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

question 44

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 EBIT 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
• E)$410 million

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Definitions:

Mental Abilities

The cognitive capacities and skills that enable an individual to process information, solve problems, and understand complex ideas.

Dementia

A progressive deterioration in mental abilities due to changes in the brain that influence higher cortical functions such as thinking, memory, comprehension, and emotional control and are reflected in impaired thought and behavior, interfering with the older adult’s ability to engage in everyday activities.

Geographic Differences

Variations in cultural, environmental, economic, and social characteristics across different regions or territories.

Dementia Rates

The incidence or prevalence of dementia in a population, indicating how common the condition is within a specific demographic or over time.