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7 months ago

Why is the price elasticity of demand for coca-cola greater than the price elasaticity of deman for soft drinks generally?

1 answer:

7 0

A soft drink's price elasticity of demand is lower than Coca-Cola's, which is more sensitive to price. This is due to the ease with which consumers can switch from Coca-Cola to other comparable soft drink alternatives, such as Pepsi.

However, it would be challenging to replace soft drinks as a whole with alternative products. The price elasticity of demand for soft drinks, in general, is lower than the price elasticity of demand for Coca-Cola because there are no other close substitutes for them.
The quantity required of a thing or service changes in response to a change in the product's price, and this is measured by the price elasticity of demand. It is computed by subtracting the product's price change from the quantity demanded, divided by the product's price change.
Because the quantity of Coca-Cola products demanded frequently changes when prices vary, these products are thought to have an elastic demand.

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Most goods and services produced at home a. and most goods and services produced illegally are included in GDP. b. are included

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Answer:

Most goods and services produced at home are included in GDP while most goods and services produced illegally are excluded from GDP.

Explanation:

The United states Gross Domestic Product is measured including only the production of legal goods and services within a given year. This means that all goods and services for previous year are not taken into account as well of illegal products or services.

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1 year ago

¿Qué entiende por gestión publica y gestión institucional?

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Gestión publica es con gente normal pero gestión institucional es con gente de negocios

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2 years ago

The operations vice president of security home bank has been interested in investigating the efficiency of the bank’s operations

aliya0001 [1]

The costing study of bank operation goes thus:

<h3 /><h3>Opening accounts:</h3>

Distribution of Resource Amount Percentage Amount

Teller wages $160,000 x 5% = $8,000

Asst. branch manager salary $75,000 x 15% = $11,250

Branch manager salary $80,000 x 5% = $4,000

Total $23,250

Activity rate of opening accounts = Total cost of opening accounts / new accounts opened

Activity rate = $23,250 / 500 = $46.50 per new account

<h3>Processing deposits and withdrawals:</h3>

Distribution of Resource Amount Percentage Amount

Teller wages $160,000 x 65% = $104,000

Asst. branch manager salary $75,000 x 5% = $3,750

Branch manager salary $80,000 x 0% = $0

Total $107,750

Activity rate of opening accounts = Total cost of processing deposits and withdrawals / deposits and withdrawals processed

Activity rate = $107,750 / 100,000 = $1.08 per deposit and withdrawal processed

<h3> Processing other customer transactions:</h3>

Distribution of Resource Amount Percentage Amount

Teller wages $160,000 x 20% = $32,000

Asst. branch manager salary $75,000 x 30% = $22,500

Branch manager salary $80,000 x 10% = $8,000

Total $62,500

Activity rate of opening accounts = Total cost of processing other customer transactions / other customer transactions processed

Activity rate = $62,500 / 5,000 = $12.50 per other customer transactions processed

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4 0

1 year ago

Two incinerators are being considered by a waste management company. Design A has an initial cost of $2,500,000, has annual oper

Vika [28.1K]

Answer:

<u>Desing A: </u>23,024,370‬

<u>Desing B: </u>22,520,274.6

It should purchase desing B as the capitalized cost is lower.

Explanation:

We consider annuity for the overhauls and then, perpetuity to consider this incinerators will last indefinitely.

maintenance cost: 800,000 / 0.05 = 16,000,000

<u>Overhaul: </u>

The company will need to fund 1,250,000 every 5 years. We need to determinate the annuity to obtain this future value:

$FV \div \frac{(1+r)^{time} -1}{rate} = C\\$

PV 1,250,000

time 5

rate 0.05

$1250000 \div \frac{(1+0.05)^{5} -1}{0.05} = C\\$

C $ $ 226,218.498

<u>Then at perpetuity:</u>

$ 226,218.498 / 0.05 = 4,524,370

<u>Desing A capitalized cost:</u>

2,500,000 + 16,000,000 + 4,524,370 = 23,024,370‬

We do the same for Desing B:

investment: 5,750,000

maintenance: 600,000 / 0.05 = 12,000,000

overhaul:

$3000000 \div \frac{1-(1+0.05)^{-10} }{0.05} = C\\$

C $ 238,513.725

238,513.73/0.05 = 4,770,274.6

Capitalized cost: 5,750,000 + 12,000,000 + 4,770,274.6 = 22,520,274.6‬

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2 years ago