Answer:
(a) Firms could possibly respond to unions demands for higher wages by hiring fewer workers.
(b) Firms could possibly respond to unions demands for higher wages by substituting capital for labor.
Explanation:
Unions are formed to work toward better working conditions and welfare of staff.
Workers act collectively to negotiate better terms of employment with the employers.
However when unions try to negotiate for increased pay the employer may take different actions that will bad for the employee.
The employer may decide to actually pay the higher wage but hire fewer workers. This is usually the case when higher wages for many employees will result in loss for the employer.
Secondly the employer may substitute capital for labour. For example investing more in use of machines and reducing labour.
From the employer's viewpoint this will result in lower labour cost due to higher wage payment
Answer:
$190,000
Explanation:
Regis produces 30,000 plugs per year and its overhead costs are $8, so their variable costs are $28 per plug (=$36 - $8).
Orlan offers to sell them the same plugs at $33 per plug, which means that Regis will be paying $5 more per plug than its own variable costs.
Regis costs will increase $5 x 30,000 = $150,000 per year.
Its fixed costs will decrease by $60,000 if they decide to purchase the plugs.
Plus it can rent the facilities at XXX per year? since it plans to have $100,000 in net savings per year:
$100,000 = $60,000 + XXX - $150,000
$100,000 = XXX - $90,000
XXX = $190,000
As the products go on the market, the limitations in the induction cause them to be relatively homogeneous, however, over time, technological advances, product positioning, consumer needs and profits allow the market to lose homogeneity, especially those products that are related to very subjective and diverse criteria such as aesthetics or happiness.
In this case, what is shown in the cell phone market is the variation in the offer that occurred over time.
Answer
The history of the cell phone demonstrates that a. <em>Markets evolve toward greater heterogeneity over time.</em>
Answer:
Option (B) is correct.
Explanation:
Contribution per unit
:
= Selling Price per unit – Variable costs per unit
= $35 - $21
= $14 per unit
Contribution margin ratio
:
= Contribution ÷ Sales
= $14 ÷ $35
= 0.40 or 40%
So, Break even point in Sales dollars
:
= Fixed costs ÷ Contribution margin ratio
= $78,000 ÷ 40%
= $ 195,000
