Answer:
False
Explanation:
Labour Markets are at equilibrium where : Market Demand for labour (by firms) = Market Supply of Labour (by labourers), & the respective curves intersect.
Labour Demand curve is downward sloping, as firms' demand is inversely related to price i.e wages. Labour supply curve is upward sloping, as labourers' supply is directly to price (wages).
If wage is higher than equilibrium wage : labour supply being directly related to wage, will be more. And, labour demand being inversely related to wage, will be less. It would lead to excess supply of labour in comparison to its demand. This would imply many people are able & willing to work at the prevailing wage rate , not getting jobs - i.e unemployment.
Wage higher than equilibrium wage rate will have Unemployment impact, irrespective of the cause (minimum-wage laws or other) of wage rise.
They are most beneficial when they join together resources and knowledge in a combination that complies with the VRIO framework.
Answer:
0.175 or 17.5%
Explanation:
The calculation of the cost of common equity is shown below:-
WACC = Weight of Equity × Cost of Equity + Weight of Debt × ( 1- Tax rate) × Cost of Debt
0.13 = (0.55 × Cost of equity) + ((0.45 × (1 - 0.25) × 0.10)
0.13 = (0.55 × Cost of equity) + 0.045 × 0.75
(0.55 × Cost of equity) = 0.13 - 0.03375
(0.55 × Cost of equity) = 0.09625
Cost of equity = 0.09625 ÷ 0.55
= 0.175
Therefore for computing the cost of equity we simply applied the above formula.
Answer:
Decrease in Supply ; Increase in Price
Explanation:
Complements in Production are goods which are produced jointly using a given resource. Eg : Beef , leather belts & wheat , straw.
Law of Supply states that Price of a good & its supply are directly related. Price & supply of complements in production are also directly related.
If price of a good rises, supply of the good & its complement(s) in production rise. If price of a good falls, supply of the good & its complement(s) in production fall.
So: Leftwards shift in demand curve of beef, i.e decrease in demand of beef- will create excess supply of beef. Excess supply will create competition among sellers & reduce its price.
As beef & leather belt are complements in production : Decrease in price of beef will reduce the supply of leather belts. This decreased supply (leftwards shift) will create excess demand in leather belt markets & competition among buyers increase their price.
Answer:
i am sorry i do not know how to solve this question
Explanation: