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2 years ago

The idea that firms will get the most for their money when they pay wages higher than the equilibrium wage is called:

1 answer:

8 0

The idea that firms will get the most for their money when they pay wages higher than the equilibrium wage is called optimal-wage theory.

<h3>What is optimal-wage theory?</h3>

Optimal efficiency wage is one that that do occur when marginal cost of an increase in wages can be attributed to the marginal benefit associated to productivity.

Hence, idea that firms will get the most for their money when they pay wages higher than the equilibrium wage is called optimal-wage theory.

Learn more about optimal-wage theory at:

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If korean exports to the united states decline by $15 billion, by how much will cumulative korean spending drop if their mpc is

Andrew [12]

Given:
Change in exports: 15 billion
MPC = 0.75

MPC = Change in Consumption / Change in Disposable income

MPS stands for Marginal Propensity to Consume while MPS stands for Marginal Propensity to Save.

MPC + MPS = 1
MPC = 1 - MPS
MPS = 1 - MPC

Spending Multiplier = 1/MPS

Since MPC = 0.75 then MPS = 0.25

Spending Multiplier = 1/0.25 = 4

Change in Export * Spending Multiplier

15 billion * 4 = 60 billion

The cumulative Korean spending will drop by 60 billion.

8 0

3 years ago

Better Mousetraps has come out with an improved product, and the world is beating a path to its door. As a result, the firm proj

Ostrovityanka [42]

Answer and Explanation:

Dividend = $1.2

Growth (g ) = 18%

Time = 4 year

Discount rate = rs = 15%

Based on the above information, the calculations are as follows

a) Expected Values is

Div 1 = Div 0 × (1 + g)

Div 1 = $1.2 × (1 + .18) = $1.42

Div 2 = $1.42 × (1 +.18) = $1.68

Div 3 = $1.68 × (1 + .18) = $1.98

Div 4 = $1.98 × (1 + .18) = $2.34

b) Expected Stock price 4 years from now, if given discount rate is 15%.

Div 5 = Div 4 × (1 + g)

= $2.34 × (1 + .03)

= $2.41

Now 4 year price is

= Div 5 ÷ (Rs - g)

= $2.41 ÷ (.15 - .03)

= $2.41 ÷ .12

= $20.083

c) Today stock Price is

= [PVF15%,1 × DIV 1] + [PVF15%,2 × DIV 2] + [PVF15%,3 × DIV 3] + [PVF15%,4 × DIV 4] + [PVF15%,4 × TV]

where,

Present Value Factor (PVF) =1 ÷ (1 + r)^n

= [0.08695 × $1.42] + [0.7561 × $1.68] + [0.6575 × $1.98] + [0.5718 × $2.34] +[0.5718 × $20.083]

= $0.123 + $1.270 + $1.301 + $1.338 + $11.483

= $15.515 per share

d) Dividend Yield is

= Div 1 ÷ Price

=$1.42 ÷ $15.515

= 0.0915 or 9.15%

e) Next Year Stock Price is

=[PVF15%,1 × DIV 2] + [PVF15%,2 × DIV 3] + [PVF15%,3 × DIV 4] + [PVF15%,3 × TV]

=[0.08695 × $1.68] + [0.7561 × $1.98] + [0.6575 × $2.34] + [0.6575 × $20.083]

= $0.146 + $1.4971 + $1.5386 + $13.205

= $16.387 per share

f) Expected Rate of Return is

= [P1 - P0 + D1] ÷ P

= [$16.387 - $15.515 + 1.42] ÷ $15.515

= 0.14771 or 14.77%

8 0

4 years ago

5. Consider the supply chain involved when a customer orders a book from Amazon. Identify the

emmainna [20.7K]

Answer:

1. At pull stage Customers request for books. A pull system by Amazon was made through the use of ingram book group. They support booksellers in supply and demand of book buyers

2. The push strategy is made through the development of several warehouses. Procurement of inventory is done and peoples orders are sent out by utilizing pull strategy.

Processes in pull strategy:

1. Shipping

2. Order fulfilment

Processes in push strategy:

1. Stock replenishment

2. Production

6 0

4 years ago

You own a portfolio that is 30 percent invested in Stock X, 20 percent in Stock Y, and 50 percent in Stock Z. The expected retur

Charra [1.4K]

Answer:

11.2%

Explanation:

We need to calculate the weighted return of the portfolio. You have to multiply each stock's weight by the expected return.

Stock X = 0.30 x 9% (expected return) = 2.7%
Stock Y = 0.20 x 15% (expected return) = 3%
Stock Z = 0.50 x 11% (expected return) = 5.5%
weighted return of the portfolio = 2.7% + 3% + 5.5% = 11.2%

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3 years ago

The cost performance index (CPI): a. can be used to estimate the projected cost of completing the project. b. indicates that the

Evgen [1.6K]

Answer:

The correct answer is letter "A": can be used to estimate the projected cost of completing the project.

Explanation:

The Cost Performance Index or CPI measures the projected cost of work completed compared to the current cost spent. The CPI represents a ratio of earned value to actual cost. If the CPI is greater than one, the project is under budget. When the CPI equals one the planned and actual costs are equal. If the CPI is higher than one, the project is over budget.

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3 years ago