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4 years ago

How can competition in a scarce labor market affect wages?

1 answer:

5 0

<span>Competition in a scarce labor market affect wages because when there is scarcity in labor this means that there is a shortage of workers for a specific job. Wages/salaries for workers will affect because employers will tend to make the salary high because of high demand. </span>

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Which of the following prices is most elastic?

denpristay [2]

An elastic products prices are responsive to changes in demand. Generally, the necessity of the product is related to it's elasticity. For example, insulin is essential for diabetics, so the price is extremely inelastic—people will pay any amount because it is a life or death situation. The price of a new MP3 player can be inelastic, especially because results show that people want the newest thing, and will pay more if it works better than the previous model. Additionally, the price of "scalper" tickers to the World Series will increase by demand, but they will still sell regardless. The price of dairy products, however, is rather elastic; this is because when the price rises, people switch to a cheaper brand. The difference between an inelastic and elastic product is that elastic products have substitutes, whereas inelastic products have no substitutes (or sometimes very few).

Answer: A. the price of dairy products

hope this helps :)

5 0

3 years ago

Ralph makes it a point to always offer help in technical areas in which he is skilled and knowledgeable. His subordinates trust

amm1812

Answer: Expert power

Explanation:

Expert power is the ability to influence people through special expertise. Expert power is the capacity to direct and influence people's behaviour because the people recognise and acknowledge ones skills, knowledge, and understanding.

Expert power has to be earned and it requires a great deal of focus and energy to maintain. Expert power usually lasts long and more rewarding than other forms of power.

3 0

3 years ago

A company normally sells a product for $25 per unit. Variable per unit costs for this product are: $3 direct materials, $5 direc

Alona [7]

Answer:

False

Explanation:

Currently the company is working at full capacity and they are selling their total production at $25 per unit. If they accepted the special order, they would be receiving less money per unit sold: normal price per unit - special order price = $25 - $13 = $12, so they would be losing $12 per unit sold. The only way that they could accept this special order is if they can work overtime and produce 31,000 units instead or 30,000.

4 0

4 years ago

What are some of the techniques businesses might use to make accurate sales forecasts?

Umnica [9.8K]

Bye falsely advertising

3 0

4 years ago

Use the data in the scenario analysis from Problem 13 and consider a portfolio with weights of .60 in stocks and .40 in bonds. (

Law Incorporation [45]

Answer:

The question is incomplete, see complete question here:

https://www.chegg.com/homework-help/portfolio-analysis-use-data-scenario-analysis-problem-14-con-chapter-11-problem-17qp-solution-9780077861629-exc

Explanation:

a. The rate of return in each scenario is gotten by multiplying the weight of each asset in the portfolio by the rate of return

Recession = 0.6(-5%)+0.4(14%)=2.6%

Normal economy = 0.6(15%)+0.4(8%)=12.2%

Boom = 0.6(25%)+0.4(4%)=16.6%

b. The expected rate of return for each asset (stock or bond) is obtained calculating the weighted average return and multiplying this by their respective weight in the portfolio.

The weighted average return on stock is -5%(0.2)+15%(0.6)+25%(0.2)=13%

The weighted average return on bond is 14%(0.2)+8%(0.6)+4%(0.2)=8.4%

The expected return of the portfolio is 0.6(13%)+0.4(8.4%)=11.16%

The standard deviation of stock is obtained by calculating the standard deviation of -5%,15% and 25% = 12.47%

The standard deviation of bond is obtained by calculating the standard deviation of 14%,8% and 4% = 4.1%

The formula for calculating the standard deviation of the population = $\sqrt{w_{a} ^{2}A^{2} +w_{b}^{2} B^{2} +2w_{a}w_{b}ABR_{ab} }$

where

${w_{a}$ is weight of stock

${w_{b}$ is weight of stock bond

A is the standard deviation of stock

B is the standard deviation of bond

$R_{ab} }$ is the correlation between returns on stock and bond

The correlation coefficient measure the interdependence of the two assets = - 0.99

The standard deviation of the population is 0.34%

c. Yes, one should invest in the portfolio because it helps minimizes the risk of investing in only one asset. Diversification is a risk management strategy that helps to lower volatility and increases the risk-adjusted return

4 0

4 years ago