Answer:
The answer is A.
Explanation:
The main determinant of spending or consumption for households is income especially disposable income. Disposable income is the income after tax and other statutory incomes have been deducted.
The higher the disposable income the higher the amount spent on consumption and the lower the disposable income the lower the amount spent on consumption
With a higher income, consumers have more spare money to spend.
Give brief definitions of the following concepts: Game theory, cooperative equilibrium, noneooperative equilibrium, dominant strategy, and Nash equilibrium, and price leadership. To do this, identify the definition for each term from the following list.
1 Actions taken by a firm to achieve a goal, such as maximizing profits.
2 The study of how people make decisions where attaining goals depends on interactions with others.
3 A table that shows the payoffs each firm earns from every combination of firm strategies.
4 An agreement among firms to charge the same price or otherwise not to compete.
5 A strategy that is the best for a firm, no matter what strategies other firms use.
6. A situation in which each firm chooses the best strategy given the strategies chosen by other firms.
7. A game outcome in which players seek to increase their mutual payoff.
8. A game outcome in which players pursue their own self-interest.
9. A situation in which no player can make himself better off by changing his decision at any decision node.
10. A situation where one firm announces a price change, which is matched by other firms in the industry.
a. Game theory:______
b. Cooperative equilibrium:_______
c. Noncooperative equilibrium:_______
d. Dominant strategy:______
e. Nash equilibrium:______
f. Price leadership:_________
Answer:
Explanation:
Give brief definitions of the following concepts: Game theory, cooperative equilibrium, noncooperative equilibrium, dominant strategy, and Nash equilibrium, and price leadership.
To do this, identify the definition for each term from the following list.
1 Actions taken by a firm to achieve a goal, such as maximizing profits.
2 The study of how people make decisions where attaining goals depends on interactions with others. Game theory
3 A table that shows the payoffs each firm earns from every combination of firm strategies.
4 An agreement among firms to charge the same price or otherwise not to compete.
5 A strategy that is the best for a firm, no matter what strategies other firms use. Doninant strategy
6. A situation in which each firm chooses the best strategy, given the strategies chosen by other firms. Nash equilibrum
7. A game outcome in which players seek to increase their mutual payoff. Cooperative equilibrum
8. A game outcome in which players pursue their own self-interest. Non cooperative equilibrum
9. A situation in which no player can make himself better off by changing his decision at any decision node.
10. A situation where one firm announces a price change, which is matched by other firms in the industry. Price leadership
One of the major characteristics of pure monopoly is A. there are only a few firms in the industry. B. similar products are made by other industries. C. there is only one firm in the industry. D. there are no major barriers to entering the industry.
Answer:
C
Explanation:
7 In January 2020, Coronado Industries, a newly formed company, issued 10200 shares of its $8 par common stock for $13 per share. On July 1, 2020, Coronado Industries reacquired 1020 shares of its outstanding stock for $10 per share. 1.The acquisition of these treasury shares increased total stockholders' equity. 2. decreased total stockholders' equity. 3. did not change total stockholders' equity. 4. decreased the number of issued shares.
Answer:
2. decreased total stockholders' equity.
Explanation:
January 7, 2020, stocks are issued:
Dr Cash 132,600
Cr Common stock 81,600
Cr Additional paid in capital 51,000
July 1, 2020, treasury stocks are purchased:
Dr Treasury stocks 10,200
Cr Cash 10,200
Treasury stocks is a contra equity account which reduces the value of total stockholders' equity. When they are purchased, treasury stocks account must be recorded at the full repurchase price of the stocks.
The charter of a corporation provides for the issuance of 100,000 shares of common stock. Assume that 60,000 shares were originally issued and 5,000 were subsequently reacquired. What is the number of shares outstanding?
Answer:
55,000 shares
Explanation:
Given that
60000 shares were originally given
5000 were subsequently reacquired
Thus. Net number of shares issued
= number of shares originally issued - number subsequently reacquired
= 60000 - 5000
= 55,000
Number of outstanding shares therefore is 55,000.
NOTE that, outstanding shares refer to the number of shares that has been issued, purchase or authorized by investors, that is, the number of shares currently held by all is shareholders.
Vogue has enjoyed international success, with both standard and special editions published around the globe. One of the world's most prominent fashion magazines, it has heavily influenced the development of the fashion magazine industry and continues to shape modern fashion trends.
True or False?
Answer:
The statement given in the question if True. Hence, the correct answer is True.Explanation:
Vogue is an universally renowned and globally reputed fashion and lifestyles magazine that was founded in 1892 by Arthur Baldwin Turner, a well known individual in the then society.The fashion products and accessories promoted and featured in Vogue are evidently considered to be trends and parameters that are followed in the global fashion market or industry.It has also influenced or inspired many of the fashion and lifestyle magazines around the world.Various fashion retailers and merchandisers are massively influenced by the designs and brands commercially promoted and advertised by Vogue on its platform that further determined the different trends and brand preferences in the global market.As complemented by The New York Times in 2009, Vogues has consistently enjoyed international success,considering both standard and special editions around the world and has immensely influenced the entire fashion magazine industry and has set global trends for the fashion industry as a whole.True. Vogue has achieved international success and is a major influence in the fashion magazine industry. It continues to shape modern fashion trends globally.
True. Vogue has indeed enjoyed international success and has been a significant influence in the fashion magazine industry. Since its founding in 1892, Vogue has grown to become one of the most prominent fashion magazines globally, with both standard and special editions. It plays a crucial role in shaping modern fashion trends and continues to be a cultural barometer for a global audience, highlighting changes in how we dress, live, and socialize.
For instance, its Editor-in-Chief of British Vogue, Edward Enninful, emphasizes the magazine's impact on inclusivity and diversity in fashion. Vogue's high circulation and devoted readership make it a powerful medium for advertisers, ensuring its sustained influence and financial success.
What makes buying a foreclosed property risky? Give at least two
Answer:
Don’t Buy That Fixer-Upper (Unless You Know These 4 Things)
House Hunting
Sure-fire ways to spot a fixer-upper that’ll fix you up financially.
Plaster and lath wall torn apart
Before Buying, Real Estate Pros Insist on Doing These 4 Things
House Hunting
What you really need to know about buying — from the people who house hunt for a living.
Grigory Pekarsky in his kitchen
Is It OK to Use the Bathroom When You’re Touring a House?
House Hunting
Explanation:
Got offline hope this helps :)
Mercy's Apparels, a fabric company, was established post World War II with the aim of catering to the demands of consumers looking for affordable quality clothing. To differentiate itself from its competitors, the company developed a distinctive identity as the producer of budget clothing. In the context of the history of American business, Mercy's Apparels was most likely established during the _____.
Answer:
The correct answer is: marketing era.
Explanation:
The Marketing Era, mostly known as the Marketing Concept Era, started around 1950 after World War II (WWII). The initial marketing approach in this era was to produce goods to then push them to consumers so they could buy them. This strategy started to lose strength during this stage since manufacturers realized they needed to produce goods consumers were attracted to purchase. The overall economy was in recovery after WWII so companies started to produce low-cost items consumers were likely to afford.
Which of the following statements are true? I) Holding other things constant, the duration of a bond decreases with time to maturity. II) Given time to maturity, the duration of a zero-coupon increases with yield to maturity. III). Given time to maturity and yield to maturity, the duration of a bond is higher when the coupon rate is lower. IV) Duration is a better measure of price sensitivity to interest-rate changes than is time to maturity.
Answer:
III). Given time to maturity and yield to maturity, the duration of a bond is higher when the coupon rate is lower.
Explanation:
Duration and convexity are two items associated with the management of the risk exposure concerned with fixed-income investments.
Duration is used to check the reaction of the bond in terms of interest rates change. Convexity, on the other hand, is concerned with the correlation between the price of a bond and its yield in connection to the change in interest rates.
A bond's duration is lower when its coupon rate is higher and vice versa because of the influence of a coupon payment being high when made early.
Researchers have measured the outcome of psychotherapy by doing all of the following except ______.
1. assessing the reduction in spending on medical services when psychotherapy is provided
2. using PET and fMRI scans to view changes in the brain subsequent to psychotherapy
3. surveying clients about their experiences in psychotherapy
4. comparing hemoglobin levels between those with and without mental disorders
Answer:
4. comparing hemoglobin levels between those with and without mental disorders
Explanation:
- Assessing the reduction in spending on medical services when psychotherapy is provided.
- Using PET and fMRI scans to view changes in the brain subsequent to psychotherapy.
- Surveying clients about their experiences in psychotherapy.
Researchers have measured the outcome of psychotherapy by doing all of the above except comparing hemoglobin levels between those with and without mental disorders.
A company incurred costs to fulfill a contract that has a four-year life. The costs are a direct result of the contract and would not have been incurred had the contract not existed. How should the costs to fulfill the contract be accounted for:
Answer:
Recorded as an asset and amortized over four years.
Explanation:
When a company incurs a long term cost on a project or in the purchase of an asset.it usually amortised it and recognises it over a number of years.
This is done to reduce the expense in just one year. The expense is spread out so it does not affect profits.
In this instance the cost is recorded as an asset and amortized over four years.
Final answer:
Expenses directly related to a multi-year contract should be recognized over the life of the contract to match the incurred costs with the generated revenues, according to GAAP's matching principle. Fixed costs are spread out over time and sunk costs are not considered for future decisions. Costs related to contracts are treated as assets and expensed over the term of the contract using the six-step method of cost accounting.
Explanation:
The costs incurred to fulfill a contract that has a multi-year life should be accounted for based on the matching principle of Generally Accepted Accounting Principles (GAAP). The matching principle dictates that expenses should be recognized in the same period as the revenues they help to generate. Therefore, if a company incurs costs directly related to a contract, these costs should be spread out over the life of the contract, aligning with the revenue recognition.
Fixed Costs, such as the lease payments for equipment or a warehouse, are recognized over time, regardless of the company's level of production. In contrast, sunk costs are not taken into account for future business decisions once they have been incurred, as they cannot be recovered. When we discuss recoverable costs, it relates to assets that can be resold, where the initial cost may be recouped in the future.
When a company acquires assets or incurs other direct costs due to a contract, these are reflected on the balance sheet as assets and expensed over the contract's term according to the six-step method prescribed by cost accountants. According to this method, to accurately measure the full cost of a service or product, one must first define the cost object, which in this case, is the contract.
Many business application software vendors are pushing the use of _____ for small and medium-sized enterprise (SME) to help customers acquire, use, and benefit from new technology while avoiding much of the associated complexity and high start-up costs.
a) hosted software model
b) an ERP System
c) open-source code
d) a CRM system
Answer:
a) hosted software model
Explanation:
Many business application software vendors are pushing the use of a hosted software model for small and medium-sized enterprise (SME) to help customers acquire, use, and benefit from new technology while avoiding much of the associated complexity and high start-up costs.
Hosted software is a software that is installed, hosted and accessed completely from a remote server or location.
The advantages of hosted software model are;
- Perpetuity
- Reliable Backup.
- Anywhere access.
- Scalability of computing resources.
An owner wants to sell his house and prefers to save the commission. He lists with a broker on the basis that if the property is sold by a broker, the broker is entitled to a commission, but if the owner sells his own property, he owes no commission. This is an_____.
Answer:
Open listing
Explanation:
Open listing is a form of non exclusive listing arrangement where a home owner list his property with more than one real estate broker and the broker who is able to get a successful buyer wins the commission.
This type of listing arrangement also allows the owner of the property to sell his property by himself and he owes nobody any commission.
Furthermore , in open listing , the owner may decide to sell his property independently without the engagement of an estate agent.
Suppose that Abdul opens a coffee shop. He receives a loan from a bank for $100,000. He withdraws $50,000 from his personal savings account. The interest rate on the loan is 8%, and the interest rate on his savings account is 2%.
What is Abdul's implicit cost?
Answer:
The correct answer is $1,000.
Explanation:
According to the scenario, the computation of the given data are as follows:
Receives a loan = $100,000
Withdraws = $50,000
Interest rate = 2%
So, we can calculate the implicit cost by using following formula:
Implicit cost = Withdrawal amount × Tax rate
By putting the value, we get
Implicit cost = $50,000 × 2%
= $1,000
Preferred stockholders:a. must receive more dividends per share than the common stockholders.b. must receive dividends every year.c. have the right to receive dividends only in the years the board of directors declares dividends.d. have the right to receive dividends only if there are enough dividends to pay the common stockholders too.
Answer:
The answer is C.
Explanation:
Preferred shares is synonymous to debt. It has the characteristics of debt and equity. They are given preferential treatment. If a company liquidates, they will be settled before the common shares.
Out of all the options, option C. is correct. They have the right to receive dividends only in the years the board of directors declares dividends. This applies to both preferred shares and common shares. If the board of directors does not declare dividends, nobody receives.
Option A is wrong because they only receive dividend according to the number of shares they are holding in the company.
Option B is wrong because they receive shares only in the the board declares dividends.
Option D is also wrong.
IS The carnivorous really bad
Um no how would that be bad? Carnivores eat meat
Initially, a perfectly competitive industry that has 1,000 firms is in long-run equilibrium. Then 100 firms in the industry adopt a new technology that reduces the average cost of producing the good. In the short run, the price ________, firms with the new technology make ________ economic profit, and firms with the old technology ________.
Answer:
B. falls; positive economic; incur economic losses
Explanation: A perfectly Competitive industry is a collection of firms who are producing similar products,these firms are known as price takers as the pressure from the market forces and other impacts that causes an change in price will affect them easily as they will have to take the price even when it is not favourable to their business, this is done in order to remain competitive and relevant in the market.
Refer to the scenario below to answer the following questions.The Treble Clef sells music books, musical instruments, and novelty gifts of a musical nature. In recent years, owner Gary Zahn has served as the local representative of several musical instrument manufacturers, providing a contact person for three local schools. He sends a sample of a manufacturer's products to schools that request a demonstration or presentation. "If we don't have it, we can definitely get it for you," Gary tells all Treble Clef visitors and customers.Most walk-ins are particularly interested in a specific piece of sheet music from a particular era or just browsing among the hundreds of music knick-knacks in the store. Gary spends most of his time making presentations to beginners at the local schools and making biweekly visits to the schools to deliver instruments, make minor repairs, or pick up instruments to ship to the manufacturer for more complicated repairs.After establishing a loyal customer base, Gary was convinced that a Treble Clef Web site could benefit a variety of customers. He began with a simple Web site which provided information about the store and the types of gifts and services available. The site received so much response that Gary added a question-and-answer option. Questions poured in, ranging from "Where can I get sheet music for 'Hello, Dolly'?" to "Do you carry clarinet reeds?" to "My saxophone needs two new pads. When will you be at Elmhurst School to repair it?" The Web site is now able to accept credit card orders, and gifts can even be wrapped and shipped for no extra charge."This Web site idea was fantastic!" Gary admitted. "It allows us to be so responsive. And our novelties sales have doubled!"Which of the following best describes Treble Clef?A) click-only companyB) click-and-mortar companyC) brick-and-mortar companyD) shell companyE) buy-here pay-here companyGary sends samples of sheet music to schools for demonstration or presentation. Which of the following types of marketing is being illustrated from this statement?
A) kiosk marketing
B) ambush marketing
C) direct-mail marketing
D) telemarketing
E) direct-response television marketing
Answer:
1) Option B) Click - and - mortar company
2) Option C) Direct - mail marketing
Explanation:
1) A click and mortar company is a type of business model that has both online and offline operations, which typically include a website and a physical store.
Since Treble Clef has a website for attending to customers and also a store for physical sales, it is a click and mortar company
2)A direct - mail marketing is a marketing technique that uses a mail service to deliver a promotional piece to your target audience. Direct mail encompasses a wide variety of marketing materials, including brochures, catalogs, postcards, newsletters and sales letters.
Since Garry sends these samples of sheet music to these schools directly for presentation or demonstration, it is a direct mail marketing.
1) the choice is B) Click - and also - mortar company may be a form of business model.
2) the choice is C) Direct - to mail marketing may be a marketing technique.
What are the categories of Marketing?1) A click-and-mortar company could be a style of a business model that has both online and offline operations, which usually include a website and a physical store.
Since clef features a website for progressing to customers and also a store for physical sales, it's a click and mortar company
2) Direct - mail marketing could be a marketing technique that uses a postal service to deliver a promotional piece to your audience. junk mail encompasses a large form of marketing materials, including brochures, catalogs, postcards, newsletters, and sales letters.
Since Garry sends these samples of a piece of music to those schools directly for presentation or demonstration, it's instantaneous mail marketing.
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The Internet raises the bargaining power of customers by: A. reating new opportunities for building loyal customer bases. B. making more products available. C. making information available to everyone. D. lowering transaction costs.
Answer:
C. making information available to everyone.
Explanation:
The Internet raises the bargaining power of customers by making information available to everyone. The reason for this is that the bargaining power is the degree of influence customers have to force businesses to provide better products and lower price and the internet allows everyone to have access to lot of information which helps customers to learn about features, prices, differences in products and substitutes and this helps the customers to be educated and be sensitive about the price of the products increasing the bargaining power they have.
A firm produces in a perfectly competitive market and hires labor in a perfectly competitive labor market. The firm hires four workers, the marginal product of the fourth worker is 4, and the wage rate is $40. The firm produces 100 units of the product, which sell for a price of $10. This firm is _____
Answer:
This firm is
not maximizing profit and should hire fewer workers to increase profit
Explanation:
Labor=4 workers
Output=100 units
Wage rate=$40
Unit price=$10
Marginal product (MP) of 4th worker=4
Total revenue= Output×price
=100×10
=$1000
Marginal product(MP) is the increase in output as a result of an increase in unit of inputs.
MP= Change in output/change in inputs.
The marginal product of the fourth labour doesn't increase output as required and the fourth labour is paid the same wage rate, in order for the firm to maximize Profit, it is advertised that the firm should reduce labor force.
Net cash provided by operating activities was $12,000. Net cash provided by investing activities was $2,000. Net cash used in financing activities was $7,000. The cash balance at the beginning of the year was $4,000. The cash balance at the end of the year is:
Answer:
$11,000
Explanation:
The cash generated from operating activities is $12,000 which is a cash inflow, likewise net cash generated by investing activities was $2,000 which is also a cash inflow and cash used in financing is cash outflow so:
Cash generated during the year = Cash inflow - Cash Outflow
Cash generated during the year = ($12,000+2,000) - 7,000 = $7,000
Now
Cash balance at the end of the year = Opening cash balance + Cash generated during the year
So by putting values, we have:
Cash balance at the end of the year = $4,000 + $7,000 = $11,000
All other things unchanged, a general decrease in the amount of government borrowing will typically: a increase interest rates. b reduce the supply of loanable funds. c raise the level of demand for loanable funds. d have no effect on the demand for loanable funds. e shift the loanable funds demand curve to the left.
Answer:
The answer is option B) a general decrease in the amount of government borrowing will typically reduce the supply of loanable funds.
Explanation:
When government decides to borrow, one of the ways they achieve this is by issuing debt in the form of bonds to raise money. They offer attractive interest rates to the public to increase participation and the monies paid in as investment will constitute loanable funds.
However, if there is a general decrease in the amount of government borrowing, there might reduce the incentives and when this happens, people are less enthusiastic about buying bonds.
This scenario will reduce the supply of loanable funds that would have been collated from the citizens investment.
A monopoly is producing output so that the average total cost is $30, marginal revenue is $40, and the price is $50.
If ATC is at its minimum level and the ATC curve is U-shaped, to maximize profits, this firm should:
A) shut down.
B) increase output.
C) reduce output.
D) do nothing, it is already maximizing profits.
Answer:
B
Explanation:
In this question, we are asked to pick from the options what should serve as the point of action of the firm given the scenario painted in the question;
We proceed as follows;
ATC= 30 $
Marginal revenue(MR)= 40 $
Price(P) =50 $
For efficiency,MC=minimum ATC=30 $
MR =40 > MC=30
For profit maximization, MR =MC
So, firm should raise output ,so that MR falls and becomes equal to MC
So correct option is B.
Answer:
B) increase output
Explanation:
A known rule is that a firm maximizes profit by producing a certain quantity of output where marginal revenue equals marginal cost. For there to be maximized profit, a firm ought to increase it's usage of the input "up to the point where the input's marginal revenue product will equals its marginal costs".
In France, fine dressmaking and tailoring have been a tradition predating Queen Marie Antoinette. Cloth manufacturers, design school, craft apprenticeship programs, modeling agencies, and so forth, all exist to supply the clothing industry. This is an example of _______________ in Porter's national competitive advantage model.
Answer:
Related and supporting industries
Explanation:
In France, fine dressmaking and tailoring have been a tradition predating Queen Marie Antoinette. Cloth manufacturers, design school, craft apprenticeship programs, modeling agencies, and so forth, all exist to supply the clothing industry. This is an example of Related and supporting industries in Porter's national competitive advantage model.
Related and supporting industries is one of Porter's national diamond determinants.
Compared to the rental of hotel guest rooms, most F&B operations generate less revenue,
A. Fewer complaints , and more profits
B. Fewer complaints, and fewer profits
C. More complaints, and fewer profits
D. More complaints, and more profits
Look at Ivan's check register. Ivan spent $158.29 on groceries. He then transferred $250 to his savings account.
Check
Date
bet
+
001
Transaction
Open Account
123 Flowers
Paycheck
Groceries
Transf
(+) Deposit Balance
500.00
4 67.25
318.54 785.79
32.
75
on
w
IN
2/7
2/13
2/18
2/19
IO
o XXL
002
lalo
Tol
IWI
1
The letter
The letter
represents where the amount of $158.29 should be written.
represents where the amount of $250 should be written
Answer:
(1)=A (2)=D
i just need to fill up this space to answer~
The $158.29 Ivan spent on groceries and the $250 he transferred to his savings account should both be noted in the 'Transaction' column of the Check register. The former should be next to 'Groceries', while the latter should be next to 'Transf'.
Explanation:In a check register, when money is spent, it is entered into the 'Transaction' column. The amount of $158.29 Ivan spent on groceries should therefore be entered in the 'Transaction' column next to the word 'Groceries'. When money is transferred to savings, this is also a transaction and should be entered in the same column. Therefore, the amount of $250 Ivan transferred to his savings account should be entered in the 'Transaction' column next to 'Transf' (short for Transfer).
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Canada Company had the following operating data for the year for its computer division: sales, $650,000; contribution margin, $140,000; total fixed costs (controllable), $100,000; and average total operating assets, $280,000. What is the controllable margin for the year
Answer:
Controllable margin for the year = $40,000
Explanation:
Given:
Sales = $650,000
Contribution margin = $140,000
Total fixed costs (controllable) = $100,000
Average total operating assets = $280,000
Controllable margin for the year = ?
Computation of Controllable margin for the year :
Controllable margin for the year = Contribution margin - Total fixed costs (controllable)
Controllable margin for the year = $140,000 - $100,000
Controllable margin for the year = $40,000
Every new customer at Five Elements Spa is asked to register his or her personal details, which includes the customer's age, purpose of visit, and contact information. With this information, the company regularly keeps in touch with its customers, reminding them of their next appointments, new spa offers, and any other promotions. The database is used to predict a customer's next visit to the spa based on his or her previous visits. It also helps the company design service packages to suit the customer's individual needs. In this scenario, Five Elements Spa is using:_________.
A. customer relationship management.
B. corporate governance.
C. service design prototyping.
D. supply chain management.
E. social audit.
Answer:
A. customer relationship management.
Explanation:
Based on the scenario being described within the question it can be said that in this scenario, Five Elements Spa is using customer relationship management. This refers to an approach of managing a companies various interactions between the company and it's current and future potential customers , with the main goal of retaining the current customers and bringing in newer potential customers. Which is what the company is doing by regularly keeping in touch with their customers.
Tyler is completing a balance sheet for his home improvement company. He must include the amounts he owes to suppliers for lumber, tools, equipment, and other materials that he purchased with credit. These liabilities are called_________.A. accrued expenses.B. accounts receivable.C. inventory.D. accounts payable.E. current liabilities.
Answer:
Accounts payable
Explanation:
Accounts payable can be defined as debts that are incurred when goods are bought on credit. Account payable is a type of debt which needs to be paid back to the creditor within a short period of time.
Account payable can also be described as the amount of money owed by an individual or an organization to a supplier of goods and services.
Tyler has incurred a debt because he has bought lumber, tools, equipment, and other materials for his home improvement company.
a guitar manufacturing company, launched 1000 high-quality, limited-edition guitars worldwide at a premium price of $10,000 per guitar. The company offered the lower-priced version of the same guitar after the first 1000 limited-edition guitars were sold out. In the context of pricing strategies, it can be concluded that Timber Guitars has adopted the strategy of _____.
Answer:
skimming prices
Explanation:
Based on the scenario being described it can be said that it can be concluded that Timber Guitars has adopted the strategy of skimming prices. This is a a pricing strategy in which a company or marketer sets a relatively high starting price for their products in the beginning of introducing it into the market, then only after some time has passed do they begin to lower prices slowly. Which is what Timber Guitars has done by placing the guitar at a very high price and only lowering it after a good quantity were sold.
Suppose you and your roommate have the following agreement when it comes to cleaning your apartment: each person washes her or his own dishes after each meal. The principle of trade you just learned tells you that it would be more efficient if:
Answer:
one of you wash all the dishes while the other did a different chore.
Explanation:
In simple words, if any person performs a particular task on a repeated basis for a considerable time period than there is a high chance that he or she will gain a significant level of efficiency in doing that task as compared to others.
This principle was first recognized and used by Henry ford who made his labor perform the same task in the factory which resulted in faster production with better quality.