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1 year ago

How does scarcity determine the economic value of an item?.

1 answer:

7 0

Scarcity has an impact on how people value goods and services, as well as how governments and private companies divide resources. The infinite wants of the consumers define the economic value of an item.

<h3>What factors influence the economic value of an item?</h3>

The relationship between supply and demand for a specific product determines relative scarcity.

The scarcity principle is an economic theory that explains the dynamic supply-and-demand price relationship.

The scarcity principle states that if an item has a low supply and a high demand, the price will rise to meet the predicted demand.

Check out the link below to know more about scarcity;

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During January, its first month of operations, Marigold Company accumulated the following manufacturing costs: raw materials $5,

Fiesta28 [93]

Explanation:

The journal entries are as follows

1. Raw material inventory $5,100

To Account payable $5,100

(Being the raw material is purchased on account)

2. Factory labor $5,100

To Factory wages payable $1,700

To Payroll tax payable $2,900

(Being the factory overhead cost is recorded)

3. Manufacturing overhead $2,900

To Utilities payable $2,900

(Being the overhead cost is recorded)

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2 years ago

A stock has a beta of 1.3 and an expected return of 12.8 percent. a risk-free asset currently earns 4.3 percent.

BigorU [14]

The expected return on this portfolio will be given by:
E[P]=Rf+(E[Rm]-Rf)β
Where:
Rf=Risk Free interest rate
Rm=Return on the market portfolio
β= Market Beta
The return on our portfolio will be:
E[p]=0.043+(0.128-0.043)0.013
=0.043+0.085*0.013
=0.044105
=4.4105%

6 0

3 years ago

Cooltreet, Inc., combines sugar, cream, eggs, and flavorings, then churns and cools the resulting mixture to a very low temperat

viktelen [127]

Answer:

process manufacturing

Explanation:

Process manufacturing is a type of manufacturing where certain recipes are used to create the end product. Process manufacturing is associated with the FMCG industry and pharmaceuticals mostly. It is contrasted with discrete manufacturing, where the end product is not in a bulk, like in process manufacturing.

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3 years ago

Americans’ core value of upward mobility (i.e., success will come to anyone who works hard) has greatly influenced the way luxur

galina1969 [7]

<span>this phenomenon is an example of a Social factor

in marketing term, social factor is everything that could change people's lifestyle.
As people move toward luxurious lifestyle, they tend to care less about the high price for the product, and care more about the quality, authenticity, and the rarity of the product, so the marketing strategy need to be altered to target these characteristics</span>

4 0

3 years ago

) Saffron Foods sells jars of special spices used in Spanish cooking. The variable cost is $2 per unit. Fixed costs are $9,000,0

olga nikolaevna [1]

Answer:

C. $4.20

Explanation:

The computation is shown below:

Before that we need to do following calculations

Total costs to be incurred is

= ($2 × 5,000,000 units) + $9,000,000

= $19,000,000

Now

Required return is

= $40,000,000 × 5%

= $2,000,000

So,

Sales price per unit is

= (Total cost incurred + required return) ÷ number of unit sold

= ($19,000,000 + 2,000,000) ÷ 5,000,000 units

= $4.20

6 0

2 years ago