g The number of firms in an oligopoly must be Group of answer choices None of the Answers are Correct. Small enough so that revenues are large enough to support advertising expenditures. Small enough so that one firm's decisions have a significant impact on the decisions of the other firms in the industry. Large enough so that firms cannot coordinate. Four.

Answers

Answer 1

The number of firms in an oligopoly must be small enough so that one firm's decisions have a significant impact on the decisions of the other firms in the industry.

What is an oligopoly?

An oligopoly consists of two or more firms.

An oligopoly can have as many firms as it wants, but the number must be so low that each firm's decisions have a big impact on the others.

Entry into an oligopolistic market is difficult. Oligopolistic businesses may create differentiated or uniform products. Automobile, oil, steel, and passenger airplane manufacturers are a few examples of oligopolistic businesses.

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Related Questions

a(n) ratification occurs when, after reaching the age of majority, a person states that he or she intends to be bound by a contract.

Answers

A specific approval happens once; when reaching the age of majority, someone states orally or in writing that he or she intends to be sure by the contract entered into as a minor.

The ability of someone underneath to stand his or her rights and obligations under a contract and adjust to the terms. Ratification, as employed in this section, means that in the act of approving unauthorized commitment by a politician has the authority to try to do therefore. The most vital good thing about approval is the actual improvement in the human rights of people and teams within the ratifying state.

After approval has been granted underneath a state's own internal procedures, it'll send word to the opposite parties that they consent to be certain by the accord. This can be known as an agreement. The accord is currently formally binding on the state.

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what is your Opinion on DeShaney v. winnebago county social services

what is your Opinion on DeShaney v. winnebago county social services

Answers

DeShaney v. Winnebago County Social Services, which was a significant case in US constitutional law.

In this case, the Supreme Court ruled that the Due Process Clause of the Fourteenth Amendment did not impose an affirmative duty on the state to protect citizens from harm caused by private actors.

This decision meant that Joshua DeShaney, who was abused by his father despite previous reports to child protection services, could not sue Winnebago County Social Services for their failure to protect him.

Overall, the case remains an important precedent in US constitutional law and has had a significant impact on the way courts interpret the Due Process Clause of the Fourteenth Amendment.

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you can spend $300 on either a pair of new air jordan sneakers or a new skateboard. if you choose to buy the air jordans, the opportunity cost is: group of answer choices $300. your enjoyment of the new skateboard. both the $300 and your enjoyment of the new skateboard. impossible to determine.

Answers

The opportunity cost of buying the Air Jordans would be both the $300 and your enjoyment of the new skateboard. Opportunity cost is the cost of forgoing the next best alternative.

In this case, if you choose to buy the Air Jordans for $300, you are giving up the opportunity to buy a skateboard which could also provide you with enjoyment. So the opportunity cost of buying the Air Jordans is both the $300 and the enjoyment you would have gained from buying the skateboard. You can think of this as the trade-off you are making. By choosing to spend $300 on Air Jordans, you are giving up the opportunity to spend that same $300 on a skateboard and all the benefits it would bring. In summary, the opportunity cost of buying the Air Jordans is the value of the next best alternative, which in this case is both the $300 and your enjoyment of the new Skateboard.

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management's use of resources can best be evaluated by focusing on measures of:

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Management's use of resources can best be evaluated by focusing on measures of performance.

These measures provide information on how well management is using the company's resources, such as financial resources, human resources, and physical resources, to achieve the company's goals and objectives. Examples of performance measures that can be used to evaluate management's use of resources include:

Return on investment (ROI): This measure calculates the profitability of a particular investment or project, taking into account the cost of the investment and the revenue generated by it.

Gross margin: This measure calculates the percentage of revenue that is left after deducting the cost of goods sold (COGS). A high gross margin indicates that management is effectively managing the cost of producing and selling the company's products or services.

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1. Please describe the five conflict handling modes as set forth in the Thomas-Kilman Conflict Mode Instrument. In doing so, please be sure to discuss the ramifications of underusing and overusing each.

2. Please describe and distinguish between the following alternative/appropriate dispute resolution methodologies: mediation, fact-finding, arbitration

3. Please describe and distinguish between the three models of mediation

Answers

The five conflict handling modes in the Thomas-Kilman Conflict Mode Instrument are: competing, collaborating, compromising, avoiding, and accommodating.

The Thomas-Kilman Conflict Mode Instrument identifies five primary modes for handling conflicts. Each mode represents a different approach to resolving disputes, and they have varying implications when underused or overused.

Competing: This mode reflects a high assertiveness and low cooperation level. It involves a win-lose mentality, where one party seeks to satisfy their own interests at the expense of the other. Underusing this mode can result in missed opportunities for collaboration and cooperation. Overusing it can lead to damaged relationships and decreased trust.

Collaborating: This mode emphasizes high assertiveness and high cooperation. It involves actively seeking mutually beneficial solutions by integrating the concerns and perspectives of all parties involved. Underusing collaboration may hinder creative problem-solving and limit the exploration of innovative solutions. Overusing it can prolong the decision-making process and potentially create dependence on collaboration for even minor issues.

Compromising: This mode aims for a moderate level of assertiveness and cooperation. It involves finding a middle ground through concessions from all parties. Underusing compromise can lead to stalemates and unresolved conflicts. Overusing it may result in settling for suboptimal solutions, where important needs and interests are not fully addressed.

Avoiding: This mode reflects low assertiveness and low cooperation. It involves sidestepping or evading conflicts altogether, often due to a desire to maintain harmony or avoid confrontation. Underusing avoidance can lead to unresolved conflicts and festering tensions. Overusing it can create a culture of avoidance, where issues are never addressed, and problems accumulate over time.

Accommodating: This mode represents low assertiveness and high cooperation. It involves prioritizing the needs and interests of others over one's own. Underusing accommodation may lead to missed opportunities for asserting one's own needs and interests. Overusing it can result in personal dissatisfaction and exploitation by others.

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explain how businesses benefit from giving back to the community.

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Giving back to the community can help businesses to improve their reputation and brand image, increase employee engagement and satisfaction, build stronger relationships with customers and create new business opportunities. There are several ways in which businesses can benefit from giving back to the community.

Corporate social responsibility (CSR) initiatives can help to improve a business's reputation and brand image. When a business is seen as a good corporate citizen, it can attract and retain customers, employees, and investors who value social responsibility. This can also help to differentiate a business from its competitors and create a positive image in the community.

Giving back to the community can also help to create a sense of purpose and increase employee engagement and satisfaction. When employees see that their employer is making a positive impact on the community, they are more likely to feel proud to be associated with the company and to be more engaged in their work.

Businesses can also benefit from giving back to the community by building stronger relationships with their customers. When customers see that a business is actively involved in the community, they are more likely to feel a stronger connection to the company and to be more loyal to the brand.

Giving back to the community can also help to create new business opportunities. By getting involved in community projects, businesses can learn more about the needs of the community and identify new business opportunities that align with those needs.

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managers in ______ positions, such as the senior marketing manager for a product group, have the authority and responsibility to issue orders to people who report to them.

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Orders can and should be given to those who report to line positions managers, such as the senior marketing manager for a certain product group.

A manager in a line role, for example, is directly involved in an organization's day-to-day activities like producing or selling a good or service. Line jobs primarily focus on the core business operations of the organisation and its objectives or purpose.

The time of the sight should be converted to LHA (local hour angle of the body). Look up the HC (predicted height of object) in the tables of a full line of latitude close to you using the LHA and Declination from the time of your sighting. Take the discrepancy between them out.

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two economists agree that labor market discrimination against certain workers unfairly leads to lower wages for the disfavored group. economist x argues that government intervention is most likely necessary to eliminate this unfair treatment, while economist y argues that the best solution to the unfair treatment is to let the market work to eliminate it on its own.

Answers

Economist Y is most likely to be correct when labor and product markets are highly competitive and the lower wages of the disfavored group result from discrimination by employers. This is because of discrimination by employers.

What is an employee?

A worker or manager who works for a business, group, or community is referred to as an employee. The organization's personnel consists of these people. There are various types of employees, but in general, any individual engaged by an employer to do a specific task in exchange for remuneration is considered an employee.

The labor market, often known as the job market, refers to the supply of and demand for labor, in which employees give the supply and employers provide the demand. It is a crucial part of every economy and is closely connected to the markets for capital, goods, and services.

Therefore, Thus option (C) is correct

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whats the difference between life values and work values

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Answer:

life values: are things you respect in your rights as a human

Authenticity Adventure Balance.

Bravery Compassion Challenge.

Citizenship Community Creativity.

Curiosity Determination Fairness.

Freedom Friendships Fun.

Generosity Growth Honesty.

Integrity Justice Kindness.

work values: are things you value and respect threw  the service that you work with for example

Loyalty

A Strong Work Ethic.

Dependability and Responsibility.

Possessing a Positive Attitude.

Adaptability.

Honesty and Integrity.

Self-Motivated.

Motivated to Grow and Learn.

Strong Self-Confidence.

Besides the dollar cost, what other costs should you consider when comparing alternative solutions to a problem or goal?​

Answers

Answer:

Management alternatives could be compared based on how they impact ... Ultimately, identifying a widely acceptable solution requires that each ... It might be agreed that the cost elements of the decision problem are ... It may be desirable during a later step in the decision process to convert other impacts into dollars.

Management cost should be considered when seeking for solutions to a problem or goal.

Dollar cost in this context means cost of purchasing (i.e. fixed cost) to achieve a solution to a problem or goal.

For instance, when a person plans to establish a Private Kindergarten school, the dollar cost will include cost of rent, desk, chairs and etc.

However, the other cost one should consider is the Management cost will will help to achieve the goal. The more qualified and equipped the management, the higher the possibility of achieving the solution to a problem.

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Future value interest factor of $1 per period at i% for n periods, FVIF(i,n). Complete the following using compound future value. (Use the Table 12.1 provided.) Note: Round your answers to the nearest cent.

Answers

The future value interest factor of $1 per period at i% for n periods, FVIF(i,n), can be calculated using compound future value.

Compound future value is a financial concept that determines the value of an investment or cash flow at a future date based on compounding interest. The formula to calculate the future value interest factor (FVIF) is FVIF(i,n) = (1 + i)^n, where "i" represents the interest rate per period and "n" represents the number of periods.

Let's break down the formula further. The term "(1 + i)" represents the growth factor, which is the sum of 1 and the interest rate per period. The exponent "n" denotes the number of compounding periods. By raising the growth factor to the power of "n," we account for the compounding effect and calculate the future value of the investment.

For example, let's say we have an interest rate of 5% per period (i = 0.05) and we want to calculate the future value interest factor for 10 periods (n = 10). Using the formula, FVIF(0.05, 10) = (1 + 0.05)^10 = 1.62889. This means that $1 invested at a 5% interest rate for 10 periods will grow to approximately $1.63.

Compound future value is a crucial concept in finance as it allows investors to assess the growth potential of their investments over time. By using FVIF tables or formulas, individuals can make informed decisions regarding savings, investments, and other financial planning strategies.

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What two factors influence an economic school of thought?(1 point)

Answers

Answer:

Free-market, or laissez-faire, economics and Keynesian theory.

Explanation:

The economic school of thought can largely be influenced by prevailing societal values and the historical context in which the theory is developed.

There are many factors that might influence an economic school of thought, but the two key elements are often prevailing societal values and historical context. Prevailing societal values can drastically influence an economic philosophy.

Furthermore, the historical context in which an economic thought emerges is crucial. Economists develop their theories in response to the economic challenges and realities of their time. The Great Depression deeply influenced Keynesian economics, and the stagflation of the 1970s prompted a shift towards monetarism.

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Job specifications can be defined as: a. a set of procedures for advertising job openings within a company to existing employees. b. written descriptions of the basic responsibilities required of an employee holding a particular job. c. planned sequences of jobs through which employees may advance within an organization. d. a written summary of the qualifications needed to successfully perform a particular job.

Answers

Answer:

d. a written summary of the qualifications needed to successfully perform a particular job.

Explanation:

Job specification defines that when a person completes their studies with his specialization then he or she looks for a job for that particular field. So, it is necessary to choose specialization so that a person can perform in a better manner in an organization to achieve the company objective.

Therefore, according to the above explanation, the correct answer is d.

Which of these is an example of land capital?
A. Small business
B. Oil
C. Money
D. Accountant

Answers

The answer is B. Oil.

Answer:oil

Explanation:

just did the test

An​ end-of-period adjusting entry that debits unearned revenue most likely will credit.

Answers

A change to a previously declared amount of unearned revenue is reflected in an unearned revenue adjustment entry. Any sum that a client pays a company in advance is referred to as unearned income. This payment could be made in exchange for goods or services that will be delivered in the future.

Explain about the Unearned revenue?

Unearned income should be recorded in your diary as a debit from the cash account and a credit to the unearned income account. This journal entry shows that the company has been paid in cash for a service, but it was earned on credit as a down payment for upcoming deliveries of goods or delivered services.

Unearned income is an asset that the company receives, but it must first be used to provide a service or deliver goods in order for it to be fully earned. The business will invest time and money into this project.

On the balance sheet, the unearned revenue account is typically categorized as a current liability.

Investment-type income, such as taxable interest, regular dividends, and capital gain distributions, is categorized as unearned income. In addition, it covers taxable social security benefits, unemployment benefits, pensions, annuities, debt forgiveness, and distributions of unearned income from trusts.

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Which type of interest does not change over the life of a loan?
Principal interest
Fixed interest
Variable interest
Annual percentage rate

Answers

Answer:

Fixed interest

Explanation:

A fixed-rate mortgage charges a set rate of interest that does not change throughout the life of the loan. You'll know exactly how much each monthly payment will be, as well as how much it will cost you overall to pay off the loan based on that rate.

3. Of the following provisions that might be found in a bond indenture, which would tend to reduce the coupon interest rate on the bond in question?

a
A subordination clause in a debenture.

b
A call provision.

c
A convertible feature.

d
Having relatively few restrictive covenants.

e.
All of the above.

Answers

The bond in question's coupon interest rate would typically be reduced by a convertible feature.

Define the term "convertible feature"?

An asset that can be changed by the shareholder into common stock is known as a convertible, which can be a bond, preference share, or other type of financial instrument. Convertible securities aren't considered to be either debt or equity; rather, they're viewed as a cross between the two groups because they have the cash flow characteristics of both bonds and stocks.

What distinguishes a convertible bond from other bonds?

An investment that may be converted into a predetermined number of shares of common stock is known as a convertible bond. It pays fixed-income interest payments. During the bond's term, the bond can be converted into stock at precise points at the bondholder's option.

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A postoperative client is being evaluated for discharge and currently has an Aldrete score of 8. Which of the following is the most likely outcome for this client

Answers

Body temperature should be measured on admission and four hourly with other vital signs unless clinically indicated for further frequent measures.  

Maintaining rotation and assessing for cardiac complications in the immediate post-op period is precedence for nursing care.   The Valsalva initiative produces pressure on abdominal injuries, which increases the threat of evisceration. The nanny minds a  customer who develops an evisceration. The client can be discharged from the PACU.

The primary nursing thing in the immediate postoperative period is conserving pulmonary function and forestallment of Hypoxemia and hypercapnia. A post-op period reports severe abdominal pain. The nanny can not auscultate bowel sounds and notes the customer's tummy is rigid.

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Draft an application letter in English to the Human Resources Manager of Nepal Airlines for the post of Account Officer giving your full bio-data.​

Answers

The letter is drafted as follows

How is the structure of the letter

[Your Name]

[Your Address]

[City, State, ZIP Code]

[Your Email Address]

[Your Phone Number]

[Date]

Human Resources Manager

Nepal Airlines Corporation

Kathmandu, Nepal

Dear Sir/Madam,

I am writing to apply for the position of Account Officer at Nepal Airlines Corporation, as advertised on your website. With my extensive background in accounting and finance, I believe I would make a valuable addition to your team.

As a graduate in accounting with a Bachelor's degree from [University Name], I have acquired a solid foundation in accounting principles and practices. In addition, I have [Number of Years] years of experience in accounting and financial management, working with reputed firms in Nepal. My experience includes managing accounts payable and receivable, preparing financial statements, coordinating audits, and budgeting.

My previous job as an Accountant at [Company Name] gave me the opportunity to develop my skills in handling financial transactions, performing cost analyses, and preparing tax returns. During my time there,

I am confident that my skills and experience align with the requirements of the Account Officer position at Nepal Airlines Corporation. Furthermore, my strong analytical skills and attention to detail make me a suitable candidate for the job.

Please find attached my resume and supporting documents for your review. I would welcome the opportunity to discuss my application further with you and to demonstrate my capabilities in person.

Thank you for considering my application. I look forward to hearing from you soon.

Sincerely,

[Your Name]

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The Fisc in Fiscal comes from a word fora. budgetb. moneyc. governmentd. annual

Answers

The Fisc in Fiscal comes from the word government.

Fiscal is related to government finance and management of public revenue. It refers to the policies and practices that relate to the collection and expenditure of public funds by the government. Therefore, the term fiscal is often used to describe the financial matters related to the government's budget and expenditure.In modern usage, the term "fiscal" is often used in the context of government finances, particularly with respect to revenue collection, budgeting, and spending.

The fiscal year is the period of time used by governments and businesses for financial reporting purposes, typically covering a twelve-month period. Fiscal policy refers to the use of government spending and taxation to influence the economy, while fiscal responsibility refers to the government's duty to manage its finances in a prudent and sustainable manner.

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Choose a country / economy of your interest. Write a short essayof 500- 1000 words on the history of exchange rate regimes in thatcountry starting from around 1973. Comment on whether you feel thec

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When looking at the history of exchange rate regimes in a particular country, it's important to understand the context of the global economy during that time period. From around 1973, the world saw a shift towards floating exchange rates, which meant that the value of a country's currency was determined by market forces rather than being fixed to another currency or a commodity like gold.

In the case of Japan, the country experienced a period of rapid economic growth from the 1950s to the 1970s, known as the "Japanese economic miracle". During this time, Japan's exchange rate regime was fixed to the US dollar, which helped to maintain the competitiveness of Japanese exports and support economic growth. However, by the early 1970s, the US was experiencing high inflation and a weakening economy, which put pressure on the fixed exchange rate system. In 1971, the US abandoned the gold standard and allowed the dollar to float freely, which led to a revaluation of the yen against the dollar. Japan eventually shifted towards a floating exchange rate regime in 1973, which allowed the value of the yen to be determined by market forces. This helped to make Japan's exports more competitive and support continued economic growth. In the following decades, Japan experienced a number of economic challenges, including a real estate bubble in the late 1980s and a long period of deflation in the 1990s and 2000s. Throughout these challenges, the Japanese government and central bank intervened in the foreign exchange market to manage the value of the yen.

Overall, Japan's history of exchange rate regimes reflects the shifting global economy and the importance of maintaining competitiveness in the export sector. While the country has experienced a range of economic challenges, the flexibility of its exchange rate regime has helped to support growth and stability.

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When Cisco Systems told executives they would gain or lose 30 percent of their bonuses based on how well they worked with peers, and in three years had record profits, the company

A. increased productivity.

B. reduced costs.

C. improved workplace cohesiveness. Correct

D. reduced destructive internal competition.

increased speed.

Answers

Answer: C. improved workplace cohesiveness

Explanation:

This action by Cisco improved workplace cohesiveness as it made workplace cohesiveness the basis for financial rewards.

A financial incentive was given that should Cisco Systems Executives work well together they could gain 30% of their benefits or lose 30% if they don't. This meant that even those who do not care much for a higher salary still had to work hard at cohesion or they might lose a portion of their bonuses.

Financial incentives are known to be very effective and they worked here as well.

Please help it's the last question but I'm struggling a bit

Please help it's the last question but I'm struggling a bit

Answers

Answer:

2: contribution to the searching marketing the product

searching for new customers for the product

3: contribution to advance in the services offered.

4: improving the economy to invest more income

5:to increase and promote the community hence advertising the event for attraction.

Research on effective teams indicates that they experience Group of answer choices moderate levels of task conflict in the middle of the project timeline. high levels of relationship conflict. moderate levels of relationship conflict and high levels of process conflict. moderate levels of process conflict at the beginning of the project timeline.

Answers

Research on effective teams indicates that they experience moderate levels of relationship conflict and high levels of process conflict. (option c)

In the context of effective teams, conflict can be categorized into three types: task conflict, relationship conflict, and process conflict.

As for process conflict, research suggests that effective teams may experience moderate levels of process conflict at the beginning of the project timeline. Process conflict arises from differences in the team's preferred working methods, decision-making processes, or coordination mechanisms. Moderate levels of process conflict can prompt discussions and negotiations, helping team members align their strategies and establish effective processes for collaboration.

Mathematically, the marginal product of process conflict can be represented as:

MP(process conflict) = ΔOutput / ΔProcess Conflict

Similar to task conflict, the marginal product of process conflict is positive up to a certain threshold, indicating that a moderate level of process conflict can contribute to improved team output.

Hence the correct option is (c).

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Complete Question:

Research on effective teams indicates that they experience

a) moderate levels of task conflict in the middle of the project timeline.

b) high levels of relationship conflict.

c) moderate levels of process conflict at the beginning of the project timeline.

d) moderate levels of relationship conflict and high levels of process conflict.

colin, who is a paralegal for a powerful manhattan law firm, likes the fast pace of his work and the fact that things are always changing there. colin can be said to

Answers

Colin can be said to have internal locus of control

Internal locus of control is simply known as the way individuals perceive the occurrences that happen to them.

Individuals who have an internal locus of control, often believes that what happens to them is a result of their own decisions. They do not accept social conformity and obedience.

Collins believing in his fast pace of work is his internal locus of control

From the above we can say that Colin can be said to internal locus of control

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Answer:have a high tolerance for ambiguity

Explanation:

Because he is open to change and welcomes that things will be different at times

8300 dollars is placed in an account with an annual interest rate of 6. 5%. How much will be in the account after 14 years, to the nearest cent?.

Answers

The amount in the bank after the period of 14 years at 6.5 % interest is $15,853.

The interest is the amount that is paid by the party at the annual rate of interest for a given period on the principal amount.

Computation for Amount after 14 years

The interest (I) added to the amount is given as:

\(I=\dfrac{P\;\times\;R\;\times\;T}{100}\)

The given principal amount, \(P=8300\;\\)

The rate of interest is, \(R=6.5\;\%\)

The time for the interest is, \(T=14\;\rm years\)

Substituting the values for the interest,

\(I=\dfrac{8300\;\times\;6.5\;\times\;14}{100}\\ I=7553\; \\)

The amount of interest added to the base amount after 14 years is, $7553.

The total amount in the account after 14 years is:

\(\rm Total\;amount=Principal\;amount\;+\;Interest\\\\Total\;amount=8300\;+\;7553\;\$ \\\\Total amount=15,853\;\\)

The amount in the bank after the period of 14 years at 6.5 % interest is $15,853.

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If left uncontrolled the high blood pressure can cause 1. Kidney disease 2. Heart failure 3. Stroke 4. All of above

Answers

If left uncontrolled, high blood pressure can cause kidney disease, heart failure, and stroke. Therefore, the correct option is 4. All of the above.

What is high blood pressure?

High blood pressure, also known as hypertension, is a chronic medical condition that occurs when the blood pressure in the arteries rises above the normal range. It is defined as a systolic blood pressure of 140 mm Hg or higher and a diastolic blood pressure of 90 mm Hg or higher.

Blood pressure can be controlled by making lifestyle changes like adopting a healthy diet, engaging in regular exercise, limiting alcohol intake, avoiding smoking, and maintaining a healthy weight. In addition, doctors can prescribe medications to control blood pressure if lifestyle modifications alone are not effective.

If left untreated, high blood pressure can cause damage to your body's vital organs, including the kidneys, heart, and brain. Kidney disease, heart failure, and stroke are some of the severe complications that can arise due to high blood pressure. Therefore, it is critical to manage hypertension effectively.

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Sheridan Co. has fixed costs totaling $176,000. Its unit contribution margin is $1.60 and the selling price is $5.60 per unit.
Compute the company’s break-even sales units. Break-even sales enter the break-even sales in units units

Answers

Sheridan Co.'s break-even sales units using the given information. Sheridan Co.'s break-even sales units are 110,000 units.

1. Fixed costs (FC) = $176,000
2. Unit contribution margin (UCM) = $1.60
3. Selling price per unit (SP) = $5.60

To compute the break-even sales units, we need to find the point where total costs equal total revenue. The break-even point in units (BEP_units) can be calculated using the formula:

BEP_units = Fixed Costs / Unit Contribution Margin
Plugging in the given values, we have:
BEP_units = $176,000 / $1.60
BEP_units = 110,000 units
So, Sheridan Co.'s break-even sales units are 110,000 units.

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(look at the graph)

a) if the terms of trade are 4 chips for 1 pretzel, would trade be advantageous for Luxland? explain.
b) if the terms of trade are 4 chips for 1 pretzel, would trade be advantageous for Leanderland? explain.​​

(look at the graph)a) if the terms of trade are 4 chips for 1 pretzel, would trade be advantageous for

Answers

Answer:

a) if the terms of trade are 4 chips for 1 pretzel, would trade be advantageous for Luxland? explain.

Yes, it is advantageous for Luxland. On its own, Luxland can only produce 1 chip for 1 pretzel, but with trade, 1 pretzel would now be equivalent to 4 chips, representing a net gain of 3 chips.

​​b) if the terms of trade are 4 chips for 1 pretzel, would trade be advantageous for Leanderland? explain.

No, trade would not be advantageous. We can see than domestically, Leanderland can produce 2 pretzels for every chip, because the graph shows that 4 chips are equivalent to 8 pretzels for this nation.

For trade to be advantageous, Leanderland should obtain at least 9 pretzels for the 4 chips.

A) The terms of trade will be advantageous for Luxland because, according to the graph, it can produce only one chip for Pretzel.

However, If it decides to trade, it would accrue a gain of 3 additional chips under the 4 chips to 1 Preztel arrangement.

B) Already, Leanderland gets 1 chip for 4 pretzels. Therefore, it will be disadvantageous for it to accept 4 chips for 1 pretzel trade arrangement. The above question seeks to highlight the comparative advantages of Leanderland and Luxland.

What is Comparative Advantage?

When an economy or country has the ability to manufacture a good or service at a lower opportunity cost than its trading partners, it is said to have a comparative advantage. In the graph above, Luxland has a comparative advantage with the production of Chips.

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The observation that in competitive markets firm which do not approximate profit maximization fail while those that do succeed is known as the __________ __________

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The observation that in competitive markets firms which do not approximate profit maximization fail while those that do succeed is known as the profit maximization hypothesis.

Firms that accurately estimate their costs, set prices accordingly, and adjust their production levels to maximize profits are more likely to be successful in the long run. On the other hand, if a firm sets its prices too high, it may lose customers to competitors.

The profit maximization hypothesis provides a framework for understanding how firms make decisions in competitive markets and emphasizes the importance of profit as a measure of success.

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