Answer: 1. a. Liquidity Ratios
b. Activity Ratios
c. Financial Ratios
d. Profitability Ratios
e. Market Value Ratios
2. A. Seasonal factors can distort data
B. Window dressing might be in effect.
Explanation:
a. Liquidity Ratios give the company an idea of it's ability to access hard currency. Examples include the Current ratio and the Quick ratio.
b. Activity Ratios allows stakeholders know how efficient the company is at running daily operations. Examples include; Receivables Turnover and Asset Turnover ratios.
c. Financial Ratios are very important to the company as they can decide if a company will be able to get loans. They include ratios that measure the firm's ability to pay off debt as well as the overall condition of the firm in terms of it's finances.
Examples include; Net Profit Margin and Debt to Asset ratio.
d. Profitability Ratios
These help ascertain the ability of the business to make returns based on its resources. Examples include Return on Assets and Return on Equity.
e. Market Value Ratio
These essentially help the company and other stake holders know what the company is worth in the market. An example is the Book Value per Share ratio.
2. Seasonal Factors may indeed distort data depending on the type of industry that the firm is into and ratios will usually not show this. For instance, an Ice Cream company will not have strong sales in winter so when interpreting ratio analysis it would be important to note that this could happen.
Another weakness is that ratios are calculated based on the figures that are given by a company. These figures may not truly reflect the actual situation of the company when management supply more optimistic figures than is true. This is called Window Dressing.
It will have the effect of distorting the ratios so that they do not represent a true representation of the actual situation of the company.
Answer:
1,200 hours
Explanation:
Solving mathematically this will be :
<em>y = ax^b</em>
where,
y is the cumulative average time required to produce x units
a is the time required to produce the first unit of output
x is the number of units of output under consideration
b is the log of the Learning Curve % divided by Log 2
The firm use 150 hours to work on the product during the second month
Amount of time used in the first month will be calculated as :
y = 400(8)^(-0.322)
= 204.8 hours (average)
Total for 8 units = 204.8 hours × 8 units
= 1,638.40 hours
Amount of time used for the total months to manufacture 18 units :
y = 400(18)^(-0.322)
= 157.74 hours (average)
Total for 18 units = 157.74 hours × 18 units
= 2,839.32 hours
Therefore,
Hours to be used in the second month = Time on 18 units - Time on 8 units
= 2,839.32 hours - 1,638.40 hours
= 1,200 hours
So, the firm use 1,200 hours in total for the 10 units. Which gives an average of 120 hours per unit
I think the correct answer would be the first option. Deadweight losses occur when the quantity of an output produced is less than, but not when it is greater than, the competitive equilibrium quantity. It is also known as allocative inefficiency. It is a loss of efficiency that will happen when the equilibrium of a good is not reached or the supply and the demand of a good are not in equilibrium such that the quantity of the goods is less than the equilibrium quantity. It is a loss due to inefficient use of the resources available. Price controls, minimum wage and taxation are said to cause deadweight loss.
Answer:
Arbitrage
Explanation:
Arbitrage occurs when the same good sells for different prices at different market. This price difference allows market participants to earn riskless profit .
In this case, the generator is more expensive in South Carolina when compared with other places. Thus, in order to earn riskless profit, people would buy where it is cheaper and sell at South Carolina where it is more expensive.
Economic theory suggest that if this kind of buying continues, soon the prices would be the same in both markets .
I hope my answer helps you
The answer is A. ^^ hope that helps!
