The provision of relevant information to managers during decision-making is part of relevant costing.In the decision-making process, relevant information refers to future information that is provided promptly and distinguishes between various options.
The company must comprehend additional cost concepts like opportunity costs and sunk costs in order to identify relevant costs.Costs that have already been incurred and will not change in the future are referred to as "sunk costs.
"Sunk costs are costs that don't matter and shouldn't be considered when making a decision.The cost of direct materials used in the production of a product that cannot be sold because of damage is an example of sunk cost.The benefits sacrificed when choosing one option over another are known as opportunity costs.
Operating income increased by (7.50 - 7) x 35,000 is equal to $17,500.
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which statement describes a fixed bid contract? the dollar amount for completing a segment of project work varies. this is a specific dollar amount for completing a segment of project work. the dollar amount is based on the items needed to complete a segment of project work. the dollar amount is based on the number of days needed to complete a segment of project work.
The statement describes a fixed bid contract, this is a specific dollar amount for completing a segment of project work.
A fixed bid contract is a contract that is based on the idea that a fixed scope of work will be completed for a fixed. The fixed bid contract provides for a process that is not subject to any adjustment on the basis of the contractor's cost experience in performing the fixed contract. The fixed bid contract is also a contract that is based on the idea that a fixed scope of work will be completed for a fixed amount.
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Which group once represented 35 percent of the labor force, but today, __________ represent only about 11. 1 percent of the labor force, and are consequentially, much less powerful in influencing economic policy?
Labor unions represent only about 11. 1 percent of labor force, and are consequentially, much less powerful in influencing the economic policy.
What are labor unions?Since the National Labor Relations Act was passed in 1935, labor unions in the US have been recognized as organizations that represent employees in numerous industries. Currently, their main activities are representing their members in disputes with management on alleged violations of contract clauses as well as collective bargaining for their membership's pay, benefits, and working conditions. At the state and federal levels, larger trade unions frequently take part in lobbying efforts and electioneering. The majority of unions in the United States are affiliated with either of the two main umbrella groups: the AFL-CIO, founded in 1955, or the Change to Win Federation (SOC), which broke away from the AFL-CIO in 2005. On behalf of employees in the United States and Canada, both promote laws and policies.
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greg, a young entrepreneur, has developed an aggressive business plan and is presenting his profit projections on the popular show shark tank in hopes of securing some venture capital. he concludes his presentation with an lp model of his planned product mix, and is convinced he will seal the deal by demonstrating that his profits are limitless since his lp model is unbounded. what should the sharks tell him?
Unbound capability a kind of new business software that is reviewed due to agents not having binding authority alongside with confirming acceptability, eligibility, insurability, and issuance based on our underwriting tips and manuals.
How are unbound reports spaced?Body of report: The body of the report may be SS (single-spaced) or DS (double spaced), on the other hand DS is preferred. Between paragraphs: A DS (double space) have to be left between the paragraphs. Textual citations are references used to supply credit for quoted or paraphrased material.
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https://brainly.com/question/14659197#SPJ4the advantages of npv are all of the following except group of answer choices it recognizes the timing of the benefits resulting from the project it allows the comparison of benefits and costs in a logical manner through the use of time value of money principles it provides the amount by which positive npv projects will increase the value of the firm it can be used as a rough screening device to eliminate those projects whose returns do not materialize until later years
The advantages of NPV are all of the following except it can be used as a rough screening device to eliminate those projects whose returns do not materialize until later years.
NPV allows the comparison of benefits and costs in a logical manner through the use of time value of money principles, it provides the amount by which positive NPV projects will increase the value of the firm, and it recognizes the timing of the benefits resulting from the project. NPV stands for Net Present Value is a term used in finance whose main objective is to capture the total value invested in any project.
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which of the following statements is correct regarding a work sheet and the adjustment process? multiple choice question. adjusting journal entries are prepared from the adjusted trial balance columns. adjusting journal entries are journalized in the work sheet. after keying adjustments in the work sheet, it is not necessary to journalize the adjustments in a journal. adjusting journal entries are prepared from the adjustments columns of a work sheet.
Adjusting journal entries are prepared from the adjustments columns of a work sheet statements is correct regarding a work sheet and the adjustment process.
journal entries is the process of changing one's behavior to establish a positive rapport with one's surroundings. According to Santrock, adjustment is a constant process through which a person seeks to alter his surroundings or alters his own behavior in response to the requirement for adaptability. Amount adjustment in economics is the process by which a market excess results in a reduction in the quantity supplied or a market shortfall results in an increase in the quantity supplied.
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automatic stabilizers have the effect of group of answer choices inflation. increasing the long-run supply curve. reducing recessionary gaps. eliminating all recessions.
Automatic Stabilizers are frameworks included in government spending that, without the consent of officials, increase or decrease spending whenever growth is faltering.
• The most well-known mandatory stabilizers appear to be rising personal income contributions and payment plans that include things like retirement benefits or government aid.Automatic stabilizers are adjustments to taxes and spending that take place automatically in response to changes in the economy and replicate discretionary fiscal policy.As more people become eligible for various programs, transfer payments, as one example, generally rise during recessions. As recipients of transfers boost their consumption, overall demand rises. The same objective of raising aggregate demand may be pursued via discretionary fiscal policy during a recession.The fact that automatic stabilizers operate automatically and discretionary fiscal policy necessitates government action is a significant distinction.
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what section of the msds would indiciate special handling, storage precaution and any protective measures of a product
Section 9- special precaution section of MSDS indicates special handling , storage precaution and any protective measure of a product .
Physical and Chemical Properties :You should check that the description( physical state and presence) of the substance on the MSDS is the same as the substance you have.However, you may not have the accurate MSDS, If it isn't. Alternately, the substance may be old or may have decayed during shipping or warehouse. In either case, the facts on the MSDS may not apply, and you should gain fresh advice.
The rest of the facts in this section is used to help adjudicate the conditions under which the material may be dangerous. Specialized specialists use this information to develop specific work point procedures for liability control, storehouse, running, fire fighting, slip clean- up, etc
Material Safety Data Sheet( MSDS) :MSDS provides introductory information on a substance or chemical product. A MSDS describes the properties and implicit hazards of the substance, how to use it safely, and what to do in an exigency. The purpose of this document is to help Canadian workers in settlement and demonstrating this type of facts.
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david's mother is killed in an automoblie accident. what type of insurance would provide his family financial support to cover the paid and unpaid work his mother performed? responses
Answer: Life
Explanation:
First, let's review what Life insurance IS: insurance that pays out a sum of money either on the death of the insured person or after a set period.
Since David's mother is killed in an automobile accident and they want to know what type of insurance would provide his family financial support, it would be life because it would pay them out a sim of money on the death of the person (In this scenario David's mother) or after a set period
Nalgene is introducing a new line of sustainably produced water bottles. The company issued a press release describing the new product line and its benefits. The press release was sent to local television stations. This is an example of using _____________ to promote a product.
Nalgene is introducing a new line of sustainably produced water bottles. The company issued a press release describing the new product line and its benefits. The press release was sent to local television stations. This is an example of using product press release to promote a product.
A press release for a new product launch is a document that the company releases. Its objective is to make the launch a noteworthy occasion and guarantee favorable media coverage. It's crucial to include it in a go-to-market plan.
It's a useful tool you can incorporate into your marketing plan for a reasonable price, especially if you're a startup with a tight budget. Controlling your story with a well-written press release is another benefit. You can express your values and draw attention to the benefits you can provide. Using a press release agency to share your story can help your content marketing efforts.
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On what ideology is Blake and Mouton’s Managerial/Leadership Grid based? (BLANK) theory suggests that traits are inherent, while conduct can be taught.
The Blake and Mouton’s managerial grid is based on the concern for production(tasks) and concern for people(relationships). The Great man theory suggests that traits are inherent, while conduct can be taught.
What do you mean by Blake and Mouton's managerial grid and Great Man Theory.As per the Managerial Grid, developed by Robert Blake and Jane Mouton, five different types of leadership based on their concern for the production and concern for the people are located in four quadrants.. According to the Great Man Theory leaders are born with the right traits and abilities for leading – charisma, intellect, confidence, communication skills, and social skills.
The concern for production is illustrated on the horizontal axis of the managerial grid and production became more important to the leader as his rating advances on the horizontal scale.
The Great Man Theory of Leadership emphasizes that great leaders are born, not made. These individuals come into the world possessing certain characteristics and traits not found in all people.
The Managerial grid is a useful device for identification and classification of managerial styles.
The essence of the Great Man Theory lies in the fact that those in power deserve to lead because of the traits they have been endowed with.
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What is required by law if you own a car?
A: Drivers license
B: New tires
C: Insurance
D: Fog lamps
which of the programmed conflict techniques assigns someone in an organization or group to identify potential issues or challenges with a proposed process?
Devils Advocacy assigns someone in an organization or group to identify potential issues or challenges with a proposed process.
What is Devils Advocacy?When someone engages in "devil's advocate" behaviour, they are promoting a viewpoint that is in opposition to what they actually believe. The idea is to show how the opposite side feels and, perhaps, to help someone else understand why and how that opponent might respond. when someone feigns opposition to a proposal that has broad support in a debate or argument in an effort to find errors or weaknesses. Using a devil's advocate to generate genuine opposition is not only a watered-down method. A devil's advocate might even produce the precise outcome they are trying to avoid. Even in studies where using a devil's advocate prompts more arguments, the new arguments typically favour the group's position.
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what is the term used for intercompany transactions from a parent to a subsidiary? group of answer choices downstream transfer horizontal transfer upstream transfer not intercompany transfer
The term used for intercompany transactions from a parent to a subsidiary is Option (a) downstream transfer.
A subsidiary receives a downstream transaction from the parent business. The parent firm records the transaction and any related profit or loss in this kind of transaction. Only the main business and its stakeholders are aware of the transaction, not the subsidiaries. Selling inventory or assets to a subsidiary by the parent firm is an illustration of a downstream transaction.
A division, department, or unit within an organization engages in an intercompany transaction when they do business with another division, department, or unit within the same company.
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a jacket potato vendor charges $5.89 per potato sold. the variable cost of each potato served is $0.91. the stall has a fixed cost of $500 per week. how many potatoes must the stall sell in order to achieve a profit objective of $750 per week?
The vendor must sell 356 potatoes in order to achieve a profit objective of $750 per week with variable cost of each potato served is $0.91.
What is variable cost?A variable cost is a type of business expense that varies depending on how much a company makes or sells. Depending on a company's production or sales volume, variable costs rise or fall; they increase with rising production (profit)and decline with falling production.Examples of variable costs include raw material and packaging costs for manufacturing businesses, as well as credit card processing fees and shipping costs for retail businesses, which fluctuate with sales. You can compare a variable cost to a fixed cost.Contribution margin, the metric used to calculate a company's break-even or target profit level, is largely dependent on variable costs for a given product.Number of potatoes to be sold = (400+750)/(4.36-1.13)= 356 potatoesHence the total amount of potatoes sold are 356.To learn more about variable cost from the given link:
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a shift to the left of a supply curve is caused by: question 8 options: a) a technological improvement in production. b) an increase in the number of buyers. c) an increase in the cost of an input. d) an increase in the number of sellers.
The correct answer is option C. A shift to the left of a supply curve is caused by an increase in the cost of an input.
The cost of manufacturing any particular amount of the good or service will change if the price of labor or another production element changes. The quantity that suppliers are willing to supply at any price will alter as a result of this change in the cost of manufacturing. The quantity suppliers will offer at any price should decrease as factor prices rise, moving the supply curve to the left. The quantity suppliers will offer at any price rises with a decrease in factor prices, moving the supply curve to the right.
Imagine that coffee farmers must pay their harvesters a higher wage or must spend more on fertilizer.
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what's the price at which a willing buyer and a willing seller would strike a deal given normal market conditions?
The price at which a willing buyer and a willing seller would strike a deal given normal market conditions is fair market value.
The price at which a willing seller and willing buyer, neither of whom is under any obligation to buy or sell, and both of whom have reasonable awareness of material facts, would exchange the property is its fair market value.
Market value or evaluated value are not the same as fair market value. Instead, it represents the worth a piece of property would have if a willing seller agreed to sell it to a willing buyer at a specific time. There are a few restrictions, specifically:
The parties involved are all operating in their own interests and neither the buyer nor the seller are under any pressure to complete the transaction.
Both the buyer and the seller are fully informed about the property (nothing is hidden or withheld).
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as a project manager on a product team, your stakeholders ask you to help the marketing team come up with a strategy to attract customers. what project management responsibility does this represent?
The kind of CRM approach this business employs is known as: C. proving the worth of CRM.
Describe CRM.?Customer relationship management, or CRM, is a business strategy process that typically entails combining different strategies, practices, methods, procedures, and technologies.
Its goal is to effectively and effectively manage a business organization's customer data and information in order to improve and enhance ongoing customer satisfaction.
As this corporation has shown, knowledge discovery is also one of the stages of the customer relationship management (CRM) process cycle and may be utilized to acquire customer data and information for a commercial organization.
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Complete Question:
A company has an excess of puffer jackets at the end of the season that it wants to sell quickly. In order to quickly sell this excess inventory, they send out emails to customers currently in their database. However, they want to determine what type of sale their customers find most motivating, so they send out three different emails with different discounts (BOGO free, 50% a purchase over $100, or free expedited shipping). The information gained during this campaign will be tracked, and customers who made purchases will receive similar email offers in the future. What type of CRM strategy is the company using?
A. end user needs
B. standardized data collection processes
C. demonstrating the value of CRM
D. maximizing customer value
a firm has the following order history over the last 6 months (see appended information). what would be a 4-month weighted moving average forecast for july using weights of 30% for the most recent month, 50% for the month preceding the most recent month and 40% for the month preceding that one and 20% for the last month? is the actual demand over the last four months indicative of a trend (i.e. time series trend characteristic) according to company forecasters?
A : 137.5
June is the most recent month.
May is the month preceding the most recent month.
April is the preceding month.
March was the previous month.
Actual Demand over the last four months = (Demand- June * 0.3) + (Demand - May * 0.5) + (Demand-April *0.4) + (Demand - March *0.2)
Actual Demand over the last four months = (25* 0·3)+ (200*0.5) + (25*0₁4) + (100 * 0.2)
Actual Demand over the last four months = 7.5 +100+10+20
Actual Demand over the last four months = 137.5
Therefore, A = 137.5
Furthermore, we can see a pattern in which the odd months have a high interest while the even months have low interest; thus, keeping the pattern in mind, the interest for July is very high. As a result, the correct option is A = 137.5, the Actual Demand over the last four months
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The complete question is:
A firm has the following order history over the last 6 months (see appended information). what would be a 4-month weighted moving average forecast for July using weights of 30% for the most recent month, 50% for the month preceding the most recent month and 40% for the month preceding that one and 20% for the last month? is the actual demand over the last four months indicative of a trend (i.e. time series trend characteristic) according to company forecasters?
Month Actual Demand
January 120
February 95
March 100
April 25
May 200
June 25
Answer options:
A. 137.5
B. 137.5
C. 40
D. 42.5
E. 40
one of the factors listed below determines the shape of the aggregate demand curve. which one does this?
The real balance effect is the factor that determines the shape of the aggregate demand curve.
The balance is the sum owing on an account in banking and accounting. In accounting, the term "balance" refers to the difference between the total of debit entries and the total of credit entries made into an account for a certain financial period. A debit balance is displayed when there are more total debits than total credits. The demand curve is a graphical depiction of the relationship between the cost of a good or service and the amount demanded over a specific time period. Individual and market demand curves are the two different types of demand curves. It shows a graphic depiction of the demand schedule. It can be made by graphing the relationship between price and quantity demanded.
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in medieval england, when wages went up group of answer choices more children joined the labor force. more women joined the labor force. students dropped out of school to take up jobs. workers put in fewer hours. more children joined the labor force, more women joined the labor force, and students dropped out of school to take up jobs.
In medieval england, when wages went up workers put in fewer hours.
The time frame known as the medieval era runs from 1066 to 1485. A new era began with William of Normandy's victory against King Harold at the Battle of Hastings. The Norman conquest of England resulted in the overthrow of the Saxon realm.
The Roman Emperor experienced a significant loss of power over Europe in 476 AD, which marked the start of the medieval era, also known as the Middle Ages or the Dark Ages. The Middle Ages, which lasted between 1400 and 1450, were roughly 1,000 years long.
During the Middle English era, the word Engla land was haplologized to England (Engle-land, Engelond). Old French and Anglo-Norman names for the place were Engleterre and Anglia, respectively.
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multiple choice question sometimes firms selling a pioneering product will set a very low price in order to attract many customers before competitors enter the market. which type of orientation does this demonstrate?
Sometimes firms selling a pioneering product will set a very low price in order to attract many customers before competitors enter the market. This is an example of a sales orientation.
A business approach known as "sales orientation" is centered on creating the greatest products and services possible without taking the requirements or wishes of the client into account. This strategy typically relies on aggressive, outbound sales techniques and marketing initiatives to increase sales.
The idea that everyone is a potential customer and that you can increase sales by producing the best product at the best price is the foundation of sales orientation. It would be the responsibility of your reps in the sales department to persuade potential consumers that they require your goods.
Promotional activities are also a key component of sales-oriented businesses. For instance, promotional offers like "buy one, get one free" are used to boost sales by presenting a favorable deal.
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a corporate bond has a face value of $1,000 and a coupon rate of 9%. the bond matures in 14 years and has a current market price of $946. if the corporation sells more bonds, it will incur flotation costs of $26 per bond. if the corporate tax rate is 35%, what is the after-tax cost of debt capital? group of answer choices 8.18% 6.56% 7.31% 5.57%
If the corporation sells more bonds, it will suffer flotation fees of $26 per bond. If the company tax rate is 35%, [Cost of debt = 1000*9/100 = 90] Add: Floatation Cost=26. Total Cost per bond After tax= 116(1-0.35)=75.4.
A company is a legal entity that exists apart from its owners. Corporations have many of the same rights and obligations as persons under the law. They can enter into contracts, lend and borrow money, sue and be sued, hire people, possess assets, and pay taxes. A corporation is legally distinct from its owners. Corporations have many of the same legal rights and obligations as individuals.
A key feature of a corporation is limited liability, which means that its shareholders are not personally liable for the company's debts. A company can be formed by an individual or by a group of people who share a same aim. This may not always imply making a profit.
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please review the presentation on financial modeling and forecasting. please review the microsoft corporation case study (financial statement) and submit a paper explaining the components of the spreadsheet and the findings. what is your financial recommendation for forecasting regarding future profits, liabilities, assets, a deficient, etc?
financial recommendation for forecasting regarding future profits, liabilities, assets, a deficient, etc.
A financial advisor or financial advisor is a professional who provides financial services to clients based on their financial situation. In many countries, financial advisors must complete special training and be registered with regulatory authorities in order to provide advice.
Financial Advice is in the business of advising others to plan and/or provide advice regarding the selection, purchase, or sale of financial instruments to achieve investment, risk management, or risk mitigation objectives. I mean process.
An investment recommendation is information that expressly or implicitly recommends or suggests an investment strategy relating to one or more financial instruments or issuers, and an opinion as to the current or future value or price of those instruments. and is intended for distribution channels.
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The property which states that for independent trials, as the number of trials increases, the long run relative frequency of an outcome gets closer to the true probability is called the.
The property which states that for independent trials, as the number of trials increases, the long-run relative frequency of an outcome gets closer to the true probability is termed the Law of large numbers.
According to the Law of Large Numbers, when more trials are conducted, the long-run relative frequency of independent, recurring events approaches the real relative frequency. Probability and statistics both heavily rely on the law of large numbers. It claims that if an experiment is independently repeated a lot of times and the results are averaged, the results should be quite near the predicted value.
According to the Law, a trial's relative frequency of the event being measured tends to grow closer to the trial's actual probability of the occurrence when it is run a lot of times.
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non est factum is based not only on the principle of placing loss on the person guilty of carelessness, but also upon recognition of the need for certainty and security in commerce. for these reasons, the application of the principle d) needs to be decided by a jury. b) must always result in the unenforceability of the contract. a) must always result in the enforcement of the contract. c) must depend on the circumstances of each case. e) because of its equitable nature, needs to be decided by a judge alone.
Non est factum is based not only on the principle of placing loss on the person guilty of carelessness but also upon recognition of the need for certainty and security in commerce. for these reasons, the application of the principle needs to be decided by a jury.
A jury is a sworn frame of people convened to hear evidence and render an impartial verdict (a locating of fact on a question) formally submitted to them via way of means of a court, or to set a penalty or judgment.
Juries evolved in England for the duration of the Middle Ages and are an indicator of the English not-unusual place law system. As such, they may be utilized by the United Kingdom, the United States, Canada, Ireland, Australia, and different international locations whose felony structures had been derived from the British Empire. But maximum different international locations use versions of the European civil law or Islamic law structures, wherein juries aren't usually used.
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find the agi and taxable income: responses $12,400 and $11,270 $12,400 and $11,270 $23,670 and $11,270 $23,670 and $11,270 $23,670 and $12,400 $23,670 and $12,400 $11,270 and $23,670 $11,270 and $23,670
The AGI and taxable income is $23,670 and $11,270.
AGI calculation can be done as follows:
It is determined by subtracting certain deductions or "adjustments" that can be claimed from gross income subject to income tax, such as employment, dividends and interest from bank accounts.
AGI is calculated before any standard or specific deductions recorded in later sections of the tax return.
We have given that,
Gross income = $23670
1 Exemption = $12400
Adjustment = 0
Deduction = 0
Find AGI and Taxable income
AGI = Adjusted gross income
we know,
AGI = Total income - Any deduction or any adjustment
AGI = ($23,670 + $12400) - (0 + 0)
AGI = $36070
Now, Calculate taxable income
Taxable income = Gross income - 1 Exemption
= $23670 - $12400
= $11,270
Hence, the AGI and taxable income is $36,070 and $11,270
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a monopolistically competitive firm earning profits in the short run will find the demand for its product decreasing and becoming more elastic in the long run as new firms move into the industry until group of answer choices the firm's demand curve is perfectly elastic. the original firm is driven into bankruptcy. the firm's demand curve is tangent to its average total cost curve. the firm exits the market.
In monopolistic competition, businesses make money in the short term, but over the long term, they lose money.
Long-term losses for a monopoly are possible.Pictures for Businesses profit short-term in monopolistic competition, but lose money long-term.Profits. Monopoly does not always result in profit, even though it can sustain supernormal earnings over time. It's possible for a monopolist to maximize profits or minimize losses. In a perfect market, this is impossible.In monopolistic competition, businesses make money in the short term, but over the long term, they lose money. The flexibility to enter and leave the industry also contributes to the latter.While a monopolistic competitive corporation can turn a profit in the short term, its monopoly-like pricing will eventually lead to a decline in demand. Due to the increased necessity for businesses to differentiate their products, the average overall cost has increased.To learn more about Monopolistic competition refer to:
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dennis understands the importance of using an analytics solution for his app, but he doesn't know which one to use. which solution is 's best-in-class app analytics solution?
Fire-base Analytics solution is 's best-in-class app analytics solution. We can see that they both employ the same data model, which port-rays user interactions as events.
As a result, both platforms have the identical implementation approach – the only difference between Fire-base Analytics and Goo-gle Analytics in this regard is where you set up your Android and iOS data streams solution initially. Analytics displays data about user activity in your iOS and Android apps, allowing you to make better product and marketing decisions. View cra-sh statistics, notification efficacy, deep-link performance, in-app purchase statistics, and other information. Goo-gle Analytics, a free unlimited analytics tool, sits at the heart of Fire-base.
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jason is buying a new car. he does not know much about automobiles. however, because of the high price of the car, he gets involved in the shopping process by visiting showrooms, searching for information on the internet, and looking at other sources of information. which type of involvement does the given scenario represent?
Jason is buying a new car. he does not know much about automobiles. The given scenario represent Situational type of involvement.
Automotive technology is the application of self-propelled machine or vehicle knowledge in the real world. The building of engines, fuel and ignition systems, power trains, brakes, gearboxes, electrical and diagnostic tools, and other topics are covered by students majoring in automotive technology. One can master the fundamentals of driving in a day in a car with an automatic transmission. It might take at least two days to understand the fundamentals of driving a manual transmission vehicle, though.Thanks to the vehicle, people had more personal freedom and access to jobs and services.As a result, better transportation systems were built. New businesses and jobs were developed in order to supply the demand for gasoline and automotive parts. These included gasoline and crude oil, then rubber, and finally polymers. An automobile is a self-propelled motor vehicle intended for on-land passenger transportation.
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albert owns a breakfast diner and decides to add a new item, the peerless omelet, to his menu. albert must decide how many eggs to include in each omelet so that he makes the highest profit. please use the information in the chart to answer the questions. how many eggs should albert include in the omelet?
Albert owns a breakfast diner and decides to add a new item, the peerless omelet. 6 eggs to include in each omelet so that he makes the highest profit
Elaborate :The borderline cost for each fresh egg is$0.45, meaning that it costs this important for Albert to add one further egg.
As he adds eggs, he also increased the price he charges for the omelet.
The change in price from one size to another gives him his borderline benefit.
Any rational patron would stop producing at the point where borderline cost exceeds borderline benefit, and for Albert, this point would be 6 eggs.
Still, 4, or 5 eggs he'd be missing out on profit he could earn by including further, If he produces omelets with 3. Also, if he produced omelets with 7 or 8 eggs, he'd face the situation of being suitable to increase his profit by reducing the number of eggs included and dropping his price.
Six eggs in each omelet is his profit- maximizing point.
What's the profit maximization rule?The common rule for profit maximization is that enterprises should be suitable to produce enough goods and services to increase the borderline profit. The borderline profit should equal the borderline cost of goods and services. thus, the affair quantum of goods should be similar that the price( P) charged to the guests valuing the product should equal the borderline cost( MC) that the society uses to produce one unit or product.
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