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Q1. In terms of currency denomination, describe how Proctor & Gamble prices its revenue and costs. Consider any two of Proctor & Gamble's operations and the contribution they are making to profit. What means do they use to hedge against exchange rate risk? What do you think would be the effect of increases/decreases in the dollar's exchange value on the firm's profitability?
Q2. Suppose the legislature enacts minimum wage legislation in order to provide workers with a "living wage." If the minimum wage is raised to $13, Explain how many workers will the firm choose to employ?
The discount rate for the stock is 15% and the rate of return on reinvested earnings is also 15%
Assume that society changed as well as encouraged both young women as well as young men to consider a wide range of careers.
Calculate the profit maximizing cost per unit if COST MART has an average wholesale cost of $350 as well as incurs marginal selling cost of $100 per unit
Suppose a consumer is at an optimum, consuming 6 hamburgers a week at a price of $1.50 each and 10 donuts a week at 50 cents a donut.
A new Taurus bought in 1994 cost $18,680 and it could have been sold as used in 1995 for $12,600.
A firm with a U-shaped average cost curve finds that its costs exceed its revenues when it sets price equal to marginal cost.
Calculate the firm's optimal output and profits if prices rise to $65 per unit and also calculate equilibrium output, price and profit levels if the firm is typical in its industry.
What would be the total profit of the firm if it sells the entire output at a cost of Rs. 60 per unit.
Assume that the industry wants to expand and has to make some long-term capital budgeting decisions. Now the industry is confronted with government regulations to oversee the merger.
Explain the difference between a person's nominal income and their real income. Why is real income more important to that person.
Sharp rises in the cost of milk, grain, and fresh fruits and vegetables are hitting cafeterias across the country, forcing cash-strapped schools to raise prices or serve more economical dishes.
To one side maximizing profits evaluate the factors which managers must consider when making judgment to outsource or integrate forwards/backwards considering which factor would be mainly significant for decision-making.
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