What is meant by a competitive firm?

Find the time-and-a-half pay rate by multiplying the hourly wage given by $1 \dfrac{1}{2}$

$8 ______

Indicate the effects (increase, decrease, no effect) of the following independent transactions on (1) working capital (= current assets – current liabilities) and (2) the quick ratio, where accounts receivable are included but merchandise inventory is excluded from quick assets. State any necessary assumptions.

d. A firm sells for 20,000 a machine costing 80,000 and with accumulated depreciation of 60,000.

a levered firm is a company that has:

(a) On May 25, 2007, President George W. Bush signed a bill to increase the federal minimum wage in three steps: to $5.85 per hour starting in July 2007; to$6.55 per hour starting in July 2008; and to $7.25 per hour starting in July 2009. What are some possible results of raising the minimum wage? (b) Why do you think the government chose to raise the minimum wage in stages, rather than all at once? (c) Do you think this is a good strategy? Why or why not?

Solve the problem.

What is the weekly wage for a person who works $40$ hours at an hourly rate of $9.75?

Match each situation with the fraud triangle factor—opportunity, financial pressure, or rationalization—that best describes it.

1. An employee’s monthly credit card payments are nearly 75% of his or her monthly earnings.

2. An employee earns minimum wage at a firm that has reported record earnings for each of the last five years.

3. An employee has an expensive gambling habit.

4. An employee has check-writing and signing responsibilities for a small company, as well as reconciling the bank account.

You may make use of your intuition concerning independent events if nothing to that effect is specified. In his desk, a secretary has a drawer containing a mixture of two sizes of paper A and B and another drawer containing a mixture of envelopes of two corresponding sizes. The percentages of each size of paper and envelopes in the drawers are given in the table. If a piece of paper and an envelope are randomly drawn, find the probability that they are the same size.

$$\begin{array}{ccc}{} & {\text { Drawers }} \\ {\text { Size }} & {\text { Paper }} & {\text { Envelopes }} \\ {\mathrm{A}} & {63 \%} & {57 \%} \\ {\mathrm{B}} & {37 \%} & {43 \%}\end{array}$$

What is meant by a competitive firm?.

Dividend constraints A firm has $800,000 in paid-in capital, retained earnings of$40,000 (including the current year’s earnings), and 25,000 shares of common stock outstanding. In the current year, it has $29,000 of earnings available for the common stockholders.

b. What effect would a cash dividend of$0.80 per share have on the firm’s balance sheet entries?

A firm in a competitive industry has a total cost function of $\mathrm{TC}=0.2 Q^2-$ $5 Q+30$, whose corresponding marginal cost curve is $M C=0.4 Q-5$. If the firm faces a price of 6 , what quantity should it sell? What profit does the firm make at this price? Should the firm shut down?

For the following characteristic, say whether it describes a perfectly competitive firm, a monopolistically competitive firm, both, or neither.

Equates marginal revenue and marginal cost.

For the following characteristic, say whether it describes a perfectly competitive firm, a monopolistically competitive firm, both, or neither.

Faces a downward-sloping demand curve

The mean hourly wage for employees in goods-producing industries is $\$ 24.57$. Imagine we take a sample of employees from the manufacturing industry to see if the mean hourly wage differs from the reported mean of $\$ 24.57$ for the goods-producing industries.

c. With $\alpha=.05$ as the level of significance, what is your conclusion?