According to the wall street journal, mitsubishi motors recently announced a major restructuring plan in an attempt to reverse declining global sales. suppose that as part of the restructuring plan mitsubishi conducts an analysis of how labor and capital are used in its production process. prior to restructuring mitsubishi’s marginal rate of technical substitution is 0.12 (in absolute value). to hire workers, suppose that mitsubishi must pay the competitive hourly wage of ¥1,800. in the study of its production process and markets where capital is procured, suppose that mitsubishi determines that its marginal productivity of capital is 0.8 small cars per hour at its new targeted level of output and that capital is procured in a highly competitive market. the same study indicates that the average selling price of mitsubishi’s smallest car is ¥1,200,000. determine the rate at which mitsubishi can rent capital and the marginal productivity of labor at its new targeted level of output.

Why should managers invest any excess cash

Profits from using currency options and futures.on july 2, the two-month futures rate of the mexican peso contained a 2 percent discount (unannualized). there was a call option on pesos with an exercise price that was equal to the spot rate. there was also a put option on pesos with an exercise price equal to the spot rate. the premium on each of these options was 3 percent of the spot rate at that time. on september 2, the option expired. go to the oanda.com website (or any site that has foreign exchange rate quotations) and determine the direct quote of the mexican peso. you exercised the option on this date if it was feasible to do so. a. what was your net profit per unit if you had purchased the call option? b. what was your net profit per unit if you had purchased the put option? c. what was your net profit per unit if you had purchased a futures contract on july 2 that had a settlement date of september 2? d. what was your net profit per unit if you sold a futures contract on july 2 that had a settlement date of september 2

There is a small, family-owned store that sells food and household goods in a small town. the owners have good relations with the community, especially with local farmers who supply much of the food. the farmers aren't organized into a cooperative or union, and the store deals with each individually. suppose the store wanted to buy some farms to control the supply of certain vegetables. how would you classify this strategic move? select one: a. horizontal integration b. forward integration c. backward integration d. concentric integration