<h3>
Answer:</h3>
C. The government
<h3>
Explanation:</h3>
Vocabulary
First, it is important to define the key terms in the question and answers.
- Planned Economy- A planned economy is an economy where the investments and capital are allocated by the government.
- Commodities - Commodities are economic goods that have real value due to their real-life usefulness (like lumber) or rarity (like gold).
How Planned Economies Work
As its name suggests, a planned economy plans the economy out and the price of goods within the markets. These plans are created by the government. This means that private businesses, consumers, and supply/demand do not control prices. Only the government can do that because the government has full control of planned economies. This is the reason that planned economies are also called command economies because the economy is commanded by the government.
Answer:
this is a cost minimization problem, but it is missing some numbers, so I looked for similar questions (see attached PDF):
minimization equation = 20x₁ + 22x₂ + 18x₃ (costs per ton)
where:
x₁ = mine I
x₂ = mine II
x₃ = mine III
the constraints are:
4x₁ + 6x₂ + x₃ ≥ 54 (high grade ore)
4x₁ + 4x₂ + 6x₃ ≥ 65 (low grade ore)
x₁, x₂, x₃ ≤ 7 (only 7 days per week)
using solver, the optimal solution is
2x₁, 7x₂, and 5x₃
a. The number of days Mine I should operate = <u>2 days
</u>
b. The number of days Mine Il should operate = <u>7 days
</u>
c. The number of days Mine III should operate = <u>5 days
</u>
d. The total cost of the operation for next week = <u>$284,000</u>
Answer: The optimal capital structure maximizes the firm’s stock price.
Explanation:
The Capital Structure of a company refers to the proportion of debt vs equity that it chooses to use to fund its Assets and operations.
The goal of management is to use the capital structure to fund the company in such a way that the market value of a company increases.
The Market value is reflected by the firm's stock price so the optimal capital structure is meant to maximize the firm’s stock price.
