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2 years ago

Would firms have an incentive to change their level of production if input prices adjusted immediately to output price changes?

1 answer:

7 0

Firms have noincentive to increase production to take advantage of higher prices if they simultaneously face equally higher resource prices. So the answer to this question is No. The availability and productivity of real resources is reflected in the prices of inputs, and in the long run these input prices (including wages) adjust to match changes in the price level.

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When a complaint is lodged, or when inappropriate activity is brought to the attention of management, the manager should wait to

Natali [406]

Answer:

False

Explanation:

Manager should start investigation as soon as complaint is brought to his notice. He must not wait for the charge to be proven. He should be the one taking lead on the investigation and responsible for investigation. And after investigation if charge is proven then he is supposed to apply penalty according to company's policy. And if not proven then talk to individual who brought the charge and give them proof.

7 0

1 year ago

Suppose GDP in an economy is $3,542 billion. Personal Consumption Expenditures (C) are $2,343 billion, Government Spending (G) i

aleksandrvk [35]

Answer: -$45 billion.

Explanation:

Net Exports refers to Exports out of a country less imports into the country and it is a component of GDP using the Expenditure method. The other components include Government Spending, Investment and Consumption all of which are given in the above question.

The Net Exports are therefore;

GDP = Consumption + Investment + Government Spending + Net Exports

3,542 = 2,343 + 865 + 379 + Net Exports

3,542 = 3,587 + Net Exports

Net Exports = 3,542 - 3,587

Net Exports = -$45 billion

The Net Exports are negative which means that more goods were imported than were exported.

6 0

1 year ago

Mr. Lambers refuses to pay income taxes because his conscience will not allow him to support a government that spends billions o

Galina-37 [17]

Answer:

The correct answer is postconventional

Explanation:

The postconventional level is the level of understanding and acceptance of the general moral principles that inspire norms: rationally chosen principles weigh more than norms. It is made up of stage 5 and stage 6.

Stage 5: Priority rights and social contract

It is the stadium of openness to the world. It is recognized that in addition to the family, group and country itself, all human beings have the right to life and freedom, rights that are above all social institutions or conventions. Openness to the world leads, in the second place, to recognize the relativity of norms and values, but it is assumed that legitimate laws are only those obtained by consensus or social contract. Now, if a norm goes against life or liberty, the moral obligation of not accepting and confronting it is imposed.

Stage 6: Universal ethical principles

It is made aware that there are universal ethical principles that must be followed and have priority over conventional legal and institutional obligations. It works according to these principles because, as a rational being, validity has been captured and he feels committed to following them. In this stage the golden rule of morality prevails: "do to the other what I want for me". And you have the courage to face the laws that undermine universal ethical principles such as human dignity or equality. It is the supreme moral stage, that of Gandhi, of Martin Luther King and that of all people who live deeply in morality.

3 0

2 years ago

Assume that a six-firm cartel supplies 500 million units of Whatailsya energy drink at a price of $5.00 per unit. Each firm supp

bazaltina [42]

Answer:

The net gain for the firm cheating the cartel is US$ 183 million (rounding the answer to the nearest million).

Explanation:

1. Let's review all the information provided for solving this case:

Number of firms that supply Whatailsya energy drink = 6

Amount of production of the cartel of six firms = 500 million units

Price of the energy drink = US$ 5

Amount of production of the firm that decided to break the cartel = 50 million extra units

Price after the extra production is sold = US$ 4.50

2. Let's find the individual production of each firm before and after the 50 million extra units and the net gains for the cheating firm.

Individual production of each firm of the cartel = Amount of production of the cartel/Number of firms

Individual production of each firm of the cartel = 500 million units/6

Individual production of each firm of the cartel = 83.33 million units

Individual sales of each firm before the 50 million extra units = Individual production * Price of the energy drink

Individual sales of each firm before the 50 million extra units = 83.333 million * 5

Individual sales revenue of each firm before the 50 million extra units = US$ 416.666 million

New production amount of the firm cheating the cartel = 83.333 + 50

New production amount of the firm cheating the cartel = 133.333 million units

Price of the energy drink after the extra production is sold = US$ 4.50

New sales revenue of the firm cheating the cartel = New production amount * Price of the energy drink after the extra production is sold

New sales revenue of the firm cheating the cartel = 133.333 million * 4.50

New sales revenue of the firm cheating the cartel = US$ 600 million

Net gain of the firm cheating the cartel = New sales revenue of the firm cheating the cartel - Individual sales of each firm before the 50 million extra units

Net gain of the firm cheating the cartel = 600 million - 416.666 million

Net gain of the firm cheating the cartel = 183.333 million

Net gain of the firm cheating the cartel = US$ 183 million (rounding the answer to the nearest million)

6 0

1 year ago

Suppose a firm produces with a technology that exhibits constant returns to scale at all levels of production. The firm's inputs

GREYUIT [131]

Answer:

Not change

Explanation:

In the long run we expect firms to earn zero profits. With competitive markets for both inputs and output, and with constant returns to scale, a doubling of all inputs would lead to twice as much output, twice as much revenue, and twice as much cost.

3 0

2 years ago