Answer:
B) 1.7
Explanation:
GDP deflator simply shows the occurring event of the level of prices in the economy which is why It is often the ratio of nominal GDP to real GDP.
GDP deflator in 2009 will be:
Norminal GDP
Cost of apple= $1 in 2009
Apple produced =5 in 2009
Cost of oranges= $1.50 in 2009.
Orange produce= 5 in 2009
$1.00*(5)+$1.50*(5)
=5+7.5
=$12.50
Real GDP
Cost of apple= $0.50 in 2002
Apple produced =5 in 2002
Cost of oranges= $1 in 2002
Orange produce= 5 in 2002
0.50*(5)+$1.00*(5)
=2.5+5
=$7.50
GDP deflator = Nominal GDP/Real GDP)
=$12.50/$7.50
=1.666
approximately 1.7
The merging of firms results in the market being served by only three or four firms selling this same product would lead to a decrease in market output and an increase in the price of the product. This is oligopoly
Initially if it is perfectly competitive it is almost impossible for other firms to enter. Now as it is said that if they do enter and they ultimately sell the same product they don't have any control on the price of the product. This is sometimes known as oligopoly, and they try to replace the product with close substitutes.
Oligopoly- An oligopoly is a market structure in which a small number of large sellers or producers dominate a market or industry. Oligopolies are frequently the result of a desire to maximize profits, which can lead to collusion among companies.
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Answer:
Total cost of project $123,025
Explanation:
The total cost of the project would be the sum of the labour cost of the three consultants and the overhead charged to the project.
So, we can compute the total cost of project as follows:
Labour cost $
Senior consultant (175× 120) = 21,000
Other consultants (130× 350) = <u> 45,500 </u>
Total labour cost 66,500
Overhead (85%× 66,500) <u> 56,525 </u>
Total cost of project <u>123,025</u><u> </u>
Answer:
d. extra shipping cost may be incurred.
Explanation:
Stockout means that a production company has no inventories to produce goods, which is a bad thing that can happen to a company. It means that production has stopped and customers cannot be supplied with order they have made.
There are several effects of stock out on a business, one of which is extra shipping cost may be incurred. A customer that is not ready to wait for his or her order to be met may have the item backorder expecially If the order was part of a larger delivery, then there would be backorder which will require special transportation.
Customers may also cancel his or her order and such customer is lost forever. This customer may also inform other customers thereby spreading bad news about the company which may reduce further sales of the company in the future.
When a company losses a customer as a result of stock out, or is no longer placing an order, a cost(cost of finding a customer a customer to replace the order which would have been purchased) is associated with that which will be borne by the vendor or the company.
Answer: The correct answers are "A. Write contracts that ensure that the interest of the managers and shareholders are closely aligned.", "C. Mount hostile takeovers.", "D. Ensure that employees are paid with company stock and/or stock options." and "E. Ensure that under-performing managers are fired.".
Explanation: The strategies that are available to shareholders to help ensure that managers are motivated to act this way are:
- Write contracts that ensure that the interest of the managers and shareholders are closely aligned. - This ensures that managers and shareholders point in the same direction.
- Mount hostile takeovers.
- Ensure that employees are paid with company stock and/or stock options. - In this way they motivate employees to work in favor of the interests of the shareholders.
- Ensure that under-performing managers are fired. - Dismissing managers who have poor performance pressure managers to work hard and for the benefit of shareholders.
