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Romashka-Z-Leto [24]
1 year ago
7

b) Upscale hotels in the United States recently cut their prices by 20 percent in an effort to bolster dwindling occupancy rates

among business travelers. A survey performed by a major research organization indicated that businesses are wary of current economic conditions and are now resorting to electronic media, such as the Internet and the telephone, to transact business. Assume a company’s budget permits it to spend $5,000 per month on either business travel or electronic media to transact business. Graphically illustrate how a 20 percent decline in the price of business travel would impact this company’s budget set if the price of business travel was initially $1,000 per trip and the price of electronic media was $500 per hour. Suppose that, after the price of business travel drops, the company issues a report indicating that its marginal rate of substitution between electronic media and business travel is 1. Is the company allocating resources efficiently? Explain
Business
1 answer:
Alborosie1 year ago
6 0

It is to be noted that the company is not allocating resources efficiently. See the attached image for the Graphically illustration required.

<h3>What is allocation of resources?</h3>

This is simply the ability to efficiently distribute resources across all aspects of production.

<h3>What is the proof that the company is misappropriating resources?</h3>

MRS is the gradient of the budget line is defined by the change in the Y axis divided by the change in the x axis.

In other words, MRS is the number of units of x that a customer is ready to give up in exchange for units of y.

Note that
the MRS fo the budget line is:

-dy/dx

= -10.6/6.25

= -1.6, that is media 1.6 units of media is given for every unit of business travel.

However, the corporation claims that the MRS is -1, which indicates that for every unit of business trip, they give away one unit of media. In other words, they are paying a price equal to the cost of business travel, resulting in a resource misappropriation.

Learn more about allocation of resources at;
brainly.com/question/5322091
#SPJ1

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mixas84 [53]
B which would be false
4 0
1 year ago
According to Hofstede, the extent to which subordinates accept a hierarchical system in a company is known as _______
Pachacha [2.7K]

Answer:

According to Hofstede, the extent to which subordinates accept a hierarchical system in a company is known as Power Distance.

Explanation:

Hofstede basically discussed culture and investigated it and came up six different dimensions which a culture can have. Power distance is the dimension of the culture where people follow certain systems and hierarchies of the culture. If in a culture power distance will be higher then the people will be much divided in the castes based on the power, authority and money, like if in an organisation, power distance is higher, then the workers will tend to follow and obey hierarchy very strictly, and there will be much support from the top-level management, decisions will be made fro the top even without taking lower level employees into account. However, if the power distance is low, then there will be frequent sharing of idea, thoughts and support which is the main characteristics of the creative and innovative organisations.

3 0
3 years ago
Congress has the power to create special courts. True False
IrinaK [193]

Answer:

false

Explanation:

7 0
3 years ago
Mesa Designs produces a variety of hardware products, primarily for the do-it-yourself (DIY) market. As part of your job intervi
pav-90 [236]

Answer:

Instructions are listed below

Explanation:

Giving the following information:

Inventory information:

DM:

Beginning = $59

Ending= $ 66

Direct materials purchased 5,260

Work-in-process

Beginning= $87

Ending= $79

Finished goods

Beginning= $998

Ending= $1,024

Other information:

Administrative costs $ 3,200

Depreciation (Factory) 3,330

Depreciation (Machines) 4,730

Direct labor 7,600

Indirect labor (Factory) 1,780

Indirect materials (Factory) 590

Property taxes (Factory) 240

Selling costs 1,180

Sales revenue 35,610

Utilities (Factory) 640

1) We need to calculate the production during the period.

Cost of manufactured period= Beginning work in progress inventory+ direct materials + direct labor + factory overhead - ending work in progress

Beginning work in progress inventory= 87

Direct materials= 59 + 5620 - 66= 5,613

Direct labor= 7,600

Factory overhead=Depreciation (Factory) + Depreciation (Machines) +  Indirect labor (Factory) + Indirect materials (Factory)  + Property taxes (Factory) + Utilities (Factory)= 3,330 + 4730 + 1780 + 590 + 240 + 640= $11,310

Ending work in progress=79

Cost of manufactured period=87+5613+7600+11310-79= $24,531

Cost of goods sold (COGS)= Beginning Inventory+Production during period−Ending Inventory

CGOS= 998 + 24531-1024= $24,505

B)

Revenue= 35610

COGS= 24505 (-)

Gross profit= $11,105

Administrative cost= 3200

Selling costs= 1180

Total period costs= 4380 (-)

EBITDA= 6725

5 0
2 years ago
If the marginal propensity to consume is 0.75, and there is no investment accelerator or crowding out, a $115 billion increase i
rodikova [14]

Answer: $460 billion, but the effect would be larger if there were an investment accelerator.

Explanation:

If the MPC = 0.75 and there is no investment accelerator or crowding out, then a $115 billion increase in the government expenditures would result in the shift in the aggregate demand curve right by:

= $115 billion ÷ (1 - 0.75)

= $115 billion ÷ 0.25

= $115 billion × 1/0.25

= $115 billion / 0.25

= $460 billion.

Therefore, there'll be a shift in the aggregate demand curve right by $460 billion, but the effect would be larger if there were an investment accelerator

4 0
2 years ago
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