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seraphim [82]
3 years ago
13

f the supply of labor increases, which of the following events will occur? The wage rate will fall and firms will decrease emplo

yment to the point where MRP equals the new wage rate. The wage rate will fall and firms will increase employment up until the point where MRP equals the new wage rate. The wage rate will increase and firms will decrease employment to the point where MRP equals the new wage rate. The wage rate will increase and firms will increase employment up until the point where MRP equals the new wage rate.
Business
1 answer:
Leona [35]3 years ago
3 0

Answer:

The answer is "The wage rate will fall and employment will be increased until the new wage rate is equal to MRP.

Explanation:

Firms always try to maximize their profit. Therefore when they hire labor, the increase in labor costs must be lower than the labor's increase to the firm's total revenue. And this forms the "Marginal Revenue Productivity" which is simply the theory that suggests "Wages are paid at a level that is equal to the value of the marginal product of labor".  Supply of labor is a function that is inversely proportional with wage rate. So if the supply of labor increases, the correct answer is that "The wage rate will fall and firms will increase employment until MRP equals the new wage rate." Hope this was helpful.

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Which one of the following is NOT one of the 5 generic types of competitive strategy? Select one: a. Low-cost provider strategy
irina1246 [14]

Answer:

d. Market share dominator strategy

Explanation:

  • A competitive strategy is a long term plan of the particular company in order to gains a competitive advantage over the competitions in the industry and to aim towards the generation of a more superiors investment.
  • And is the attribute to the performance and the availability pf the natural resources and a skilled labor force.
3 0
3 years ago
"The members of a marketing department are having a meeting. There is a lot of disagreement over the content of the next adverti
AveGali [126]

Answer:

The correct answer is organizational.

Explanation:

Organizational behavior is a field of study in which the impact that individuals, groups and structures have on behavior within organizations is investigated, in order to apply this knowledge to improve the effectiveness of such organizations. It is a scientific discipline whose knowledge base constantly adds a lot of research and conceptual developments. But it is also an applied science, since information about effective practices in an organization can be extended to many others and thus leave departmentalism.

4 0
3 years ago
Suppose a nation opened its borders to the free flow of workers from other nations. how would this event likely affect the long-
OverLord2011 [107]

Answer:

B) both curves would shift to the right.

Explanation:

The long-run aggregate supply (LRAS) curve will shift to the right because the production costs will decrease, increasing total production output and lowering prices.

The production possibilities frontier (PPF) will also shift to the right because more production output increases total supply, and that increases the production possibilities of the country.

5 0
3 years ago
The owners of Arthouse Inc., a national artist supplies chain, are contemplating purchasing Craftworks Inc, a smaller chain. Art
Elodia [21]

Answer:

It can purchase at most, $18.13 per share.

Or 72.52 millions for the total 4,000,000 shares

Explanation:

We are given with  the present value of the merger at Craftworks discount rate. The shares can be purchase at most at the same level of the present value of the increase in the free cash flow.

That way, the net present value will be zero and the merger will yield the 16% required.

72,520,000 Millions

 4,000,000 shares outstanding

price per share 18.13

The crafworks shares can be purchase at most for 18.13 above this, it would yield the 16% required

Currently the share are at 16.25 so it could be possible to do the take-over

6 0
3 years ago
Exodus Limousine Company has $1,000 par value bonds outstanding at 15 percent interest. The bonds will mature in 30 years. Compu
nasty-shy [4]

Answer:

if YTM at 4% price :  $2,902.1237

if YTM at 8% price :  $1,788.0448

The bonds are above face value asthey offer a higher coupon payment than the market yield therefore the bond holders are willing to pay above theri face value

Explanation:

the market price of the bond will be the present value of coupo payment and maturity:

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C 150.000

time 30

rate 0.04

150 \times \frac{1-(1+0.04)^{-30} }{0.04} = PV\\

PV $2,593.8050

\frac{Maturity}{(1 + rate)^{time} } = PV  

Maturity   1,000.00

time   30.00

rate  0.04

\frac{1000}{(1 + 0.04)^{30} } = PV  

PV   308.32

PV c $2,593.8050

PV m  $308.3187

Total $2,902.1237

No we repeat the process with the yield at 8%

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C 150.000

time 30

rate 0.08

150 \times \frac{1-(1+0.08)^{-30} }{0.08} = PV\\

PV $1,688.6675

\frac{Maturity}{(1 + rate)^{time} } = PV  

Maturity   1,000.00

time   30.00

rate  0.08

\frac{1000}{(1 + 0.08)^{30} } = PV  

PV   99.38

PV c $1,688.6675

PV m  $99.3773

Total $1,788.0448

7 0
2 years ago
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