Answer:
wages decrease
Explanation:
Labor is a factor of production and has a price like all other inputs. In the economy, labor is a commodity whose price is determined by the forces of demand and supply. When there is an oversupply of labor, its equilibrium price will decrease.
The equilibrium price of labor is the prevailing wage rate, where demand matches supply. When immigration adds to the labor force, it means an additional supply of able and willing workers in the markets. There will be many sellers or workers offering to supply labor services to the existing job openings. As a result, the price of labor will reduce as buyers or employers can lower the wage rate and still get the labor services they require.
False. Price ceilings, provided there are no other government policies in place, will cause deadweight loss. Diagram provided.
Answer:
The present value of the promised gift will:
be less than $5,000.
Explanation:
The present value of $5,000 to be received in three years' time from today is less than $5,000 received. This is explained by the time value of money concept. If the $5,000 gift is discounted to today's value, using a discount factor of 0.751 (10% in three years' time), it would be $3,755 ($5,000 * 0.751). This means that $5,000 received in year 3 is less than $5,000 received today.
Answer:
Correct answer is c. $211,555.
Explanation:
Here inventory cost means total ordering cost plus total carrying cost for they year. This can be determine by using simple EOQ (economic order quantity) formula given below.
EOQ =((2* Annaul Requirement * cost per order)/carrying cost per unit)^ (1/2)
EOQ = ((2*800,000*540)/(370*14%))^(1/2)
EOQ = 4,084 units
so
Total order cost = 800.000/4,084 * 540 = 196 (aprox) *540 = 105,840 -A
Total Carrying cost = 4,084/2 * (370*14%) = 105,776-B
Total Cost = A+B = $ 211,555 (aprox)