Answer: facility location
Explanation:
Based on the information given, it can be infered that Reliable Industries is in the process of facility location.
Facility Location simply refers to the selection of the rightt location for the manufacturing facility. The location selected should be easily accessible for the customers and transportation.
Selecting a suitable facility location is essential for an effective operation.
Answer:
What is fiscal policy? The correct answer is D) Fiscal policy can be described as changes in government spending and taxes to achieve macroeconomic policy objectives.
Who is responsible for fiscal policy? The correct answer is A) The federal government controls fiscal policy.
Explanation:
What is fiscal policy? In order to achieve macroeconomic goals and influence the economy, fiscal policy adjusts goverments spendings and tax rates.
Who is responsible for fiscal policy? The responsibility for fiscal policy holds the federal government, the legislative branch (Congress) such as the executive branch (president & Secretary of treasure).
This situation is demonstrated by:
A. Law of diminishing returns
Explanation:
The law of diminishing returns argues. that the expansion of a business must always consider the demand and if it does not the graph will lower into the diminishing returns that is less and less profit for the firm.
The ill advised firm here began making more of their products than was the need for and it made it impossible for them to have the same profits.
There was a better chance of profit from the same level of operation so expanding operations does not always give a profit.
Your <em>question is not clear enough</em>. However it could be inferred you want details plotted out of the supply and demand schedule as outlined in attached image.
<u>Explanation:</u>
- From the information in the attached image only a price of $4 brings supply and demand into equilibrium, with an equilibrium quantity of 2.
- Also at a price of $4, consumer surplus is $4 and producer surplus is $4. Total surplus is $4+$4=$8.
- The law of diminishing returns applies here and so If Ernie produced one fewer bottle, his producer surplus would decline to $3. If Bert consumed one fewer bottle, his consumer surplus would decline to $3. So total surplus would decline to $3+$3=$6.
- Finally, when Ernie produced one additional bottle of water, his cost would be $5, From Ernie's supply schedule and Bert's demand schedule, the quantity demanded and supplied is only $4, so his producer surplus would decline by $1. If Bert consumed one additional bottle of water, his value would be $3, but the price is $4, so his consumer surplus would decline by $1. So total surplus declines by $1+$1 = $2.
Answer:
b. have the same level of risk as the firm's current operations.
Explanation:
According to the M&M's model of capital structure, two entities operating in the same type of business with similar business risks (e.g proportion of variable costs to fixed costs, operating profits) have the same total value irrespective of their capital structures. This means that in order for WACC to be relevant for discounting purposes of a new project it's important that the new project and the firm's risks are same (at least the business risks).
Secondly, having same level of risk also means that the project will have a similar operating income generated by it's assets, hence when the return of two projects is similar the cost of finance/business will also be similar therefore the new project must share same level of risk in order for WACC to be used as a discount rate.
