Answer:
a. Calculate the price elasticity of supply for Aji's Chocolate Factory in February
b. Calculate the price elasticity of supply for Aji's Chocolate Factory in March
c. If Aji's Factory is nearly at full capacity of production in March, what will happen to Aji's Factory price elasticity of supply in April?
- If the company is producing at full capacity, then its price elasticity of supply will be perfectly inelastic even if the price increases. This is because any increase in price will not affect the quantity supplied because the company cannot increase it even if they wanted to.
Explanation:
price elasticity of supply = % change in quantity supplied / % change in price
It measures the proportional change in the quantity supplied that producers will make given a 1% change in the price of their product.
PES February = [(110 - 80)/80] / [(2.5 - 2)/2] = 0.375 / 0.25 = 1.5
PES March = [(140 - 110)/110] / [(3 - 2.5)/2.5] = 0.273 / 0.2 = 1.36
Answer:
The correct answer is letter "B": They should be ignored in a bidding war.
Explanation:
Negotiations are vital in every aspect. They allow individuals to deal with situations in which parties need from each other but either of them is willing to take the first step to come to an agreement. Negotiations can also be useful out of problematic situations when parties voluntarily want to make a pact but the initial terms are unclear.
Placing limits for negotiations is important as well. Limits will prevent parties from giving to much of themselves or avoiding the other party to take advantage of a given situation. Thus, in front of war, limits must be placed in a negotiation.
Answer: It is A).
Explanation:
The Interstate Commerce Commission (ICC), established by Congress in 1887 to regulate the railroads (and later extended to motor carriers, inland waterways, and oil companies). It was abolished in 1996 but long served as the prototype of such an agency.
Answer and Explanation:
The computation is shown below:
a. The value of P is $31,000 i.e. equivalent to the estimated value of the current market value
b. The value of n is 3 years
c, The value of S is $18,000 i.e. equivalent to the estimated value of the market
d. The AOC value is $21,000 per year i.e. equivalent to the M&O cost
