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Andrej [43]
3 years ago
14

Suppose that capital and labor are substitutes in production. In other words, the firm can generally use capital or labor to get

the production completed. Suppose the cost of capital increases greatly. How will this affect the demand for labor?
Business
1 answer:
gayaneshka [121]3 years ago
4 0

Answer:

Demand for labor will increase

Explanation:

Substitute factors of production refers to factors of production that are similar and comparable, and therefore one of the factor can be used to replace another factor.

When two factors of production are substitutes, an increase in the price of one will lead to an increase in the demand for the other since the aim of any is to minimize the cost of production.

Therefore, if the cost of capital increases greatly, it will lead to an increase in the demand for labor since capital and labor are assumed to be substitutes in production.

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North American Van Lines and Allied Van Lines combined in a _____ merger that will create the world's largest moving company. Pr
8_murik_8 [283]

Based on the type of customers that both companies served, this is a <u>horizontal merger. </u>

<h3>What is a horizontal merger?</h3>
  • This refers to a situation where companies in the same industry but with different market targets combine.
  • This is often done to increase market share and efficiency.

North American Van Lines and Allied Van Lines targeted different customers so when they merged, this was a horizontal merger.

Find out more on horizontal mergers at brainly.com/question/1807854.

5 0
3 years ago
Financial managers must know how to interpret a company's financial statements in order to Multiple select question. effectively
RideAnS [48]

Financial Managers must know how to interpret a company's financial statements to effectively allocate the firm's financial resources and generate the best return possible for the company in the long run.

<h3>Financial Managers</h3>

They analyze the company's finances and report on the finding to their senior managers to maximize profits. Their role mainly includes:

  • Prepare financial reports
  • Review financial information
  • Analyze market position for growth purposes

As with enhancement in technology, financial manager's role is mainly shifted from preparations of reports to analysis and determine the best possible ways for companies to expand.

<h3>Multiple Selections</h3>

Keeping in view the above points mentioned, the financial managers cannot recruit suitable candidates not setting the price of the company's product is their duty. Therefore, these points are invalid.

However, their roles do include allocating the firm's financial resources and generating the best returns for the company to grow in the long run.

Learn more on Financial Managers here: brainly.com/question/1305901

7 0
2 years ago
If interest rate on 1-year unsecured loan is 4.5%p.a. The inflation rate is 3.2% this year. What is the real interest rate?
Alexeev081 [22]

Explanation:

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8 0
3 years ago
A company’s dividend is expected to grow at 20% for the next six years. After that, the growth is expected to be 3% forever. If
Fittoniya [83]

Answer:

Price of share at end of year 6 = $43.94

Explanation:

Provided information we have,

Current dividend = $1

Growth rate for 6 years = 20%

Dividend at end of year 6 = $1 \times Future value factor of $1 @ 20%  for 6 years = $1 \times 2.985984 = $2.986 rounded off

After this dividend is supposed to grow at 3% thus Dividend at end of year 7 = $2.986 + 3% = $3.076

Therefore, using dividend growth model we have,

P_6 = \frac{D_7}{Ke - g}

Where P6 = price at end of period 6 = to be calculated

D7 = Dividend paid at end of year 7 = $3.076

Ke = Required rate of return = 10%

g = constant growth rate = 3%

Thus, P_6 = \frac{3.076}{0.10-0.03}

P6 = $43.94

Thus, price of share at end of year 6 = $43.94

4 0
3 years ago
You are starting your first job and you are asked to complete some paperwork on your first day. Which form will determine how mu
azamat

The W-4 is the name of the Tax form that will determine how much money is withheld from your paycheck for federal and state income taxes.

<h3 /><h3>What is the W-4 Form?</h3>

The Form W-4 is the form that tells about an employee's amount of income, deductions and other additional amount to withhold from each paycheck for computation of amount of federal income tax to deduct and withhold from the employee's pay.

In conclusion, the W-4 is the name of the Tax form that will determine how much money is withheld from your paycheck for federal and state income taxes.

Read more about Form W-4

<em>brainly.com/question/16076071</em>

3 0
2 years ago
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