A Steel Maker Needs 5,000,000 Tons of Coal Next Year

question 38

Multiple Choice

A steel maker needs 5,000,000 tons of coal next year.The current market price for coal is $70.00 per ton.At this price,the firm expects its EBIT to be $500 million.What will the firm's EBIIT if the firm enters into a supply contract for coal for a fixed price of $72.00 per ton?

• A)$500 million
• B)$510 million
• C)$490 million
• D)$350 million

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Definitions:

Maslow's Hierarchy

A theory proposed by Abraham Maslow outlining a hierarchy of human needs, from basic physiological needs to self-actualization, suggesting that higher needs become motivational only after lower needs are satisfied.

Higher Needs

Advanced psychological needs such as self-actualization and esteem needs, following basic physiological and safety needs in Maslow's hierarchy.

Lower Needs

Basic physiological and safety requirements in Maslow's hierarchy, essential for an individual's survival.

Humanistic Psychology

A psychological perspective that emphasizes the study of the whole person, and the uniqueness of each individual's experience, focusing on personal growth and the concept of self-actualization.