Answer:
net income exceeded the free cash flows by $550 million
Explanation:
net income = ($8,250 - $5,750 - $1,000 - $160) x (1 - 35%) = $871 million
net cash flows:
operating activities = $871 + $1,000 - $300 = $1,571
investing activities = ($1,250)
net cash increase during the year = $321 million
net income exceeded the free cash flows by $871 - $321 = $550 million
Answer:
The correct answer is: increase relative to Industry B.
Explanation:
The marginal revenue product measures the conribution of each additional unit of input employed in the production process. It is calculated as the product of price of product and marginal product of input.
The profit maximizing level of wage is when the marginal revenue product of labor is equal to wages.
Suppose there are two goods, A and B respectively.
When the price of good A increases relative to good B, the marginal revenue product of labor employed in production of good B will increase as well.
This will cause the wage rate of those workers to increase in comparison to workers in industry B.
Well I would say B because the passage states that she doesn't have the staff and so on and so forth. But it didn't say that she couldn't cook it so I would cook it but make her subcontract the rest.
