Dan Jacobs, production manager for GreenLife, invested in computer-controlled production machinery last year. He purchased the machinery from Superior Design at a cost of $3,000,000. A representative from Superior Design has recently contacted Dan because the company has designed an even more efficient piece of machinery. The new design would double the production output of the year-old machinery but would cost GreenLife another $4,500,000. Jacobs is afraid to bring this new equipment to the company president's attention because he convinced the president to invest $3,000,000 in the machinery last year.
Explain what is relevant and irrelevant to Jacobs' dilemma. What should he do? Identify each of the following as relevant or irrelevant to Dan's decision:
a. Greenlife purchased the old machinery for $3,000,000.
b. the new machinery would cost GreenLife $4,500,000
c.the new machinery would double the production output of the old machinery
---------------------------

Answers

Answer 1

In Dan Jacobs' dilemma, the relevant factors to consider are the potential increase in production output and the cost of the new machinery.

The fact that GreenLife purchased the old machinery for $3,000,000 is irrelevant since it is a sunk cost and cannot be recovered. Similarly, Jacobs' fear of bringing the new equipment to the company president's attention is also irrelevant as it is based on his personal feelings and not on the objective analysis of the situation.

The most important factor to consider is the potential increase in production output that the new machinery could provide. If the increase in production is significant and can help the company meet its production targets or even increase sales, then the investment in the new equipment may be justified. However, the cost of the new machinery must also be taken into account. If the cost of the new equipment is too high, it may not be financially viable for the company to invest in it.

Given these factors, Jacobs should conduct a cost-benefit analysis to determine whether the investment in the new machinery is justified. He should also present his findings to the company president along with a clear plan for how the company can finance the new equipment if it is deemed necessary. By presenting a well-researched and objective analysis, Jacobs can help the company make an informed decision that is in its best interests. Ultimately, the decision to invest in the new machinery should be based on a careful consideration of all relevant factors and a clear understanding of the potential benefits and costs involved.

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Answer 2

In considering whether to invest in the new machinery, Dan Jacobs should focus on relevant information that will affect the future financial performance of GreenLife.

Here is a breakdown of what is relevant and irrelevant in this scenario:

Relevant information:

The cost of the new machinery ($4,500,000).

The increased production output of the new machinery (doubling the old machinery's output).

Irrelevant information:

The cost of the old machinery ($3,000,000).

Jacobs' personal concerns about bringing the new equipment to the company president's attention.

What should Dan do?

Dan has a responsibility to act in the best interest of GreenLife. While it may be difficult to bring up the idea of investing in new equipment after convincing the president to invest $3,000,000 in the old machinery, Dan must consider the potential benefits of the new equipment. If the new machinery can double production output, it may lead to increased revenues and profits for the company, which could outweigh the cost of the investment.

Dan should prepare a proposal that outlines the potential benefits of the new machinery, including increased production output and potential financial gains. He should present this proposal to the company president and other relevant stakeholders, including the finance and accounting departments, to gather feedback and ensure the investment aligns with the company's overall strategic goals. Ultimately, the decision should be based on a comprehensive analysis of the costs and benefits of the investment and its potential impact on the company's financial performance.

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Related Questions

After a share exchange, one corporation (the _____ corporation) owns all the shares of the other corporation (the _____ corporation).

Answers

After a share exchange, one corporation (the parent corporation) owns all the shares of the other corporation (the subsidiary corporation).

A share exchange is where one or more shareholders exchange shares they hold in one company for shares in another company. So after a share exchange, one corporation suppose, the parent corporation owns all the shares of the other corporation, called the subsidiary corporation.

A parent corporation has subsidiaries, which are wholly or partially owned separate businesses controlled by the parent. On the other hand, a subsidiary corporation is a business that is owned by another corporation, either partially or entirely.

Hence, after a share exchange, one corporation owns all the shares of the other corporation.

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When raw materials are purchased on account for use in a process costing system, the corresponding journal entry that should be recorded will include: Multiple Choice A debit to Work in Process Inventory. A debit to Raw Materials Inventory. A credit to Cash. A credit to Raw Materials Inventory. A debit to Accounts Payable.

Answers

When raw materials are purchased on account for use in a process costing system, the corresponding journal entry that should be recorded will include: A debit to Raw Materials Inventory.

Raw materials, or primary raw materials, are the basic materials used in the production of commodities, final products, energy, or intermediate materials that are the starting materials for future final products.

Examples of products include steel, oil, corn, grains, gasoline, wood, forest resources, plastics, natural gas, coal and minerals. The raw material may be a direct raw material used directly in the manufacturing process, such as chair wood.

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Company A, a public company, is planning to make a tender offer to acquire all of the shares of Company B, another public company, for cash. Company A is planning to offer a 30% premium to the market price of B's shares, based on the expected synergies of the deal. Why would Company A's board want to obtain a fairness opinion

Answers

"Company A, a public company, is planning to make a tender offer to acquire all of the shares of Company B, another public company, for cash. Company A is planning to..." Company A's board wants to obtain a fair opinion because the expected synergies in corporate combinations are hard-to-measure

This is further explained below.

What is a fair opinion?

Generally, An evaluation of the facts surrounding a merger, acquisition, carve-out, spin-off, repurchase, or another sort of corporate transaction is called a fairness opinion.

In conclusion, "In order to buy all of Business B's shares for cash, Company A, a public company, plans to launch a tender offer. Company A intends to take action to..." The Board of Directors of Company A seeks a balanced view since the anticipated synergies of business mergers are difficult to quantify

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In gathering audit evidence, the accessibility of information may be a factor thereby influencing which judgment trigger

Answers

The answer is availability

A manufacturer's raw-material purchasing department would likely be classified as a: Select one: a. investment center. b. cost center. c. profit center. d. contribution center. e. revenue center.

Answers

b. cost center

The department responsible for buying raw materials for a manufacturing would probably be categorized as a cost center.

What are cost centers and how do they differ?

There are primarily two categories of cost centers: centers for production costs, where goods are made or processed. An assembly area is an illustration of this. Cost centers for services, where goods and services are delivered to other cost centers. The canteen or the personnel office are two examples of this.

What sort of thing would be a cost center?

The accounting, human resources, IT, maintenance, and research and development departments are a few examples of cost centers. In comparison to a department, a cost center can be defined at a lower level. It might have to do with a certain machine, manufacturing line, or work role.

Why is a cost center created?

Cost centers' main duty is to maintain a record of the costs incurred. The managers or other high-level officials are tasked with keeping expenditures in line with the allotted budget; they are not responsible for the use of the earnings that are earned.

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An investment banker who earns more than $1 million a year, a food service worker who makes minimum wage, and a teacher with a salary of $50,000 per year represent the presence of social ______ within society.

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An investment banker who earns more than $1 million a year, a food service worker who makes minimum wage, and a teacher with a salary of $50,000 per year represent the presence of social inequality within society.

What is inequality?

Inequality can be defined as the way in which  income or wealth are not distributed equally  in a society as some people earn more than others.

Hence, their is the presence of social inequality within a society if a  investment banker earn $1 million a year, a food service worker makes minimum wage, and a teacher earn $50,000 per year.

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The accounting concept that requires every business to be accounted for separately from other business entities, including its owner or owners is known as the:

Answers

Answer: Business entity assumption.

Explanation: assume enitities

The accounting concept that requires every business to be accounted for separately from other business entities, including its owner or owners is known as the business entity assumption.

What is business?

An economic activity that involves the exchange of goods and services with the help of buying and selling with the objective to gain some profit is called Business.

The accounting concept helps improve the recording of the income and position statement of business mainly referred to as financial statements  and provides better accuracy of transactions which helps in easy interpretation.

The business entity assumption focused on the individual entity of any business separate from another business entity which makes it unique and distinguishable from others.

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A borrower is purchasing a three-family, owner-occupied rental property. Rental income will be $2,000 (verified only by leases). The PITIA on the property is $2,350. The borrower has a gross monthly income of $5,760 and monthly debt payments of $625. What are the ratios for this loan

Answers

LTV= principal amount/ market value of your property.

what is a Loan ratio - Financial institutions utilize the Loan-to-Value Ratio (LTV) to determine the lending risk before approving a mortgage for the purchase of real estate.
26:10
Rental income will be $2,000 (verified only by leases)
The PITIA on the property is $2,350
The borrower has a gross monthly income of $5,760
monthly debt payments of $625.
Pitia refers to the following items: principal, interest, taxes, insurance, including hazard and flood insurance, as well as homeowners' association or condominium dues, although it excludes mortgage insurance charges.
Debt payment is the action of returning money you have borrowed. m making debt payments is difficult and a lot of people struggle to make their debt payments.
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Large dam projects are extremely costly and often benefit the wealth who invest in their construction, but they also create a lot of energy

Answers

Large dam projects are extremely costly and often benefit the wealth who invest in their construction, but they also create a lot of energy electricity, power, or energy that is carbon free.

What is Energy?Energy is referred to by scientists as the capacity for work. People have figured out how to transform energy from one form to another and then use it to accomplish tasks, making modern civilization possible. Walking and bicycling, driving cars on roads and boats through water, cooking meals on stoves, making ice in freezers, lighting our homes and workplaces, producing goods, and sending astronauts into space all require the usage of energy. Energy is capable of changing its forms. For instance, a person's body stores chemical energy from the food they consume until they may use it as kinetic energy when working or playing.

When an energy source is designated as carbon-free, it means that it was created using a resource that emits no carbon dioxide, like nuclear power or huge hydropower plants.

Therefore, Large dams create a lot of energy electricity, power, or energy that is carbon free.

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Which of the following statements is true of comparative negligence? Group of answer choices It allows a plaintiff to claim damages without establishing proximate causation and causation in fact. It requires a plaintiff and a defendant to settle their dispute through arbitration. It allows a plaintiff to claim only punitive damages but not actual damages. It compares a plaintiff's fault with a defendant's and reduces the damage award proportionally. It completely bars a plaintiff from recovering any damages.

Answers

The inference illustrates that the true statement about comparative intelligence is that it compares a plantiffs fault with a defendant's and reduces the damage award proportionally.

What is an inference?

It should be noted that an inference simply means the conclusion that can be deduced from the information given.

In this case, the inference illustrates that the true statement about comparative intelligence is that it compares a plantiffs fault with a defendant's and reduces the damage award proportionally.

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The true statement about comparative negligence is D. It compares a plaintiff's fault with a defendant's and reduces the damage award proportionally.

What is comparative negligence?

Comparative negligence is an attempt to distribute the liability arising from an incident between the plaintiff and the defendant according to their contributions.

This implies that the fault or negligence of each party involved is compared so that the liability arising thereon is based upon their respective contributions.

Thus, the true statement about comparative negligence is D. It compares a plaintiff's fault with a defendant's and reduces the damage award proportionally.

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As the director of HR, you are in a meeting with your corporate officers discussing the firm's deliberate use of personnel to gain a competitive edge in the marketplace. You are most likely discussing:

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You are most likely discussing the general business environment in which your company must operate.

What is the general environment in business?

The diversity of external elements that have an impact on an organization's performance and operation is known as the general environment, or macro-environment. These outside factors can decide whether a company encounters market opportunities or failures.

The overall environment can influence how a firm identifies itself, the products it sells, and how it interacts with other businesses and regulatory bodies. When performing market research and strategic analysis, businesses often consider the overall environment.

What are the six elements of the business environment?

Sometimes, economic and legal aspects are combined to form five major components of the business environment. Political, economic, social, technological, legal, and environmental factors are the six components of the business environment.

What is the external business environment?Economic, political and legal, demographic, social, competitive, international, and technological sectors make up the external business environment. Managers need to be aware of how the environment is changing and how those changes are affecting the company.

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Shen Company reports the costs incurred below for the month ended May 31. The company has no beginning Work in Process Inventory. Overhead is applied using a predetermined overhead rate of 120% of direct materials costs. Job 4 was completed and Job 5 is still in process at month-end. Prepare a schedule of cost of goods manufactured for the month.

Answers

Based on the costs incurred by Shen Company, the schedule of costs of goods sold for manufactured goods is:

                                                                                 Total

Direct materials used                                            $6,300

Direct labor                                                             $4,390

Manufacturing overhead                                      $7,560

Total cost                                                               $18,250

Beginning WIP                                                            $0

Add: Cost during year                                           $18,250

Total manufacturing cost                                      $18,250

Less; Ending WIP                                                   $(6,770)

Cost of goods manufactured                               $11,480

What goes into the schedule of cost of goods manufactured?

Direct materials:

= 3,400 + 2,900

= $6,300

Direct labor:

= 4,000 + 390

= $4,390

Manufacturing overhead:

= 6,300 x 1.2

= $7,560

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The schedule of Cost of Goods Manufactured for May by Shen Company is as follows:

Cost of Goods Manufactured:

Direct materials       $3,400

Direct labor               4,000

Overhead applied    4,080 ($3,400 x 120%)

Total costs            $11,480

What is the Cost of Goods Manufactured?

The cost of goods manufactured includes the costs of direct materials, direct labor, and overhead applied.

The cost of goods manufactured is only for Job 4 and does not include the costs incurred for Job 5 which is still in process at month-end.  Instead, the costs of Job 5 will be recorded as ending work in process.

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In order to win a contract from Mexico, QVB Autos Manufacturing must make 65% of the component parts for their automobiles in Mexico. This is an example of a Blank______.Multiple choice question.local distribution requirementlocal content requirementinternational content requirementlocal supplier requirement

Answers

The correct answer is Option B.

In order to win a contract from Mexico, QVB Autos Manufacturing must make 65% of the component parts for their automobiles in Mexico. This is an example of local content requirement.

What is Local Content Requirement?Government rules known as "local content standards" force businesses to function in economies that rely on domestically produced goods and services. The usage of these indicators has significantly increased in recent years as governments attempt to accomplish a number of policy goals that focus on employment, industrial, and technological development goals. LCRs still play a considerable role in policy today despite the long-standing and overwhelmingly unfavorable evidence of their effects on economic development and trade.

More than 340 localization initiatives, including over 145 new local content mandates, have been implemented by governments since the financial crisis a decade ago, primarily in an effort to boost domestic employment and industrial performance.

Therefore, the situation given in the question is an example of local content requirement.

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An investment project costs $10,000 and has annual cash flows of $2,860 for six years. What is the discounted payback period if the discount rate is zero percent

Answers

The Discount rate is : Zero percent: payback in 3.49 years.

What is Discounted Payback Period?

The discounted payback period (DPP) is a method applied in the capital budgeting process to determine the number of periods an investor has to wait to be compensated the initial cost of a project from the projected cash inflows. DPP recognizes the time value of money theory hence it is classified as a discounting method of capital budgeting. The future cash inflows are discounted to their present worth before the discounted payback period is computed.

Given:

Costs = $10,000

Annual cash flows = $2,860

n =6 years.

r =0%

Solution-

Discount rate is zero we are doing the payback period

[tex]Payback in Year =\frac{investment}{cash flow per year}[/tex]

[tex]10,000 / 2860 Per Year = 3.4965[/tex]

Therefore, we can conclude that The Discount rate is : Zero percent: payback in 3.49 years.

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The purpose of a responsibility accounting system is to provide information to: (Check all that apply.)

Answers

The purpose of a responsibility accounting system is to provide information to:

Evaluate a manager's performanceAssign cost and expenses to the manager's responsible for controlling them

Responsible accounting is a type of management accounting that is responsible for the overall management, budgeting, and internal accounting of a company. The main goal of this accounting system is to support all planning, calculation, and responsibility centers of the company.

Therefore, accountability is based on the basic principle that managers are only responsible for the actions they control. Responsible accounting follows the basic principles of cost management systems such as budget control and standard costing.

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Internal control procedures for cash disbursements (other than small disbursements from petty cash) should include that:_______.

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Internal control procedures for cash disbursements (other than small disbursements from petty cash) should include that Segregate duties and Review authorized signors.

Internal control is a procedure implemented by a company's management, board of directors, and other staff members and is intended to give reasonable assurance that the information is accurate, timely, and reliable. of adherence to relevant laws, rules, agreements, policies, and procedures.

Internal control is a procedure for ensuring that an organization's objectives in operational effectiveness and efficiency, accurate financial reporting, and compliance with laws, rules, and policies are met, according to the definitions of accounting and auditing.

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Determine the effective hourly cost, the total annual cost, and the labor burden markup for the Superintendent with the following wage and benefit information

Answers

Given the following information, calculate the hourly cost and labor burden markup percentage of a project manager

Base Salary: 880.000 annually

Total Labor Burden: $ 22.000 annually worked hours per week: 40 worked weeks per year: 52

Paid Vacation: 2 weeks per year ($1.600 for.

the hourly cost and labor burden markup percentage of a project manager.

Answer - (A) $53.05 per hour. 40% labor burden markup.

The total cost formula combines the variable and fixed costs of product offerings into one sum. The formula is Total cost = (average fixed cost x average variable cost) x number of units produced.

The total annual cost is the sum of the normal cost and the additional annual cost.

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What process uses warehousing to add value to a product through component​ modification, repair,​ labeling, and​ packaging?.

Answers

Answer:

Customizing

Hope this helps :)

An employee concerned primarily with the seniority system, insurance plan, and retirement policy is motivated by:

Answers

An employee concerned primarily with the seniority system, insurance plan, and retirement policy is motivated by security needs.

A retirement policy is designed to help you manage your retirement and live a stress-free life. One such type is a retirement plan that helps you grow your money and provide a steady income for life.Such plans help secure retirement money while you are still working. increase.

A retirement benefit is a monetary or another incentive that a person collects after the termination of employment. Develop a payout plan while you are employed and collect a portion of your salary and contributions from your employer on a regular basis until retirement.

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After refrigerant lines have been installed they should be evacuated to a(n) ____ vacuum

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After refrigerant lines have been installed they should be evacuated to a(n) moderate vacuum.

Refrigerant lines are insulated copper wires that transport refrigerant between outdoor and indoor air conditioning or heat pump units. One line carries gaseous refrigerant and the other carries liquid refrigerant. It is an important part of the cooling system as it allows the condenser and coils to move and heat away from your home.

If you upgrade or replace your air conditioner or heat pump, you will need to replace the refrigerant lines. Do not attempt to reuse old refrigerant lines as the line sealant can wear out over time. When this happens, moisture can get in and mix with the coolant, causing damage to the internals of the system.

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__________ is the requirement that every employee be able to perform the work of another employee.

Answers

Task rotation is the requirement that every employee be able to perform the work of another employee.

Task rotation can limit the repetitive strain a job task may place on an employee. Rotating to a different task for a period of time before returning to the original task can enable an employee to perform to their maximum capacity.

Task rotations in a work environment is necessary and a requirement as it broaden skills because it exposes employees to different functional areas of the company.

For instance, when a research and development employee rotates to a sales position, they learn more about building relationships with customers, understanding their needs and how the whole sales cycle works in a company.

Hence, task rotation is the requirement that every employee must be able to perform in the work environment.

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Data that has been collected for some other purpose than to answer the question at hand is called?

Answers

Data that has been collected for some other purpose than to answer the question at hand is called secondary data.

Secondary data is  data collected for research that has  been gathered previously and can be accessed by researchers.

The term also contrasts with primary data means the data which is data collected directly from its source.

Secondary data is always used to increase the sampling size of research studies.

Secondary data is also chosen for its efficiency and the  speed that comes with using an already existing resource.

Secondary data helps in large research projects, in which different research groups work in teams to collect secondary data. The main researcher is then focuses on primary research or particular areas of interest.

Common sources of  secondary data includes data collected by government public services departments, different  libraries, websites over the internet  and censuses.

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Britney is selling her bungalow via an installment contract. The buyer made payments dutifully for five years, but has not made any payments for more than a year. Which of the following is true

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"Britney is selling her bungalow via an installment contract. The buyer made payments dutifully for five years, but has not made any payments for more than a year." This is further explained below.

What is an installment contract.?

Generally, A contract known as an installment purchase agreement is one that facilitates the financing of the purchase of assets.

In conclusion, Britney has the right to retain the whole of the money that was received and to reclaim the property.

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If a nondiscriminating imperfectly competitive firm is selling its 80th unit of output for $40, its marginal revenue:_____.

Answers

   If a nondiscriminating imperfectly competitive firm is selling its 80th unit of output for $40, its marginal revenue:   will be less than $40

To calculate the marginal revenue, a corporation divides the trade in its general sales via the trade of its total output amount. Marginal sales are equal to the selling rate of an unmarried additional object that becomes bought. beneath is the marginal sales formula: Marginal sales = trade in revenue/alternate in amount.

The marginal price of production and marginal revenue are economic measures used to decide the amount of output and the charge in line with a unit of a product that will maximize earnings

Marginal revenue is the additional profits generated from the sale of 1 extra unit of a great or provider. it can be calculated by evaluating the full revenue generated from a given wide variety of income (e.g. 11 devices), and the total sales generated from selling one more unit (i.e. 12 gadgets)

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What are the best ways that a firm can reduce the threat of imitation?

Answers

A firm can reduce the threat of imitation by following the Principles of defensive strategies.

Defensive strategies includes the courage to attack our potentials by asking questions again and again and eliminating the old ones to introduce new options.

Defensive strategies also include an initial investment. Defensive strategies consist of amassing the greatest skills nd strengths of the attacker. The firm must also manage the speed of the action taken by it.

Imitation could also be reduced by increasing the strategic complexity and creating a threat of retaliation.

Meaning of imitation is the act of un authorized copying of the competitor's technology.

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If the two countries were to specialize and trade with one another, which country would import airplanes?

Answers

The country that should import airplanes is country A.

Which country should import airplanes?

The country that should import airplanes is the country that does not have a comparative advantage in the production of airplanes. A country has comparative advantage in production if it produces at a lower opportunity cost when compared to other countries.

A country has a lower opportunity cost if it forgoes less quantity of an alternative product when producing another product.

Opportunity cost of country A in the production of airplanes: 8 million / 8 = 1 million

Opportunity cost of country B in the production of airplanes: 4 million / 6 = 670,000

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Answer:

A

Explanation:

its correct

A monopolistically competitive firm is one:

Answers

A monopolistically competitive firm is one of many firms that produce slightly different but very similar goods

Exclusive competition occurs when there are many companies offering products that are similar but not identical to the industry. Unlike monopolies, these companies have little power to curb supply or raise prices to increase profits.

There are no barriers to entry in monopoly competition. Therefore, the market is competitive in the long run and companies make normal profits. In monopoly competition, companies are not price takers (fully elastic demand) because they produce differentiated products. Demand is inelastic.

In essence, a monopolistical competitive market is so called because while companies compete to some extent for the same customer group, each company's products are slightly different from all other companies products.

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XYZ Development has just purchased a large tract of land that it plans to develop into 50 one-acre building lots. To have the ability to sell off individual lots before paying off the entire balance due, the developer will need to obtain

Answers

To have the ability to sell off individual lots before paying off the entire balance due, the developer will need to obtain a blanket mortgage.

What is a blanket mortgage?A blanket mortgage is a single mortgage that covers many properties and serves as security for the loan. Real estate developers and larger investors frequently purchase multiple properties at once, thus a blanket mortgage allows them to consolidate such deals into a single loan.Consider the money you'd save on closing fees, both for the original mortgage and any subsequent refinances. Refinancing from numerous loans to a single blanket mortgage may also result in lower monthly payments, which may increase your cash flow.

Therefore, to have the ability to sell off individual lots before paying off the entire balance due, the developer will need to obtain a blanket mortgage.

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The merger of media enterprises into powerful, synergistic combinations that can cross-market content on many different platforms is referred to as?

Answers

The merger of media enterprises into powerful, synergistic combinations that can cross-market content on many different platforms is referred to as industry convergence.

Industry convergence is based on the digital business principles. It represents the most fundamental opportunity of the growth for the organizations. Industry boundaries are redefined by the industry convergence as it shifts the focus from the single product to cross industry value experiences.

Industry convergence is such a powerful code which has been cracked by the world's most powerful companies.

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Microeconomics looks at the ______
relationship between consumers and
producers and how this relationship affects the economy.

Answers

Answer:

economy

Explanation:

Microeconomics examines the economic relationship between producers and consumers and its impact on the economy.

Microeconomics refers to the study of decision-making by individuals and businesses, while macroeconomics focuses on the decisions made at the national and governmental levels.

As consumers require goods and services, producers aim to make a profit from providing them.

The economic choices are influenced by factors such as prices, demand, and supply. Ultimately, determining the cost of products and services is the responsibility of both parties involved.

The economy of a society is built on the creation of wealth through selling and purchasing. Producing and consuming are done by consumers and producers respectively. Therefore, the economic relationship is the correct answer.

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