<span>14 + 17 + 24 = 55
24 + 24 + 24 = 72
Producer Surplus = $17
Tim makes $17 more than he is initially willing to charge, thus a surplus of 17.
33 + 26 + 24 = 83
24 + 24 + 24 = 72
Consumer Surplus = $11
The customers pay $11 less than they are initially willing to pay, thus a surplus of 11.
Everybody wins, yay capitalism</span>
The answer choice that is NOT a method of evaluating the risk of a project is its B. Profile
<h3>What is Risk Management?</h3>
This refers to the identification of risk in any venture and the evaluation of the response to risk factors.
Hence, we can see that when a person is evaluating the risk of a project, he would have to check the net present value, the coefficient of variation, etc, but the evaluation of the profile is not a method of risk evaluation of the project.
Read more about risk management here:
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Answer:
C. Because union wages exceed nonunion wages, employees may be encouraged to work harder.
D. Unions may provide information to companies about how to improve operations and eliminate problems in the work environment.
Explanation:
Workers' unions have been instrumental in ensuring that workers work in the environment that is safe and conducive. Not only that, the unions also ensure that the workers are remunerated fairly for their labor and services. Thus, the wages of the unioned workers are higher because unions bargain for the increase in the worker's wages.
Furthermore, the worker's union work hand in hand to exchange information about the conditions of the workers and how the companies can eliminate the potential problems that result in worker dissatisfaction. In addition, the unions protect workers from exploitation.
Option A and C
In quasi-contract cases, the defendant received a benefit from the plaintiff. In promissory estoppel cases, the defendant made a promise that the plaintiff relied on.
<h3><u>
Explanation:</u></h3>
A quasi-contract is a retroactive system among two parties who own no prior commitments to one another. It is designed by an expert to change a situation in which one individual takes something at the value of the other. The plaintiff must have provided a substantial thing or service to the added party with the expectation or assumption that mortgage would be supplied.
Promissory estoppel is a concept in contract law that hinders a character from performing reverse on a commitment even if a legitimate contract does not endure.
Answer:
a. Terrell's Optimal Capital Structure is 40:60. It means to obtain optimal capital structure in-order to increase value of firm, Terrell should finance 40% of its Assets through Debt and remaining through Common Equity.
b. The optimal Capital Structure is the point where company's WACC is minimized. So, 40:60 is the ratio where Terrell's WACC will be minimized.
Explanation:
The goal of Management is to increase Shareholders' wealth and not to generate profits because wealth is something that is for long-run whereas Profits are temporary. Management would accept projects having negative NPV if its goal is to maximize Profit.
Maximizing Shareholders' wealth means to increase the Share Price whereas Generating a higher EPS is Profit Maximization Strategy. So, you should look for that Capital Structure Point where the Company's Stock Price is Highest.
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