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:

Influence

The capacity to have an effect on the character, development, or behavior of someone or something, or the effect itself.

Clinical Psychology Program

An academic and professional training program that prepares individuals to become professional psychologists, emphasizing the diagnosis and treatment of mental health issues.

Ohio State

A reference to Ohio State University, an American public research university located in Columbus, Ohio.

B.F. Skinner

An influential American psychologist whose work in behaviorism focused on the idea of operant conditioning, emphasizing the role of reinforcement in shaping behavior.