Answer:
U-shaped
Explanation:
Since the marginal product of labor is decreasing, the average variable costs and marginal costs will be increasing at all points, but the average fixed costs will be decreasing. That is why the average total costs (which includes both variable and fixed costs per unit) will be U-shaped since they will fall at the beginning when the decrease in marginal product of labor is small, bu then will increase as the marginal product of labor falls even more.
Answer:
As a result of the political unrest in Libya, the supply of oil would fall, As a result the supply curve would shift to the left. This would lead to fall in equilibrium quantity and a rise in price.
The increased demand for oil would shift the demand curve to the right. The equilibrium price and quantity would increase
Taking these two effects together, equilibrium price would rise and there would be an indeterminate effect on equilibrium quantity
Please check the attached image for a graph showing these shifts
b. As a result of the change in supply, supply would increase. This would increase equilibrium quantity and equilibrium price would fall. in addition with the increase in demand for oil, equilibrium quantity would rise and there would be an indeterminate effect on equilibrium quantity
Explanation:
Answer:
B) 9.1%
Explanation:
Cost of debt is the interest rate paid by a company due to borrowing money; i.e debt from investors.
$185million in debt is the face value of debt that Westford Corporation had and the $26 million dollars of interest expense is the cost of the debt in dollars;
First, find pretax cost of debt ;
Pretax cost of debt = (Interest expense / Face value of debt )*100
= (26,000,000/ 185,000,000 )*100
=0.1405 *100
= 14.05%
Next, use pretax cost of debt to find after-tax cost of debt;
After-tax cost of debt = Pretax cost of debt (1-tax)
= 14.05% *(1-0.35)
= 9.13%
Therefore, Westford's cost of debt capital is 9.1%
Answer:
D. Customers and suppliers willing to learn and evolve with new technology
Explanation:
In an implementation of any new IT system, the resistance to adoption from different stakeholders in the organizations is one of the most difficult challenges that is faced by the project managers. To overcome this resistance, the project manager needs to be accustomed to the basic principles of change management which involves:
1 - Designing incentive systems that forces all the stakeholders to adopt the new system.
2- Manage proper communication strategy that conveys the benefits of adopting the new system and conduct training for all the users.
However, there will still be resistance from certain suppliers and customers to the adoption of the new system. Which can lead to failed implementation of the system. However by doing the following, any organization can make sure that customers and suppliers quickly become an integral part of the IT system:
1- Take feedback from the customers and suppliers so that not only a more user friendly system can be designed, but also customers will be more invested as they feel they have been part of the decision making process.
2- Invite customers and suppliers to use the company resources to make themselves accustomed to the new system.
Answer:
a. The power and influence of industry driving forces
Explanation:
As per Michael Porter, there exist five competitive forces that influence competition in an industry. The five forces as per Porter are:
- Potential entrants
- Industry competitors
- Customers
- Substitutes
- Suppliers
Potential entrants refers to the risk of new entrants in the market.
Industry competitors refers to the extent of rivalry and competition between existing firms.
Customers relate to the negotiating or bargaining power of the customers and to what extent they exercise such power.
Substitutes refer to the emergence of substitute products in the market which may drive down a firm's sales.
Suppliers relate to the bargaining power exercised by suppliers with respect to inputs.
