The American textile industry has moved much of its operations offshore in the pursuit of lower labor costs. Textile imports hav
1 answer:
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Answer:
Jacobs will earn $1,080,000
Explanation:
The earnings of the work factor are made up of two factors: Transfer Earnings + Economic Rents.
Transfer earnings are defined as the minimum required amount that a company must pay its workers to keep them in the workplace. Below this amount, the worker will leave his job. In this case, the Transfer Earnings are $ 80,000, which is the base salary of every designer.
On the other hand, the Economic Rents are the additional income that the worker receives and that is above the minimum level they need to supply his work (In this case, the additional income is given by Jacobs' special ability). In numerical terms, the Economics Rents amount is equivalent to the difference between the earnings obtained by the Jacobs company and the earnings obtained by the other companies.
That is: 1,500,000 - 500,000 = 1,000,000.
Therefore Jacobs salary is equivalent to 80,000 + 1,000,000 = 1,080,000.
From this, it can be deduced that approximately 92% of Jacobs' salary is equivalent to Economic Rents. From the theoretical point of view, this makes sense, because the demand for designers (which is a highly qualified profession) is very inelastic, and the more inelastic the greater the proportion of Economic Rents as part of the salary. In the annexes, I show it graphically.
Answer:
(a)
(b)
(c) X=4.975 percent
Explanation:
(a) Find the z-value that corresponds to 5.40 percent
.
Hence the net interest margin of 5.40 percent is 2.5 standard deviation above the mean.
The area to the left of 2.5 from the standard normal distribution table is 0.9938.The probability that a randomly selected U.S. bank will have a net interest margin that exceeds 5.40 percent is 1-0.9938=0.0062
(b) The z-value that corresponds to 4.40 percent is The net interest margin of 4.40 percent is 0.5 standard deviation above the mean.
Using the normal distribution table, the area under the curve to the left of 0.5 is 0.6915
Therefore the probability that a randomly selected U.S. bank will have a net interest margin less than 4.40 percent is 0.6915
(c) The z-value that corresponds to 95% which is 1.65
We substitute the 1.65 into the formula and solve for X.
A bank that wants its net interest margin to be less than the net interest margins of 95 percent of all U.S. banks should set its net interest margin to 4.975 percent.
