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AC

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I am a leader of employees in an auto manufacturing company that just merged with another company after a difficult buyout process.Employees will keep their jobs but will have to learn new systems and work with new people and supervisors,which makes them nervous and anxious about their work.This is an example of ______.

A) a capacity challenge
B) a technical challenge
C) a technical and adaptive challenge
D) an adaptive challenge

On Jul 22, 2024


D
AC

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One limitation of the net present value approach to investments is that investments with identical net present values may have very different cash flows.

On Jul 14, 2024


True
AC

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Health and safety training or equipment that is required would be included in a job description under human characteristics.

On Jun 18, 2024


False
AC

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Merriwell Corporation has a virtual monopoly in the ultra-high speed computer market. Merriwell has recently introduced a new computer that will be used by satellite installations around the world. The installations have identical demands for the computers. Merriwell's managers have decided to lease rather than sell the computer, but they have been unable to decide whether to use a single hourly rental charge or a two-part tariff. Under the two-part tariff, users would be levied an "access charge" plus an hourly rental rate. Merriwell's marketing staff estimates the demand and marginal revenue curves below for each potential user:
P = 45 - 0.025Q
MR = 45 - 0.05Q,
where P = price per hour of computer time, and Q = the number of hours of computer time leased per month. Merriwell offers their users extensive maintenance assistance and technical support. The firm's engineers estimate that marginal cost is $30 per computer hour.
a. Assuming that Merriwell chooses to set a single price, what are the firm's profit maximizing price and output?
b. Assuming that Merriwell uses a two-part tariff, what "access charge" and hourly rental fee should the firm set? Compare the firm's revenues under the options in (a) and (b).
c. Briefly describe how differing demand curves among the various buyers would alter the two-part tariff.

On Jun 14, 2024


a.As a simple monopolist, the firm would set MR = MC
45 - 0.05Q = 30
-0.05Q = -15
Q = 300
P = 45 - 0.025(300)
P = 45 - 7.5
P = 37.50
TR = 37.50 × 300 = $11,250
b.Under a two-part tariff with identical consumers, price and output are determined where P = Mc.45 - 0.025Q = 30
-0.025Q = -15
Q = 600
P = 45 - 0.025(600)
P = 30 a.As a simple monopolist, the firm would set MR = MC 45 - 0.05Q = 30 -0.05Q = -15 Q = 300 P = 45 - 0.025(300) P = 45 - 7.5 P = 37.50 TR = 37.50 × 300 = $11,250 b.Under a two-part tariff with identical consumers, price and output are determined where P = Mc.45 - 0.025Q = 30 -0.025Q = -15 Q = 600 P = 45 - 0.025(600) P = 30   To find access charge, must find the consumer surplus which is area a.Area A = CS = (0.5)(15)(600) = 4,500 Set access charge of $4,500 and a $30 hourly fee.Total revenue under this option is the area under demand curve or $22,500. Total revenue doubles with a two-part tariff as compared with the single hourly rental charge option. c.With differing demands, the firm should set prices slightly above MC. The access charge should then be set to capture all consumer surplus from the buyer with the smallest demand. To find access charge, must find the consumer surplus which is area a.Area A = CS = (0.5)(15)(600) = 4,500
Set access charge of $4,500 and a $30 hourly fee.Total revenue under this option is the area under demand curve or $22,500. Total revenue doubles with a two-part tariff as compared with the single hourly rental charge option.
c.With differing demands, the firm should set prices slightly above MC. The access charge should then be set to capture all consumer surplus from the buyer with the smallest demand.
AC

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_____ is the art and science of quantifying value creation,slicing the value pie,and managing and covering financial risk.

On May 16, 2024


Entrepreneurial finance
AC

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At Jacobson Company, indirect labor is a variable cost that varies with direct labor-hours.Last month's performance report showed that actual indirect labor cost totaled $5,780 for the month and that the associated spending variance was $245 F.If 24,100 direct labor-hours were actually worked last month, then the flexible budget cost formula for indirect labor must be (per direct labor-hour) :

A) $0.20
B) $0.25
C) $0.30
D) $0.35

On May 12, 2024


B