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Hitman42 [59]
3 years ago
11

Which of the following is NOT true of capital productivity? a. Changing the way a firm handles inventory to reduce capital expen

ditures can increase capital productivity. b. Higher capital productivity is achieved by eliminating unproductive assets or activities from a firm’s capital. c. It is an important measure of efficiency. d. It is the output produced by a dollar of capital invested in the business. e. It is measured by looking at a product's price.
Business
1 answer:
nignag [31]3 years ago
4 0

Answer:

<u>b. It is measured by looking at a product's price. </u>

<u>Explanation:</u>

<em>Remember,</em> Capital productivity measures how well (efficient) physical capital is used in the entire process of providing goods and services.

Thus, it is inaccurate to conclude that capital productivity can be measured by looking at a product's price because even a product with a low price may <em>not necessarily</em> have been a result of efficient capital use.

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An external competitor to Construction (from another island) is offering to build the new homes for $1300 each. Here are facts a
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Answer:

a. The minimum transfer price (per home) that Construction would be willing to accept would be $1,270

b. The maximum transfer price (per home) Island Evaluations would be willing to accept would be $1,300

Explanation:

a. According to the given data If Construction accepts the proposal of Island Evaluations, then it has to foregone the profits which could have been earned if Construction accepted the proposal of local villagers to build an incline, a bridge and a campground.

Hence, minimum transfer price (per home) for Construction should be such that it covers the profit foregone as given above:

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Figures in $

Particulars Revenue Cost Profit

Incline        1400          600 800

Bridge         1500 950  550

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Total        5600 2750 2850

Therefore, the transfer price should be such which can generate a profit of $2,850 for Construction.

Therefore, total revenue which should be generated = Cost of building five new homes + Profit foregone

= 700*5 + 2850 = $6,350

Hence, minimum transfer price (per home) should be = 6350/5 = $1,270

b. The maximum transfer price (per home) that Island Evaluations will be willing to accept is $1,300 per home as quoted by the external competitor from another island.

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2 years ago
Jason and his family were invited to dinner by a family friend who had just opened a high-end restaurant. Jason and his family w
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Answer:

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