The marginal utility of the third candy bar is 5 units.
What is utility?It should be noted that utility is the satisfaction that's gotten when one uses a good or a particular service
In this case, the marginal utility of the third candy bar will be:
= 25 - 20
= 5 units.
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A limitation of revenue-oriented pricing is that _______. a. it cannot be used by manufacturing companies b. the profit goals of a company are not taken into account c. it does not focus on maximizing the surplus of income over costs d. determining costs can be difficult for many services
A limitation of revenue-oriented pricing is that it does not focus on maximizing the surplus of income over costs.
*Revenue-oriented pricing (also known as profit- oriented pricing or cost based pricing) where the marketer seeks to maximize the profits (i.e. the surplus income over costs) or simply to cover costs and break even.
* It is plan that focuses on increasing company income by maximizing both short and long term sales potential.
*Having a dedicated strategy of this kind is critical, as it is near impossible to grow revenue without a documented plan of action.
The only limitation is it focuses on maximizing the surplus of income over costs.
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In the ______ decision-making process, everyone can say they have been heard and will support the final decision.
In the Brainstorming decision-making process, everyone can say they have been heard and will support the final decision.
What is Brainstorming?Through the use of a list of ideas that members of the group voluntarily submit, brainstorming is a strategy for fostering collective creativity that aims to solve a particular problem.In other words, brainstorming is a circumstance where a group of people gathers to produce fresh concepts and solutions for a certain area of interest while letting go of inhibitions. People have more mental freedom and offer as many original, unplanned ideas as they can. Following the brainstorming session, all of the ideas are recorded without any criticism.Each person in a circle writes down one idea, gives the piece of paper to the next person, who adds some further ideas, and so on.To learn more about Brainstorming refer to:
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You began operating a small general electric contracting company two years ago. Originally, it was just you and your cousin, but it has grown to five licensed electricians, plus one office manager who takes calls from customers, schedules the work, and orders parts and supplies. Your company handles a wide range of work, including installing new circuit breaker panels, rewiring existing electrical systems for renovations and additions, and installing residential light fixtures, security lighting systems, swimming pool lighting, and ceiling fans.
Business has really taken off, and your current manual systems and procedures can no longer keep pace. The office manager has been exploring several options and has identified three different software packages designed for small contractors. Each one of the packages includes features for managing parts and supplies inventory, scheduling jobs, and invoicing customers.
Two of the software packages are from large, well-known companies. One of these must be installed on your local network and has an initial licensing cost of roughly $750 plus $100 per year for software support. The second package is a SaaS solution accessed through a browser from any computer connected to the Internet. It has no initial fee but requires an annual subscription of $150 for the first user plus $50 annually for each additional user. The third software package is open-source software, with no initial cost and no support cost.
Which kind of software will best serve your company's needs?
a. Paid installed on-premises
b. Open source installed on-premises
c. Paid SaaS subscription
Paid SaaS subscription software will best serve your company's needs.
What is Paid SaaS Subscription Software?A method of distributing applications over the Internet as a service is known as software as a service (or SaaS).You can avoid complicated software and hardware maintenance by just accessing software over the Internet rather than installing and maintaining it.SaaS applications are also referred to as hosted software, web-based software, and on-demand software.Whatever name they go by, SaaS applications run on the servers of a SaaS provider.Security, availability, and performance of access to the application are all managed by the supplier.What is Paid Installed On-Premises?Instead of being installed and run at a distant location like a server farm or cloud, on-premises software (abbreviated to on-prem and wrongly called on-premise).It is run on computers that are on the premises of the individual or business utilizing the software.Software that is used off-premises is typically referred to as "software as a service" ("SaaS") or "cloud computing," while software that is used on-premises is occasionally referred to as "shrinkwrap" software.The software is made up of databases and modules combined to specifically meet the special requirements of large businesses regarding the automation of corporate-wide business system and its functions.What is Open Source Installed On-Premises?Open source Installed On-Premises refers to software that has been made freely distributable and modifiable.Products come include the right to utilize the product's content, design papers, or source code. The open-source model is a decentralized approach to software development that promotes transparent teamwork. Peer production, with goods including source code, designs, and documentation being made freely available to the public, is a fundamental tenet of open-source software development.Open source encourages everyone to have access to a product's design or blueprint through a free or open-source license and to redistribute it widely.Before the word "open source" gained popularity, developers and manufacturers had employed a number of alternative phrases. With the growth of the Internet, open source became more prevalent.Know more about Paid SaaS Subscription Software https://brainly.com/question/11973901
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Carver Packing Company reports total contribution margin of $94,000 and pretax net income of $23,500 for the current month. In the next month, the company expects sales volume to increase by 5%. The degree of operating leverage and the expected percent change in income, respectively, are:\
The degree of operating leverage is 4 and the expected percentage change in income is 20%.
Contribution margin = $94,000
Pretax net income = $23,500
Degree of operating leverage = Total Contribution margin / pretax Net income
= 94,000/23,500
= 4
Increase in sales = 5%
Increase in income = Increase in sales volume x Degree of operating leverage
= 5 x 4
= 20%
Due to 5% increase in sales, income will increase by 20%.
Thus this is the answer about the degree of operating leverage and Percent change in income in a month.
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A basic Customer Relationship Management premise is that: a. each individual customer is limited to a single sale. b. customers form relationships with companies as opposed to companies conducting individual transactions with customers. c. acquiring new customers is more profitable than maintaining loyal customers. d. customers relationships are best established when companies primarily focus on conducting individual transactions with customers. e. storing customer information on company databases is most likely to sour relationships with customers.
A basic Customer Relationship Management premise is that (B) customers form relationships with companies as opposed to companies conducting individual transactions with customers.
A tool known as customer relationship management (CRM) is used to handle all interactions and relationships between your business and its clients. The objective is straightforward: to strengthen business ties. CRM systems assist businesses in maintaining contact with clients, streamlining procedures, and boosting profitability.Expressing gratitude to customers once they make purchases. If a customer buys a certain product, upsell or cross-sell to them. sending a coupon along with a birthday greeting. giving a customer who hasn't bought anything recently a discount.What is CRM and why is it important?
CRM enables organizations to establish a relationship with their clients, which fosters loyalty and client retention. CRM is a management technique that boosts a company's profits since customer loyalty and revenue are two factors that influence a company's revenue.Learn more about customer relationship management (CRM) /brainly.com/question/21299183
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The ________ adopted an elaborate form of interest arbitration, known as the Experimental Negotiating Agreement, in the 1970s as a means of avoiding the long and costly strikes that had made the industry vulnerable to foreign competition.
The United steelworkers of America adopted an elaborate form of interest arbitration, known as the Experimental Negotiating Agreement, in the 1970s as a means of avoiding the long and costly strikes that had made the industry vulnerable to foreign competition.
When two or more parties must decide together yet have differing preferences, they try to negotiate a compromise. In order to strike a compromise when you and the other side have both similar and divergent interests, you and the other side must communicate back and forth.
The United Steelworkers is a general trade organization with members all over North America. It represents workers in the steel, paper, rubber, manufacturing, energy, and allied industrial and service sectors.
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A homeowner hired a contractor to finish her basement. They agreed on a price of $20,000 for the job. During the final stages of the remodeling, the contractor discovered that there was mold in the basement, the existence of which had been unknown to either party. The contractor refused to complete the job unless the homeowner paid an additional $2,000 to the contractor for removal of the mold. The homeowner reluctantly agreed, and the contractor finished the basement in accord with the modified contract. The homeowner paid the contractor $20,000. In a breach of contract action to recover the $2,000, will the contractor prevail?
The inference is that the contractor will prevail because the homeowner agreed to the price increase.
What is an inference?It should be noted that an inference simply means the conclusion that can be deduced based on the information given.
In this base, inference is that the contractor will prevail because the homeowner agreed to the price increase.
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The approximate worth of a customer to a company in economic terms is known as the _____. a. total customer value b. customer future value c. customer lifetime value d. customer present value e. net present value
The correct option is (c) customer lifetime value.
The approximate worth of a customer to a company in economic terms is known as the customer lifetime value.
Customer lifetime value (CLV) is the sum of a customer's value to a company over the course of their relationship. Increasing the value of your existing customers is a wonderful strategy to spur growth because it is less expensive to retain existing customers than it is to attract new ones.
Customer lifetime value, lifetime customer value, or life-time value are all terms used in marketing to forecast the net profit that will be generated over the course of a customer's entire future relationship.
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When organizations face a turbulent environment, intense competition, and the need to move fast, the most appropriate leadership would be:
When organizations face a turbulent environment, intense competition, and the need to move fast, the most appropriate leadership would be: transactional subordinate centered free rein transformational task-centered.
How can an organization attend to turbulent environment, intense competition?For an to respond to turbulent environment, intense competition, then the kind of leadership needed is transformational task-centered that would be able to observe the business environment to make necessary decision.
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Capital deepening refers to Group of answer choices The increase in quantity and quality of capital per worker A larger infrastructure and communication network The improvements in the education system The quantity of physical capital with better technology available in the economy
When capital grows relative to the number of workers, capital deepening occurs, enabling workers to produce more.
What is the capital deepening process?The process of capital deepening involves increasing the quantity of capital per unit of labor by making technological investments. This raises labor productivity, overall production, and production costs, which in turn increases contribution margin.
Take industrial workers in a car plant as an illustration. Workers can create more automobiles in the same period of time if they have more access to the equipment and tools needed to do it.
What makes capital deepening crucial?It is one of the ways we support long-term economic expansion and prospective output growth. Deepening boosts economic growth assuming that the labor supply (as shown by the work force) remains constant. People can employ the growing amount of capital items, such as machinery, to boost output.
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What is reality???????????????????????????????
Answer:
Reality is a state of consciousness and awareness whereby one can feel and comprehend his himself and his mind and his soul to live in.WARNING: if this is your exam question, please you might not pass with this answer. lolHope this helps
Good luck ALWAYS ✅.
Current projections indicate that by the year 2030, there will be ______ tax-paying workers for every retiree collecting Social Security.
Current projections indicate that by the year 2030, there will be 2.0 tax-paying workers for every retiree collecting Social Security.
A tax is a mandatory fee or financial charge that a government imposes on a person or a business in order to raise money for public projects like building the greatest infrastructure and services. Different public expenditure programs are then funded with the funds that have been raised.There are two main categories of taxes: direct taxes and indirect taxes. Both taxes are implemented in different ways. Some taxes, like the dreaded income tax and corporate tax, are paid directly by you, while others, like sales tax and service tax, are paid inadvertently.The government uses taxes to fund a variety of welfare programs, including job initiatives.Thus this is the answer.
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The invisible hand refers to the Multiple Choice fact that the U.S. tax system redistributes income from rich to poor. fact that government controls the functioning of the market system. tendency of monopolistic sellers to raise prices above competitive levels. notion that, under competition, decisions motivated by self-interest promote the social interest.
According to the theory of the invisible hand, when there is competition, self-interested decisions advance the society interests.
What is the invisible hand theory?Adam Smith, a Scottish philosopher and economist, popularized the metaphor of the "invisible hand" to describe the processes by which positive social and economic consequences may result from the collective self-interested acts of individuals, none of whom intend to produce such outcomes.
How is Adam Smith's invisible hand idea still applicable today?An important economic idea that is still relevant today is the invisible hand theory. It may provide insight into the operation of free markets and consumer behavior. Although the idea is significant, it is frequently applied in ways that are inconsistent with Smith's original text or out of context.
What exactly is the "invisible hand" and why is it significant?The term "invisible hand" describes how an individual's self-interests help society as a whole. In other words, through pursuing the profit motive, individuals are required to offer commodities at a cost that others are prepared to pay. Society gains as a result since those goods might not have been created otherwise.
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The large global firm, Hyundai, sells its cars along with other car manufacturers around the globe through intra-industry trading. Hyundai takes advantage of economies of scale by having car plants in various parts of the world. How would Hyundai become more globally competitive through more intra-industry trade and better economies of scale
Hyundai would expand to new countries and often more variety to its customers in established markets.
What is manufacturing?Manufacturing is the process of creating or producing items using equipment, labor, machines, tools, and chemical or biological processing or formulation. It is the essence of the economy's secondary sector. The phrase can relate to a wide range of human activities, from handcraft to high-tech, but it is most usually applied to industrial design, which involves the transformation of raw materials from the primary sector into finished commodities on a big scale.What is intra-industry trade?The interchange of similar items from the same industry is referred to as intra-industry commerce. The word is most commonly used in international trade, where the same commodities or services are imported and exported.Therefore, Hyundai would expand to new countries and often more variety to its customers in established markets.
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Complete question:
The large global firm, Hyundai, sells its cars along with other car manufacturers around the globe through intra-industry trading. Hyundai takes advantage of economies of scale by having car plants in various parts of the world. How would Hyundai become more globally competitive through more intra-industry trade and better economies of scale?
It would make more ad campaigns in a variety of languages in its currently established countries.It would offer a streamlined choice of colors for its cars where customers could select between four colors.It would expand into new countries and often more variety to its customers in established markets.The U.S. experience of strong economic growth, full employment, and price stability in the late 1990s and early 2000s can be explained by multiple choice 1 a leftward shift of aggregate demand and a leftward shift of aggregate supply. a rightward shift of aggregate demand and a rightward shift of aggregate supply. a rightward shift of aggregate demand and a leftward shift of aggregate supply. a leftward shift of aggregate demand and a rightward shift of aggregate supply.
The strong economic growth , full employment, and price stability in the late 1990s and early 2000s in U.S. can be explained by "rightward shift of aggregate demand and a leftward shift of aggregate supply".
What is rightward shift of aggregate demand and a leftward shift of aggregate supply?The rightward shift and leftward shift according to aggregate demand curve are-
As the components of aggregate demand—consumption spending, investment spending, government spending, and spending on exports minus imports—increase, the aggregate demand curve moves to the right.As the cost of essential inputs increases, the aggregate supply curve moves to the left, creating the potential for reduced output, increased unemployment, and higher inflation. Stagflation is the term used to describe an economy that is both experiencing slow growth and high inflation.he possible reason for the surge of economic growth are-
Therefore, the possible causes of the economic boom include the fact that oil prices were exceptionally low in the mid to late 1990s (the lowest levels since the post-World War II boom), which would have decreased the cost of transportation and manufacturing and boosted economic growth.
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An auto company decided to relocate its offices from Huntsville, Alabama to Orlando, Florida. The human resources manager of the auto company refuses to relocate to Orlando due to family obligations. While she is searching for a new job, the manager will be considered: Group of answer choices Cyclically un
In the given case the human resource manager will be considered frictionally unemployed. Thus the correct answer is B.
What is unemployment?Unemployment is the situation in which an individual is unable to find any job or occupation to meet the financial needs of life after having all the required talents and qualifications.
Frictionally unemployment is a situation when an individual is relocating to another job from one job. In the given situation the manager is not terminated.
The human resource manager resigned from the job due to obligations from family. This shows that she has the skills and talents to pursue and join another job. The period in which she is searching for a job is considered frictional unemployment.
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One of the following statements is false. Which is it? i the time horizon and size of time bucket for the master production schedule can never be longer than those of the aggregate plan. Ii aggregate plans are implemented on a rolling horizon iii aggregate plans often perform planning for fictitious/abstract products iv aggregate planning is a highly integrative activity, requiring input from many areas of the organization, such as marketing, human resources, and accounting.
The statement III Aggregate plans often perform planning for fictitious/abstract products.
Combination-making plans refer back to the method of developing, retaining, and reading the approximate scope of the operations of a commercial enterprise corporation. It commonly includes targeted profits forecasts, stock stages, and manufacturing levels.
Aggregate planning is typically finished 365 days into the destiny. a few examples of combination making plans are hiring short people, shedding employees for a selected period, or bypassing education. This works as a powerful benchmark for diploma beneficial resource utilization and implementation.
The time period mixture means that the making of plans is completed for a single traditional measure of output or, on the maximum, a few aggregated product lessons. The purpose of aggregate planning is to set traditional output ranges within the near medium destiny in the face of fluctuating or unsure needs.
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Kwame does not like it when people get close to him when he is using an ATM machine. He prefers that people stay at least 12 feet away while they are waiting him to finish his transaction. According to Hall (1968), Kwame prefers territorial distance when he is using an ATM machine. Group of answer choices True False
According to Hall (1968), Kwame prefers territorial distance when he is using an ATM machine. It is False.
What is Hall (1968)?The movie Hall 1968-9 by British director Peter Gidal is made up of snatches of shots of an internal corridor. Long, medium, and close-up views that have been methodically edited are used to show the doorway, the details of the furnishings, and the architectural characteristics of the room. Other items in the room, like a dish of fruit, posters on the wall, and the door handle, are all depicted, functioning as a kind of "still life." However, the limited time the observer is given to acknowledge these objects makes this portrayal more difficult. What is communication?Information is transformed in communication as it is sent from one person to another. It is the process of swiftly exchanging ideas, thoughts, sentiments, facts, viewpoints, and other things between or among two or more individuals. It entails a methodical, ongoing process of communicating by telling, listening, and understanding. The ability to communicate includes being able to both deliver and receive messages. Information is passed between management and employees through business communication.Know more about Communication with the help of the given link:
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Which category of inventory holding costs would be much higher than average for rapidly changing industries such as personal computers and cell phones
Inventory holding costs would be much higher than average for rapidly changing industries such as personal computers and cell phones in the category of Pilferage, Scrap and Obsolescence costs.
Any business that sells products has one of the highest capital expenditures as inventory. This sort of company's balance sheet is likely to show that inventory consumes a significant amount of working capital and makes up a sizable component of current assets.
Controlling inventory helps businesses avoid the significant expenses associated with overbuying inventory and the stress of operating without it. Even though certain businesses that use just-in-time technique for ordering may have incredibly low inventories, almost every industry needs some sort of inventory, which is best controlled through inventory control systems.
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The Blank______ stage of the personal selling process is the most difficult because the salesperson must interpret a prospect's body language, statements and questions about a purchase.
The closing stage of the personal selling process is the most difficult because the salesperson must interpret a prospect's body language, statements, and questions about a purchase. This is further explained below.
What is salespersonGenerally, a person whose duty is to sell a product or service in a certain region, at a shop, or via telephone
In conclusion, Due to the complexity of a prospect's body language, remarks, and inquiries during the closing phase of a personal sale, it is often the most challenging part of the sales process.
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Increased flexibility, breadth and depth of knowledge and experience, and less duplication are advantages of: Group of answer choices The Functional Organization The Informal Organization The Formal Organization The Project Organization The Matrix Organization
The answer is Functional Organization.
A functional organizational structure is a structure used to organize workers.
They are grouped based on their specific skills and knowledge.
There are many advantages to employing a functional structure in your business. They include:
Increased productivitySkill developmentClarityMinimized cost of operationWheras, one of the disadvantage of informal organization is less depth of knowledge and experience.
Similiarly, one disadvantage of matrix organization is increased duplications.
Hence, Increased flexibility, breadth and depth of knowledge and experience, and less duplication are advantages of Functional Organization.
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2. What benefits does Hamilton believe that individual citizens of the United States will accrue as a result of the establishment of such credit
Hamilton felt that building people's public reputations would help them accumulate wealth, which in turn would foster trade and industry. This is further explained below.
What is Alexander Hamilton?Generally, The American revolutionary, politician, and Founding Father Alexander Hamilton (January 11, 1755 or 1757 – July 12, 1804).
In conclusion, In Hamilton's view, establishing a person's public credit would result in them amassing wealth, which would in turn foster trade and industry.
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Arbitration has a ________ level of control over the final outcome and a ________ level of control over the process.
Arbitration has a high level of control over the final outcome and a low level of control over the process.
Arbitration:
Alternative dispute resolution techniques like arbitration can be used to settle conflicts outside of the legal system. One or more people will decide the issue, making the result a "arbitration award."
By agreement of the parties, a dispute is presented to one or more arbitrators through the arbitration process, who then render an official ruling on the matter. Instead of going to court, the parties choose arbitration as a private conflict settlement process.
When two divorce parties are unable to come to an agreement on terms and invite a third party to assist them in their negotiations, it is an example of an arbitration.
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A shopkeeper purchased the building that houses her shop, incurring an obligation to the owner of the building equal to the fair market value of the building plus interest. The obligation is evidenced by a promissory note and secured by a mortgage on the building. Several years later, the shopkeeper sold her business and the building to a third party, who assumed liability for the obligation. At the request of the third party and without the knowledge of the shopkeeper, the original owner of the building agreed to release the mortgage. Subsequently, the third party defaulted on the obligation. The current fair market value of the building exceeds the amount of the unpaid obligation. The original owner of the building sued the shopkeeper for the amount of the unpaid obligation. Can the original owner recover this amount from the shopkeeper
No, the original owner recover this amount from the shopkeeper because "the release of the mortgage discharged the shopkeeper's personal liability."
What are mortgage?When you and a lender enter into a mortgage, the lender is granted the power to seize your property if you are unable to pay back the loan amount plus interest. Mortgage loans are used to either purchase a home or borrow against an existing home's worth.-
The examples of mortgage loans are-
A mortgage would be something you would borrow money against at the bank. Mortgage is a loan taken to purchase property and guaranteed by the same property. An example of a mortgage is the loan you took out when you bought your house.As for the given condition, the owner will not get the amount from the shopkeeper because the building owner's release of the relevant mortgage releases the shopkeeper/mortgagor from personal accountability for the loan made by the original owner of the building (i.e., mortgagee).
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A situation in which accepting one investment prevents the acceptance of another investment is called the: multiple rates of return decision. issues of scale problem. mutually exclusive investment decision. operational ambiguity decision. net present value profile.
mutually exclusive investment
The imposition of a tariff will typically ________ government revenue and ________ domestic production of the good.
The imposition of a tariff will typically increase government revenue and increase domestic production of the good.
What are the effects of a tariff?A tariff is when a company charges an amount on the import of certain goods and services. The purpose of a tariff is to discourage the importation of certain goods and services and increase domestic production.
When a tariff is imposed, import falls and since import is a negative function of the gross domestic product, GDP increases. Also, the income of the government increases when tariffs are imposed.
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The most important economic effect of the internal combustion engine was trade became slower and less efficient. encouraging city workers to commute. increasing the price of gasoline. allowing goods to be shipped farther.
The most important economic effect that the internal combustion engine brought was allowing goods to be shipped farther.
How was the combustion engine beneficial?The combustion engine made it such that cars and other vehicles were able to move faster and over longer distances.
This allowed for goods and services to be shipped over great distances across the U.S. thereby increasing trade.
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Answer:
D
Explanation:
Which best compares and contrasts the teaching and training careers and the professional support careers?
A) Both careers try to support student success; however, teaching and training careers involve direct instruction of students.
B) Both careers help students learn; however, teaching and training careers are involved in running the school.
C) Both careers are increasing the number of available jobs; however, professional support career earns less money.
D)Both careers have support careers; however, professional support careers assist in the classroom.
The teaching and training careers and the professional support careers can be compared because option A) Both careers try to support student success; however, teaching and training careers involve direct instruction of students.
What are teaching and training careers and the professional support careers ?They are both careers that is needed for the students so they can come out with flying colors.
For instance, teaching involves passing across knowledge to students, and the teacher is expected to use different techniques so that the students can cope and be successful academically.
Therefore, option A is correct.
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If the long-run market supply curve for a good is perfectly elastic, an increase in the demand for that good will, in the long run, cause a. an increase in the price of the good and an increase in the number of firms in the market. b. an increase in the price of the good but no increase in the number of firms in the market. c. no impact on either the price of the good or the number of firms in the market. d. an increase in the number of firms in the market but no increase in the price of the good.
(A) An increase in the price of the goods and an increase in the number of firms in the market.
What is the market supply curve?The link between total output and the average marginal cost of creating this output is measured by the market supply curve. One justification for sketching supply curves with P on the vertical axis is the interpretation of the market supply curve as a marginal cost curve.What happens when demand increases in a perfectly competitive market in the long run?An increase in demand generates economic profit in the short run and encourages entry in the long run in a perfectly competitive market in long-run equilibrium; a decrease in demand generates economic losses (negative economic profits) in the short run and forces some businesses to leave the industry in the long run.Growth in the number of firms in the market, as well as an increase in the price of the goods.If the long-run market supply curve for an item is perfectly elastic, an increase in demand will raise the price of the goods and increase the number of businesses in the market in the long run.Solution -As it is given above if the long-run market supply curve for an item is perfectly elastic, an increase in demand will raise the price of the goods and increase the number of businesses in the market in the long run.
Therefore, an increase in the demand for that goodwill, in the long run, causes (A) an increase in the price of the goods and an increase in the number of firms in the market.
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___________ is a gross profit factor added to the Index, which determines the new note rate. This number can vary from lender to lender but will remain fixed for the duration of the loan agreement.
The answer is the margin.
The index serves as a benchmark interest rate that captures the state of the market as a whole. Based on the market, the index varies.
An adjustable-rate mortgage loan's interest rate fluctuates based on changes in the index and the loan's margin.
When you apply for the loan, the lender chooses which index your loan will utilize, and this decision often won't alter after closing.
When an adjustable-rate mortgage (ARM )'s rate period expires, the margin is the number of percentage points the mortgage lender adds to the index to determine your interest rate.
Your loan agreement specifies the margin, which won't change after closing. The margin amount varies according to the specific lender and loan.
The fully indexed rate is equal to the margin plus the index.
Hence, the margin is a gross profit factor added to the Index, which determines the new note rate. This number can vary from lender to lender but will remain fixed for the duration of the loan agreement.
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