Answer: No, johnson & johnson should not double its production capacity of their purell hand sanitizer.
Explanation: An increase in demand of hand sanitizers due to the H1N1 flue will shift the demand curve for hand sanitizers to the right. The price of hand sanitizers will increase meaning that greater production levels are profitable. The firms can take advantage of this profitability by increasing manufacturing capacity. However, capacity will be increased for many years and the H1N1 flu is a temporary phenomenon. So, once the H1N1 flu is controlled demand for hand sanitizer is likely to return to previous levels. As a result the increased capacity will then remain idle and unprofitable. So, johnson & johnson should not double its production capacity of their purell hand sanitizer.
Answer:
True
Explanation:
The purpose of any business is to make profit, which is from the difference between revenues (price of product multiplied number of product sold) with the cost of goods sold (average total cost multiplied number of product sold).
In short, the profit = (price - average total cost) x number of product sold.
Normally the price must be above/ higher than cost, so that the firm can have profit. Sometime the price in the market go down, so the firm have have to adjust down its price also to maintain customer's purchases.
Once its price is down, but the firm's average total cost is still same as previous, the firm can not have profit as previously. The firm may bear this situation as long as its capital capacity allowed, but will not be too long.
Answer:
A) primary research
Explanation:
Primary research is defined as a methodology used by researchers to collect data directly, rather than depending on data collected from previously done research. Technically, they “own” the data.
Primary research is solely carried out to address a certain problem, which requires in-depth analysis.
Companies that specialize in interviewing, observing, recording and analysing the behaviour of those who purchase good and service are called primary research suppliers.
Answer: Macro
Explanation:
This is a macro distinction as the producers of soybean in America are concerned about the crop grown in South America as it will affect the overall price level of soybean in America. When the weather in South America is favorable and the crop produce is large, the supply curve for soybean will shift to the left driving down the overall price level of soybean in America.
Thus, because the concern here is about the overall produce and overall price level it is a macro distinction.
