Which is an example of something that is inelastic?

Elegance Inc. is a large cosmetics company that made an initial small investment in a start-up company, Peace Planet, which was

tester [92]

Answer:

The correct anwer is B. real-options perspective.

Explanation:

They are known as Real Options to the possibilities that some projects have to introduce, in the future, modifications in productive investments thus increasing their value. In practice, managers often refer to these options as intangibles.

The classic models of valuation of investment projects based on the discount of cash flows (NPV, IRR), do not incorporate in the project valuation the possibility of introducing modifications, so that the total value of the project is increased. Therefore, the non-consideration of these modification options may undervalue investment projects by not considering aspects that may be strategic for the company and cause it to discard projects that it should undertake.

The existence of Real Options increases the value of an investment project. In this way, the value of the total project can be calculated as the value of the project without the option (NPV) plus the value of the option.

8 0

3 years ago

Bramble corp. wants to sell a sufficient quantity of products to earn a profit of $200000. if the unit sales price is $18, unit

mote1985 [20]

To solve for units sold at an income of $200,000:

First, I would subtract the variable cost of $8 from the unit sales price of $18 dollars which gives you $10.

Unit profit = $10

Fixed costs = $200,000

How many units need to be sold to earn an income of $200,000?

40,000 units x $10 = $400,000 - $200,000 = $200,000

40,000 units need to be sold to earn an income of $200,000.

3 0

3 years ago

Sandra views herself as a tough but fair supervisor. She gives explicit instructions to her subordinates about how tasks should

Luden [163]

Answer:Telling style leadership

Explanation: According to Hersey and Blanchard’s situational model of leadership, The telling style is an authoritarian type of leadership ususally directed or used with low- maturity followers where the leader gives explicit directions and instructions on how tasks should be performed and orders are not subject to interpretation

This type of leadership usually occurs when the leader has an expertise in the area which he or she specializes and so gives clear, precise quick and controlled instructions for efficient implementation.

Here, Sandra uses the Telling style leadership to accomplish tasks and performances.

4 0

3 years ago

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The marketing manager for Mountain Mist soda needs to decide how many TV spots and magazine ads to run during the next quarter.

spayn [35]

Answer: The LP model is given as :

max: 1.180( 420000 A + 500000 B )

subject to : (a.) 7000 A + 2500 B ≤ 100000

(b.) 7000 A ≤ 70000

(c.) 2500 B ≤ 50000

Explanation:

Let us assume;

A be the no. of T.V spots

B be the no. of magazine spots

Given:

(a.) Mountain Mist earns a profit margin of $1.80 on each case of soda that it sells.

(b.) Each TV spot costs $7000 and is expected to increase sales by 420,000 cases.

(c.) Each magazine ad costs $2500 and is expected to increase sales by 500,000 cases.

∴ The objective function of this model will be given as :

max: 1.180( 420000 A + 500000 B )

(d.) A total of $100,000 may be spent on TV and magazine ads combined.

(e.) Mountain mist wants to spend no more than $70,000 on TV spots and no more than $50,000 on magazine ads.

∴ The subjective function will be :

(a.) 7000 A + 2500 B ≤ 100000

(b.) 7000 A ≤ 70000

(c.) 2500 B ≤ 50000

∴ The LP model is given as :

max: 1.180( 420000 A + 500000 B )

subject to : (a.) 7000 A + 2500 B ≤ 100000

(b.) 7000 A ≤ 70000

(c.) 2500 B ≤ 50000

4 0

3 years ago

Assume that a firm spends $500 on two inputs, labor and capital. If the wage rate is $20 per hour and the cost of capital is $25

Zolol [24]

Answer:

D. -4/5

Explanation:

Given that

Wage rate = $20 per hour

Cost of capital = $25 per hour

Recall that,

Slope of isocost = -(w/r)

Where,

W = wage rate

r = rental cost of capital.

Thus,

Slope of isocost curve

= -(20/25)

= -0.8 or -4/5

Note that, the negative of the ratio is the price of the two inputs. Also isocost is a line showing the various combinations of inputs which cost the same amount.

6 0

3 years ago

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