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natita [175]
3 years ago
14

Studies indicate that the price elasticity of demand for cigarettes is about 0.4. A government policy aimed at reducing smoking

changed the price of a pack of cigarettes from $2 to $6. According to the midpoint method, the government policy should have reduced smoking by
Business
1 answer:
Vesnalui [34]3 years ago
6 0

Answer: more than half.

Explanation:elasticity of demand is a degree of change in demand with respect to price. According to midpoint method this is used to show percentage change in quantity demanded, divided by the percentage change in price. With an increase in price from $2 to $6 the demand for cigarette is expected to drop by more than half.

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Musician Productions, a maker of musical instruments based in Michigan, is preparing to open a branch office in Paris, France. I
postnew [5]

Answer:

pensions and more paid vacation time

Explanation:

5 0
2 years ago
A manager hires labor and rents capital equipment in a very competitive market. Currently the wage rate is $12 per hour and capi
Alex777 [14]

The firm should decrease the amount of capital used.

Solution:

The wage rate is $12 per hour and capital is rented at $8 per hour.

The marginal product of labour is 45 units of output per hour and the marginal product of capital is 65 units of output per hour.

A manager hires labour and rents capital equipment in a very competitive

market.

The ratio of marginal product of labour and wage rate

= \frac{45}{12}

= 3.75

The ratio of marginal product of capital and rent

= \frac{65}{8}

= 8.125

If the cost ratio is higher, it means that the boss must minimize the volume of money involved in the manufacturing process.

5 0
2 years ago
Caddie Manufacturing has a target debt-equity ratio of .35. Its cost of equity is 12 percent, and its pretax cost of debt is 6 p
frutty [35]

Answer:

10.12%

Explanation:

The computation of the WACC is shown below:

= Cost of debt × (1 - tax rate) × weight of debt + cost of equity × weight of equity

= 6% × (1 - 0.21) × 0.35 ÷ 1.35 + 12% × 1 ÷ 1.35

= 1.23% + 8.89%

= 10.12%

We simply multiplied the capital structure with each of its weight so that the WACC could come and the same is to be considered

7 0
3 years ago
A business organization needs to make up a 5 member fund-raising committee. The organization has 10 accounting majors and 8 fina
miss Akunina [59]

Answer:

The fund raising committee can be organized in 3,276 different ways.

Explanation:

The committee can have the following structures:

Accounting majors            Finance majors

        0                                          5

        1                                           4

        2                                          3

C(10,0) x C(8,5) = (10! / 10!) x (8! / 3!5!) = 1 x 56 = 56

C(10,1) x C(8,4) = (10! / 9!1!) x (8! / 4!4!) = 10 x 70 = 700

C(10,2) x C(8,3) = (10! / 8!2!) x (8! / 5!3!) = 45 x 56 = 2,520

total possibilities = 2,520 + 700 + 56 = 3,276

                               

6 0
2 years ago
Why was steel important to the second industrial revolution?
dlinn [17]
Steel was important to the second industrial revolution majorly because of its properties and its potential uses. Because steel is very strong, light and cheap, it was found ideal for many purposes. Steel was used to make many of the new inventions that characterized that period, a good example of this is rail road.
6 0
3 years ago
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