<span>By definition, economics is the study of how to make the choices people make to attain their goals, given their scarce resources. Economics is all about personal freedom and choice and consumers buying, producing, distributing, selling or buying products is just one piece of the puzzle. These options are all gained through the management of your resources and how you use them.</span>
Answer:
1. Why is it important for a restaurant to identify a specific target market?
- Restaurants operate on a monopolistically competitive market, that means that a lot suppliers offer differentiated products to a lot of consumers. Therefore, it is important to identify your target market in order to know who you are going to cater in your menus, and marketing activities.
2. How has the Internet made restaurant marketing cheaper and more convenient?
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Before restaurants used to print fliers and advertise on newspapers or other mass media outlets which is really expensive. Now with the internet, marketing activities (e.g. emails) are much cheaper and faster to carry out.
3. Why are specials and promotions such effective marketing tools in today's economy?
- Competition has increased a lot in the past in every single industry, including restaurants, since people worry more about how they spend there money and more information is available about the different prices of restaurant menus.
4. Explain the difference between primary market research and secondary market research.
- Primary market data is information a company obtains by itself through some type of research study, e.g. surveys, focus groups, etc. While secondary data is information obtained by other sources, e.g. census, world atlas, etc.
5. Explain why a public relations campaign is necessary.
- Public relations campaigns are necessary in order to keep a positive and high reputation, so that the restaurant gets positive press. Bad things go viral instantly now, and it is really hard to deal with them.
Answer:
$650
Explanation:
Guaranteed Residual Value = FV = $1,000
Interest rate = r = 9% = 0.09
Number of years = n = 5 years
Using Following formula we can calculate today's worth of the engine.
Residual value after 5 years = Today's value x ( 1 + rate of interest )^number of years
FV = PV x ( 1 + r )^n
$1,000 = PV x ( 1 + 0.09 )^5
PV = $1,000 / ( 1.09 )^5
PV = $649.93
PV = $650 (rounded off to the nearest whole number)
<span>Through distinctive use of annual high dollar items, Wheeled Coach
implements ABC analysis. ABC analysis is categorizing into A, B and C category.</span>
<span><span>A category represent some 15% of
the</span> total inventory items, but 70–80% of the
total cost.
</span>
<span><span>B category represent 30% of the
items and 15–25% of the value.
And C category represents 5% of
the annual dollar</span><span> volume, but about 55% of the total items.</span></span>
