Answer: The correct answer is b). Second-degree price discrimination.
Explanation:
Price discrimination can be said to be practiced when different prices are charged for the same good or service. Three types of price discrimination exist– first-degree, second-degree, and third-degree price discrimination.
Second-degree price discrimination occurs when a company charges a different price for different quantities consumed. Such can be seen in situations of bulk purchases.
Answer:
C) third-degree price discrimination
Explanation:
-First-degree price discrimination is when a business has a different price for each unit consumed.
-Second-degree price discrimination is when a company has a different price for different quantities.
-Third-degree price discrimination is when a business has different prices for different segments of the market.
-Fourth-degree price discrimination is when a company has the same prices but has different costs.
According to this, the tennis pro is practicing third-degree price discrimination because he has different prices for children and adults which are different market segments.
Barton Industries has operating income for the year of $3,500,000 and a 36% tax rate. Its total invested capital is $20,000,000 and its after-tax percentage cost of capital is 8%. What is the firm’s EVA?
Answer:
Economic value added = $640,000
Explanation:
given data
operating income = $3,500,000
tax rate = 36% = 0.36
total invested capital = $20,000,000
cost of capital = 8% = 0.08
solution
we get here EVA ( Economic value added) that is express as
Economic value added = Net Operating Profit After Taxes - Investment × WACC ..................1
here net Operating Profit After Taxes = $3,500,000 × (1 - 0.36)
net Operating Profit After Taxes = $2,240,000
so from equation 1
Economic value added = $2,240,000 - $20,000,000 × 0.08
Economic value added = $2,240,000 - $1,600,000
Economic value added = $640,000
Final answer:
Barton Industries' Economic Value Added (EVA) calculation involves subtracting the cost of capital from the net operating profit after taxes (NOPAT). After applying the 36% tax rate to the operating income of $3,500,000, the NOPAT is calculated to be $2,240,000. Subsequently, the cost of capital ($1,600,000) is subtracted from the NOPAT to find the EVA, which is $640,000.
Explanation:
To calculate Barton Industries' Economic Value Added (EVA), we need to determine the net operating profit after taxes (NOPAT) and then subtract the cost of capital from the NOPAT. First, we calculate the NOPAT by applying the tax rate to the operating income:
Operating Income = $3,500,000
Tax Rate = 36%
NOPAT = Operating Income × (1 - Tax Rate)
NOPAT = $3,500,000 × (1 - 0.36)
NOPAT = $3,500,000 ×0.64
NOPAT = $2,240,000
Next, we calculate the annual cost of capital:
Total Invested Capital = $20,000,000
After-tax Percentage Cost of Capital = 8%
Cost of Capital = Total Invested Capital × After-tax Percentage Cost of Capital
Cost of Capital = $20,000,000 × 0.08
Cost of Capital = $1,600,000
Finally, we calculate the EVA:
EVA = NOPAT - Cost of Capital
EVA = $2,240,000 - $1,600,000
EVA = $640,000
Thus, Barton Industries' EVA is $640,000 for the year.
Most individuals and businesses are likely to find their judicial interactions in _____. A. the U.S. Supreme Court B. federal circuit courts C. state courts D. federal district courts E. international courts
Answer:
Option C is correct
Explanation:
The state court is a common law court that apply respective state laws and precedence to decide cases. State courts usually handle majority of crimes and civil case which include individual cases and small business issues.
Answer: State courts
Explanation: The state courts is established by the constitution and laws of each state. State courts are regarded as the final arbiters of laws and constitutions of a state.
However, the court deals with criminal cases (robbery, cyber crime, etc.), probate (involving wills and estates), tort cases (involving personal injuries), contract cases, family cases (involving marriages, adoptions, and divorce), among others.
When Larry purchased a Jet Ski personal watercraft for $4,999, he was also given free financing and three hours of free lessons on how to safely enjoy jet skis. Neither the financing nor the lessons were included in the price of the Jet Ski; both are examples of:
Answer:
Value added
Explanation:
Value-added - it is the total difference that comes out between the product value in the market and the cost of producing that product. cost of a product is based on the survey which gives the idea that how much cost may be assigned to the product.
The value of this difference help to determine the profit on products.
Higher the value of add, higher will be the charges of product and higher will be the revenue collected.
When the government imposes a corrective tax, the market produces a socially optimal quantity, but there is a welfare loss becauseI. there is a decrease in consumer surplusII. there is a decrease in producer surplusIII. the tax decreases employees' incentives to work
Answer:TRUE
Explanation:Corrective taxes are taxes imposed on the certain goods and services rendered within an Economy such the production of some harmful substances and foods. This tax will Decrease the surplus of producers to produce more making it more expensive to produce such goods.
It will also Decrease consumer surplus as the increased taxes will make the producers to increase the price of the product.
Workers Incentive will be reduced as a result of an increase in the cost of production.
The foundations of modern manufacturing and technological breakthroughs were inspired by the creation of the mechanical computer by:
A) Charles Babbage
B) James Watt
C) Eli Whitney
D) Frederick Taylor
In an attempt to re-establish a prominent market dominance, Merith Vern, a goods transportation company, performed a study of its current and potential environment in which its service would be marketed. In this scenario, Merith Vern has most likely used _____ in an attempt to re-establish the prominence of its service in the market.
Answer:
B. SWOT Analysis
Explanation:
First, the multiple choices
a) Ansoff's strategic opportunity matrix
b) a SWOT analysis
c) the General Electric Model
d) a mission statement
A SWOT analysis also referred to as a SWOT matrix represents a strategic plan an individual or organisation can employ to access the various strengths, weaknesses, opportunities and threats that are related to its environment. This analysis is useful for planning purposes both in current and future events.
Merith Vern is therefore undertaking a SWOT analysis in order to effectively plan for how to re-establish prominent market dominance. This will mostly be done by maximising its strengths and opportunities (especially above its competitors) and reducing its weaknesses and threats.
Specifically, if the analysisi is based on current or potential environmental factors, then it is SWOT analysis.
Katie is looking over some of the product histories for the company. She has noticed that many more products have been rendered obsolete when compared to products 10 years ago. What impact does this have on companies?
Correct/Complete Question:
Katie is looking over some of the product histories for the company. She has noticed that many more products have been rendered obsolete when compared to products 10 years ago. What impact does this have on companies?
A. It makes it easier for the company to define the appropriate time period.
B. It makes it easier to track the liabilities for the company.
C. It makes it more difficult for the company to define an appropriate time period.
D. It makes it easier to determine the net income for the company.
Answer:
C, it makes it more difficult for the company to define an appropriate time period.
Explanation:
It is difficult to fro the company to define an appropriate time period because products get obsolete very quickly and as such the company is at loss as for what products had longevity or influence in market.
I hope this helps.
Increased product obsolescence indicates a faster product life cycle likely due to innovation or market changes. It could mean higher investments in R&D, retooling, and marketing but also potential opportunities for engagement with new products. This can have implications for the company's financials as well as customer relationships.
Explanation:When a product becomes obsolete, it means that it's no longer in use or has been replaced by newer technology or alternatives. This increased obsolescence in Katie's company can have several effects.
It suggests a faster-paced product life cycle, which could indicate that the company is innovating rapidly, or that products are becoming outdated more quickly due to rapid changes in the market or technology.This could have financial implications for the company. Frequent shifts in the product portfolio could mean more investments in R&D (Research and Development), retooling, and marketing. At the same time, it might also shorten the recovery period for these investments.Obsolescence also affects customer relationships. Constant changes could be disruptive for customers, especially if they have to bear the cost or inconvenience of transition. However, it can also be an opportunity to maintain customer interest and engagement with new and improved offerings.Learn more about Product Obsolescence here:https://brainly.com/question/32481063
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A production possibilities frontier identifies the dollar cost of producing a good or service in an economy. True or False
Answer:
A production possibilities frontier identifies the dollar cost of producing a good or service in an economy.
True
Explanation:
Cost of producing could be envisaged through budgeting where the variable cost, fixed cost and total cost is expected to be calculated either through rough estimate.
Which of the following demonstrates the going concern concept?a) AQG Industries sold $20,000 of product on credit to SSA Manufacturing. SSA did not pay on time. AQG decides that it is fruitless to pursue collection so they write off the receivable from SSA.b) Gail's Garments has been in business for 20 years and during that period the company has gained a good reputation. Gail would like the Controller to acknowledge the value of that reputation by including it as an asset worth $100,000 but the controller says she cannot do it.c) AQG Industries purchases $20,000 of product on credit from RSI Manufacturing. AQG records the purchase as an increase in inventory and an increase in accounts payable. AQG feels that they will be able to realize the value from the inventory and settle the obligation to RSI in the weeks to come.
Answer:
b) Gail's Garments has been in business for 20 years and during that period the company has gained a good reputation. Gail would like the Controller to acknowledge the value of that reputation by including it as an asset worth $100,000 but the controller says she cannot do it.
Explanation:
Going concern is a concept in accounting which holds that a company is a going concern when it has the resources to continue in operation indefinitely and that it will not go bankrupt.
Applying the above meaning of 'going concern' to the given scenario, it can be seen that Gail's Garment has been in business for 20 years and has a good reputation to the point that it wants to reflect some value for 'goodwill' in its balance sheet.
Having operated successfully for 20 years, then the company has been a going concern. Generally, going concern issues are those that pertain to more than a period of 12 months.
If the bank you own has no excess reserves and a sound customer comes in asking for a loan, should you automatically turn the customer down, explaining that you don't have any excess reservesLOADING... to lend out? Why or why not? What options are available for you to provide the funds your customer needs?
Answer:
No.
Explanation:
Based on the information provided within the question it can be said that in this scenario you should Not turn down the customer. Mainly because the funds/reserves needed can be acquired in a variety of ways. Such options include borrowing at the discount window, borrowing at the federal funds market, or even issuing negotiable CD's. Therefore since there are options for providing the funds the customer needs, then the customer should not be rejected.
When applying for jobs, job seekers often focus on a desired salary while ignoring other aspects of the job offer such as benefits, fit with the job, and working environment. In many cases, the salary may be good, but there are other, negative features of the job not being considered. This is an example of
A. anchoring bias
B. representative bias
C. framing bias
D. overconfidence bias
E. hindsight bias
Job seekers focusing solely on salary and ignoring other job offer aspects exemplifies an anchoring bias. This cognitive tendency to fixate on a single piece of information can lead to an incomplete assessment of the job's value, as it disregards other vital components such as benefits and the working environment.
Explanation:Focusing on a desired salary while ignoring other aspects of the job offer such as benefits, the job fit, and working environment, and thereby overlooking negative features of the job, is an example of an anchoring bias. Anchoring bias occurs when individuals fixate on a single piece of information—such as the initial salary figure—when making a decision. This can lead to a skewed decision-making process where other important aspects of a job offer are undervalued or ignored entirely.
Anchoring bias can impact various scenarios beyond salary discussions, including real estate choices, where a realtor may influence potential renters with initial price anchors. Similarly, in a statistical reasoning context, anchoring bias can lead individuals to rely heavily on an initially presented number, as demonstrated by Tversky and Kahneman's experiments with the number of African nations in the United Nations. To make the most informed decisions, job seekers should be aware of this bias and strive to consider all available information, not just the initial figures presented to them.
Focusing on a desired salary while ignoring other important aspects of a job, such as benefits, fit with the job, and working environment, is an example of anchoring bias. Hence option A is correct.
Anchoring bias refers to the tendency for individuals to rely too heavily on a single piece of information— in this case, the salary— while disregarding other significant details. This bias can lead to poor decision-making, similar to how in other situations, initial values or features anchor one's perceptions and affect subsequent judgments.
This situation exemplifies anchoring bias, where the job seeker focuses solely on the salary, neglecting other critical factors such as benefits and work environment. Anchoring bias can lead to poor decisions by relying too heavily on one piece of information.
As the strategic manager of CutRite Scissors, you are tasked with producing a strategy forintroducing a new line of premium scissors. Your competitor produces a line of similar scissors at acost of $1 and sells them for $12. Because your company has inferior production capabilities, yourscissors will cost $3 each to produce. However, your handle is proven to be more comfortable thanyour competitors'. Assuming you are guaranteed to sell the same number of units as yourcompetitor, which of the following strategies is most likely to achieve a competitive advantage?
a. Reduce the quality of materials used in CutRite scissors to bring unit costs down to $1, thensell the scissors for $12.
b. Continue to produce CutRite scissors for $3 but set the price at $10.
c. Offer a buy-one-get-one-free sale on CutRite scissors.
d. Market CutRite scissors as a higher-quality alternative and sell them for $15.
Answer:
d. Market CutRite scissors as a higher-quality alternative and sell them for $15.
Explanation:
Remember, competitive advantage means been in a favorable or superior position as a company.
Note that, from the question irrespective of the price, CutRite Scissors will sell the same number of units as their competitor.
Therefore, marketing CutRite scissors as a higher-quality alternative and sell them for $15.
_____ management stresses continuous improvement, employee involvement, learning from customers and employees, and accurate standards for identifying and eliminating problems.
Answer: Total quality management.
Explanation:
Total quality management is a management style in which, there is a continuous effort to increase effectiveness of product/services delivered by a company, this is achieved by constantly training workers to effectively carry out their duties and constant communication with consumers of products to know areas that needs improvement in product/service delivery.
An increased focus on health and wellness has resulted in a number of new business ideas including healthier foods and beverages, yoga instruction and training centers, and nutrition consulting. An increased focus on health and wellness is an important ________ that is creating opportunities in many areas for entrepreneurial firms.
A) economic force
B) regulatory force
C) legal force
D) technological advances
E) social force
Answer:
E) social force
Explanation:
An increasing number of people spend more time and money on fitness, and more businesses are recognizing the benefits of health and fitness programs and other services such as wellness programs
Period costs a.are used to compute product cost. b.are selling costs and administrative costs. c.are carried in inventory until the goods are sold. d.can be included in overhead costs.
Answer:
b. are selling costs and administrative costs.
Explanation:
A period cost consists of cost that do not fall under the category of fixed assets, payments in advance, or inventory. It is not that related to transactional event but highly related to the passage of time. A period cost is therefore recorded in the income statement as part of the selling and administrative expenses.
Some of the examples of period costs are utilities, rent, office supplies, stationery, depreciation of office equipment and others which are categorized as selling costs and administrative expenses.
Ultimately, this integrated document becomes the overall document that the project references as its plan. It becomes the baseline to measure any performance against.
The Project Management Plan is a cumulative document that contains all the documents used in the project management approach on the project. It describes steps associated with executing, monitoring and controlling, and closing the project. It could be at a summary or detailed level depending on the need for the project.
It describes steps associated with executing, monitoring and controlling, and closing the project!
Answer: The five phase involved in the project management plan which are project initiation, project planning, project execution, project performance / monitoring, project closure.
Explanation:
Project management plan can be define as the process of formulating a programme to guide the definite course of action about a project.since the question is not so specific i think the question is talking about phase involved in executing ,monitoring and closing a project.The project management plan involved the following steps in project execution, monitoring and closure,
Project initiation : This phase mark the beginning of the project, at this stage a study will be conducted in order to determine the viability of the project. If at the end of the study the result gave a green light that they can actually carry on with the project then they will move to the next stage of the project .
Project planning : This is the phase at which a detailed guide to the course of action about the project will be put in place. It shows what should be done and how it will be done in order to achieve the desired objective of the project.when the plan is in place then they will move to the next stage
Project execution :This is stage mark the taken off of the project, at this stage a meeting will be held to remind all members of the project execution team about their responsibilities to the successful completion of the project. In this stage,the resources needed to carry out the project will be given to the contractors hired to execute the project, materials needed to execute the project will be purchased, the progress meeting will be held to know if the project is well on track,and if need be changes are made to the project plan. When this is done then they will move to the next stage
Project performance / monitoring : This is the stage at which the progress of the work done will be ascertained in order to ensure that they are working in accordance with the project management plan. They will monitor the contractors in order to ensure that the contractors deliver a quality work at the end of the project. When this is done the project moved to the next stage.
Project closure: This is when the whole project will be brought into an end, at this stage the work of the contractors handling the project comes to an end. The members of the project management team will be appreciated for a good job done. The project will then be handed over to the owners of the project that is the person, organization or institution who awarded the project to the contractors.
The Whole Community concept means that residents, emergency management practitioners, organization and community leaders, and government officialsA. True.B. False.
Answer:
A: True
Explanation:
The whole Community concept is a practice by which residents, emergency management practitioners, organizational and government officials conclude the best techniques to build and increase their capacities, assets, and interests by collecting the information of requirements of their respective communities. By performing this, a better dynamic way of societal protection and flexibility is built. We can say that the Whole Community is a philosophical way to think about management regarding emergency supervision.
Market commonality is concerned with the number of markets with which the firm and a competitor are jointly involved and the degree of importance of the individual markets to each.
Market commonality is concerned with the overlap and importance of markets for competing firms. It helps analyze competition and collaboration opportunities between companies. Therefore, the given statement ios true.
Market commonality is concerned with the number of markets with which the firm and a competitor are jointly involved and the degree of importance of the individual markets to each.
It involves analyzing the overlap and significance of markets in order to understand the level of competition and potential collaboration between firms in those markets.
For example, if two companies compete in multiple markets and those markets are highly important to both companies, it indicates a high market commonality.
Therefore, the given statement "Market commonality is concerned with the number of markets with which the firm and a competitor are jointly involved and the degree of importance of the individual markets to each" is true.
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Market commonality refers to the shared markets between a firm and its competitors and their importance to each firm. This concept is gaining relevance with the increasing globalization and interconnectedness of markets. It also plays a crucial part in shaping a company's strategy and preparedness in face of competition.
Explanation:Market commonality refers to the number of markets in which a firm and its competitors are jointly involved, and the extent to which these markets are significant to each firm. This concept is relevant to the field of business due to the growing intersectionality and interconnectedness of global markets. This interconnection can be a boon or a challenge to a firm, contingent on its capability to compete in an international marketplace.
With increasing competition from diverse and distant geographies, the definition of markets has been broadening. However, this expansion doesn't necessarily ease the role of antitrust authorities. Companies with regional or national monopolies could potentially expand their outreach across borders, making it difficult for national authorities to exercise control. This highlights the challenges and implications of market commonality.
In a perfect competition scenario, where there are numerous sellers, easy entry and exit for firms, identical products, and price-taking sellers, market commonality still plays a role. It helps determine an organization's decision-making strategy and its preparedness to face competition.
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For the past ten years, Bill and Margaret have saved money to go to the Super Bowl should their team, the Chicago Bears, reach the finals of the NFC championship. This is the year, and several tour companies offer attractive, but very similar, packages to the game. Since all packages are pretty much the same, they have chosen one that fits their budget. Bill and Margaret are most likely exhibiting ________.
a) complex buying behavior.
b) dissonance-reducing buying behavior.
c) habitual buying behavior.
d) consumer capitalism.
e) consumer ethnocentrism.
Answer: (B) Dissonance-reducing buying behavior
Explanation:
The dissonance reducing buying is refers to the customer behavior that occur due to the high price and high involvement in the various types of products.
In this type of buying method we sees less difference between the different types of brands. The buyer purchasing the products and the services that are easily available in the market and we the buyer believes that all the brands are almost similar.
According to the given question, the bill and the Margaret exhibiting the dissonance-reducing buying behavior. Therefore, The option (B) is correct answer.
Bill and Margaret's decision to choose a Super Bowl package that fits their budget, when all offers are similar, illustrates dissonance-reducing buying behavior. They are seeking to minimize any post-purchase doubt or discomfort by opting for a solution that is most justifiable on monetary grounds.
Explanation:In this scenario, Bill and Margaret are most likely exhibiting dissonance-reducing buying behavior. This type of buying behavior is observed when consumers are facing a difficult decision between highly similar products or services. In such cases, they often choose the option that is most easily justified, for instance, the one that fits within their budget. Here, since all the tour package offers to the Super Bowl are almost identical, Bill and Margaret selected the one that was within their budget. The decision-making process in this case revolves around reducing after-purchase dissonance or doubt about the choice they made.
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Regardless of the outcome in the long run, ______________________ always has the effect of stimulating the economy in the short run.
Answer:
D. Expansionary Monetary Policy
Explanation:
First, the Options
a. tight monetary policy
b. contractionary monetary policy
c. reverse quantitative easing policy
d. expansionary monetary policy
The Expansionary monetary policy represents a policy of the Central Bank or the federal reserve used as a tool to boost or stimulate the economy. Some of the expansionary monetary policy actions of the Central Bank include: increases the supply of money into the economy and the lowering of interest rates which results in increased aggregate demand and subsequently a boost in the growth of the gross domestic product.
A good example of ths monetary policy is when the U.S. Federal Reserve uses the open market operations tool which involves it buying its member banks treasury notes thereby increasing the amount of money in circulation.
Eleanor has money to invest and is considering buying a company. When comparing her alternatives, her ________ on any investment is the rate of return that she could earn on a similar investment.
Answer:
OPPORTUNITY COST
Explanation:
Eleanor has money to invest and is considering buying a company. When comparing her alternatives, her opportunity cost on any investment is the rate of return that she could earn on a similar investment.
Investors are generally presented with options about what to invest their money in, in order to receive not just the highest but also the safest return. However if the investor chooses an alternative, the return he would have earned from the other investment becomes the opportunity cost of the foregone alternative.
Top managers are responsible for the ultimate responsibilities within an organization,which include which of the following? (Choose all that apply.)
1.How departments should interact
2.Cross-departmental responsibility
3.Middle managers and their employees
4.Establishment of organizational goals?
Answer:
The answer is establishment of organisational goals
Explanation:
The top managers set long-term goals and define strategies to achieve them. they make the decisions that affect the whole company such as financial investments, mergers and acquisitions, partnerships and strategic alliances, and changes to the brand or product line of the organization.
An oligopoly is a market in which a the actions of one seller in the market have no impact on the other sellers' profits. b firms are price takers. c there are many price-taking firms, each offering a product similar or identical to the products offered by other firms in the market. d there are only a few sellers, each offering a product similar or identical to the products offered by other firms in the market.
Answer:
The correct answer is option d.
Explanation:
An oligopoly is a market structure where there are a few producers producing homogeneous products or similar products which are close substitutes. Because of a few firms, there is a high degree of competition in the market.
The market decisions of a firm affect its rivals, so all the firms are interdependent on each other.
The firms are price makers. There is high restrictions on entry of firms in the market.
Boretti has $400,000 in a stock fund. The fund pays a 10% return, compounded annually. If he does not make another deposit into the account, how long will it take for the account to increase to $2 million?
Answer:
it will take 16.89 years for the account to increase to $2 million.
Explanation:
PV = $400,000
FV = $2,000,000
I/Y = 10%
Solving for N in:
FV = PV * (1 + I/Y)N
$2,000,000 = $400,000 * (1.10)N
5 = (1.10)N
N = 16.89 years
Therefore, it will take 16.89 years for the account to increase to $2 million.
Short-term tactical plans are defined by:_______.
A. Defined by Customer
B. Set before objectives can be determined
C. Supportive of strategic objectives
D. Normally opposite of long range objectives.
Answer: Supportive of strategic objectives.
Explanation:
Short term plans are plans an organization makes that they use to achieve an objective within a short period. Short term plans are usually steps geared towards an organization achieving it's overall long term goals(strategic objectives). Short term plans makes it possible for an organization to achieve it's overall goals.
What type of cost is incurred when a project must be conducted faster than normal, and overtime for workers and / or extra charges for rapid delivery from suppliers are necessary?
Answer:
Expedited costs
Explanation:
Expedited costs is the cost or an expense which is defined as the extra cost or an additional cost like higher early prices, overtime and express freight. This cost is incurred in order to fast the tracking replacement or repairs of the damaged assets or lost assets. These kinds of the expenses are not covered under the normal fire insurance policy until specifically included.
Therefore, the expedited cost is incurred when the project need to be performed faster than usual and the overtime for the workers as well as the additional charges are paid for fast delivery from suppliers.
The cash coverage ratio adds ______ to operating earnings (EBIT) for a better measure of how much cash is available to meet interest obligations.
Answer:
Depreciation
Explanation:
Various liquidity ratio methods are used by banks, firms and organisations to measure the cash available to pay the liabilities. The quick ratio, current ratio and cash coverage ratio are some of the most used methods. Cash coverage ratio uses depreciation to measure the cash available to meet interest obligation. The formula to measure the cash coverage ratio is
CR= EBIT + Depreciation +Amortization
A large corporation that runs nursing homes estimates that changes to Medicare will result in lower payments by Medicare to nursing homes for short-term stays by patients that require therapy or care upon leaving hospitals. Assume the corporation is considering expanding the number of "Beds" it offers at its nursing homes.Given the changes to Medicare, if the marginal benefit of offering an additional bed is $5,000 and the marginal cost is $6,000 per bed, then the corporation __________ (should / should not) offer additional beds.
Answer:
Should not
Explanation:
From the question, marginal cost exceeds the marginal benefit to be derived from the addition of beds.
Thus MC > MB
This means that it will cost the Corporation more to expand the number of beds than the benefits that they will derive from adding this feature. This shows that they are better off avoiding the addition of beds as this would make them to run at a loss. Hence, they should not offer additional beds.
A local restaurant has estimated that the price elasticity of demand for meals is equal to 2. If the restaurant increases menu prices by 5%, they can expect the number of customers to decrease by ________and total revenue to ________.
Answer:
Explanation:
ed= 2 , Price increase by 5%.
Elasticity of Demand = % Change in Quantity demanded/ % change in price
% change in quantity demanded = 2*5%=10%
Since, the elasticity > 1 and price has decreased, the total revenue will decrease. The impact of price change on Total revenue is based on the relationship between elasticity of demand and Total revenue.
Thus, there will be 10% fall
Final answer:
With a price elasticity of 2, a 5% price increase will result in a 10% reduction in number of customers and a decrease in total revenue. The price elasticity between the price points of $18 to $16, with an increase in quantity demanded from 450 to 500 meals per day, is calculated to be 1, indicating that total revenues will remain unchanged.
Explanation:
Given that the price elasticity of demand for meals is equal to 2, if the restaurant increases menu prices by 5%, they can expect the number of customers to decrease by 10% (twice the percentage change in price due to the elasticity value of 2). As for total revenue, since the price elasticity of demand is greater than 1, indicating an elastic demand, we can expect total revenue to decrease as a result of the price increase.
When calculating the price elasticity of demand between the two points where the price of a meal is reduced from $18 to $16 and the quantity demanded increases from 450 to 500 meals per day, we use the formula:
Elasticity = (Percentage Change in Quantity Demanded) / (Percentage Change in Price)
Calculating the percentage changes:
Quantity demanded increases by 50 meals, which is (50/450)*100 = 11.11%Price decreases by $2, which is (2/18)*100 = 11.11%Therefore, the elasticity between these points is:
Elasticity = 11.11% / 11.11% = 1
This elasticity value of 1 indicates unitary elasticity, meaning the percentage change in quantity demanded is equal to the percentage change in price. As a result, we would expect total revenues to remain the same when reducing the price from $18 to $16.
Since the collapse of communism at the end of the 1980s, the erstwhile communist nations have transformed their economies by globalizing their markets. This involves ____.
A. reguling markets
B. Privatizing state-owned enterprise
C. decreasing competition
D. reducing foreign investment
Since the collapse of communism at the end of the 1980s, the erstwhile communist nations have transformed their economies by globalizing their markets. This involves reducing foreign investment. Hence, option D is correct.
What is foreign investment?Investments made by foreigners in the domestic companies and assets of other countries are referred to as "foreign investments." Large multinational corporations will expand their operations and invest more money in other countries as they look for new opportunities for economic development.
A large Australian mining conglomerate purchases a smaller Angolan business in an effort to diversify. These are all examples of foreign direct investment, in which a foreign investor chooses to buy stock or other ownership stakes in a company.
By expanding our export possibilities and bringing in new businesses with connections to other markets, it improves our overall export performance.
Thus, option D is correct.
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