Answer:
A would be the correct answer du
Explanation:
A real estate office handles an apartment complex with 50 units. When the rent per unit is $580 per month, all 50 units are occupied. However, when the rent is $625 per month, the average number of occupied units drops to 47. Assume that the relationship between the monthly rent p and the demand x is linear.
(a) Write the equation of the line giving the demand x in terms of the rent p.
x =
(b) Use a graphing utility to graph the demand equation and use the trace feature to estimate the number of units occupied when the rent is $655. Verify your answer algebraically.
____________ units
(c) Use the demand equation to predict the number of units occupied when the rent is lowered to $610. Verify your answer graphically.
____________ units
Answer:
a. [tex]x=\frac{1330-y}{15}[/tex]
b. [tex]x=\frac{1330-655}{15}[/tex]
[tex]x=\frac{655}{15} = 45[/tex]
c. [tex]x=\frac{1330-610}{15}[/tex]
[tex]x=\frac{720}{15} = 48[/tex]
Explanation:
a.
using the point-slope form we have that:
y= mx + b
m being the slope which has the next equation:
y is the rent price
x is the units of the apartment complex rented
[tex]m=\frac{y1-y2}{x1-x2}[/tex]
[tex]m=\frac{580-625}{50-47}=\frac{-45}{3} = -15 [/tex]
Now we find the Y intercept (b):
580=-15(50)+b
580=-750+b
b=580+750 = 1330
We have the equation:
y=-15x + 1330
Now we have tu put in terms of the rent p (y)
y=-15x + 1330
15x = 1330 - y
[tex]x=\frac{1330-y}{15}[/tex]
b.
The first graph attached corresponds to the equation showed in point a.
The second graph attached corresponds to the equation if the rent is $655
Using the trace feature it is estimated that for a rent price of $655 the units occupied are 45.
[tex]x=\frac{1330-655}{15}[/tex]
[tex]x=\frac{655}{15} = 45[/tex]
c. The third graph attached corresponds to the equation if the rent is $610
Using the trace feature it is estimated that for a rent price of $610 the units occupied are 48.
[tex]x=\frac{1330-610}{15}[/tex]
[tex]x=\frac{720}{15} = 48[/tex]
Final answer:
The relationship between rent per unit and the number of units occupied is linear, represented by the equation x = -1/15p + 430. Estimating units occupied at a rent of $655 yields approximately 43 units, and predicting occupancy for a rent of $610 results in about 46 units, both of which can be verified algebraically and graphically.
Explanation:
To solve this problem, we first need to find the equation of the line that describes the relationship between the rent per unit (p) and the number of units occupied (x). We have two points given: when p = $580, x = 50, and when p = $625, x = 47. The slope (m) of this line can be found using the formula m = (y2 - y1) / (x2 - x1). Substituting the given values, we find that m = (47 - 50) / (625 - 580) = -3 / 45 = -1 / 15. We can then use the point-slope form of the equation of a line, y - y1 = m(x - x1), to find the equation. Substituting one of the given points and our slope, we get x - 50 = -1/15(p - 580). Solving for x gives us the demand equation: x = -1/15p + 430.
To estimate the number of units occupied when the rent is $655, we substitute p = 655 into our demand equation to get x = -1/15(655) + 430, which simplifies to x ≈ 43 units when rounded to the nearest whole number. This result can also be verified using a graphing utility by plotting the demand equation and using the trace feature.
To predict the number of units occupied when the rent is lowered to $610, we substitute p = 610 into our demand equation to get x = -1/15(610) + 430, which simplifies to x ≈ 46 units. This prediction can be verified graphically by plotting the demand equation and observing the value at p = 610.
Intangible assets ______.
A. convey special rights from patents, copyrights, trademarks, and other creative works
B. represent assets for which the market value cannot be determined
C. are not recorded in the books because they have no physical substance
D. All of the statements are correct.
Final answer:
Intangible assets do convey special rights and are recorded in the company's financial statements, despite having no physical form. They include intellectual property like patents and copyrights which protect exclusive rights for a limited time.
Explanation:
Intangible assets convey special rights from patents, copyrights, trademarks, and other creative works. They represent assets for which the market value can be difficult to determine, and contrary to one of the options, they are often recorded in the books even though they have no physical substance. This is because these assets have economic value through the exclusive rights and potential revenue streams they provide. Intellectual property is a key category of intangible assets, and it includes patents which may grant an exclusive legal right to make, use, or sell an invention, typically for a period of up to 20 years. Copyrights offer protection for literary and artistic works for potentially even longer. Knowledge of the exact time periods and provisions is important, as they vary across countries and can have significant effects on a business’s competitive advantage and profitability.
In a department meeting, Jamira engages in a thoughtful dissent aimed at constructively challenging her manager, Shivana, to rethink the decision to close two major client accounts. Jamira is engaging in which of the following?
a) Constructive resistance
b) Dysfunctional resistance
c) Control
d) Forceful resistance
e) Conformity
Answer:
The correct answer is a) Constructive resistance.
Explanation:
Constructive Resistance is the ability of structural elements to withstand the efforts to which they are subjected without breaking. It depends on many factors among which the material used, its geometry and the type of union between the elements stand out.
Suppose a profit-maximizing firm in a competitive market produces rubber bands.When the market price for rubber bands falls below the minimum of its averagetotal cost, but still lies above the minimum of average variable cost, in the shortrun the firm willa. experience losses but will continue to produce rubber bands.b. shut down.c. earn both economic and accounting profits.d. raise the price of its product.
Answer:
The correct answer is option a.
Explanation:
In the given example, a profit-maximizing perfectly competitive firm is producing rubber bands. The average total cost of producing is higher than the price per unit of the product. The firm will be incurring a loss. But the average variable cost is lower than price. This means the price is able to cover variable costs.
The firm in this situation will continue to produce in the short run, Though in the long run if the price is still lower than the average total cost the firm will exit the market because of incurring losses.
Assume the weekly payroll of the Abbott Company is $5,000. December 31, the end of the year, falls on a Wednesday and Abbott will pay its employee on Friday for the full week. What adjusting entry will Abbott make on Wednesday, December 31 (Use five days as a full work week)?
Answer:
Salary Expense A/c Dr. $3,000
To Salary Payable A/c $3,000
Since salary will be paid on Friday therefore, liability is recorded as salary payable.
Explanation:
As for the provided details,
The working week consists of 5 working days.
Thus, salary expense will be allocated to these 5 working days only. As the salary expense for a week = $5,000
That means salary expense for a day = $5,000/5 = $1,000 for each day.
Now, the financial year ends on December 31 which is Wednesday.
That means three days, of the working week, fall in the financial year.
Therefore, salary expense for the year will be = $1,000 [tex]\times[/tex] 3 = $3,000
Thus, entry for this will be:
Salary Expense A/c Dr. $3,000
To Salary Payable A/c $3,000
Since salary will be paid on Friday therefore, liability is recorded as salary payable.
Abbott Company should make an adjusting entry for $3,000 on December 31, accounting for three out of five working days of the weekly payroll cost.
Explanation:The subject of this question is related to the adjusting entries in accounting which is a part of Business studies. When Abbott Company arrives at the end of the year on Wednesday, December 31, it has already accrued three days of payroll, since a week is considered five working days. Even though the full $5,000 won't be paid until Friday, the company has an obligation for the portion of the week that's already passed.
Therefore, on December 31, the adjusting entry would account for three days of payroll. So, the adjusting entry will be for 3/5 of $5,000, which equals $3,000. The company would debit (increase) wages expense for $3,000 and credit (increase) wages payable for $3,000.
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Because there are some positive aspects of bureaucracy, as proposed by Max Weber, Tammy, a restaurant manager, is interested in implementing certain aspects of the bureaucratic approach to management within her restaurant. Like Weber, Tammy feels bureaucracy is a ____.A)Rational, efficient, cost-cutting tool based on principles of behaviorismB)Sales-generating toolC)Rational, efficient method of increasing diversityD)Rational, efficient, ideal organization based on principles of logicE)Rational, cost-cutting, efficient organization based on principles of synergy
Answer:
The answer is: D) Rational, efficient, ideal organization based on the principles of logic.
Explanation:
Weber believed that bureaucracy was the most efficient and logical way to set up an organizational structure. He based his theory of bureaucracy on six principles:
Task specialization; every employee is responsible do to the task he is best at.Hierarchical authority; management is organized in layers where a manager is responsible for his staff and their performance.Formal selection of employees based on technical skills and competences.Rules and requirements that insure uniformity, so everyone knows what to do.Impersonal relationships; regulations and clear requirements create impersonal relationships between employees.Career orientation; employees build a career within the organization.Max Weber considered bureaucracy a rational, efficient, ideal organization based on logic, which is option D.
Max Weber, the influential early-twentieth-century sociologist, viewed bureaucracy as a rational, efficient, ideal organization rooted in principles of logic.
Key features include a clear hierarchy, division of labor, written rules, and impersonal policies. These characteristics create an efficient and effective management system.
He believed that the increasing complexity of modern society necessitated a structured, hierarchical system governed by formal rules and impersonal relationships.
Key characteristics of Weber's bureaucratic model include a clear division of labor, a hierarchy of authority, adherence to written rules, and impersonal decision-making processes, all aimed at maximizing efficiency and effectiveness in organizational management.
Therefore, the correct answer is option D that is "Rational, efficient, ideal organization based on principles of logic"
If a family spends its entire budget in a given time frame, the family can afford either 15 movie nights or 8 restaurant meals. Assuming the family spends its entire budget on just these two goods, what is the opportunity cost of one movie night?
Answer:
The correct answer is 0.533 restaurant meals.
Explanation:
The two goods consumed by the family mentioned here are movie nights and restaurant meals.
The family can afford either 15 movie nights or 8 restaurant meals out of their total budget.
The opportunity cost of 15 movie nights = 8 restaurant meals
The opportunity cost of 1 movie night
= [tex]\frac{8}{15}[/tex]
= 0.533 restaurant meals
Final answer:
The opportunity cost of one movie night is approximately 0.53 restaurant meals. This is determined by dividing the total number of restaurant meals by the number of movie nights, illustrating the trade-offs between the two choices based on the budget constraint.
Explanation:
The opportunity cost of one movie night is the amount of restaurant meals forgone in order to attend one movie night. If a family can afford either 15 movie nights or 8 restaurant meals with their entire budget, we can calculate the opportunity cost by establishing a ratio. This calculation can help one understand the trade-offs and make more informed decisions on consumption.
To calculate the opportunity cost of one movie night, we use the following steps:
Find the ratio of restaurant meals to movie nights by dividing the number of restaurant meals by the number of movie nights, which is 8 restaurant meals / 15 movie nights.Simplify the ratio to find out how many restaurant meals you must give up for one movie night, which results in 0.53 restaurant meals per one movie night.Therefore, the opportunity cost of one movie night is approximately 0.53 restaurant meals. This indicates that for every movie night the family chooses to enjoy, they give up the opportunity to have slightly more than half of a restaurant meal. Understanding the opportunity cost helps the family make choices that align with their preferences and budget constraints.
The decisions concerning an organization's goals and future plans are called a. tactical decisions. b. strategic decisions. c. operational decisions. d. financial decisions.
Answer:
Strategic decisions.
Explanation:
The decision aimed to organisation's goals and future plans involves an strategic behaviour, because implicates a global company framework, in this way they're gonna be able to project to the future.
Opportunity cost is defined as
A. the highest-valued, next-best alternative that must be given up to obtain something.
B. the variety of uses that a society has for all factors of production.
C. the monetary cost of making a choice under conditions of scarcity.
D. the collection of all alternative goods that could be chosen at any point in time.
Answer:
The correct answer is A. the highest-valued, next-best alternative that must be given up to obtain something.
Explanation:
The opportunity cost is the cost of the alternative that we waive when we make a certain decision, including the benefits that we could have obtained from having chosen the alternative option.
Therefore, the opportunity cost is those resources that we no longer receive or that represent a cost due to the fact that we have not chosen the best possible alternative, when we have limited resources (usually money and time). The term opportunity cost is also referred to as "the value of the best option not selected."
Cost of opportunity In our life we have to constantly make decisions for any matter, especially if they are related to money. For example, imagine that we have 10 euros and we have several alternatives to spend them (go to the movies, take a walk in the park and save them, dine out ...), the opportunity cost is going to be the benefit that the alternative to that we have given up, fundamentally the one with the highest value.
Final answer:
Opportunity cost is the highest-valued, next-best alternative that must be given up to obtain something.
Explanation:
Opportunity cost is defined as the highest-valued, next-best alternative that must be given up to obtain something. It is the value of the best opportunity forgone in a particular choice. For example, if you choose to go to the movies instead of volunteering at a soup kitchen, the opportunity cost is the value of the satisfaction and impact you could have had by helping others.
So opportunity costs reflect the trade-offs inherent in decision-making due to scarcity. It's personalized as different individuals value alternatives differently, involving more than merely monetary expenses.
Watson and Raymond Inc., a courier company based in the United States,suffered a loss recently when a cyclone struck its headquarters and damaged a lot of data stored on the company’s servers. In this scenario, Watson and Raymond’s business was affected by its _____. a. external environment b. physical work environment c. internal environment d. human resource environment
Answer:
option (a) External environment
Explanation:
The correct answer for the given blank is option (a) " external environment ".
The reason for the external environment is that, it is mentioned in the question that the loss occurred due to the cyclone and the cyclone is the cause of the external environment i.e not involving any effort from the human or the persons working in the organisation.
State as either a positive or normative statement. An op-ed piece in a newspaper urging the adoption of a particular economic policy would be considered a _________________statement. A research study on the effects of soft drink consumption on children’s cognitive development would be considered a _________________statement.
Answer:
The correct answers are: Normative; Positive.
Explanation:
The positive economy is based on specifying and demonstrating what is happening in the economy, responds to economic issues from reason and with an objective point by which things happen, focuses on determining everything that could affect it and the results that will be obtained by final.
No advice is given to remedy economic problems, rather, it describes the problems that affect the economy without mentioning whether the results will be positive or negative.
If a car dealer in the United States imports a $50,000 BMW from Germany, the 2.5 percent tariff or $1,250 that the dealer must pay the U.S. government will be passed on to the customer. This is an example of a(n) _____ tariff.
Answer:
Ad valorem tariff
Explanation:
Ad valorem tax is defined as, any tax based on the money related estimation of the burdened thing. Truly the term signifies "as per esteem." Traditionally, most traditions and extracts had "explicit" rates; the assessment base was characterized regarding physical units, for example, gallons, pounds, or individual things.
For example taxes on goads and service,VAT on the final product and service.
Mainline Ltd. is a landline telephone manufacturer whose average return on invested capital is approximately 2 percent. Because demand for landline telephones has declined significantly, the industry average return on invested capital has been negative (-5 percent) for the last few years. In this scenario, Mainline Ltd. has a
competitive advantage.
power position.
competitive disadvantage.
balanced scorecard.
Answer:
competitive disadvantage
Explanation:
According to my research on different business strategies, I can say that based on the information provided within the question in this scenario Mainline Ltd. has a competitive disadvantage. This term refers to an unfavorable circumstance or condition that causes a firm to underperform in an industry. Which in this case low demand for landlines causes this.
I hope this answered your question. If you have any more questions feel free to ask away at Brainly.
If a government fixes the exchange rate at a value that creates a surplus of the domestic currency, there will be a tendency for the exchange rate (U.S. dollars per unit of the domestic currency) to ________. To maintain the fixed exchange rate, the government must ________.
Answer: Fall; rise foreign demand for domestic currency.
Explanation:
The exchange rate must be fall to create a domestic currency surplus in an economy. For example:
Suppose, the ongoing exchange rate of India is $1 = Rs.70
So, if a person wants to buy a good worth of $2, then he have to pay Rs.140 for this good. When the exchange rate falls to $1 = Rs.60, now he have to pay only Rs.120 for this good. Hence, domestic currency surplus of Rs.20 created in an economy.
To maintain this level of fixed exchange rate, which created a domestic currency surplus, so government must increase the foreign demand for their domestic currency, to wipe out all the created domestic currency surplus in this economy.
Jackson, a homeowner, files a lawsuit against Johnson, his construction contractor. Prior to trial, they meet with their attorneys to try to resolve their dispute before going to trial. This proceeding is known as:a. early neutral case evaluation.
b. arbitrability.
c. negotiation.
d. a summary jury trial.
Answer:
c. negotiation.
Explanation:
Negotiation -
The words exchanges between two or more than two people or any party to conclude over an issue due to conflict .
The motto of negotiation is to resolve the problem and the differences between the two parties .
Negotiation is performed by putting forward the position and concessions to achieve the agreement .
Same is the case with Jackson , negotiation is done to resolve the conflict .
Gary is the marketing manager for an automobile dealership. His boss tells him the firm's primary goal is to increase its local market share from 15 to 30 percent. His firm is using a ________ orientation.A. profitB. salesC. competitiveD. customer satisfactionE. product development
Answer: sales
Explanation: In a sales oriented firm, the management focuses on making customer buy the more of the produced product. In such a strategy, little concern is given to customer needs.
The management did not considers to change their product as per the customer needs and tries to increase the sales with the existing product. Usually such firms makes heavy expenditures on advertising and promotion.
Thus, from the above we can conclude that the firm in which Gary is working is using sales orientation.
Inflows or other enhancements of assets of an entity or settlements of its liabilities from delivering or producing goods, rendering services, or other activities that constitute the entity's ongoing operations. ___________
Answer:
REVENUES
Explanation:
Revenue, often referred to as sales, are the inflows or other enhancements of assets of an entity or settlements of its liabilities (Income) received from the entity's ongoing operations. Includes discounts and deductions for returned merchandise. It is the first income on a company's Income Statement from which all charges, costs, and expenses are subtracted to arrive at net income.
Many companies monitor their employees' internet use and email. Why might they be doing this?
a) because they like to spy
b) to reduce shirking
c) to gain inside information on new consumer trends
d) in order to improve morale
Answer:
b) to reduce shirking
Explanation:
In this model, shirking is defined as a lack of employee work effort. An employee's tendency to give less than full effort represents shirking, with greater deviations from 100 percent effort representing greater levels of. shirking.
An economy produces only food and shelter. There are two individuals in the economy: Bill and Mary. Mary's opportunity cost of producing 1 unit of shelter is 2 units of food. Bill's opportunity cost of producing 1 unit of shelter is 4 units of food. Who has a competitive advantage?
Answer:
Mary
Explanation:
Mary has a competitive advantage and has a lower opportunity cost than Bill just having to sacrifice 2 units of food for 1 shelter, while Bill has to sacrifice 4 units of food for producing 1 unit of shelter. It is possible to observe this in the production relation:
Mary's productivity:
[tex]\frac{1}{2}=0.5[/tex]
Bill's productivity:
[tex]\frac{1}{4}=0.25[/tex]
We see that Mary has a higher productivity rate, which means that she has the competitive advantage
When a company pays $2,800 dividends to its stockholders, the transaction should be recorded as:
Debit dividends; credit accounts payable.
Debit retained earnings; credit dividends.
Debit cash; credit dividends.
Debit dividends; credit cash.
Answer:
The correct answer is Debit dividends; credit cash.
Explanation:
First seat :Earnings Accrued (- Net Equity)
to various creditors (+ Liabilities)
Since the minutes of the assembly must indicate that they are taken from the profits of previous years, the accumulated profits are reduced.
Second seat
Miscellaneous creditors (- Liabilities)
to Banks (- Active)
The first entry represents transfer from one liability to another liability. Although we think that capital accounts are not liabilities, it is not true, given that the value of debt to shareholders of the value of your company, so we can group everything in the same bag.
When decreeing dividends, what is done is to cover a small part of that company value. That is, when dividends are decreed, they become part of a formalized liability.
The second entry is the cancellation of the liability, through one of the ways to extinguish the obligations: payment.
A student who works at a record store and plays in a rock band thinks for a minute about his own music-purchasing habits, and then makes a quick guess about the number of other students who buy more than 30 CDs a year. He grossly overestimates. He has probably applied the
Answer:
The correct answer is anchoring and adjustment heuristic.
Explanation:
It is a cognitive bias that describes the common human tendency to rely too much on the first piece of information that is offered when making decisions: the "anchor." It is also known as the "focus effect." During decision making, anchoring occurs when people use an initial piece of information to make subsequent judgments. Once the anchor is fixed, the rest of the information is adjusted around the anchor position incurring a bias.
For example, the initial price offered by a used car sets the standard for the rest of the negotiations, so prices lower than the initial price seem more reasonable even if they are still higher than what the car really is worth. Similarly if you ask about the population of Ukraine: "Is it greater than or less than one hundred million people?", The answers will vary, but in general they will be somewhat less than that figure. However, if the question were: "Is the population of Ukraine greater or less than twenty million people?", The answers will vary, but the average number of responses will not change much compared to the initial anchor. That is, it starts from the "anchor value" and an adjustment is made ... which is usually in the right direction but of insufficient magnitude.
The U.S. financial system is composed of (1) policy makers, (2) a monetary system, (3) financial institutions, and (4) financial markets. Which of the following components is associated with the role of the financial markets?
a) Accumulate and lend/invest savings
b) Create and transfer money
c) Pass laws and set fiscal and monetary policies
d) Market and facilitate transfer of financial assets
Answer:
The correct answer is d) Market and facilitate transfer of financial assets
Explanation:
The financial market refers primarily to a market in which buyers and sellers are actively involved in trading, acting in the purchase and sale of assets. It is a platform that makes it easier for the parties to buy and sell financial instruments and securities. These instruments and securities can be stocks, bonds, commercial papers, bills of exchange, bonds, cheques and other types of items. Using transparent pricing, strict regulations, costs and fees, and clear guidelines.
Have a nice day!
The selling concept is typically practiced with ________.A) industrial productsB) unsought goodsC) specialty productsD) convenience products
Answer:
B) unsought goods
Explanation:
The selling concept -
The concept of selling tells that the consumers will not buy enough any product of any firm unless and until it undergoes some large - scale selling and promotional efforts .
This concept is used for unsought goods , the goods those which the buyers do not normally think of buying , example insurance .
A project has earnings before interest and taxes of $14,600, fixed costs of $52,000, a selling price of $29 a unit, and a sales quantity of 16,000 units. All estimates are accurate within a plus/minus range of 3 percent. Depreciation is $12,000. What is the base case variable cost per unit?
Answer:
$24.09
Explanation:
[Sales units quantity × (Selling price per unit - Variable cost per unit)] - Fixed costs - Depreciation = Earning before interest and taxes
Sales units quantity 16,000
Selling price per unit $29
Fixed costs $52,000
Depreciation $12,000
Earning before interest and taxes $14,600
Variable cost per unit ?
[16,000 × ($29 - Variable cost per unit )] - $52,000 - $12,000 = $14,600
$29 - Variable cost per unit = ($14,600 + $52,000 + $12,000)/16000
Variable cost per unit = $29 - $4.91
Variable cost per unit = $24.09
Mason is restoring a car and has already spent $3500 on the restoration. He could sell the car now for $2800. However, if Mason does an additional $2000 of work, the car would be worth $5000 to potential buyers. What should Mason do?
Answer:
mason complete the additional work $5000 after that he sell and get profit $200
Explanation:
given data
spent on restoration = $3500
sell car = $2800
additional work = $2000
car price = $5000
to find out
What should Mason do
solution
we say here after spending $3500 selling cost is $2800 so
loss will be 3500 - 2800 = $700
so if additional work is $2000
total present value will be = ( $2800 + $2000 )
total present value = $4800
so now if he sell car at $5000
he get profit = ( $5000 - $4800 )
profit = $200
so mason complete the additional work $5000 after that he sell and get profit $200
Wine and cheese are complement goods because they are consumed together. What would you expect to happen to the equilibrium quantity of cheese if the price of wine increased and all else is held constant?
A. It would increase because of a supply shift
B. It would increase because of a demand shift
C. It would be ambiguous because of a double shift (in both demand and supply).
D It would decrease because of a supply shift
E. It would decrease because of a demand shift
Answer:
The correct answer is option E.
Explanation:
Wine and cheese are complimentary goods, i.e they are consumed together. Complementary goods have a negative price elasticity. This means that when the price of one commodity increases the demand for its complement decreases.
Here, wine and cheese are complements. When the price of wine increases its demand will decrease. Since cheese is consumed with wine its demand will also decline. The equilibrium quantity will decline because of the leftward shift in the demand curve.
The correct answer is E. It would decrease because of a demand shift.
When wine and cheese are considered complementary goods, an increase in the price of wine typically leads to a decrease in the quantity demanded for both wine and cheese, holding all else constant. As the price of wine rises, consumers may choose to allocate less of their budget to wine, reducing their overall consumption. Consequently, the demand for cheese, which is commonly consumed with wine, also decreases. This shift in consumer behavior results in a decrease in the equilibrium quantity of cheese. Therefore, option E, "It would decrease because of a demand shift," accurately reflects the expected outcome in this scenario.
The Loyola Widget company sells 5,000 units in a given year. Total industry sales of widgets for that year are 100,000 units. The ratio of the company's sales to total industry sales is referred to as:
Answer:
Market share
Explanation:
For computing the ratio between company sales and the total industry sale we use the market share.
The market share is that share through which the company can hold it by some percentage. We have the calculation also for better understanding
By using the formula, the computation is shown below:
= Company sales units ÷ total industry sales
= 5,000 units ÷ 100,000 units
= 0.05 or 5%
So by 5%, the Loyola widget company controls the total industry sales.
A monopoly has produced a product with a patent for the last few years. The patent is going to expire. What will likely happen to the demand for the patent-holder's product when the patent runs out?
Answer:
Demand for the patent-holder's product will decrease when the patent runs out.
Explanation:
While there is a patent over a product, only the patent-holder's can sell that product. If there is a monopoly it means that that company is the only one that produce and sell this product.
When the patent run out new competitors will enter the business, so the demand on patents holders will decrease.
Management of Childers Corporation is considering whether to purchase a new model 380 machine costing $278,000 or a new model 230 machine costing $207,000 to replace a machine that was purchased 3 years ago for $266,000. The old machine was used to make product R16K until it broke down last week. Unfortunately, the old machine cannot be repaired.
Management has decided to buy the new model 230 machine. It has less capacity than the new model 380 machine, but its capacity is sufficient to continue making product R16K.
Management also considered, but rejected, the alternative of simply dropping product R16K. If that were done, instead of investing $207,000 in the new machine, the money could be invested in a project that would return a total of $305,000.
In making the decision to buy the model 230 machine rather than the model 380 machine, the differential cost was:
Answer:
The differential cost is the purchase price.
Explanation:
Giving the following information:
Model 380
Purchase price= 278,000
Model 230
Purchase price= 207,00
Management has decided to buy the new model 230 machine. It has less capacity than the new model 380 machine, but its capacity is sufficient to continue making product R16K.
In this case, we only have information regarding the purchase price. The differential cost is the purchase price. Other differential costs (if given more information) would be fixed costs, variable costs, production per hour, maintenance, etc.
A certificate of deposit often charges a penalty for withdrawing funds before the maturity date. If the penalty involves two months of interest, what would be the amount for early withdrawal on a $20,000, 6 percent CD? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Answer:
The penalty will be worth $200.
Explanation:
The certificate of deposit is worth $20,000.
The interest rate on it is 6%.
The penalty on early withdrawal is 2 months of interest.
The annual interest
[tex]= Annual\ interest\ rate\ \times\ Investment[/tex]
[tex]= 0.06\ \times\ $20,000[/tex]
[tex]= \$ 1,200[/tex]
The penalty will be
[tex]= 2\ months\ of\ interest[/tex]
[tex]= \frac{2}{12}\ \times Annual\ interest[/tex]
[tex]=\frac{2}{12}\ \times\ \$ 1,200[/tex]
[tex]= \$ 200[/tex]