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Fynjy0 [20]
3 years ago
7

An employee of a firm has a job where the employee can easily adjust the number of hours they work for the employer per year. Th

e employee is currently paid $40 per hour and will work 2000 hours in 2018. The employer had a good year in 2018 and is considering two changes in the employee’s compensation for 2019.
a) Suppose the employer decides to raise the employees wage to $45 per hour. Explain why it is unclear whether the wage change will cause the employee to choose more or less work in 2019. (Note: The ability of the firm to change wages means this firm is not in a competitive labor market, but this has no impact on the worker’s decision) (1 point)

b) The other alternative the firm is considering is paying the employee a $10,000 bonus, but not changing the wage. Explain how this will change your answer to (a) about how much the employee works in 2019. Explain how it is possible both options cost the employer the same amount of money
Business
1 answer:
USPshnik [31]3 years ago
6 0

Answer:

The answer to both a and b is in the explanation below

Explanation:

a) The increase in wage can either decrease or increase the hours worked. This is became an increase in wage has both substitution effect and income effect that work in different directions. Substitution effect An increase in wage increases the opportunity cost of leisure, thereby making the worker increase number of hours worked. Income effect The increase in wage also makers the worker richer, thereby making the worker decrease number of hours worked.

Since no information about worker's preferences is given, we do not Imow which effect will dominate the other effect and, therefore, we do not know what the net impact of the increase in wage will be.

b) The bonus will only have income effect. The bonus will make the workers richer, thereby making the worker decrease number of hours worked.

If in part a), the substitution effect and income effect are equal in magnitude, then there will be no change in the number of hours worked. The number of hours worked will remain the same at 2000 hours. Since the employer would be paying $5 extra on each hour worked, the cost to the employer of increase in wage would be $10,000 (=2000 x $5), which is the same as the bonus in part b).

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Martin owns his own motorcycle and ATV store. He notices that many of his customers talk about golf while in his store. He quick
Mekhanik [1.2K]

Answer:

The correct answer is have the ability to quickly adapt to change.

Explanation:

The scientific literature on organizational management shows how the complexity in which business is developed today forces organizations to deal with a hyper-competitive environment in which changes occur at a speed not previously known. In this context, the interest in the dynamics that organizations develop in order to adapt in this changing environment has gained extraordinary interest in recent decades. Thus, the pace with which organizations manage to adapt to changes, supported by their processes and their human capital, is revealed as essential for their survival and success.

From the point of view of organizational behavior, we would define the ability to adapt as the ability of organizations to change themselves in order to cope with the non-predicted changes that occur in their context of action. That is to say, to adapt is to vary the way in which the organization behaves to deal with those changes that were not precisely foreseen when the organization was designed.

4 0
3 years ago
When an accelerated depreciation method is used to calculate depreciation expense: Multiple Choice the accumulated depreciation
erastovalidia [21]

Answer:

the net book value of the asset halfway through its useful life will be less than if straight-line depreciation is used.

Explanation:

Let me use an example to illustrate this.

An asset has a useful life of 4 years. It costs $1000. It has a salvage value of 0

If the straight line depreciation method is used , the depreciation expense every year = $1000/ 4 = $250

The net book value halfway through its useful life = $1000 - ($250 x 2) = $500

If double declining method is used, the depreciation expense in the first year would be = 2/4 x $1000 = $500

The net book value at the beginning of year 2 = $1000 - $500 = $500

Depreciation expense in year 2 = 2/4 x $500 = $250

The net book value at the beginning of year 3 = $500 - $250 = $250

We can see that the net book value halfway through the useful is lower when double declining depreciation method is used

4 0
3 years ago
you invest $1300 in an account at interest rate r, compounded continuously. Find the time required for the amount to double and
miskamm [114]

Answer:

  • 1. <em>For the amount to double</em>: <u>9.37 years</u>
  • 2. <em>For the amount to triple</em>: <u>14.85 years</u>

Explanation:

The equation for continuosly compounded interest is:

  • F=P\times e^{rt}

Where:

  • P is the amount that you invest today: $1,300
  • F is the value after t years: the double or triple of $1,300
  • r is the annual interest rate: 0.074

<u>1. For the amount to double:</u>

Substitute the values and solve for t:

             2\times \$1,300=\$1,300\times e^{0.074t}\\ \\ 0.074t=\ln 2\\ \\ t=\ln 2/0.074=9.37years

<u>2. For the amount to triple:</u>

<u />

            3\times \$1,300=\$1,300\times e^{0.074t}\\ \\ 0.074t=\ln 3\\ \\ t=\ln 3/0.074=14.85years

4 0
3 years ago
They want to make a profit of $55,498 Unit Variable costs = $11 Unit selling price is = $37 Fixed costs = $18,470 How many units
belka [17]

Answer:

2,845 units

Explanation:

To find the answer you need to consider that the profit is equal to the sales minus the costs.

Let's consider that x is the number of units sold

Sales= Price per unit*number of units sold

Sales= 37x

Variable cost= Cost per unit*number of units sold

Variable cost= 11x

Fixed cost= 18,470

55,498=37x-11x-18,470

55,498+18,470=26x

73,968=26x

x=73,968/26= 2,845

According to this, the answer is that they need to sell 2,845 units to make the desired profit.

6 0
3 years ago
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