Solution :
Given the wage = $ 10.25 that is to be imposed to the market.
Given equation :
= 500 – 45W and 
= -200 + 25W
If the wage of $10.25 is to be imposed to the market, the value of the labor supply can be found by putting the value of the wage in the labor supply equation.
At W = 10.25
Putting this value in the above equation, the labor supply would be
= -200 + 25W
= -200 + 25(10.25)
= 56.25
When W = 10.25, the value for the labor demand can be found by :
= 500 – 45W
= 500 – 45(10.25)
= 500 – 461.25
= 38.75
Therefore, the labor demand and the labor supply model is
= 400 - 45 x 10.25
= -200 + 25 x 10.25
Answer:
Objective function:
Maximize Z: 30P1 + 25P2 + 28P3
Subject to: 2.00P1 + 1.50P2 + 3.00P3 ≤ 450 (Department A constraint)
2.50P1 + 2.00P2 + P3 ≤ 350 (Department B constraint)
0.25P1 + 0.25P2 + 0.25P3 ≤ 50 (Department C constraint)
P1, P2, P3 ≥ 0 (Non-negativity)
Explanation:
The objective function is formulated from the contribution margin of the three products. For instance, the contribution of Product 1 is $30, the contribution of Product 2 is $25 and the contribution of Product 3 is $28. Thus, the objective function will be 30P1 + 25P2 + 28P3.
The constraints were obtained from the departmental labour hours requirements for each product. For instance, Product 1 requires 2 hours in department A, Product 2 requires 1.50 hours in department A and Product 3 requires 3 hours in Department A. Thus, the constraint will be 2.00P1 + 1.50P2 + 3.00P3.
Answer:
a. The stock's price one year from now is expected to be 5% above the current price.
Explanation:
Under gordon model:
If we calculate the value of the stock for the year after that:
to calculate the value of the increase we divide next year over current year.
We have demostrate that next year stock should increase by 1 + growth so statement c is correct.
Answer:
Absolute Advantage: The ability of an actor to produce more of a good or service than a competitor.
Comparative Advantage: The ability of an actor to produce a good or service for a lower opportunity cost than a competitor.
Explanation:
