The demand for navel oranges increases when the price of its substitute, cuties, increases.
1. Price of substitute increase
The demand curve shifts rightwards. The equilibrium price increases from P1 to P2 and the equilibrium quantity increases from Q1 to Q2.
2. Decrease in supply
When the farmers are forced to adopt expensive farming practices, supply of navel oranges decreases.
In economics, demand is the quantity of a very good that customers are willing and able to purchase at various costs all through a given time. the connection among fee and quantity demand is also referred to as the demand curve.
demand is the purchaser's preference to buy a selected proper or service. market call for is the call for for a particular precise inside the market. mixture call for is the overall demand for items and services in the financial system. demand and supply match determines the charge of the best or carrier. information the concept of call for.
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If the central bank increases the money supply such that aggregate demand shifts from AD 1 to AD 2, then, according to this classical model, the price level would:
increase from P 1 to P 3.
The classical model suggests that any increase in the money supply will lead to an increase in aggregate demand and a corresponding increase in the price level.
In this case, the money supply is increased, shifting aggregate demand from AD1 to AD2. This shift in aggregate demand leads to a corresponding increase in the price level from P1 to P3.
Aggregate demand is an economic term that refers to the total demand for all goods and services in an economy. It is typically represented by a graph that measures the total amount of spending in an economy at all levels of price. Aggregate demand is determined by the sum of consumer spending, investment, government spending, and net exports.
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transaction processing system (tps) the level of detail or summarization appropriate for a certain level of employee regardless of report type output from an information system to facilitate decision-making a highly detailed and generated directly from the transaction processing system collects and stores a highly detailed report about every transaction for a given day
A type of information system known as a Transaction Processing System (TPS) is responsible for acquiring, storing, modifying, and retrieving an organization's data transactions.
Even though this isn't as important as it is for real-time systems, transaction processing systems make an effort to provide predictable response times to requests.
Give an example of a transaction processing system (TPS) and explain what it is.
A computerized system that manages and records the day-to-day business transactions is known as a transaction processing system. Entry of sales orders, hotel reservation systems, payroll, employee records, and shipping are all examples.
What level of the executives utilizes TPS?
Transaction Processing System (TPS) at the operational management level Transaction processing systems are used to keep track of the organization's day-to-day business operations. Users at the operational management level make use of them.
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TRUE/FALSE. self-service is shaping the past of digital analytics by increasing the barrier of entry into the world of business analytics.\
True. Self-service is shaping the past of digital analytics by increasing the barrier to entry into the world of business analytics
Self-service is reshaping the way companies use digital analytics and is making it easier to access and analyze data. This is great news for businesses, as it means they can get more insights from their data without having to invest in expensive professional analytics services.
However, self-service analytics requires a certain level of technical knowledge and understanding of data, making it harder for those without this knowledge to access and utilize the data.
At the same time, self-service analytics is making it easier for those with the necessary skills and knowledge to quickly access and analyze data. This is great news for those with the skills to do so, as it allows them to get more insights from their data in a fraction of the time.
Overall, self-service analytics is having a major impact on the way businesses are leveraging digital analytics. While it is increasing the barrier to entry for those without the necessary technical knowledge, it is also making it easier for those with the skills to quickly access and analyze data.
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Explain why organizations should treat near misses in the same way that they treat sentinel events, using error-reduction tools such as root-cause analysis or failure mode and effects analysis in an effort to prevent future occurrences.
By addressing issues like near misses and sentinel occurrences, the firm will be able to develop and provide its intended outcome. Being strategically strong will benefit the company and increase market confidence.
Near misses are any unanticipated occurrences that had the potential to cause property damage, injury, or sickness but did not. Any important event that has a material impact on an entity's operations, finances, or legal status is referred to as a sentinel event. The way a company reacts to a sentinel incident is crucial in determining whether or not it will endure and continue to enjoy the trust of its clients. Root cause analysis is a method used to identify the true, frequently unidentified cause of a business issue and then to provide a workable strategy to resolve it. Instead than only providing output, it can assist in determining the root cause of failures or difficulty in accomplishing business.
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suppose there is a policy debate over whether the united states should impose trade restrictions on imported ball bearings: the president of the united states argues that the government should impose a tariff on ball bearings because they are a necessary input into the production of various weapons. free trade would make the united states overly dependent on foreign countries for the supply of ball bearings. in case of a war, the united states might not be able to make or purchase enough ball bearings and, therefore, would not be able to make enough weapons to defend itself. which of the following justifications is the president using to argue for the trade restriction on ball bearings? Jobs argument Using-protection-as-a-bargaining-chip argument Unfair-competition argument National security argument Infant-industry argument
The unfair competitive argument justifications are president using to argue for trade restriction on ball bearings.
What is trade restriction?Trade restrictions are unnatural barriers to the exchange of commodities and/or services between two or more nations. Protectionism produced it as a byproduct. The phrase is contentious, however, because what some may view as a trade restriction, others may view as a measure to safeguard customers from subpar, harmful, or hazardous goods. Where round lamps were necessary until 1975, rectangular headlamps were promoted there. The rectangular headlamps were the norm for new cars by 1979. The US Department of Transportation banned any ornamental or protective object in front of headlamps in 1968 if the headlamps are turned on. Vehicles made for the US market could no longer achieve the solid aerodynamic performance they were intended for due to the modification.
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a lease is treated as an executory contract and lease expense is recorded as the leased asset is used. lessees do not record an asset or liability at the lease's commencement date.
A short term lease is treated as an executory contract and lease expense is recorded as the leased asset is used. Lessees do not record an asset or liability at the lease's commencement date.
A lease executory contract, also known as a " lease contract" or a " tenancy agreement", is a contract between a landlord and a tenant in which the tenant agrees to rent a property from the landlord for a specified period of time.
The contract may also specify the amount of rent to be paid, the length of the lease, and other terms and conditions. A lease is a contract in which one party agrees to rent an asset—in this case, property—owned by another party.
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psychographics refers to variables associated with people who may want to purchase the product, such as age, gender, race, nationality, residency (the area the person lives in), and income level.
Psychographics is not the one that refers to variables associated with people who may want to purchase the product, such as age, gender, race, nationality, residency (the area the person lives in), and income level.
It is the demographics. Hence, the given statement is false.
Population dynamics and dimensions are examined and measured in demographic analysis, which can be applied to entire civilizations or specific groups based on factors like education, ethnicity, nationality, and religion.
Any medical facility's fundamental data, including patient demographics, emergency contact information, and medical record data, comes from its patients.
Even though there are a number of autonomous demography departments, educational institutions often treat demography as a subfield of sociology.
The phrase "psychographics" does not refer to characteristics of potential customers, such as age, gender, race, country, residency (the place of residence), and income level. The demographics are to blame.
Therefore, the given statement is false.
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The complete question has been attached in text form:
T/F: Psychographics refers to variables associated with people who may want to purchase the product, such as age, gender, race, nationality, residency (area the person lives in), and income level.
amy gets a job at a marketing agency. her boss tells her that if she works hard and earns good reviews, she could work her way up to a position in the upper management. such a system is referred to as meritocratic. opportunistic. individualistic. entrepreneurial.
Option b is correct. Such s system is referred to as opportunistic. A system known as an opportunity management system (OMS) offers data on sales leads or opportunities along with other supporting data.
The visual interface that these systems typically offer organizes specific types of data, such as customer or potential customer identification, transaction status, historical transactions, and other pertinent data that will be useful to sales teams.
Opportunity management systems are essentially a subset of customer relationship management software, which groups various customer data into categories to assist sellers in making better informed decisions when generating leads, pursuing possibilities, and closing deals. Many CRM solutions include digital interfaces that give salespeople quick access to details about clients' preferences, past purchases, and general habits. A sales department may benefit greatly from the adoption of these tools.
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Question 14 (2.5 points) On evaluating a project, adjusting the WACC upwards instead of adjusting the initial investment upwards to reflect the floatation costs violates the ______ OA) Risk-return relation B) Time value of money C) Stand-alone principle O D) Security pricing principle
When appraising a project, the risk-return relation is violated if the WACC is increased rather than the original investment to represent the flotation costs.
How Much Does Flotation Cost?A publicly traded firm incurs floatation costs when it distributes stocks or bonds and pays costs such underwrite fees, attorney costs, and fees paid. Businesses must take into account how these fees may affect the amount of cash they can collect via a new offering.
How do the costs of floating affect WACC?These fees will lower the net revenues from the sale of a new share, causing a higher cost of equity because of the flotation charges. As the expense of equity is a part of the weighted average costs of capital (WACC), it will consequently increase the WACC.
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the city asks the cpa firm of abernethy and chapman to examine several transactions that occurred during 2020 and indicate how to correct any erroneous reporting. officials also want to know the effect of each error. view each of the following situations as independent. during 2020, the city of coyote received $10,000, which was recorded as a general revenue in the general fund. it was actually a program revenue earned by the city's park program.
The error in this particular situation is that the revenue was recorded in the general fund, instead of the park program fund. To correct the error, the revenue should be reclassified and moved from the general fund to the park program fund.
The effect of this particular correction would be that the revenue would be allocated to the park program fund, rather than the general fund, which would allow the park program to better allocate the funds to the necessary programs. Additionally, this correction would allow the city to properly track the revenue and expenses associated with the park program.
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two years ago, mr. young paid $40,000 to buy a publicly traded corporate bond through his broker. the bond's stated redemption value was $45,000. this year, mr. young sold the bond for $47,100. compute and characterize his gain or loss on sale. multiple choice $7,100 ordinary income. $7,100 long-term capital gain. $2,100 long-term capital gain. $5,000 ordinary income and $2,100 long-term capital gain.
The correct answer is option 4: $5,000 ordinary income and $2,100 long-term capital gain.
Mr. Young's gain on the sale of the bond is $7,100. However, since he held the bond for more than one year, the gain is classified as a long-term capital gain. Since the bond was purchased two years ago, the gain is split between $5,000 of ordinary income and $2,100 of long-term capital gains.
The gain or loss resulting from the sale of an eligible investment that was held for more than a year at the time of sale is referred to as a long-term capital gain or loss. In contrast, investments that are sold off in less than a year may see short-term gains or losses.
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With this type of account, earnings accrue tax free and are not subject to tax until they are withdrawn (after the individual reaches age 59 1/2).
a. Keogh plan
b. SEP plan
c. Individual retirement arrangement
d. Traditional IRA
e. Nondeductible IRA
f. Self-directed retirement plan
g. Withdrawal
h. Rollover
i. A possible investment decision
The type of account which would see earnings being accrued tax free and not being subject to tax until they are withdrawn is a d. Traditional IRA.
What is a traditional IRA ?Traditional IRAs are a form of individual retirement account that allow for pre-tax contributions and tax-deferred growth of investments. The owner of a typical IRA must pay income tax on withdrawals made in retirement.
The IRS considers withdrawals from a regular IRA to be ordinary income and taxes them accordingly. At age 59 ¹ / ₂, account holders can begin receiving distributions. Required Minimum Distributions (RMDs) from regular IRAs are necessary after age 72.
In a traditional IRA, the money is not taxed until it is withdrawn, and the investor will be charged a 10% penalty if any withdrawals are taken before the account reaches maturity. A lower tax rate in retirement is viewed as preferable.
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in the pay-per-click advertising model used by ads advertisers have to pay for their ads to show up in the sponsored sections of search results advertisers have to pay when searchers decide to click through to their websites advertisers have to pay monthly fees to show up in sponsored sections of search results none of the above
In the pay-per-click advertising model used by ads, advertisers have to pay when searchers decide to click through to their websites. So option b. is correct.
PPC or pay-per-click is a kind of internet marketing that implicates advertisers spending a fee each time one of their ads is clicked. Simply, you solely pay for advertising if your ad is actually clicked on. It's basically a method of buying visits to your site, in addition to driving website visits organically. This toils when a person checks out for a keyword related to their business offering.
PPC has multiple advantages that can aid a business, enclosing the following: Optimised PPC is cost-effective, your ad will be manifested on the first outcomes page when somebody searches for an affiliated term, and better disclosure and brand visibility as targeted traffic is directed to your site.
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in the introduction section of a proposal, which of the following would be the best way to persuade the receiver to read the rest of the proposal? group of answer choices mention a remarkable resource available exclusively to you. present a detailed budget that shows a low overall cost. give the background and credentials of everyone who will be working on the project. provide a timetable for all activities.
Which one of the follow would be the greatest strategy to convince the reader to read the rest of both the proposal when it comes to the introduction Mention a fantastic resource that you have access to only.
What does a proposition in business mean?A company proposal is an document that aims to convince a company to purchase a good or service. A formal document known as a business proposition is produced by a corporation and given to a prospect in order to obtain a business deal.
Why are business proposals crucial?Making crucial decisions about topics like cash flow, marketing, and staff will be made easier with the aid of a business proposal. Setting specific goals and objectives can also help you keep an eye on the company's success and make any adjustments.
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Use the following information to calculate the sales price of a boat under both GAAP and for internal decision purposes:
Number of boasts to be sold 500
Upstream costs $5,000,000
Direct materials per boat $50,000
Direct labor per boat $30,000
Overhead per boat $20,000
Downstream costs $2,000,000
Assume the company wants to sell each boat for 20% more than the cost to produce the boat. Which of the following would be the sales price under GAAP and for internal decision purposes?
GAAP Internal Decision
a. $120,000 $136,800
b. $136,800 $136,800
c. $120,000 $114,000
d. $136,800 $114,000
Multiple Choice
a. Option A
b. Option B
c. Option C
d. Option D
Answer: a. Option A is correct. The sales price under GAAP would be $120,000, which is 20% more than the cost to produce the boat ($50,000 + $30,000 + $20,000 = $100,000, 20% of which is $20,000).
The sales price for internal decision purposes would be $136,800, which is calculated by adding the upstream and downstream costs to the cost to produce the boat, then multiplying by 1.2 ($5,000,000 + $2,000,000 + $100,000 = $7,100,000; 1.2 x $7,100,000 = $136,800).
Upstream works include the exploration and production of crude oil and natural gas, whilst downstream refers to the processes applied after extraction through to it being delivered to the customer in whatever format required.
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an automobile insurance company uses a lot of expensive multipart paper to process its claims. the printer from whom they receive the paper has informed them of discounts available for quantity orders, but the company doesn't have space to store the entire amount ordered at one time. the company uses the paper at the rate of 50 boxes per week. the company operated 50 weeks per year. it costs $100 to place an order and it costs 15% of the acquisition cost to store it. the printer is offering the following discounts: range of order acquisition cost(price) quantities per box 0 999 $15 1000 1999 $14.90 2000 $14.85
The automobile insurance company can benefit from the quantity discounts offered by the printer by making sure they order the right amount of multipart paper to meet their needs.
It's important to note that it costs $100 to place an order and 15% of the acquisition cost to store it, so the insurance company needs to find a way to balance the acquisition cost with the cost of storage.
To do this, the company should consider the range of order acquisition costs and the quantity per box offered. For orders under 999 boxes, the cost per box is $15. For orders between 1000 and 1999 boxes, the cost per box is $14.90. For orders over 2000 boxes, the cost per box is $14.85.
Given that the insurance company uses 50 boxes per week, they should order 1000 boxes at a time to get the best price per box. This would cost them $14,900 plus the $100 order fee and the 15% storage fee, which would bring the total cost to $17,285. This is a savings of $335 compared to ordering 999 boxes.
By ordering the right amount of multipart paper at a time, the insurance company can save money and ensure they have enough paper to meet
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Understanding pricing implications of product differentiation
Consider the market for a new snack food produced by two firms: Taste-tastic and Yumm. Although the snacks are quite similar, Taste-tastic's snacks have a stronger chocolate flavor than Yumm's snacks. To illustrate how each firm chooses a price for its snack, the following graph presents each firm's best-response function.
now suppose that both firms discover that the majority of consumers prefer a level of nuts in-between the levels currently provided by each, and thus tastibite reduces the amount of nuts it uses, and goodum increases the amount of nuts. in this case, the resulting equilibrium price for both firms will be the price predicted when the products are more differentiated.True or False: If consumers started caring more about product differentiation, the equilibrium price would move closer to m
True. A product will have a competitive edge and expand its market share if it can stand out from its rivals in some distinctive way and appeal to consumers. As a result, product differentiation helps the market forces function and maintain low consumer costs.
How does market impact of product differentiation work?
The trait or characteristics that set your product or service apart for your target market consumers are known as product differentiation. It helps you set yourself apart from your competition and boosts brand loyalty, sales, and growth.What is product differentiation? What is the definition of product differentiation?
Product differentiation is a business strategy whereby companies seek to obtain a competitive edge by elevating the perceived value of their goods and services in comparison to that of goods and services offered by rival companies.
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FILL INTHE BLANK country kitchen and perkins are both a chain of family restaurants featuring diner-like menus with reasonably priced items. these companies are in the same________ focus group control group strategic group target group experimental group
Country Kitchen and Perkins are both a chain of family restaurants featuring diner-like menus with reasonably priced items. These companies are in the same Strategic Group.
So Correct answer is Strategic Group.
A Strategic Group is a term used in strategic management to describe a collection of businesses within a certain sector that have similar business models or set ups of strategies. For instance, based on elements like preparation time, cost, and presentation, the restaurant sector can be split into numerous strategic groupings, including fast-food and fine-dining.
The characteristics used to identify the groups determine the number of groups within an industry and the makeup of those groups. While a business model describes how a company will make money, strategy refers to the direction and scope of an organization over the long term that generates advantages for the organization
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A company issued 60 shares of $100 par value common stock for $7,300 cash. The journal entry to record the issuance is:
a. Debit Cash $7,300; credit Common Stock $7,300.
b. Debit Investment in Common Stock $7,300; credit Cash $7,300.
c. Debit Cash $7,300; credit Common Stock $6,000; credit Paid-in Capital in Excess of Par Value, Common Stock $1,000.
d. Debit Common Stock $6,000, debit Investment in Common Stock $1,000; credit Cash $7,300.
The concept mentioned is Common stock. The answer is option C, Debit Cash $7,300; credit Common Stock $6,000; credit Paid-in Capital in Excess of Par Value, Common Stock $1,000.
Common stock is a representation of partial power in a company and is the type of stock utmost people invest in. Common stock comes with voting rights, as well as the possibility of tips and capital appreciation.
In account, you can find information about a company's common stock in its balance distance. Common stock is a type of tradeable asset, or security, that equates to power in a company.
Still, your profit from its trade is treated as a short-term capital gain, If you hold the common stock for one time or less. However, the income is treated as a long-term capital gain, If you hold the stock for further than a time.
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on july 1, 2019, farm fresh industries purchased a specialized delivery truck for $219,000. at the time, farm fresh estimated the truck to have a useful life of eight years and a residual value of $27,000. on march 1, 2024, the truck was sold for $88,000. farm fresh uses the straight-line depreciation method for all of its plant and equipment. partial-year depreciation is calculated based on the number of months the asset is in service.
Farm Fresh Industries will compute the depreciation expense for the customized delivery truck using the straight-line depreciation technique.
By subtracting the projected residual value from the asset's cost (219,000), which is then divided by the expected useful life of the item, the depreciation expense is determined (8 years). This equals a $22,125 yearly depreciation expense.
The vehicle served its purpose for 5 years and 3 months before being sold on March 1, 2024. The annual depreciation expense of $22,125 is multiplied by the percentage of the year the truck was in use, which is 5.25/8, to determine the partial-year depreciation (or 0.65625). This equates to a $14,539 partial-year depreciation.
Farm Fresh Industries would record a gain or loss on the sale of the truck when it was sold for $88,000. This is derived by deducting the sale price, in this case, $8,800, from the asset's book value at the moment of sale. The asset's cost is subtracted from the total accumulated depreciation to arrive at the book value.
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an agent representing a broker-dealer in state p has a retail customer who moves to state s from state p. the agent and the broker-dealer now have one
Brokers and agents alike are required to become licensed in State S. Registration in State S is required for both the agent and the broker-dealer. Broker-dealers are not afforded a "de minimis" exemption in the same way that investment counselors are.
This exemption, known as the de minimis rule, allows an adviser to recruit a limited number of retail clients (investors) in a state without being required to register with the state. This exemption is available if the adviser does not have a physical presence in the state and the number of retail investors does not exceed five.
Both investment advisors and IARs, but not broker-dealers or agents, are subject to the de minimis rule. A broker-dealer and/or agent must register with the state if they have even one retail client residing there continuously.
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The right question is:
An agent representing a broker-dealer in State P has a retail customer who moves to State S from State P. The agent and the broker-dealer now have one customer in State S. To continue to do business with this customer, which of the following is TRUE?
Only the agent must register in State S.Neither the broker-dealer nor the agent needs to register in State S.The agent and broker-dealer must register in State S.Only the broker-dealer must register in State S.carla vista company supplies schools with floor mats to use in physical education classes. carla vista has received a special order from a large school district to buy 708 mats at $45 each. acceptance of the special order will not affect fixed costs but will result in $1,416 of shipping costs. for the first 6 months of 2022, the company reported the following operating results while operating at 80% capacity:
If the special order is accepted, the company's operating results for the first 6 months of 2022 will be as follows:
Fixed Costs: $54,000
Variable Costs: $77,816
Total Revenue: $104,216
Net Income: $22,400
Fixed Costs: $54,000
Variable Costs: $41,400
Total Revenue: $78,800
Net Income: $19,400
If the special order is accepted, the company's operating results for the first 6 months of 2022 will be as follows:
Fixed Costs: $54,000
Variable Costs: $77,816
Total Revenue: $104,216
Net Income: $22,400
Net income refers to the amount an individual or business makes after deducting costs, allowances and taxes. In commerce, net income is what the business has left over after all expenses, including salary and wages, cost of goods or raw material and taxes.
Revenue is the total amount of income generated by the sale of goods or services related to the company's primary operations. Revenue, also known as gross sales, is often referred to as the "top line" because it sits at the top of the income statement. Income, or net income, is a company's total earnings or profit
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under this theory of oligopoly, all firms other than the dominant firm act as . therefore, the horizontal sum of their marginal cost curves is their curve.
Under this theory of oligopoly, all firms other than the dominant firm act as price takers. therefore, the horizontal sum of their marginal cost curves is their supply curve.
What is Oligopoly?A market known as an oligopoly is one in which a small number of businesses cooperate and compete with one another to control the sale, prices, and other aspects of a product that may be homogeneous or differentiating.
Price leadership refers to a situation in which other companies in the market accept and adopt the pricing and price adjustments set by a dominant firm or a firm that is acknowledged as the industry leader.
Other firms other than dominant firm accepts the price set by dominant firm. Hence the firms act as a price taker not price maker.
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Complete question
Understanding the price leadership model Consider Kellogg's production and price choices in the breakfast cereal industry when it is characterized by the price leadership model Under this theory of oligopoly, all firms other than the dominant firm act as price makers . Therefore, the horizontal sum of their marginal cost curves is their curve.
which of the following steps are necessary to determine the profit-maximizing level of output, profit-maximizing price, and economic profit in pure monopoly?
The step essential for determining profit maximization is finding the combination of cost and output or MR = MC.
Profit maximization is the process through which a business is able to maximize the overall profit it could make from the sale of its goods. When the marginal profit is zero or when the marginal revenue and cost are equal, the overall profit is maximized. The difference between marginal revenue and marginal cost is the marginal profit.
A monopolist would produce the amount of commodities where marginal revenue is equal to marginal cost (MR = MC) in the near run to maximize profits or minimize losses. The firm should expand production until both are equal if the marginal revenue is higher than the marginal cost. If the firm's marginal revenue is less than its marginal cost, it should stop expanding its output and cut back until both are equal.
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the following selected information from Allen Company to determine the Year 1 and Year 2 common size percentages for operating expenses using Net sales as the base.
Year 2 Year 1
Net sales $ 587,800 $ 474,600
Cost of goods sold 237,400 137,000
Operating expenses 86,590 83,450
Net earnings 43,780 31,030
Multiple Choice
40.4% for Year 2 and 28.9% for Year 1.
18.2% for Year 2 and 22.6% for Year 1.
14.7% for Year 2 and 17.6% for Year 1.
123.8% for Year 2 and 100.0% for Year 1.
25.7% for Year 2 and 11.3% for Year 1.
The following excerpted data from Allen Company was used to calculate the operating expense common size percentages for Years 1 and 2, using Net Sales as the base. 14.7% and 17.6% respectively for Years 1 and 2.
What falls under operating costs?Operating costs, commonly referred to as selling, general, and administrative (SG&A) costs, are what a business must pay. Rent and utilities, sales and accounting, management and administrative pay, and marketing and advertising are among them.
What are three instances of operating expenses?As an illustration, consider the following: rent, transportation, utilities, salaries, office supplies, upkeep and repairs, property taxes, and depreciation (see below for a more comprehensive list).
Where are the operational costs?An organization's income statement includes a summary of operating expenses. Depending on its setup and industry, every business has a unique set of operational costs. Examine your general ledger and seek for expenses that have no bearing on the price of producing your product or service to identify your company's running costs.
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TRUE/FALSE. under continuous budgeting, a new month is added to the end of the budget period each time the present month expires, so that a twelve-month budget is available at all times.
True, under continuous budgeting, a new month is added to the end of the budget period each time the present month expires, so that a twelve-month budget is available at all times.
What is budgeting?Budgeting refers to the process of creating a plan for spending money. By creating this spending plan, you can determine in advance if you have enough money to do what you need and want to do. Budgeting is simply balancing expenses and income.This is a proactive approach to getting your finances in order. Budgeting helps you avoid spending more than you earn and allows you to plan your spending for the short and long term.It's a simple and helpful way for people with all kinds of income and expenses to keep their finances in order. A government's budget is a summary or plan of the expected resources and expenditures of that government.There are three types of her government budget: Operating or current budget, capital or investment budget, and cash or cash flow budget.To learn more about budgeting from the given link :
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People buy more of a good when the price falls and there are several theoretical explanations for this behavior. From the list below, match the explanation for why people buy more at lower prices with the proper term.
The Substitution Effect The income Effect The total Effect? ? ?
Options:
a. Increases in quantity demanded that are attributable to changes in purchasing power as the price of a good falls.
b. Increases in quantity demanded that are attributable to the good becoming cheaper relative to other goods.
c. Increase in quantity demanded attributable to the combination of the income and substitution effect.
This is due to the substitution effect: increases in quantity demanded that are attributable to the good becoming cheaper relative to other goods.
This is due to the income effect: Increases in quantity demanded that are attributable to changes in purchasing power as the price of a good falls.
This is due to the total effect: Increase in quantity demanded attributable to the combination of the income and substitution effect.
What is the income and substitution effect?When the price of a good changes, there are two effects, the income effect and the substitution effect, that lead to a change in the quantity demanded of the good.
The substitution effect looks at the change in price of a good relative to other goods. When the price of a good falls, it becomes cheaper relative to other goods. As a result, consumers buy more of that good and less of the other good.
The income effect looks at how a change in price affects real disposable income. When the price of a good decreases, real disposable income increases. As a result, consumers can afford to buy more of that good as the consumers purchasing power has increased, holding money income constant.
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mary alice just won the lottery and is trying to decide between the options of receiving the annual cash flow payment option of $300,000 per year for 25 years beginning today, or receiving one lump-sum amount today. mary alice can earn 5% investing this money. at what lump-sum payment amount would she be indifferent between the two alternatives? (fv of $1, pv of $1, fva of $1, pva of $1, fvad of $1 and pvad of $1) (use appropriate factor(s) from the tables provided.)
Mary Alice would have to receive a lump-sum payment of $4,717,231.37 in order to be indifferent between the two alternatives. This is calculated using the present value of an annuity due formula, which takes into account the 5% rate of return she could earn investing the money.
The formula used is: PVAD = PMT x [((1 + i)^n - 1)/(i x (1 + i)^n)]
Where:
PVAD = Present Value of an Annuity Due
PMT = Payment Amount
i = Interest Rate
n = Number of Years
Plugging in the values provided:
PVAD = 300,000 x [((1 + 0.05)^25 - 1)/(0.05 x (1 + 0.05)^25)]
PVAD = 300,000 x [((1.05)^25 - 1)/(0.05 x (1.05)^25)]
PVAD = 300,000 x [63.85627/1.27632]
PVAD = 4,717,231.37
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Calculate the total dollar amount you would pay at the quoted price (disregard commission or any interest that may have accrued). (Round your answer to the nearest cent.)Company Bond price Number of bonds purchasedWang 103.25% 3Total dollar amount of purchase price $
Face value is $1,000.
Bond price = 1.0325 x 1000 = 1 032.5.
Amount in dollars = 1,032.5*3
$3,097.5 in dollars.
Why Do Bonds Need to Be Valued?Bonds are contracts for debt that mandate a certain amount of interest be paid by the borrower to the lender. The cost that a buyer would have to pay another investor to acquire the bond is its value. Bond valuation is the process of estimating the bond's fair market value based on variables including interest rates, bond payments, and timeframes.
One of the most popular techniques for valuing a bond is the discounted cash flow method. This approach involves discounting the bond's cash flows (such as the coupon and par value) at the market rate. Afterward, the bond's value is calculated by adding the present values of all the cash flows.
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An investor is long stock at 675. The current market price of the stock is 682, it is anticipated the stock will continue to rise. If the investor would like to generate income, but limit how much can be made if the stock continues to rise, which of the following contracts would do that?A)sell a 95 callB)sell a 90 putC)buy a 95 callD)buy a 90 putsell a 95 call
If the stock continues to rise, then the investor contracts should a) sell a 95 call.
Selling options can be risky when the market turns negatively and there is no backup plan or hedge in place. Even while worst-case events are unlikely, it's still important to be prepared for them.
The danger of selling a call option is that the stock will climb endlessly without any upside protection to contain the loss. Call sellers therefore need to select when they will decide to decide to buy back an option contract.
But when selling a put, the risk is that the stock will decline, in which case the put seller will receive the premium and be obligated to buy the shares if it falls below the strike price of the option.
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