Answer:
C) John's decision on how to allocate his time is consistent with the rationality assumption since the decision is intended to make him better off.
Explanation:
One of the pillars of modern economic theory is that individuals are rational and they will try to maximize their benefit at the lowest possible cost. Since resources are finite, then all our decisions are made on the margin. What is the marginal benefit that we can obtain from purchasing something at its marginal cost (marginal cost = sales price for an individual).
In this case, John is trying to maximize his utility, first he will go to the gym which probably provides a larger benefit to him, and then he is going to study (which also provides a benefit). He could have chosen to either go out to somewhere else or just stayed home and watch TV, play videogames, etc., but apparently these activities do not provide him enough benefits but represent a large cost in time.
Answer:
Forecasted sales: 25% maximum reduction.
Recommendations: try new ways to increase sales during the months left, or reduce its own cost.
Explanation:
- If sales usually increase between March 1 and June 30, and this period accounts for 50% of annual revenue, if revenue is proportional to sales, a reduction in sales will reduce revenues.
- Between March 1 and June 30 there are 4 months.
- If sales usually pick up in March and this year they were low until the beggining of May, it means that only 2 of the 4 most productive months were higly productive.
- If 50% of sales are concentrated in this 4 months, and this year 2 of the 4 months were not really productive, a maximum 25% of sales (and hence of revenues) may have lost.
- Therefore, revenues may lower by 25% this year.
- To avoid losses, it is advisable to try new ways to increase sales during the months left, that can consist on doing some advertisement and promotions (related to health care linked to exersice for example), that helps increasing sales in the months left, to compensate the looses of the 2 months. If sales cannot be increased, it is advisable to reduce cost to avoid further looses.
A balance sheet are the assets, liabilities and equity of your business at a specific point in time. Debts that are due in one year or less are classified on the Balance Sheet as "long-term" debts. <span>Long-term </span>debt<span> is different from the total </span>debt<span>, which includes </span>debt due<span> in </span>less<span> than </span>one year<span>.</span>
Answer:
The required cycle time for this assembly line is 2 minutes. The rigtht answer is c.
Explanation:
Acording to the data, we have the following:
Daily operating time= factory operates 1000 minutes per day
Scheduled output=make 500 El-More dolls per day
Therefore, to calculate the required cycle time for this assembly line we have to use the following formula:
Cycle time = daily operating time divided by the scheduled output
= 1000 / 500 = 2 minutes
The required cycle time for this assembly line is 2 minutes.
