Domestic telecommunication companies in the United States are struggling due to foreign competition. How can the US government h
elp to resolve this situation? A. The government should implement subsidies as they would help domestic businesses be able to afford to lower the prices of their goods and thus become more competitive.
B. The government should implement subsidies as they would limit the amount of foreign goods available to consumers and thus help domestic producers become more competitive.
C. The government should implement quotas as they would help domestic businesses lower the costs of labor and capital goods on which they rely and thus become more competitive.
D. The government should implement quotas as they would artificially raise prices for foreign goods relative to domestic goods and thus help domestic producers become more competitive.
A. The government should implement subsidies as they would help domestic businesses be able to afford to lower the prices of their goods and thus become more competitive.
Explanation:
A subsidy is a direct or indirect benefit given to an institution, business, or individuals. Usually, subsidies are given by the government. The purpose of subsidies is to relieve the recipients of some burden. They may be in the form of cash or tax incentives.
Offering subsidies to the domestic telecommunication service will help them compete favorably with international competition. They will afford to provide their services at reduced prices.
The answer and procedures of the exercise are attached in a microsoft excel document.
Explanation
Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.
The basic direct labor rate is $12.00 per hour. Payroll taxes are 13% of the basic direct labor rate, while fringe benefits such as vacation and health care insurance, are $6.00 per hour.
<u>The direct labor standard rate per hour is calculated using the direct labor rate, the taxes and fringe benefits.</u>