Answer:
Approach-Avoidance
Explanation:
Approach avoidance conflict is a situation whereby a goal possesses both positive aspects and negative aspects making the goal look appealing and unappealing at the same time leading to the approach and avoidance reactions at thesame time. In this case, the goal is a new job and the positive aspects or advantages are increased in both position and money when compared to her current job. But has a negative aspects of relocating tons new place in which is not desired by the individual.
Answer:
The conflict she is experiencing is known as approach-avoidance conflict.
Explanation:
Approach-avoidance conflict is said to occur when someone finds himself/herself in the middle of a situation that has both negative and positive aspects. In other words, such a person has to make the decision of pursuing a goal that has its advantages or avoiding the same goal because of its disadvantages.
The senior team leader (in the question) just got a job that promotes her in ranks (an advantage) with an increase in pay compared to what she used to earn (also an advantage). However, in order to work such a job, she has to relocate to a town that she doesn't like (a huge disadvantage).
Thus, she is quite uncertain about whether to take the job in view of its advantage or leave it in view of its disadvantage. In other words, she is experiencing conflicting thoughts in the middle of a situation that has both negative and positive aspects.
Durango Co. desires to maintain an ending inventory equal to 10% of next month's cost of budgeted sales. Assume that Durango Co. maintained this level of ending inventory for the month of September. The cost of budgeted sales for October is $100,000 and the cost of budgeted sales for November is $200,000. Calculate required purchases for the month of October.
Answer:
Required purchase for October = $110,000
Explanation:
Given:
Ending inventory = 10% of next month's budgeted sales
Budgeted sales for October = $100,000
Budgeted sales for November = $200,000
Purchase for the month of October = ?
Calculation of Required purchase for the month of October :
Particular Amount
Budgeted sales of October $100,000
Add: Desired ending inventory($200,000 x 10%) $20,000
Total Inventory needed $120,000
Less: Beginning inventory($100,000 x 10%) $10,000
Required purchase for October $110,000
You work for an accounting firm, and your supervisor is interested in learning more about the proposed tax reforms in your state. You are asked to write a short report that provides your supervisor with information and data on the proposed tax reforms and how they will affect the processes your firm has in place. You will have to consult several sources to gather this information.
What type of short informational report have you been asked to write?
a. A progress report
b. An investigative report
c. A summary
Answer: An investigative report
Explanation:
An investigative report is created with the intent which is that it may be used in a court of law. The investigative report should be succinct and must focus on the mission of the investigation.
The investigator's primary purpose is to find information and evidence on a precise matter, in order to recover significant documents, or certain file types. The goal of the investigation is usually defined by ones client who could either be internal to the organization one works for or another lawyer or investigator.
In order to make the monthly mortgage payment on a new house affordable, Kolton will need to obtain a lower mortgage interest rate. Kolton’s bank has offered to reduce the rate of his mortgage from 5.10% to 4.20% if he pays one point at closing. If the amount of the mortgage is $490000, how much must Kolton pay to reduce his interest rate?
Answer:
$4900
Explanation:
One point is money aid to lender at closing in negotiation for a lower interest rate . It is calculated as 1% of the mortgage amount or $100 for every $100,000 borrowed
Workings
Mortgage value = $490,000
1% of mortgage value = 1/100*490000
= $4,900
Hawaiian Specialty Foods purchased equipment for $23,000. Residual value at the end of an estimated four-year service life is expected to be $2,300. The machine operated for 2,400 hours in the first year, and the company expects the machine to operate for a total of 15,000 hours. Calculate depreciation expense for the first year using each of the following depreciation methods:
1) straight-line.
2) double-declining-balance.
3) activity-based.
Answer:
a. $5,175
b. $11,500
c. $3,312
Explanation:
The computation of the depreciation expense for the first year is shown below:
a) Straight-line method:
= (Original cost - residual value) ÷ (useful life)
= ($23,000 - $2,300) ÷ (4 years)
= ($20,700) ÷ (4 years)
= $5,175
In this method, the depreciation is same for all the remaining useful life
(b) Double-declining balance method:
First we have to find the depreciation rate which is shown below:
= One ÷ useful life
= 1 ÷ 4
= 25%
Now the rate is double So, 50%
In year 1, the original cost is $23,000, so the depreciation is $11,500 after applying the 50% depreciation rate
(c) Units-of-production method:
= (Original cost - residual value) ÷ (estimated production hours)
= ($23,000 - $2,300) ÷ (15,000 hours)
= ($20,700) ÷ (15,000 hours)
= $1.38 per hour
Now for the first year, it would be
= Production hours in first year × depreciation per hour
= 2,400 hours × $1.38
= $3,312
A team was in pursuit to sign a highly sought-after free agent. It gave the player the highest offer of all the teams, and ultimately signed him to a high-paying contract. The player did not live up to expectations during the subsequent season. This is an example of:
Answer:
a winner's curse
Explanation:
Based on the scenario being described within the question it can be said that this is an example of a winner's curse. This term refers to a phenomenon in which all bidders have the same value for an item but tend to receive different private signals regarding the value for the item. This makes the winner usually end up being the individual with the most optimistic evaluation of the asset that is being purchased. Which seems to be the case in this scenario, since the team gave the player the highest offer, thinking that was a good value, but the player turned out to not be worth that value.
Final answer:
The situation where a player receives a high salary but does not perform up to expectations exemplifies the sometimes imperfect correlation between player salaries and their marginal revenue product (MRP) due to overestimated performance and high derived demand in professional sports.
Explanation:
The team's pursuit of a highly sought-after free agent, followed by a significant contract offer that did not pay off in terms of the player's performance, is an example of a disconnect between player salaries and their Marginal Revenue Product (MRP). In some cases, mediocre players have received high salaries due to expectations of high performance and potential contributions to team revenues, only to fall short and have salaries exceed their MRPs. This scenario has evolved from a historical context where professional athletes didn't have the same freedom to negotiate with multiple teams due to the reserve clause which gave teams monopsony power. Post-1977 shifts in policies transformed this monopsonistic market into a competitive one, with the player mobility now relatively unimpeded, heightening the opportunities for bidding wars over top talent. Additionally, it's important to consider agents' roles in these negotiations. Agents who overestimate their clients' abilities may push for contracts that attract both those with high abilities and those who overestimate their own abilities. Regardless, today's high player wages reflect a high derived demand stemming from robust ticket sales and television rights.
Ocean Grove Vending Company has invested $980,000 in a plant to make vending machines. The company plans annual sales of 1600 vending machines at a selling price of $1100 each. The target operating income desired from the plant is $196,000 annually. What is the target cost base of each vending machine for Ocean Grove Vending Company
Answer:
Target cost per machine = =$977.5
Explanation:
Target cost is derived by subtracting a desired profit margin from a competitive selling price. It represents the cost at which a company must produce in order to achieve a desired profit
For Ocean Grove Vending Company, the target cost per vending machine can be determined as follows:
Target cost per unit of machine
= (Sales revenue - desired profit margin)/ No of units sold=
= (1600 × $11000) - $196,000)/1,600
=$977.5
Starting an investment portfolio at a young age means:
Oa
Ob
Knowing your investment is always safe
You can spend freely, without concern for your financial future
There is greater potential for high yield over a longer period
You should choose stock with low risks
Od
Answer:
c. There is greater potential for high yield over a longer period
Explanation:
Starting to invest at a young age allows for a longer period of compounding, providing higher potential yields. However, it doesn't imply absolute safety or free-spending.
Explanation:Starting an investment portfolio at a young age means there is greater potential for high yield over a longer period. This is because investments, particularly those in stock markets, tend to grow over time through a process called compounding. The earlier you start investing, the more time your money has to grow. However, this does not imply that your investment is always safe or one can spend freely without concern for their financial future. Investment always comes with certain risks and it requires a balanced approach of spending, saving and investing.
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Review the transactions below and select the one that would be journalized in a general journal when specialized journals are used within the business.
A. Purchasing equipment by issuing a check
B. Receiving a cash payment from a customer
C. Purchasing inventory on account
D. Purchasing equipment by issuing a note payable
Answer:
The correct option is D,purchasing equipment by issuing a note payable
Explanation:
Issuing check to pay for equipment purchase,receipt of cash from a customer as well as purchase of inventory on account are all usual transactions that take place regularly within a business ,hence do not require any specialized journals in posting them in the books of account.
However,purchase of equipment by issuing a note a more complex transaction that seldom occur,it is important to reflect in the accounts in a special way in order to draw attention to it that it is a special transaction that should be handled different from other transactions
Final answer:
The transaction that would be journalized in the general journal when specialized journals are used is option D: Purchasing equipment by issuing a note payable. This is because it involves a long-term liability and does not fit into the specific categories of the specialized journals.
Explanation:
When using specialized journals, certain transactions are recorded in specific journals, such as sales journals for sales transactions, purchase journals for inventory purchases on account, cash receipts journals for cash received, and cash disbursements journals for cash paid out. The general journal is typically used for non-routine transactions or those that do not fit into the specific categories of the specialized journals.
In the case of the transactions provided:
A. Purchasing equipment by issuing a check would usually be recorded in the cash disbursements journal.B. Receiving a cash payment from a customer would be recorded in the cash receipts journal.C. Purchasing inventory on account would be recorded in the purchases journal.D. Purchasing equipment by issuing a note payable is a more complex transaction involving a long-term liability and would typically be recorded in the general journal, as it is not a routine transaction that fits into the other specialized journals.Therefore, the correct transaction that would be journalized in the general journal is option D: Purchasing equipment by issuing a note payable.
eresa Matthews, ad campaign manager for Coca-Cola, is making final changes to the content of an ad's message. She is talking with network distribution companies about when the ad will air, and she is discussing expected effects of the ad on consumers with commercial artists. Thus, she is in which stage of the ad campaign development process?
Answer:
Execution of the campaign
Explanation:
Theresa is at the execution of the campaign. At this stage Theresa distributes information about the campaign to all employees. She Engages the media such as local newspapers, radio, TV and public events on when the ad will air while engaging commercial artists on how the effect the ad is going to have on her consumers,
Answer:
Execution of the campaign.
Explanation:
In this context presented by the question, it is correct to state that Teresa Matthews, Coca-Cola's advertising campaign manager, is in the campaign execution stage in the process of developing the advertising campaign.
This stage can be seen by the information contained in the question, such as the fact that she is talking to distribution networks about when the ad will run and discussing the expected effects of the ad on consumers with commercial artists.
The campaign execution stage is essential for an advertising campaign to be successful, strategic planning is needed on where and when to run the campaign and what the expected effects will be, so that the campaign reaches its initial purpose and brings benefits to a company, such as attracting consumers and creating value for the target audience.
Process redesign: a. is the fundamental rethinking of business processes. b. is sometimes called process reengineering. c. tries to bring about dramatic improvements in performance. d. often focuses on activities that cross functional lines. e. All of these
Answer:
e. All of these is the correct answer.
Explanation:
Process Redesign is an approach of rethinking and recreating the business processes to improve product quality, reduce cost and improve the output and also to bring improvements in the performance.Process redesign involves the analysis of inefficient processes and finds out the ways to improve them and also analyze the business workflows and processes.Process redesign is also called as process reengineering or business transformation.Justin Beiber wants to save enough money to make a down payment on a new home. He decided to put $10,000 into a savings account at the end of each of the next ten years. If he earns 4% compound interest, how much money will he have at the end of the ten years
Answer:
$14,802.44
Explanation:
Compound interest is the accumulated interest calculated on initial right from deposit till withdrawal. It always span over a long period of time and makes deposit grow faster.
Workings
Principal - $10,000
Rate - 4%
Period = 10 years
Formula = A = [P(1+i)^n]-p
= [10000(1+0.04)^10]-10000
$14,802.44
Answer:
Justin Beiber would have in the savings account $14,802.44 at the end of the ten years
Explanation:
The amount that Justin Beiber would have at end of ten years with interest rate of 4% can be determined using the future value provided below:
FV=PV*(1+r)^n
PV is the amount deposited into the savings account today i.e $10,000
r is the rate on the deposit at 4%
n is the number of years the savings would last which is 10 years
FV=$10,000*(1+4%)^10
FV=$10,000*(1+0.04)^10
FV=$10,000*(1.04)^10
FV=$10,000*1.480244285
FV=$14,802.44
The dollar interest =$14,802.44-$10,000.00=$4,802.44
Quistor Inc., a company based in the country of Waltefa, contracts with a small-scale supplier in the country of Carlesna to manufacture its computers and tablets that are sold across the world. This strategy by Quistor Inc. illustrates _____.
Answer:
Foreign outsourcing
Explanation:
Foreign outsourcing is a business practice by which a company based in a certain region or country hires another company outside of the region to produce good and perform services that could have been done within. We could also define it as the importation of products or service that could have produced domestically. Most times foreign outsourcing are done to reduce cost of production or service delivery, but one common risk that could be experienced in foreign outsourcing is the loss of control over the goods produced or the services provided.
Therefore, the strategy by Quistor Inc. illustrates foreign outsourcing.
The strategy illustrated by Quistor Inc. is outsourcing, which involves contracting with a third-party supplier to perform certain tasks or services. This allows Quistor Inc. to focus on other aspects of their business while taking advantage of the supplier's expertise and cost advantages. It also illustrates globalization, as Quistor Inc. is expanding its operations by working with a supplier in another country.
Explanation:The strategy illustrated by Quistor Inc. is outsourcing. Outsourcing refers to the practice of contracting with a third-party supplier to perform certain tasks or services. In this case, Quistor Inc. is contracting with a supplier in Carlesna to manufacture its computers and tablets. This allows Quistor Inc. to focus on other aspects of their business while taking advantage of the supplier's expertise and cost advantages.
Outsourcing can be a strategic decision for companies to achieve various benefits, such as cost savings, access to specialized skills, increased efficiency, and global expansion. Quistor Inc.'s decision to contract with a supplier in another country also demonstrates globalization. Globalization refers to the increasing interconnectedness and integration of economies and societies around the world.
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As a result of crowding outLOADING... in the short run, the effect on real GDP of an increase in government spending is often A. equal to the increase in government spending. B. less than the increase in government spending. C. unrelated to the increase in government spending. D. more than the increase in government spending.
Answer:
The answer in this case, would be option B. or less than the increase in government spending.Explanation:
In Macroeconomics, crowding out refers to a macroeconomic situation in which the increase in government spending or expenditure reduces the private business or capital expenditure and consumption of goods and services.Crowding out mostly occurs when government increases financial borrowing or increases tax to finance or liquidate the public or government spending or expenditure in the economy.As the government borrowing and public tax increases, the interest rate in the economy increases which discourages the firms,companies or business organizations to avail business or capital loans and investments and reduces the consumption level of goods and services by individual households in the economy.Therefore,despite an increase in government spending or expenditure,further reductions in both private business investment and the aggregate consumption in the economy leads to a lesser increase in real GDP compared to the initial government spending.Scenario 13-20 suppose that a given firm experiences decreasing marginal product of labor with the addition of each worker regardless of the current output level. refer to scenario 13-20. average total cost will be
Answer:
U-shaped
Explanation:
Since the marginal product of labor is decreasing, the average variable costs and marginal costs will be increasing at all points, but the average fixed costs will be decreasing. That is why the average total costs (which includes both variable and fixed costs per unit) will be U-shaped since they will fall at the beginning when the decrease in marginal product of labor is small, bu then will increase as the marginal product of labor falls even more.
Final answer:
In Scenario 13-20, as a firm experiences diminishing marginal productivity by adding more workers, the average total cost tends to increase.
Explanation:
Referring to Scenario 13-20, a firm that experiences decreasing marginal product of labor with the addition of each worker will see changes in its cost structure. The diminishing marginal productivity is a general rule indicating that as a firm employs more labor, the amount of additional output will eventually decline. This decrease in productivity typically leads to an increase in the average total cost (ATC). As labor is added and marginal product diminishes, each additional unit of output costs more to produce than the previous one, causing the ATC to rise.
What is the cost of goods sold given the following information? Beginning Work in Process 125,000 Beginning Finished Goods 78,000 Ending Work in Process 139,500 Ending Finished Goods 102,000 Direct Labor Cost 15,000 Cost of Goods Manufactured 145,000
Answer:
$121,000
Explanation:
Given that,
Beginning Work in Process = 125,000
Beginning Finished Goods = 78,000
Ending Work in Process = 139,500
Ending Finished Goods = 102,000
Direct Labor Cost = 15,000
Cost of Goods Manufactured = 145,000
Cost of goods sold refers to the cost of acquiring and manufacturing the goods to be sold during a period of time. It includes all the costs that are directly related to the production of the goods.
Cost of goods sold is calculated by the following formula:
= Beginning Finished Goods inventory + Cost of Goods Manufactured - Ending Finished Goods
= 78,000 + 145,000 - 102,000
= $121,000
There is no valid for promises to perform an act the promisor is already obligated to perform. This is called the:_____
A. Courts will enforce a contract for a pre-existing duty if the promisor agrees to provide .
B. The UCC allows of existing contracts for the sale of goods without additional consideration.
C. Parties may an agreement to terminate all of their respective obligations under the contract.
Answer:
I want to say A is the answer
Gordron Inc. manufactures and markets medical equipment. To ensure that its salespeople are knowledgeable enough to answer all product queries, the company hires only those individuals who have a good understanding of both the medical profession and the mechanics of the equipment used. Which of the following is the most accurate classification of Gordron's salesforce?
A) techniciansB) demand creatorsC) deliverersD) order takersE) missionaries
Answer:
A) technicians
Explanation:
Technicians will be the most accurate classification of Gordron's salesforce of those individuals who have a good understanding of both the medical profession and the mechanics of the equipment used.
If Modern Company received $3,650 from Connor Young Company on March 12 for the total amount of an account which had been written off on March 1, the entry to reinstate the account under the direct write-off method would include
Answer:
Journal Entry
Dr. Bad Debt Expense $3,650
Cr. Account receivables $3,650
Explanation:
Under Direct Method we charge the bad debt expense directly without any involvement of allowance account. We deduct the written off value from account receivable by a credit entry in it because it is an current asset account which is debit in nature, the decrease will require a credit entry in it.
Answer:
3650
Explanation:
Consider the following metrics: Does the project have: A well-defined system development methodology that is appropriate for the project? A clear change control process for managing scope creep? A strategy for assessing quality? A clear process for monitoring and tracking progress? These metrics belong to which category of success factors for projects?
Answer:
Project Management Factors
Explanation:
These metrics are considered the factors for which a projects needs to be successful.
The methods and tactics applied for managing projects depend on the kind of project you deal with. The project structure, processes involved varies based on the kind of products or services you offer, and the market it is concerned with.
Theo founder Joe Whinney believes that that a business should benefit every partner throughout the organization's entire supply chain. This focus on the well-being of others is characteristic of all the following except:a. Justice
b. Virtue Ethics
c. Egoism
d. Utilitarianism
Answer:
C. Egoism
Explanation:
Egoism refers to the individual belief whereby self interest is the motivation and goal behind one's action. It has to do with and individual thinking about only himself and what actions he can take to benefit himself alone. Egoism threats self interest as the foundation of morality. But in reality however, egoism is immoral as one possessing such thoughts is not been fair to others. Thus, egoism does not focus on the wellbeing of others. It is all about self interests.
There are three consecutive steps in a customer service process. The first two steps are each capable of serving 25 customers per hour while the third step can process only 20 customers per hour. How do you describe this system ?
Answer:
If the first two steps are run at full capacity, then the third step has a waiting line.
Explanation:
Waiting line is defined as a line of people or vehicles waiting for something. Hence, if the first two step runs in a full capacity been able to serve 25 customers per hour. Meaning for each hour 50 customers will be attended to by the two, then the third will surely be on a waiting line.
The customer service process described is limited by its third step, capable of serving only 20 customers per hour, thus creating a bottleneck. This constrains the entire system's capacity to 20 customers per hour, regardless of the higher capacities of the first two steps.
The customer service process described involves three consecutive steps, with the first two steps each having a capability of serving 25 customers per hour, and the third step only capable of serving 20 customers per hour. This system can be described as being constrained by its slowest component, which is the third step capable of processing only 20 customers per hour. The performance and efficiency of the entire customer service process are limited by this final step, creating a bottleneck in the system. This bottleneck dictates the maximum number of customers the service process can handle per hour, meaning the service can process no more than 20 customers per hour irrespective of the higher capacity of the first two steps.
This scenario illustrates a common issue in operations management known as a “bottleneck.” Bottlenecks determine the throughput capacity of a system and can lead to increased waiting times and decreased customer satisfaction if not properly addressed. Strategies to manage or mitigate bottlenecks include increasing the capacity at the bottleneck point, redistributing workloads, or adjusting processes upstream to reduce pressure on the bottleneck.
Believing it will make it easier for investors to compare firms across countries and make it easier to raise capital globally, most large accounting firms and multinational firms favor the switch from GAAP to IFRS.
True / False.
Answer:
True
Explanation:
Generally Acceptable Accounting Principles (GAAP) is only applicable in the United States of America whereas International Financial Reporting Standards (IFRS) has been adopted by most countries on the globe. This makes Report prepared on IFRS more comparable and make it easier to raise capital globally.
Sunland Co. sold $1,940,000 of 10%, 10-year bonds at 104 on January 1, 2020. The bonds were dated January 1, 2020, and pay interest on July 1 and January 1. If Sunland uses the straight-line method to amortize bond premium or discount,determine the amount of interest expense to be reported on July 1 2020,and December 31, 2020.
Answer:
The amount of interest expense to be reported is $186,240
Explanation:
In this question, we are asked to determine the amount of interest expense to be reported on July 1 and December 31, 2020
To determine this we proceed as follows;
Bonds issue price =
(face value of bonds issued / face value ) * issue price
= (1940000/100)*104
= $ 2017600
Premium on bonds = issue price - facevalue
= 2017600 - 1940000
= $ 77600
Straight line amortization per year = premium / no of years
= 77600/10
= $ 7760 per year
For semi annual period = 7760/2
= $ 3880
Semi annual cash payment of interest
= facevalue * cuponrate * (6/12)
= 1940000 * 10% * (6/12)
= $ 97000
Interest expense recorded on July 1 st
= Cash payment - amortization amount
= 97000 - 3880
= $ 93120
On Dec 31 st
= $ 93120 ( remains same under straight line method)
Total interest expense for the year = 93120 *2
= $ 186240
Macy's department stores carry a wide range of product lines, including clothing, jewelry, kitchenware, and home furnishings. Although it usually charges a relatively high markup, Macy's also holds frequent sales and price promotions, as well as offers discounts to customers who use a Macy's credit card. Macy's uses ________. A. everyday low pricing B. high-low pricing C. experiential retailing D. retail convergence E. self-service retailing
Answer:
High-low pricing
Explanation:
Pricing strategy is a method that is used by various organizations to find to best price to sell their goods and services. Pricing strategy is very important because it is used to determine the amount of profit an organization will earn from selling a particular product.
High-low pricing is a pricing strategy that is used mainly by retailers. It involves increasing the price of a product when it is initially released into the market and then later on reducing the price to attract more customers.
While running a program, Sasha enters a negative number when a positive value was expected. Which type of error is likely to occur?
syntax
run-time
logic
interpreter
Answer:
Run time
got it right on edge
While running a program, Sasha enters a negative number when a positive value was expected. The type of error that is likely to occur is run-time. Thus the correct option is B.
What is a run-time Error?When a programme finds an unexpected condition during execution, it is impossible to proceed without correcting the problem. When a run-time problem occurs, the programme will either display an error message or cease to function.
When Sasha enters a negative value when a positive number was expected, the programme may meet a runtime problem since it was not built to handle negative input values.
A runtime error is likely to occur in this circumstance when the programme encounters an unexpected situation during execution. Therefore, option B is appropriate.
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Ventaz corp manufactures small windows for back yard sheds. historically, its demand has ranged from 30 to 50 windows per day with an average of 42. alex is the one production worker and he works eight hours a day, five days a week. each order is one window and each window takes 5 minutes. alex plans to add doors to its product line and anticipates that they will average 4 doors per day. each door takes 540 minutes to install. what is the average waiting time, in minutes, if alex continues to be the only worker?
Answer:
308 minutes
Explanation:
The average waiting time = [tex]\frac{42*5^2+4(540)^2}{2*(480-(42*5)-540*4))}[/tex]
= [tex]\frac{42*25+1166400}{2*(480-(210)-2160))}[/tex]
= [tex]\frac{1167450}{-3780}[/tex]
= - 308.85 minutes
Thus; alex average waiting time, in minutes, 308 minutes if he still wants to continues to be the only worker.
Tom is maximizing utility by buying three packs of bubble gum and four packages of Skittles. Given diminishing marginal utility, if the price of Skittles rises, the principle of rational choice tells us that Tom will buy:_________.
a. more as, raising the opp cost of not consuming skittles.
b. fewer as, raising the opp cost of not consuming skittles.
c. more as, lowering the opp cost of not consuming.
d. fewer as, lowering the opp cost of not consuming.
Answer:
B) fewer SKITTLES, raising the opp cost of not consuming skittles.
Explanation:
The principle of rational choices states that a person will carry out their purchasing decision in order to maximize the benefits or utility obtained. Individuals will always pursue their best self interest.
Since Tom is maximizing the utility obtained from candy, and the price of one type of candy increases, he will reduce the number of units bough from that type of candy until the utils obtained increase again. As the utils per dollar start to rise, the opportunity cost of not consuming that candy will also rise.
Given diminishing marginal utility and a price rise for Skittles, Tom will purchase fewer Skittles since the opportunity cost of consuming them will increase, leading to a reallocation of his spending towards goods where the marginal utility per dollar spent is equalized.
The correct option is 'B'.
Tom is maximizing utility by buying three packs of bubble gum and four packages of Skittles. Given diminishing marginal utility, if the price of Skittles rises, according to the principle of rational choice, Tom will buy fewer Skittles as it raises the opportunity cost of consuming them.
A rational consumer will continue purchasing additional units of a product only as long as the marginal utility from consuming the product exceeds the opportunity cost.
The opportunity cost in this case is the marginal utility of the foregone alternative which could be, for example, more bubble gum or another product. If the marginal utility of Skittles decreases or remains the same but the price increases, the cost of acquiring additional Skittles relative to the utility they provide rises, making them less attractive to purchase. Tom will adjust his spending to where the marginal utility per dollar spent is equal for all goods he consumes.
Keeping this in mind, we can apply the logic from an example scenario: suppose a consumer, Alphonso, moves down his budget constraint from Point A to Point B to Point C and further.
As he consumes more of a product, like bus tickets, the marginal utility will diminish, while the opportunity cost, perhaps the marginal utility of foregone burgers, will increase. Since no rational consumer would purchase more of a product if the opportunity cost exceeds the marginal utility, Tom will logically purchase fewer Skittles after the price increase, making the correct answer option b. 'fewer as, raising the opp cost of not consuming skittles.'
The Green Leaf Tea Company labels and categorizes its tea before distributing it to customers. The highest grades are referred to as "orange pekoe," and the lowest grades are termed "fannings" or "dust." Which of the following marketing functions is Green Leaf Tea using when it categorizes the tea?
Answer:
It uses grading
Explanation:
Grading is the a way of sorting the units of a product into different classes. Each class or category of product may have similar shape, size, type, weight, quality and performance. It involves dividing products into different classes or categories. With each class having similar features. This would help in price fixing for the different class of products.
Which of the following is involved in a situation in which a person refuses to perform according to a contract unless the other person either signs another contract with the one making the threat or pays that person a higher price than was specified in the original agreement?A. Fraudulent duressB. Conditional duressC. Negligent duressD. Economic duressE. Undue influence
Answer:
D. Economic duress
Explanation:
Economic duress -
It refers to the condition in the contract, where the first party threatens to cancel the deal, as the other party does not agrees to the demand of the first party, is referred to as economic duress.
The condition arises in case of any major feud between the two parties, where one of the party is left with no choice, but to follow the other party.
It is a type of forceful situation.
Hence, from the given scenario of the question,
Economic duress is showcased in the question, as one party threatens to cancel the contract, unless and until the second party agrees to all the conditions.
The catalyst for the market revolution was a series of innovations in....
a. Manufaturing
b. Agriculture
c. Banking and fiance
d. Transportation and communication
Answer:
d. Transportation and communication
Explanation:
The drivers of the market revolution is the growth and development of the transport and communication systems. The market revolution that occurred in the 19th century in the U.S is a historical model that emphasis the dramatic changes that took place in the market economy in line with the nations of the world. The market revolution was brought the changes associated with the agriculture and the industry and the development of the transport that made the traditional commerce obsolete and lead to the emergence of merchant ideas.