1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
zlopas [31]
3 years ago
12

Determine which measure of inflation should be used in each of the given scenarios. a. You're a buyer at an auto factory, and yo

ur manager asks you to determine whether your factory is experiencing price increases, similarly to other factories in the rest of the country. The is the best measure of inflation in this scenario because it tracks the prices of . b. A teacher's union wants to include annual cost‑of‑living adjustments in the next contract. The is the best measure of inflation in this scenario because it tracks the prices of .
Business
1 answer:
Lostsunrise [7]3 years ago
8 0

Answer:

a. PPI or Producer Price Index because it measures the input used for production.

b. CPI or Consumer Price Index because it measures the cost of common household purchases.

Explanation:

Inflation is general rise in the price level. There are various measures of inflation such as CPI, RPI, CPIX, CPI-CT and core inflation. This inflation measure selection is based on the scenarios by which criteria is made for selection. The businessmen will measure inflation with a different method as compared to a common man.

a. A factory owner will measure the inflation based on PPI. Producer price index measures the change in price of goods sold by manufacturer.

b. A teacher union will measure the inflation as CPI. Consumer price index is the best measure of inflation for a consumer.

You might be interested in
What is the common issue between monopolistic and oligopoly market structure​
cestrela7 [59]

<u>there is no clear-cut dividing line </u>

The primary difference between oligopoly and monopolistic competition is the relative size and the market control of each firm based on the number of competitors in the market. However, there is no clear-cut dividing line between these two market structures.

6 0
2 years ago
Homestead Crafts,a distributor of homemade gifts,operates out of owner Emma Finn’s house. How many units should Emma include in
Paul [167]

Answer:

Period-end Inventory = 1,710 units

Explanation:

Units in Ending Inventory

Units of Product on hand                    1,300 units

Add:

Units in-transit                                        350 units

Units in-consignment                               80 units

Less:

Damaged                                         <u>       (20) units</u>

Total units in period-end inventory= 1,710 units

Since the products are in transit and some products are out of consignment to the homestead crafts, therefore, both the products belong to them. Damage products need to removed to reduce the inventory balance.

6 0
3 years ago
Consider the following premerger information about a bidding firm (Firm B) and a target firm (Firm T). Assume that both firms ha
Alborosie

Answer:

The answer is "Share offer is better".

Explanation:

Firstly Computing the value of the combined company:

The merger value = the market value of the B company + the market value of the T + synergically advantages

= shares issued * share price of company B + outstanding shares * price per share of company T + benefits for synergies

=4,600 \times \$40+1,000\times \$14+\$8,800\\\\=\$206,800\\\\

Number of new shares which have been created following the merger = the number of shares in the T *exchange ratio

=1000 \times \frac{1}{2}\\\\=500 \ shares\\\\

The percentage price of the fusion company = the value of the fusion company /the share value of the fusion company

The per-share price of the combined company=\frac{\$206,800}{4,600+500}=\frac{\$206,800}{5,100}=\$40.55

The cash offer value = 16 dollars per share

Stock offer value = price of merged company share /2 = \frac{\$40.55}{2}=\$20.27 / \ share\\\\

Thus, share offer is better

8 0
3 years ago
If marginal product is 4 units and average product is 8 units, the next worker will cause(A) marginal product to increase.(B) av
Daniel [21]

Answer:

(D) marginal product to increase by 2 units and average product to decrease by 2 units.

Explanation:

When there will be an addition in number of workers then the marginal product that is additional units for each additional worker will increase.

But, at the same time as for calculating the average the units will decrease with the same proportion.

This is because with extra number of workers the denominator for average product will also increase and ultimately.

In the curve the marginal and average product are same level for equilibrium.

Thus, option D is correct.

3 0
3 years ago
hen entry barriers into a market are low, firms will tend to earn zero economic profit in the long run because a. profit-seeking
tamaranim1 [39]

Answer:

The correct answer is B

Explanation:

Economic profit is the difference among the revenue received from the sale of the output and the cost of all inputs used and opportunity cost.

Zero economic profit, it is the situation where the firm is earning the same if its resources were employed in the next alternative which is best.

When the entry barriers in the market are low, then the firm will have the tendency of having a zero economic profit in the period of long run, as the profit which is short run will attract the extra suppliers which will result in down in the market price of the product.

3 0
3 years ago
Other questions:
  • Bustillo Inc. is working on its cash budget for March. The budgeted beginning cash balance is $54,000. Budgeted cash receipts to
    10·1 answer
  • You put $500 in an interest bearing bank account that pays 2% per year but has a fee of $2 per month. Are you getting ahead?
    5·1 answer
  • Jones, a consulting manager of Miller &amp; Co., is considering membership on an audit client’s board of directors. Jones does n
    7·2 answers
  • What are the two components ofâ technology? â(Check only twoâ.)
    11·1 answer
  • The following data give the dates of successive turning points in U.S. economic activity and the corresponding levels of real GD
    5·1 answer
  • If you are unable to resolve a conflict, you might need to invite a(n) _____ to suggest possible resolutions.
    5·1 answer
  • On October 1, Mutch Company sold merchandise in the amount of $5,800 to Carr Company, with credit terms of 2/10, n/30. The cost
    10·1 answer
  • Okra, Inc. is a young start-up company. No dividends will be paid on the stock initially, because the firm needs to plow back it
    8·1 answer
  • Two jobs were worked on during the year: Job A-101 and Job A-102. The number of direct labor-hours spent on Job A-101 and Job A-
    7·1 answer
  • If there's upward pressure on price how does this affect the supply side of the market?
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!