It is the the negotiation of wages and other conditions of employment by an organized body of employees.
Answer: a. More of Project A's cash flows occur in the later years.
Explanation:
When a project has its cashflows occurring in later years, the NPV will be less because the discount rate would have a greater period to discount it in as opposed to cashflows that occur more recently which would receive less discounting from the discount rate.
As a result of Project A having more distant cashflows, the discount rate discounted its cash flows more which is why higher rates led to its NPV being zero because those higher rates got to discount it over a longer period.
The EOQ is 980 units and should reduce the fixed ordering cost to an amount of $62.50.
<u>Explanation:</u>
a)
Annual demand=Qty per mth multiply with 12 = 1000 multiply with 12 =12000
Annual demand in USD, A= 12000 multiply with USD 100 (cost of each part) = USD 1200000
Preparation cost, P= 4 hrs changeover time multiply with USD 250 per hr = USD 1000
Annual holding cost, I = 25% = 0.25
EOQ in USD= Root over (2 multiply with A multiply with P divide by I ) = USD 9.79 multiply with 10000 = USD 98000
EOQ in nos. = USD 98000 divide by USD 100 (cos of each part) = 980 units
b) Q = 980 divide by 4 = 245
In this case, annual carryring cost, C = EOQ 980 by 4 multiply with 0.5 multiply with Unit cost USD 100 multiply with 0.25 = USD 3062.50
Annual demand, D = 1000 per month multiply with 12 = 12000
Ordering cost = C multiply with 245 / D = USD 62.50
Answer:
See the explanation for the answers.
Explanation:
1. "Regulate it" is superior because anti trust makes it open to competition and the firm no longer remains a monopoly.
2. A regulated monopoly lower the price it charges from consumers which benefits the consumers because their consumer surplus increases. A regulated monopoly also offers better quality products.
3. Yes, there are redeeming qualities of monopolies.
Advantages of monopoly-
(a) The profits that the monopolist earns can be invested in R and D.
(b) Monopolies can practice price discrimination which can benefit weaker sections of the society.
(c) Monopolies can invest in latest technology which increases productivity and total output of a country.
(d) The government generates revenue from taxing the monopoly firm.
