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2 years ago

2. Explain the four characteristics of the price system.

Business

1 answer:

goblinko [34]2 years ago

5 0

Answer:

1-The four characteristics of the price system are that it is neutral, market driven, flexible, and efficient. It is neutral because prices do not favor the producer or the consumer because the they both make choices that determine the equilibrium price.

2-Why is the price system an efficient allocator of economic resources? Prices are neutral, which means they are equally fair to both consumers and producers. They are flexible which means they can adapt to changing economic conditions. Prices are familiar which means that everyone understands how they work.

3-how do prices serve as signals and incentives to producers to leave a particular market? it showed that when a strong competitor offers similar products for lower prices other producers must also lower their prices. Less efficient companies were driven from the market.

4-demonstrates the effects of competitive pricing because it shows how the company strategically lured customers away from rival producers while still making the highest profit.

Explanation:

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Suppose Ruston Company has the following results related to cash flows for 2018: Increase in Debt of $700,000 Dividends Paid of

AveGali [126]

Answer:

Cash flow generated from financing activities 400,000

Cash flow used in Investing activities 7,800,000

Explanation:

700,000 debt receive

-500,000 dividends paid

200,000 other adjustment on Financing

400,000 TOTAL CASH GENERATED

-8,300,000 purchase of PPE

500,000 other adjustment on Inventing

-7,800,000 TOTAL CASH USED

Notice: There is no hint about the adjustment being related as negative, so it should be assuem are positive cashflow.

5 0

3 years ago

Grace makes $2,200 per month. She spends $300 on credit card payments, $120 per month for a furniture purchase, and $450 on an a

svp [43]

If you add 300+120+450 you will get 870 so just subtract. 2,200-870 to get 1330

3 0

3 years ago

Prior to the write off of a $500 customer account, Athena Company had the following account balances: Accounts receivable $19,60

Effectus [21]

Answer:

Net accounts receivable Before $18,600 and After $18,600

Explanation:

solution

we know that here

net accounts receivable before write-off

Accounts Receivable = $19,600

and Allowance for doubtful debt = $1,000

so Net accounts receivable = $19,600 - $1,000 = $18,600

Journal Entry for write off is here

Allowance for doubtful Accounts = $500

Accounts Receivable = $500

and

Net accounts receivable after write off is

Accounts Receivable= $19,100

and

Allowance for doubtful debt= $500

so Net accounts receivable = $19,100 - $500

Net accounts receivable = 8,600

so Net accounts receivable Before $18,600 and After $18,600

6 0

3 years ago

Gavin is a salesperson for an advertising company. He sells ads to customers directly.

wariber [46]

Answer:

Personal selling.

Explanation:

Promotion is a method of informing and persuading customer to buy product or service or idea. Every company in the market use some or other promotional strategy to penetrate in the market. Corporate have different needs or objective of promotion, like creating awareness, spreading information, increasing sales, increase market share, retaining loyal customer, etc. There are different method of promotion also been used by corporates to achieve their objective according to the budget, time and place of promotion. There are few promotion method used by corporate are: Advertising, sales promotion, personal selling, e-commerce, public relation, and social media.

Personal selling: It is a part of promotional mix, where salesperson sell the product or service to their target customer directly by meeting them personally.

6 0

3 years ago

Dividing a diverse market into groups of customers who share similar traits or characteristics is the process known as:

victus00 [196]

Answer:

Market segmentation

Explanation:

Market segmentation is the process of dividing a market of potential customers into groups, or segments, based on different characteristics. The segments created are composed of consumers who will respond similarly to marketing strategies and who share traits such as similar interests, needs, or locations. A market segment is a group of people who share one or more common characteristics, lumped together for marketing purposes.

5 0

3 years ago