Answer:
The two assumptions are as <em>resources must also be heterogeneous and immobile.</em>
Explanation:
The two critical assumptions of Resource Based View are <em>that resources must also be heterogeneous and immobile.</em>
Heterogeneous. <em>The first assumption is that skills, capabilities and other resources that organizations possess differ from one company to another.</em>
Immobile. <em>The second assumption of RBV is that resources are not mobile and do not move from company to company, at least in short-run.</em>
Answer:
Gdp excludes the most of items that are produced and sold illegally and also most of the items that are produced and consumed at home because the products which are illelegal are not sold under government policies and are not authorised.
Explanation:
GDP: It is been referred as the total value of all the goods and services which has been produced for the marketplace within one year's period and within our national borders.
Measurment of GDP:
- It will record only the value of final output of goods no intermediate goods are included in it.
- The output here is valued only at its market prices.
- It measures the values of both tangible and intangible services.
- It measures the values of goods which are produced within the geographic boundaries of country.
Where this GDP is countable:
It is countable only where the products are produced in economy and are being sold legally in the markets.
Excludes the products being sold illegally.
Answer:
a. Whataburger is not using the optimal cost-minimizaing mix of cashier and kiosks.
b. Whataburger should hire more cashier and rent fewer kiosks in order to improve its mix of inputs and minimize the cost
Explanation:
a. According to the given data we have the following:
Let "C" is a cashier.
"K" is a kiosk
MPC = 48 (Marginal Product of Cashier)
MPK = 32 (Marginal Product of Kiosk)
PC = $15 (cashier can be hired for a wage of $15)
PK = $12 (Kiosk rents for $12)
At optimal cost minimization point, (MPC / MPK) = (PC / PK)
(MPC / PC) = (MPK / PK)
(MPC / PC) = (48 / 15) = 3.2
(MPK / PK) = (32 / 12) = 2.67
Since the (MPC / PC) and (MPK / PK) is not equal. It implies Whataburger is not using the optimal cost-minimizaing mix of cashier and kiosks.
b. We have to use the following:
(MPC / PC) > (MPK / PK)
i.e., 3.2 > 2.67
It means Whataburger hire more cashier and rent fewer kiosks in order to improve its mix of inputs and minimize the cost.
Answer:
The un levered beta ( bu) of the company is 1.52
Explanation:
Given information -
Equity (E) - $20 million
Debt (D) - $5 million
Beta ( levered ) - 1.75
Tax rate ( T ) = 40%
D / E ( Debt to Equity ratio ) = $ 5 million / $20 million = .25
Formula for taking out un levered beta ( bu) is -
Beta levered ( bl ) = Beta un levered ( bu ) [1 + (1 - T ) D / E ]
1.75 = bu [1 + (1 - 40% ) .25
1.75 = bu [1 + .6 x .25 ]
1.75 = bu [ 1 + .15 ]
1.75 = bu [ 1.15 ]
bu = 1.75 / 1.15
bu = 1.52
