Answer:
capital
Explanation:
The capital assets are all those belongnings of the company that help creating revenue.
Answer:
d) result in overproduction or underproduction of a good.
Explanation:
Market failure occurs when market forces fails to allocate goods and services efficiently.
The government usually intervenes to correct market failure.
Externalities usually lead to market failure.
Positive externality is when the benefits of economic activities to third parties exceeds its cost. Research and development usually yield postive externality.
Goods that yield postive externality are usually underproduced. Government can intervene by giving subsidies and grants which encourages production.
A negative externality is when the cost of economic activities to third parties exceeds the benefit. Pollution is an example of negative externality. Goods that yield negative externality are usually overproduced. Government can intervene by taxing companies producing negative externality. This would increase the cost of production and discourage production.
I hope my answer helps you
The EOQ is 980 units and should reduce the fixed ordering cost to an amount of $62.50.
<u>Explanation:</u>
a)
Annual demand=Qty per mth multiply with 12 = 1000 multiply with 12 =12000
Annual demand in USD, A= 12000 multiply with USD 100 (cost of each part) = USD 1200000
Preparation cost, P= 4 hrs changeover time multiply with USD 250 per hr = USD 1000
Annual holding cost, I = 25% = 0.25
EOQ in USD= Root over (2 multiply with A multiply with P divide by I ) = USD 9.79 multiply with 10000 = USD 98000
EOQ in nos. = USD 98000 divide by USD 100 (cos of each part) = 980 units
b) Q = 980 divide by 4 = 245
In this case, annual carryring cost, C = EOQ 980 by 4 multiply with 0.5 multiply with Unit cost USD 100 multiply with 0.25 = USD 3062.50
Annual demand, D = 1000 per month multiply with 12 = 12000
Ordering cost = C multiply with 245 / D = USD 62.50
Answer:
The intrinsic value of A -$44.57 is higher than that of B- $ 29.71
Explanation:
<em>The intrinsic value is the present value of he expected future dividend discounted at he required rate of return.</em>
<em>So, we would work out the intrinsic value of the two stocks using the the formula below:</em>
Intrinsic value = D× (1+r)/(k-g)
Intrinsic value of stock A
D-3, r-11%, g-4%
= 3 ×(1.04)/(0.11-0.04)
=$44.57
Intrinsic value of stock B
D-2, r-11%, g-4%
= 2 ×(1.04)/(0.11-0.04)
= $29.71