The answer is explained in detail below
Explanation:
Labor, L = 2000; Capital, K = 3000
Labour constraint,
Capital constraint ,
Solving the equation further, we get
- The range for the relative price of cloth such that the economy produces both cloth and food is 2/3 and 2
- Low cloth production → economy will use relatively more labor to produce cloth → opportunity cost of cloth is 2/3rd units of food.
- High cloth production → economy dips on labor → taking capital away from food production → raising opportunity cost of cloth to 2 units of food.
- If relative price of cloth lies between 2/3 and 2 units of food, the economy produces both goods.
- If the price of cloth decreases below 2/3 → complete specialization in food production → low compensation for producing cloth
- If the price of cloth rises above 2 → complete specialization in cloth production → low compensation for producing food
Answer:
elastic.
Explanation:
A monopolynis defined as a situation where a single supplier produces a good and so control quantity supplied and price of the product. Monopoly maximises profit when price is elastic and marginal revet is positive. When profit is maximised increase in price from that point does not result in increased profit.
On the other hand when a firm is not maximising profit, it is making profit but can take step to earn more. In this situation increase in price will result in higher profits
Answer:
True
Explanation:
It is similar to supply and demand principal. Hope I helped.
Answer:
a. $12.08 per share
Explanation:
For computing the next year stock we have to do the following calculations
Current Earning per share = Net Income ÷ Number of Common Shares Outstanding
= $9,750,000 ÷ 5,500,000 shares
= $1.77
Current Price Earning ratio = Current stock price ÷ Current EPS
= $14.74 ÷ $1.77
= 8.33
Now Next year earning per share = $9,750,000 × 1.25 ÷ 8,400,000 shares = $1.45
So, the next year stock price = $1.45 x 8.33
= $12.08 per share
Answer:
My recommended sourcing strategy is that Pacific Systems should single source their DVD drives and they should establish a good relationship with their suppliers. Having a single supplier and having a long term contract with that supplier will be advantageous for the company. Further it should implement a just in time inventory management practice.
A quantitative analysis is provided in the attached file
To reduce any risk associated with my sourcing decision I will have to trust my supplier and try and create synergies together by building a symbiotic relationship with the supplier. Cross functional risk planning will also be useful here.
2. Not all sourcing decisions require the same quantum of commitments in terms of time and efforts. This is because a variety of suppliers are available both locally as well as globally. As a company analysis will have to be done with regards to suppliers if they are financially competent to supply, on a consistent basis, high quality materials. The type of sourcing that does not justify the level of effort and analysis are fasteners for the computers and poly bags that are used to protect products from dust.
3. The issue of supplier capacity is important in this case. This is because the market is booming and demand is about to rapidly increase due to a revival of the economy. The company should look out for a supplier that has the ability, wherewithal and capacity to cater to spikes in demands besides being able to take on new projects. A supplier should be stable enough to absorb increase in demand and having such suppliers will ensure that the company does not lose out on potential customers.
4.
Advantages of single sourcing – It helps in optimizing the company’s supply chain. Further it helps the company by lowering its production costs and provides and creates a better and incremental value for the shareholders.
Disadvantages of single sourcing – It can be detrimental to the company in the long run as greater power is provided to the suppliers. Secondly failure of a supplier may cause a total shutdown for the company.
Advantages of multiple sourcing – As competition increases among the suppliers it drives down prices in the long run. Secondly failure of a single supplier will no longer disrupt the company’s operations.
Disadvantages of multiple sourcing – Managing different suppliers can become complex as each of the suppliers will have to be managed and monitored. Secondly as there are many suppliers they will not eb able to leverage the advantages of economies of scale.
Explanation:
