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3 years ago

Causes of wage rigidity

Business

1 answer:

Marina CMI [18]3 years ago

5 0

Answer:

According to the Efficiency-wage theories: High wages paid to the workers' make them more productive, therefore, the firms are reluctant or fail to decrease wages despite of an excess supply of labour.

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For most normal goods the income effect and the substitution effect work in the same direction; so when the price of a good fall

bezimeni [28]

Answer:

The income effect and substitution effect work in opposite directions and income effect is dominant.

Explanation:

In case of a normal good, both the income effect as well as substitution effect work in the same direction. A fall in the price of a product will increase the purchasing power of the consumer so its quantity demanded will increase.

The consumers will also prefer the cheaper good so the substitution effect will cause the quantity demanded to increase.

In case of an inferior good, however, income elasticity is negative. The income effect and substitution effect work in opposite directions.

A price decrease in the case of an inferior good will increase the real income and purchasing power of the consumer. This will cause the quantity demanded of the inferior good to decline as the consumer will prefer a substitute normal good.

8 0

3 years ago

Which of the following actions is a part of information management:

jeyben [28]

Information Management (IM) is part of the management process that collects and manages information from one or more sources and the distributes information to one or more audiences. 
Disseminating information is part of information management. Correct answer: D
 Information Dissemination involves distribution or broadcast of information.

6 0

3 years ago

Read 2 more answers

Product Pricing: Two Products Quality Data manufactures two products, CDs and DVDs, both on the same assembly lines and packaged

soldier1979 [14.2K]

Answer:

a) $1.85 per CD pack

$2.22 per DVD pack

b) profits for selling CDs = -$30,000

profits for selling DVDs = $130,000

Explanation:

Variable costs Fixed costs

Materials $200,000 $500,000

Other $250,000 $800,000

DVDs:

materials = $700,000 x 50% = $350,000 ($250,000 fixed)

Other = $1,050,000 x 60% = $630,000 ($480,000 fixed)

total = $980,000

CDs:

materials = $350,000 ($250,000 fixed)

Other = $420,000 ($320,000 fixed)

total = $770,000

Expected sales:

CDs 400,000 packs

DVDs 500,000 packs

since the company wants to earn $100,000 in profits, it should charge:

400,000X - $770,000 + 500,000Y - $980,000 = $100,000

400,000X + 500,000Y = $1,850,000

Y = 1.2X (we replace Y)

400,000X + 600,000X = $1,850,000

1,000,000X = $1,850,000

X = $1,850,000 / 1,000,000 = $1.85 per CD pack

Y = $1.85 x 1.2 = $2.22 per DVD pack

profits for selling CDs = ($1.85 x 400,000) - $770,000 = -$30,000

profits for selling DVDs = ($2.22 x 500,000) - $980,000 = $130,000

4 0

3 years ago

On November 30, Parlor, Inc. purchased for cash at $15 per share all 250,000 shares of the outstanding common stock of Shaw Co.

scoray [572]

Answer:

Value of goodwill = $350,000

Explanation:

In case where is investment in 100% shares of a company then that may give rise to goodwill or rise to capital reserve.

Any amount paid to acquire that interest in company more than the value of such company is recorded as goodwill.

Here, cost of acquisition = $15 $\times$ 250,000 = $3,750,000

Carrying value of net assets of the company = $3,000,000

Increase in value due to fair value = $400,000

Value of goodwill = Purchase price - Fair Value of net assets

Therefore, value of goodwill = $3,750,000 - ($3,000,000 + $400,000) = $350,000

7 0

4 years ago

What is true about the north american free trade agreement?

tia_tia [17]

Answer:

NAFTA became the largest free trade zone in the world.

Explanation:

The North American Free Trade Agreement (NAFTA) was a trade pact that was signed in the year 1992. This Pact was created with the goal of eliminating the majority of trade tariffs as well as other trade barriers on the various different products and services that were being traded between the United States of America, Canada, and Mexico. NAFTA became the largest free trade zone in the world.

3 0

3 years ago

Causes of wage rigidity​

Causes of wage rigidity