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Ludmilka [50]
3 years ago
7

Discuss the optimal method for procuring inputs that have well-defined and measurable quality specifications and require highly

specialized investments. What are the primary advantages and disadvantages of acquiring inputs through this means? Give an example not used in the textbook that uses this method of procurement.
Business
2 answers:
solmaris [256]3 years ago
6 0

Answer:

the optimal method for procuring inputs that have well-defined and measurable quality specifications and require highly specialized investments is <u>Contracting.</u>

Explanation:

Contracting requires writing an agreement that extends the relationship between a buyer and a seller

The key features of contracting includes

  • specialization
  • reduced opportunism
  • avoidance of skimping on specialized investment
  • expensive in complex environments

The primary advantage of using contracting is specialization and the main disadvantage is high cost.

U.S. Shell Oil Company is the United States which is among the largest oil companies in the world is a good example of a company that uses Contracting method for procuring inputs.

son4ous [18]3 years ago
3 0

Answer:

The optimal method for procuring inputs that have well-defined and measurable quality specifications and require highly specialized investments is the contract.

Explanation:

The contract is signed between the seller and the buyer, and establishes formal and legal terms, and agreed responsabilities. The primary advantages are that firms and buyers are allowed to focus in producing and getting what they need as contracts are used for tangible goods and for rendered services, reducing the opportunistic behaviour and underinvestment.

The CONASUPO, mexican government office, signed a contract with the mexican ranch owners to get all their milk production at low prices to feed the thousands of low income families.

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Because the initial user account created during installation is a member of the Administrators group, it has all of the characte
Reika [66]

Answer:

False

Explanation:

Few of the characteristics of administrator account that a member of administrator group doesn't have is that an administrator account cannot be removed from administrators group, it cannot be locked out/deleted due to incorrect logon attempt and it has a blank password by default.

With this, a member of the administrator group does not have all the characteristics of the administrator account.

6 0
3 years ago
In which of the following situations could a research analyst use multiple regression? A real estate development company wants t
rjkz [21]

Answer:

A). A real estate development company wants to estimate the probable sales of construction services on the basis of marriage rates, population movement in the region, and interest rates on construction loans.

Explanation:

Multiple regression is elucidated as the statistical technique employed to determine the association between two or more dependent or response and independent/explanatory variables.

As per the question, the multiple regression can be employed in the first situation where 'a real estate company wishes to forecast the probable sales of construction on the basis of....loans.' Multiple regression analysis would help in representing the linear relationship between these two variables that helps in ensuring effective analysis and making predictions and ensuring optimum output. Thus, <u>option A</u> is the correct answer.

5 0
3 years ago
Residents of Mill River have fond memories of ice skating at a local park. An artist has captured the experience in a drawing an
Irina18 [472]

Answer:

the artist should make the elegant version since the expected profits are higher

Explanation:

elegant version:

expected revenue = (400 x $150 x 40%) + (350 x $110 x 60%) = $47,100

expected profits = $47,100 - $30,000 = <u>$17,100</u>

deluxe version:

expected revenue = (500 x $110 x 40%) + (450 x $70 x 60%) = $47,100

expected profits = $42,250 - $30,000 = $12,250

5 0
3 years ago
The marginal seller is the seller who Group of answer choices cannot compete with the other sellers in the market. would leave t
Sophie [7]

Answer:

would leave the market first if the price were any lower.

Explanation:

Utility can be defined as any satisfaction or benefits a customer derives from the use of a product or service.

Thus, any satisfaction or benefits a customer derives from the use of a product or service is generally referred to as a utility.

In Economics, The law of diminishing marginal utility states that as the unit of a good or service consumed by an individual increases, the additional satisfaction he or she derives from consuming additional units would start decreasing or diminishing as the units of good or service consumed increases.

A marginal seller refers to an individual or business firm that is most willing to sell his or her goods and services at a price that is typically equal to their economic cost while forfeiting producer surplus.

A producer surplus is the amount a buyer is willing to pay for a good minus the cost of producing the good.

Hence, a marginal seller is the seller who would leave the market first if the price were any lower.

8 0
3 years ago
Your firm (an Australian firm) makes a sale to a Japanese customer.  The sale price is 200 million Japanese Yen payable in exact
charle [14.2K]

Answer:

An Australian Firm Selling to a Japanese Customer

a) Direct Quote of the Exchange Rate between Australian Dollar and Japanese Yen:

A$ 1 = ¥90

Meaning 1 Australian Dollar = 90 Japanese Yen.

Therefore, the price of the goods would be A$ 2,222,222.22222 (¥200 million)/ ¥90

b)Theoretical Current Forward Exchange Rate, quoted in terms of JPY/AUD for delivery in three months:

= Spot Rate x (1 + Japanese Interest Rate) / (1 + Australian Interest Rate) x 360/90

= ¥90 x (1 +0.005) / (1 +0.03) x 360/90 = ¥90 x 1.005/1.03 x 360/90

= ¥351.26214 =A$1

c) The Australian firm can take advantage of any decreases in the exchange rate and also ensure that it receives at least Australian $2 million by entering into a Currency Forwards Contract.

d) If the spot exchange rate in 3 month's time is:

(i) AUD/JPY=150, the outcome of the hedging with a Currency Forwards Contract to get at least A$ 2 million would be the gain of:

Forward Exchange outcome in Australian Dollars = ¥200 million/ ¥150 =

A$ 1,333,333.33333

Hedging outcome minus Forward Exchange outcome

A$2 million - A$ 1,333,333.33333 = A$666,666.66667

(ii) AUD/JPY = 50, the outcome of the hedging with a Currency Forwards Contract to get at least A$ 2 million would be the loss of:

Forward  Exchange outcome =  in Australian Dollars = ¥200 million/ ¥50 =

A$4 million

Hedging outcome minus Forward Exchange outcome

A$2 million - $4 million = -A$2million

Explanation:

a) Currency forwards contracts and future contracts are used to hedge the currency risk. For example, a company expecting to receive  ¥200 million in 90 days, can enter into a forward contract to deliver the  ¥200 million and receive equivalent Australian dollars in 90 days at an exchange rate specified today.

b) If A$ 1 = ¥90

Therefore, the price of the goods would be A$ 2,222,222.22222 (¥200 million)/ ¥90 in Australian Dollars.

5 0
3 years ago
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