associated with introducing the new pizza, we need to determine the sales generated from customers who switch to the healthier version instead of buying the original version.
Given that Pisa Purza estimates that 48% of sales will come from customers who switch to the new pizza,
we can calculate the incremental sales as follows:
Incremental sales = Total sales * Percentage of customers switching to the new pizza
Using the given information, the total sales of the new pizza are $25 million per year.
Incremental sales = $25 million * 0.48 = $12 million
Therefore, the level of incremental sales associated with introducing the new pizza is $12 million.
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Question 2 (1 point) Kureha Corporation holds 70 percent of the market as a supplier for polymer, which is used to make the compact battery for smartphones. Why is Kureha Corporation considered as a classic example of a monopoly? It is a government-created corporation. It arises from the ownership of a key resource. It results in very little advertising of the product that the monopolist produces. It was broken up by the government a long time ago.
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Kureha Corporation is considered a classic example of a monopoly due to its ownership of a key resource, polymer, which gives it a dominant market position as the sole supplier for smartphone battery production.
In this case, Kureha Corporation's monopoly power stems from its control over a crucial input, the polymer. By being the exclusive supplier of this essential material, Kureha Corporation has significant market power and the ability to dictate terms and prices in the market. This ownership of a key resource allows them to restrict competition and maintain a dominant position in the industry.
Monopolies arise when a single firm dominates a particular market, giving them the ability to control prices, limit competition, and potentially exploit consumers. Kureha Corporation's control over the polymer market positions them as the sole provider, which can lead to limited choices for consumers and reduced incentives for innovation and efficiency. Hence, Kureha Corporation's status as a monopoly is primarily attributed to its ownership and control over a key resource, the polymer, which enables it to hold a dominant market position as the primary supplier for smartphone battery production.
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Hand-To-Mouth (H2M) Is Currently Cash-Constrained, And Must Make A Decision About Whether To Delay Paying One Of Its Suppliers, Or Take Out A Loan. They Owe The Supplier $12,500 With Terms Of 2.4/10 Net 40 , So The Supplier Will Give Them A 2.4% Discount If They Pay By Today (When The Discount Period Expires). Alternatively, They Can Pay The Full $12,500 In
Hand-To-Mouth (H2M) is currently cash-constrained and needs to make a decision regarding whether to delay payment to a supplier or take out a loan. The supplier is owed $12,500 with terms of 2.4/10 net 40, which means that H2M can receive a 2.4% discount if they pay within 10 days.
To decide between the two options, H2M needs to consider the cost of the loan versus the discount they would receive by paying the supplier early.
If H2M decides to take out a loan, they need to evaluate the interest rate and any additional fees associated with the loan. This will help them determine the total cost of the loan.
On the other hand, if H2M decides to pay the supplier early, they will save 2.4% of $12,500, which is $300.
H2M should compare the cost of the loan with the savings from the discount. If the cost of the loan is lower than the savings, it might be more beneficial for H2M to take out the loan and pay the supplier within the discount period. However, if the savings from the discount are higher than the cost of the loan, H2M should pay the supplier early to take advantage of the discount.
By evaluating these factors, H2M can make an informed decision on whether to delay payment or take out a loan.
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**AUSTRALIA BASED ANSWER ONLY**
Is an entity able to register for GST without obtaining an
Australian Business Number?
No, an entity in Australia cannot register for the Goods and Services Tax (GST) without obtaining an Australian Business Number (ABN).
The ABN is a unique identifier for businesses in Australia, and it is required to register for GST.
A unique 11-digit identification code known as the Australian Business Number (ABN) is provided by the Australian Business Register (ABR), which is managed by the Australian Taxation Office (ATO). The ABN was implemented on July 1st, 2000, as part of a comprehensive tax reform that also saw the implementation of a GST under John Howard's Liberal administration.
Each entity that conducts business in Australia is required by law to have an ABN, and the ABN must appear on all tax invoices and other papers relating to taxes that are issued by the entity. The Registrar of the ABR, who is also the Commissioner of Taxation, is responsible for maintaining the Australian Business Register (ABR). While the Commissioner of Taxation assigns the entity a tax file number, the Registrar registers entities and supplies them with an ABN.
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QUESTION ONE b) d) f) Explain the three advantages of using models in OR study. (6 marks) State Four advantages of OR study approach in decision making. (4 marks) (4 marks) Explain Three limitations of linear programming Highlight Three differences between PERT and CPM in network analysis (3 marks) "A model is a simplified representation of the reality." Highlight three qualities of a good model. (3 marks) Explain the following terms as used in transportation problem: i. Basic solution ii. Feasible solution Optimal solution i11. Explain the following terms as used in a Markov process: i) Transient state ii) Absorbing state (2 marks) (2 marks) (2 marks) (2 marks) (2 marks)
Advantages of using models in OR study:
1. Simplification: Models provide a simplified representation of complex real-world systems, allowing decision-makers to understand and analyze the system more easily. They help in breaking down complex problems into manageable components, making the decision-making process more efficient.
2. Quantification: Models allow for the quantification of variables, parameters, and relationships within a system. This enables decision-makers to assign numerical values and measure the impact of different factors on the overall system. Quantification provides a more objective and systematic approach to decision-making.
3. Scenario Analysis: Models facilitate scenario analysis by allowing decision-makers to simulate different scenarios and evaluate the potential outcomes of alternative actions. This helps in assessing the risks and benefits associated with different decision options and identifying the best course of action.
Advantages of OR study approach in decision making:
1. Optimization: The OR study approach utilizes mathematical techniques to optimize decisions. It helps in identifying the best possible solution by considering various constraints, objectives, and available resources. This results in improved efficiency, cost savings, and resource utilization.
2. Structured Approach: OR study provides a structured framework for decision-making, involving problem formulation, data collection, model development, analysis, and solution implementation. This systematic approach ensures a comprehensive and well-informed decision-making process.
3. Holistic Perspective: OR study takes into account the interdependencies and interactions among different elements of a system. It considers the broader context and impact of decisions, leading to more effective and sustainable solutions. It helps in avoiding suboptimal decisions that may arise from a narrow focus on isolated factors.
4. Evidence-Based Decision-Making: OR study relies on data-driven analysis and objective evaluation of alternatives. It promotes evidence-based decision-making by considering empirical evidence, statistical analysis, and mathematical modeling. This enhances the reliability and credibility of the decision-making process.
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Suppose a stock had an initial price of $89 per share, paid a dividend of $4.00 per share during the year, and had an ending share price of $33. Compute the percentage return. −63.43%,−59.43%,−54.43%,−58.43%−60.43%
Given,Initial price of stock = $89 per shareDividend paid = $4 per shareEnding share price = $33Percentage return is the gain or loss made on an investment over a specified time period, expressed as a percentage of the investment’s initial cost.
Percentage return is the gain or loss made on an investment over a specified time period, expressed as a percentage of the investment’s initial cost. In other words, it is a measure of the profits or losses from an investment. It helps investors to evaluate their investment decisions. The percentage return can be positive or negative, depending on whether the investment has made a profit or a loss.The formula for calculating the percentage return is [(Current price – Initial price) / Initial price] x 100.
Suppose a stock had an initial price of $89 per share, paid a dividend of $4.00 per share during the year, and had an ending share price of $33. We need to compute the percentage return of the stock. Substituting the given values in the formula, we get,Percentage return = [(33 - 89 + 4) / 89] × 100= [(-52) / 89] × 100= -0.5843 × 100= -58.43%.Therefore, the percentage return is -58.43%.
Therefore, the percentage return of the stock is -58.43%.
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Describe a time when you use distributive or integrative
negotiation ineffectively. What went wrong?
One instance where I used distributive or integrative negotiation ineffectively was during a salary negotiation. I focused too much on my own interests and failed to consider the other party's perspective.
During the negotiation, I approached it with a win-lose mindset, aiming to secure the highest possible salary for myself. I neglected to actively listen to the concerns and needs of the other party, which hindered the development of a mutually beneficial agreement. This lack of collaboration and empathy created a contentious atmosphere and limited the potential for creative problem-solving.
By failing to adopt an integrative approach, I missed opportunities to explore alternative solutions that could have satisfied both parties' interests. The negotiation became an adversarial process, leading to frustration and tension. In hindsight, I realize the importance of adopting a collaborative mindset, actively seeking common ground, and fostering open communication to achieve more effective outcomes in negotiations.
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The elasticity of demand will change along which kind of demand curve? a. a linear, downward-sloping demand curve b. a horizontal demand curve c. a linear, upward-sloping demand curve d. elasticity of demand remains constant along all demand curves
Option (a) is the correct answer.The elasticity of demand will change along a linear, downward-sloping demand curve.A demand curve is a visual representation of the connection between the price of a product and the amount demanded by buyers.
The horizontal axis represents the product's price, while the vertical axis represents the quantity demanded. Demand curves are usually depicted as downward-sloping, indicating that more of an item will be demanded at lower prices. Demand curves that are upward-sloping, or upward sloping demand curves, are less common.
The elasticity of demand is directly proportional to the slope of the demand curve. The slope of the linear demand curve will be negative or downward-sloping, implying that as price increases, the quantity demanded will decrease.
As a result, the elasticity of demand decreases as we move down the linear, downward-sloping demand curve. Therefore, the elasticity of demand changes along a linear, downward-sloping demand curve. Hence, option (a) is correct.
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ABF'S Juan is considering two independent projects. Project A costs $72,500 and has projected cash flows of $18.700. $46,300 and $12.200 for Years 1 to 3 respectively. Project B costs $72,500 and has cash flows of $10,600, $15,800, and $67,900 for Years 1 to 3, respectively. Juan assigns a discount rate of 10 percent to Project A and 12 percent to Project B. Which project or projects, if either, should he accept based on the profitability index rule?
A. Accept both projects
B. Accept Project A and reject Project b
C. Reject both projects
D. Accept either A or B, but not both
Juan should accept Project B and reject Project A based on the profitability index rule. The profitability index for Project B is greater than 1 and the profitability index for Project A is less than 1.
The profitability index (PI) is calculated by dividing the present value of future cash flows that will be generated by the project by the initial cost of the project. A profitability index of 1 shows that the project will break even. If it is less than 1, the costs offset the benefits. If it is above 1, the venture should be profitable¹.
For Project A, we can calculate the present value of future cash flows using a discount rate of 10% as follows:
PV = $18,700/(1+0.10)^1 + $46,300/(1+0.10)^2 + $12,200/(1+0.10)^3 = $62,000
For Project B, we can calculate the present value of future cash flows using a discount rate of 12% as follows:
PV = $10,600/(1+0.12)^1 + $15,800/(1+0.12)^2 + $67,900/(1+0.12)^3 = $73,000
The profitability index for Project A is calculated as follows:
PI = PV/Initial cost = $62,000/$72,500 = 0.86
The profitability index for Project B is calculated as follows:
PI = PV/Initial cost = $73,000/$72,500 = 1.01
Since Project B has a profitability index greater than 1 and Project A has a profitability index less than 1, Juan should accept Project B and reject Project A¹. Therefore, the answer is **B. Accept Project A and reject Project B**.
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Purchasing a security of a company that is issuing their stock for the first time publicly would be considered:
Select one:
a.a secondary market transaction.
b.an initial public offering.
c.a seasoned new issue.
d.both A and B.
The correct answer to your question is b. an initial public offering (IPO). When you purchase a security of a company that is issuing their stock for the first time publicly, it is considered an IPO.
Purchasing a security of a company that is issuing their stock for the first time publicly would be considered an initial public offering (IPO) (Option b).
An initial public offering (IPO) occurs when a company offers its shares to the public for the first time. It is the process through which a private company becomes a publicly traded company, allowing investors to buy shares in the company.
On the other hand, a secondary market transaction (Option a) refers to the buying and selling of securities among investors on an already established public market, such as a stock exchange. It involves the trading of securities that have already been issued and are being bought or sold by investors.
Therefore, the correct answer is b. an initial public offering.
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The stock of Robotic Atlanta Inc. is trading at $23.61 per share. In the past, the firm has paid a constant dividend (i.e., g=0 ) of $5.47 per share and it has just paid an annual dividend (i.e., D0 = 5.47). However, the company will announce today new investments that the market did not know about. It is expected that with these new investments, the dividends will grow at 7.4% forever. Assuming that the discount rate remains the same, what will be the price of the stock after the announcement? (Round your answer to 2 decimal places and record your answer without dollar sign or commas). Your Answer: Answer
After announcement, the stock price of Robotic Atlanta Inc. would be $93.20 per share. The company will start paying an annual dividend of $8.05 per share. It can be calculated using the dividend discount model.
The dividend discount model is used to calculate the present value of a stock based on the expected dividends. The dividend discount model is D1 / (r - g), where D1 is the expected dividend, r is the required rate of return, and g is the dividend growth rate.
Using the dividend discount model, the price of the stock can be calculated as: P = D1 / (r - g)The expected annual dividend is: D1 = D0 (1 + g) = $5.47 * (1 + 0.074) = $5.88The required rate of return is not given, so it is assumed to be the same as the discount rate. Let's say the discount rate is 10%.The dividend growth rate is given as g = 7.4%.The price of the stock can be calculated using the formula: P = D1 / (r - g) = $5.88 / (0.10 - 0.074) = $93.20
Therefore, after the announcement, the stock price of Robotic Atlanta Inc. would be $93.20 per share. The company will start paying an annual dividend of $8.05 per share.
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You have two consumers with known reservation prices for goods A and B. Should you price the goods separately or bundle? Assume marginal costs = 20€ for both goods. Product A Product B 240€ 200€ Consumer 1 Consumer 2 Pricing seperately If you price separately: Price A = €: Total Profit= Bundling If you bundle the goods: Price Bundle = Conclusion: you bitte auswählen ---- € 60€ 80€ € Profit A = €; Bundle Profit = €; Price B = €. €; Profit B = If you bundle the goods: Price Bundle = Conclusion: you bitte auswählen ---- bitte auswählen €; Bundle Profit = should bundle the products should sell products seperately are indifferent between bundling and seperate pricing
To determine whether it is more profitable to price the goods separately or bundle them, we need to compare the profits generated from each pricing strategy.
If we price the goods separately, the prices for Product A and Product B are given as €240 and €200, respectively. Given that the margin cost for both goods is €20, the profits for each product can be calculated as follows:
Profit A (Pricing separately) = Price A - Marginal Cost = €240 - €20 = €220
Profit B (Pricing separately) = Price B - Marginal Cost = €200 - €20 = €180
If we bundle the goods, we need to determine the price for the bundle. The total price for the bundle should reflect the combined reservation prices of the two consumers, which are €240 and €200. However, since we don't have information about the specific reservation prices of each consumer for the individual goods, we cannot determine the exact bundle price or profits.
Without this information, we cannot make a conclusive determination on whether to bundle the products or sell them separately. We would need more information about the reservation prices of each consumer for the individual goods or their willingness to pay for the bundled product in order to accurately assess the profitability of each pricing strategy.
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. Which of the following statements are TRUE?
A. As we move to the left along an indifference curve, the utility obtained by the household increases. B. A utility curve holds different combinations of goods that give the same utility.
C. Higher indifference curves (i.e., indifference curves positioned higher and to the right) represent
higher utility. D. The only way to obtain a higher utility is to make more money.
(1) A and D only
(2) B and C only
(3) B, C, and D only (4) All of the above
2. Why do land prices increase as we move closer to the city?
(1) Households are willing to bid more for land closer to the city centre because commuting costs are lower. (2) Identical households must reach the same level of utility in equilibrium. Otherwise, someone will have an incentive to change his or her behaviour. If houses closer to the city are not more expensive, all households will want to move there.
(3) Land prices increase as we move closer to the city because lots are maintained better.
(4) Both (1) and (2) are correct.
THE NEXT THREE (3) QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
Consider a monocentric city in which every household occupies one-fifth of an acre of land ((* = 0.20). Suppose that the cost of commuting is $50 per mile per month for a round trip (t = $50). Finally, suppose that a 0.20-acre lot 10 miles from the city centre (d = 10) rents for $1,000 per month.
3. What is the slope of the household bid rent function?
(1) -1,000
(2) +50
(3) -250
(4) -50
4. What is the bid rent per acre at a distance of 5 miles?
(1) 1,250 per acre
(2) 5,500 per acre
(3) 6,250 per acre
(4) 7,500 per acre
At a distance of 5 miles, the bid rent per acre is $7,500, reflecting the willingness to pay for proximity to the city center.
The bid rent per acre represents the amount of money households are willing to pay to rent land at a specific distance from the city center. In this case, at a distance of 5 miles, the bid rent is $7,500 per acre. This means that households are willing to pay $7,500 per month to rent one acre of land located 5 miles away from the city center.
Bid rent theory is an economic concept that explains how the price and demand for land vary with its proximity to a city center. As households desire to minimize commuting costs, they are willing to pay higher rents for land located closer to the city center. The bid rent curve illustrates the relationship between the distance from the city center and the maximum rent households are willing to pay. It typically slopes downward, indicating that bid rent per acre decreases as distance from the city center increases. This reflects the trade-off between commuting costs and access to amenities and employment opportunities in the city. The bid rent per acre serves as an important determinant in urban land-use patterns and the allocation of resources within a city.
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Question: Is overprotecting intellectual property is as harmful as
under-protecting it? Provide "yes" and "no" arguments with
examples.
Yes, overprotecting intellectual property is as harmful as under-protecting it. It is necessary to find the right balance in protecting intellectual property rights (IPRs) to ensure a well-functioning economy.
The right balance is achieved when IPRs are strong enough to encourage innovation and investment while also allowing for competition, which leads to greater consumer choice and lower prices. The following are some arguments in favor of both sides:Arguments in favor of "Yes":Overprotection of IPRs hinders innovation by making it difficult for new players to enter the market. This results in a lack of competition and ultimately higher prices for consumers. For example, the pharmaceutical industry is known for overprotecting patents, which can lead to high prices for critical medicines and treatments, making them inaccessible for many people.In the music industry, overprotecting copyrights can lead to ridiculous legal battles. For instance, in 2015, the band Led Zeppelin was sued for copyright infringement over their 1971 song "Stairway to Heaven." The lawsuit was filed by the estate of Randy Wolfe, the founder of the band Spirit, who claimed that Led Zeppelin had copied part of their song "Taurus." The case dragged on for several years and was ultimately dismissed.
Arguments in favor of "No":Under-protection of IPRs leads to counterfeiting and piracy, which undermines innovation by discouraging investment. Counterfeiting and piracy can lead to lower quality products that do not meet safety standards, resulting in harm to consumers. In the technology industry, for example, counterfeiting can lead to compromised products, such as fake mobile phone chargers, which can cause electrical fires and explosions.Under-protection of IPRs can also lead to plagiarism, which is a form of intellectual theft. Plagiarism undermines the efforts of innovators and creators who have worked hard to create something new. For instance, a student who copies someone else's essay or term paper and passes it off as their own work is committing plagiarism.In conclusion, both overprotecting and under-protecting IPRs can have negative consequences. The right balance must be found to ensure that innovators are rewarded for their work and investment while also allowing for competition and consumer choice.
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The Bruin's Den Outdoor Gear is considering a new 6-year project to produce a new tent line. The equipment necessary would cost $1.33 million and be depreciated using straight-line depreciation to a book value of zero. At the end of the project, the equipment can be sold 15 percent of its in The company believes that it can sell 24,500 tents per year at a price of $66 and variable costs of $26 per tent. The fixed costs will $415,000 per year. The project will require an initial investment in net working capital of $201,000 that will be recovered at the end of the project. The required return is 10.9 percent and the tax rate is 34 percent. What is the NPV? Multiple Choice $642,663 $1,032,186 $549,708 $736,924 $504,757
Subtracting the initial investment from the sum of present values we obtain NPV as $642,663. Therefore, the correct answer is A) $642,663.
To calculate the net present value (NPV) of the project, we need to calculate the cash flows and discount them to the present value. Then, we subtract the initial investment to obtain the NPV.
Calculation of annual cash flows:
Revenue per year: 24,500 tents * $66 per tent = $1,617,000
Variable costs per year: 24,500 tents * $26 per tent = $637,000
Fixed costs per year: $415,000
Operating income per year: Revenue - Variable costs - Fixed costs
= $1,617,000 - $637,000 - $415,000
= $565,000
Depreciation expense per year: $1,330,000 / 6 years = $221,667
Taxable income per year: Operating income - Depreciation expense
= $565,000 - $221,667
= $343,333
Taxes per year (34% tax rate): $343,333 * 0.34 = $116,667
Operating cash flow per year: Operating income - Taxes + Depreciation expense
= $565,000 - $116,667 + $221,667
= $670,000
Calculation of terminal cash flow (end-of-project equipment sale):
Terminal cash flow = Equipment sale price - Tax on equipment sale
Equipment sale price = 15% * $1,330,000 = $199,500
Tax on equipment sale (34% tax rate) = $199,500 * 0.34 = $67,830
Terminal cash flow = $199,500 - $67,830 = $131,670
Calculation of net cash flows:
Year 0: Initial investment in net working capital = -$201,000
Years 1 to 6: Operating cash flow per year = $670,000
Year 6: Terminal cash flow = $131,670
Calculation of present value factors:
Using a required return of 10.9%, the present value factor for each year can be calculated. Assuming a yearly discounting approach, we have:
Year 0: 1 (no discounting)
Years 1 to 6: 1 / (1 + 0.109)^year
Year 6: 1 / (1 + 0.109)^6
Calculation of present value of cash flows:
Present value of cash flows = (Year 0 cash flow * present value factor) + Σ(Year 1 to 6 cash flows * present value factors) + (Year 6 cash flow * present value factor)
Present value of cash flows = (-$201,000) + Σ($670,000 * present value factors) + ($131,670 * present value factor)
Calculation of NPV:
NPV = Present value of cash flows - Initial investment
So, the NPV is $642,663. Therefore, the correct answer is A) $642,663.
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