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2 years ago

The long-run aggregate supply curve shifts right if:

1 answer:

5 0

The long-run collective supply curve shifts right if productivity increases or the price of key inputs decrease. It makes the combination of the lower inflation, higher output and lower unemployment.

<h3 /><h3>What is aggregate supply?</h3>

Aggregate supply is also called total output, it is the total production of the goods and services within an economy at the overall price at the given period.

The main two elements of aggregate supply are consumption and saving. The sum up of the national supply is the consumption expenditure and savings.

Thus, The long-run collective supply curve shifts right if productivity

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Are your loyal customers likely to switch to the new private label product? (That is, is the target market for the private label

Talja [164]

Answer:

Yes.

The loyal customers will also be attracted to the new private label cookie, just as budget shoppers will be attracted.

Explanation:

The proposal, if accepted, may jeopardize the company's normal cookie sales in the supermarket. The little reduction in the quality of the cookie (which cannot translate to significant production cost reduction) may be perceived as much by some loyal consumers of the normal cookie. However, the new private label cookie will easily attract budget shoppers, who value the reduced price of $1.99 instead of the normal price of $2.50. Accepting this proposal should depend on the continued patronage of the normal cookie and the sales number of the private label cookie.

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3 years ago

Mercantile corporation has sales of $2,000,000, variable costs of $1,100,000, and fixed costs of $750,000. mercantile’s degree o

sashaice [31]

The degree of operatingleverage is calculated by the formular
(sales - variable cost) / (sales - fixed cost - variable cost).
In the given question,
sales = $2,000,000
variable cost = $1,100,000
fixed cost = $750,000

The degree of operating leverage is (2,000,000 - 1,100,000) / (2,000,000 - 750,000 - 1,100,000) = 900,000 / 150,000 = 6.

Therefore, the degree of operating leverage is 6.

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4 years ago

Fuhremann Co. is a full-service manufacturer of surveillance equipment. Customers can purchase any combination of equipment, ins

Eddi Din [679]

Answer:

Equipment transaction price is $72,000

Installation transaction price $5,600

Training transaction price is $2,400

Explanation:

The transaction price of $80,000 should be allocated to the equipment,installation and training based on the individual stand-alone prices of each as calculated below:

Transaction price of an item=transaction price*item stand-alone price/total of stand-alone prices

transaction price is $80,000

total stand-alone prices=$90,000+$7000+$3000

=$100,000

Equipment transaction price=$80,000*$90,000/$100,000

=$72,000

Installation transaction price=$80,000*$7000/$100.000

=$5,600

Training transaction price=$80,000*$3000/$100,000

=$2,400

8 0

3 years ago

The wise manager is typically willing to produce a greater quantity of goods when the price for those goods goes up. True False

netineya [11]

Answer:

True

Explanation:

This statement is true because it is in consonance or agreement with the law of supply which states that<em> </em><em>the quantity of a product produced and supplied of a commodity moves in the direction of the price of such commodity, assuming all other factors determining supply remain the same or constant (i.e. ceteris paribus). </em>On the other hand, the quantity of a product produced and offered for sale will reduce as the price of the product falls.

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4 years ago

. Wilson Publishing Company produces books for the retail market. Demand for a current book is expected to occur at a constant a

Angelina_Jolie [31]

Answer:

(a) 1,078.12 copies

(b) 6.68 runs per year

(d) 10.78 days

(e) 767.62 copies

(f) $2,003.48

(g) 432 copies

Explanation:

Given that,

Annual demand (D) = 7200 copies

Cost of the book (C) = $14.50

Holding cost (H) = 18% of cost of book = 18% of $14.50

= $2.61

Setup costs (S) = $150

Annual production volume = 25,000 copies

Number of working days = 250

Lead time (L) = 15 days

Daily demand (d) = Annual demand ÷ Number of working days

= 7200 ÷ 250

= 28.8 copies

Daily production (p) = Annual production ÷ Number of working days

= 25000 ÷ 250

= 100 copies

(a) Minimum cost production lot size (Q):

$Q=\sqrt{\frac{2\times D\times S}{H\times (1-\frac{d}{p})}}$

$Q=\sqrt{\frac{2\times 7,200\times 150}{2.61\times (1-\frac{28.8}{100})}}$

Q = 1,078.12 copies

(b) Number of production runs:

= Annual demand (D) ÷ Production quantity (Q)

= 7,200 ÷ 1,078.12

= 6.68 runs per year

= Production quantity (Q) ÷ Daily demand (d)

= 1,078.12 ÷ 28.8

= 37.43 days

(d) Length of a production run:

= Production quantity (Q) ÷ Daily production (p)

= 1,078.12 ÷ 100

= 10.78 days

(e) Maximum inventory (Imax):

= Q × (1 - d÷p)

= 1,078.12 × (1 - 28.8 ÷ 100)

= 767.62 copies

(f) Total annual cost:

= Annual holding cost + Annual setup cost

= [(Q ÷ 2) × H × (1 - d÷ p)] + [(D ÷ Q) × S]

= [(1,078.12 ÷ 2) × $2.61 × (1 - 28.8 ÷ 100)] + [(7,200 ÷ 1,078.12) × $150]

= $1,001.74 + $1,001.74

= $2,003.48

(g) Reorder point:

= Daily demand × Lead time

= 28.8 × 15

= 432 copies

8 0

3 years ago

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