The inductive approach to writing a business argument Multiple Choice

Anthony currently earns $25 an hour and works 40 hours a week. When his boss offers to pay him $29 per hour, Anthony decides to

timofeeve [1]

Answer:

substitution and income effects will counteract each other totally

Explanation:

A labor supply curve is an economic analysis tool that shows the number or workers that are available to work or that can work at various wage rates.

The labor supply curve can either be bending backwards or sloping downwards or upward curving but it shows the relationship between labour and wage rates.

A labor supply curve can be affected by factors such as population, changes in social behaviour, opportunities in other markets, among other things.

From the above question, it is seen that a change in wage rate for Anthony from $25 to $29 does not affect his work hours positively of negatively. His work hours is the same despite the increase in hourly wage.

The effect of the Anthony sticking to 40 hours of work despite an increase in wage, which could have served as some motivation for him to put in more hours is his labor curve remains same. An increase in wage has done noting to affect the number of hours he works and as such his income vs work rate counters each other.

Cheers.

8 0

2 years ago

Since the costs of producing an intermediate product do not change regardless of whether the intermediate product is sold or pro

Snowcat [4.5K]

Answer: a) true

Explanation:

The costs incurred to produce the intermediate products have already been incurred and as such are referred to as sunk costs.

They will not change regardless of whether the good is sold before further processing or if it is sold after. They therefore do not matter in the decision to either process or sell and so are not considered.

8 0

3 years ago

Stoneheart Group is expected to pay a dividend of $3.11 next year. The company's dividend growth rate is expected to be 4.2 perc

lukranit [14]

Answer:

$43.19

Explanation:

Use dividend discount model(DDM) to solve this question; specifically constant dividend growth model.

P0 = D1/(r-g)

P0 = Current price

D1 = Next year's dividend = $3.11

r = investors' required return = 11.4% or 0.114 as a decimal

g = dividend growth rate = 4.2% or 0.042 as a decimal

P0 = 3.11/(0.114 - 0.042)

P0 = $43.19

Therefore, this stock price is $43.19

8 0

3 years ago

A firm is considering a project with an annual cash flow of $300,000. The project would have a five year life, and the company u

nignag [31]

Answer:

Hence, the the maximum amount the company could invest in the project is $1081432.86 and yes, the project should be accepted as the value is greater than initial investment.

Therefore, the correct option is b. $1,081,434

Explanation:

Here, maximum amount means the sum of present value of all cash inflows

So,

Present value = all Year cash inflows × Discounted factor of each year

where,

Year 1, year 2, year 3, year 4, and year 5 have same cash flows i.e. $300,000

But the discounted factor is different in each year

The calculation of discounted factor = 1 ÷ (1+0.12) ^ 1

where,

0.12 = rate

^1 = for year 1, ^2 = for year 2 and so on.

The discounted rate for year 1, , year 2, year 3, year 4, and year 5 is 0.8929

, 0.7972

, 0.7118

, 0.6355

, 0.5674 respectively.

Now, multiply the cash flow amount with discounted rate for each year to get presented value of all years.

Year 1 = $300,000 × 0.8929 = $267,857.14

Year 2 = $300,000 × 0.7972 = $239,158.16

Year 3 = $300,000 × 0.7118 = $213,534.07

Year 4 = $300,000 × 0.6355 = $190,655.42

Year 5 = $300,000 × 0.5674 = $170,228.06

Then, sum all the presented values of all year to get maximum amount

= $267,857.14 + $239,158.16 + $213,534.07 + $190,655.42 + $170,228.06

= $1,081,432.86

So, we attached the sheet for better understanding.

Hence, the the maximum amount the company could invest in the project is $1081432.86 and yes, the project should be accepted as the value is greater than initial investment.

Therefore, the correct option is b. $1,081,434

7 0

2 years ago

Irene’s Dairy is deciding whether or not to enter the market for ice cream, currently monopolized by Mattie’s Ice-cream. If it e

Natalka [10]

Answer:

"Threaten to always accommodate" is the correct choice.

Explanation:

As we acknowledge accommodation seems to be the phase wherein we change current understanding in anything other than a sense that new information of interest is integrated.
And then we can tell whether Mattie won't try to compromise Irene and will therefore surely consider to "intimidate to accommodate" Irene throughout all times. Accommodate means, for example, introducing a piece of different information about what another person asks mother in some kind of a railway station what it's really. Mother says this is train and starts running on what seems like a device like buses running on roadways.

5 0

3 years ago