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igor_vitrenko [27]
4 years ago
5

If General Motors and the United Auto Workers​ (UAW) union fail to accurately forecast the inflation​ rate, the real wage will b

e different than the company and the union had expected. The company and the union sign​ long-term contracts rather than negotiate a new contract each year because each party believes that the ________.
Business
1 answer:
lisabon 2012 [21]4 years ago
8 0

Answer:

actual inflation rate will be equal to the expected inflation rate in the long term.

Explanation:

Since in the given instance, both companies sign the long term contract rather than the short term contract, because they believe that the expected inflation rate for each year cannot be accurately expected, but that the inflation rate for a long term period can be more accurately expected.

This is based on the concept of trend analysis, a trend analysis can help find long term results with more close to reality.

Thus, both the companies here believe that the long term rate can be expected properly of inflation.

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Chocolate Concoctions , a maker of high end chocolate candies, decided to price its boxes of candies below the long-term market
Airida [17]

Answer:

Option A Penetration Pricing Strategy

Explanation:

The lowest price set below the market price for a long term period is known as Penetration Pricing Strategy. The reason is that the penetration pricing strategy helps the company to make maximum profit by using the price demand relation. In this scenario the company is setting a price which is lowest price in the market and this price brings maximum number of sales and profits. This lowest price makes the competitor's prices unattractive.

6 0
3 years ago
Read 2 more answers
Seth did menial work—mostly house cleaning—when he could find it. He had been homeless for a year, and since then simply did not
Advocard [28]

Answer: Under class

Explanation:

 According to the question, Seth belongs to the under class as in the class hierarchy the underclass is one of the segment that belongs to the lowest position.

The people who belongs to the lowest or the bottom position in the society and also become the victim of the poverty in the society.

The underclass people are also comes under the economical weak section and they also lack of the educational and the social skills.  

Therefore, Underclass is the correct answer.

   

4 0
3 years ago
The Federal Application for Student Aid (FAFSA) form:
jarptica [38.1K]
Sorry im new to this
3 0
3 years ago
Daves Inc. recently hired you as a consultant to estimate the company’s Weighted Average Cost of Capital. You have obtained the
puteri [66]

Answer:

WACC = 5.32%

Explanation:

bond's YTM = 8%

cost of equity = 10%

tax rate = 40%

total bonds = $900,000,000

total common stocks = $100,000,000

total firm's value = $1,000,000,000

to simplify the process I will use hundreds of millions

WACC = (1/10 x 10%) + [9/10 x 8% x (1 - 40%)] = 1% + 4.32% = 5.32%

8 0
3 years ago
A company incurs costs of $75 ($67 variable and $8 fixed) to make a product that normally sells for $120. A customer offers to b
elena-14-01-66 [18.8K]

Answer:

C : accept the offer because it will produce net income of $12,600.

Explanation:

In this question we have to compare the cost which is presented below:

In the first case

The variable cost would be

= Number of units buys × variable cost per unit

= 4,200 units × $67

= $281,400

And, the selling cost would be

= Number of units sold × selling price per unit

= 4,200 units × $70

= $294,000

So, the difference would be

= $294,000 - $281,400

= $12,600

3 0
4 years ago
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