Answer: should buy less B and more A.
Explanation:
Price of good A, PA = $2
Price of good B, PB = $4
The marginal utility on the last unit of A, MUA is given as 16
The marginal utility on the last unit of B, MUB is given as 24
Then, the marginal utility on the last dollar spent on A will be:
= MUA/PA
= 16/2
= 8
The marginal utility on the last dollar spent on B will be:
= MUB/PB
= 24/4
= 6
Based in the above calculation, Thomson should buy less B and more A as the marginal utility on the last dollar that is spent on A is more than that of B.
Answer:
c. Co-location
Explanation:
According to Merriam-Webster dictionary, Co-location is defined as follows:
- to cause two to more things to be in the same place or close together
- to place two or more units close together so as to share common facilities.
From the definitions above, we can see that the scenario described in the question best fit the co-location strategy. This is usually done to enhance cohesiveness and cooperation among co-workers in order to increase efficiency.
Answer with explanation:
Part 1. Straight-line depreciation can be calculated using the following formula:
Straight-line depreciation = (Cost of Asset - Residual Value) / Useful Life
Now by putting the values of each parameter, we have:
Straight-line depreciation = ($135,000 - Zero) / 5years = $27,000
So this depreciation will be charged to the asset to remainder of its life.
Part 2. We can calculate depreciation using double declining balance method whose formula is as under:
Double Declining Balance Depreciation = 2 X Cost of the asset/Useful Life
By putting values, we have:
Double Declining Balance Depreciation = 2 * $135,000 / 5 Years = $54,000
The depreciation would be charged each year unless it fells below the salvage value of the asset, which in this question is given and is zero.
Part 3.
Following are the main questions that we must consider before opting to any depreciation method:
- Does the cost of the asset chosen is accurate and in-accordance to International Financial Reporting Standards.
- Does the estimated Residual value of the asset is forecasted accurately. International accounting standard IAS 16 says that the scrap value must be discounted and its present value must be considered as a scrap value.
- Is the useful life of the asset estimated is in-accordance to the pace of technological advances?
- The asset's fair value must be considered each year to analyze whether or not the asset value in the market is aligned with our carrying value calculated or not.
So these were the factors which decides which method of depreciation must be opted or what estimate changes are required in calculating the fair value of the asset.
Answer:
the increase resulting from this merger = 256
Explanation:
before the merger, both Fiat and Case's contribution to Herfindahl-Hirschman index = 16² + 8² = 320
after the merger, Fiat and Case's contribution to Herfindahl-Hirschman index = 24² = 576
the increase resulting from this merger = 576 - 320 = 256