Yes it can be applied.
If an investor is pessimistic that a certain risk that they fear will occur, they avoid investing in the fields prone to the risk.
For example, if an investor is offered an opportunity in the oil and flammable fuels and the persons dreads fire, that person declines the offer no matter how viable it is.
Answer:
a. What is the MRP?
marginal revenue product = marginal product of labor x marginal revenue per output unit
MRP = 1,500 packages x $0.10 per package = $150
marginal resource cost (MRC) = $100 (the cost of renting the delivery truck)
The company should add the delivery truck because MRP is higher than MRC.
b. Now suppose that the cost of renting a vehicle doubles to $200 per day. What are the MRP and MRC in this situation?
MRP = $150 (doesn't change from question a)
MRC = $200 (the cost of renting the delivery truck)
The company should not add the delivery truck because MRP is less than MRC.
c. Next suppose that the cost of renting a vehicle falls back down to $100 per day, but, due to extremely congested freeways, an additional vehicle would only be able to deliver 750 packages per day. What are the MRP and MRC in this situation?
MRP = 750 packages x $0.10 per package = $75
MRC = $100
The company should not add the delivery truck because MRP is less than MRC.
Answer:
1. What is the Commerce Clause?
The Commerce Clause refers to the power held by Congress to regulate interstate commerce. Individual states can regulate commerce that takes place within their territory, but they cannot regulate trade between entities from their state and entities from other states.
2. Will the Arizona regulation withstand Commerce Clause scrutiny? Why or why not?
This is an actual court case and the US Supreme Court ruled against Arizona's regulation because it interferes with interstate commerce. The cantaloupes that Bruce Church produced were supposed to be sold in California, that means that 2 states are involved. The Commerce Clause applies whenever trade between 2 states are involved. An individual state's regulations cannot result in a burden for businesses engaged in interstate commerce.
Answer: 6.42%
Explanation:
To calculate this, we use the formula for the Dividend Discount Model/ Gordon Growth Formula as follows:
P = D1/(r - g)
Where,
P = current stock price
D1 = Next dividend
r = required return
g = growth rate
We can make r the subject of the equation by,
P = D1/(r - g)
P(r - g) = D1
r - g = D1/P
r = D1/P + g
Calculating therefore we have,
r = 2.65/43.15 + 0.045
= 0.06417728852
= 6.42%
6.42% is the required return.
If you need any clarification do comment.
Answer:
Straight rebuy
Explanation:
When a purchasing agent performs a straight rebuy, he/she is in a situation where the same products or services are bought over and over again on a relatively steady basis.
The products and services purchased are also simple and common products or services, nothing very complex or specialized that requires looking for new information or investigating who the best vendor might be.
