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1 year ago

When a company owner practices price discrimination, the marginal revenue of an extra unit sold.

1 answer:

5 0

When a business owner uses price discrimination, the marginal revenue curve and the market demand curve are in line, therefore the marginal revenue is the same as the product's price.

The additional money made by selling one more unit of output is known as marginal revenue. The law of diminishing returns eventually leads marginal revenue to start dropping as output level grows, even though it can stay constant at a certain level of output.

The incremental cost or profit made when producing the following item is referred to as marginal. While marginal cost is the additional expense for producing one extra unit, marginal product is the increased revenue.

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Inflation is undesirable because it: Multiple Choice always makes the nation poorer. redistributes income from those who can rai

Firlakuza [10]

Inflation is undesirable because it redistributes income from those who can raise prices to those who cannot.

<h3>What is inflation?</h3>

In the field of economics, inflation refers to an overall rise in the cost of goods and services throughout a nation.
Each unit of currency may purchase fewer products and services as the general price level rises, hence inflation is associated with a decline in the purchasing power of money.
A general increase in prices over time diminishes customers' purchasing power because a constant quantity of money will eventually allow for less consumption.
Whether inflation is running at 2% or 4%, consumers still lose purchasing power; the higher inflation rate only doubles that loss.
Those interest rates that are fixed for the duration of the loan, won't fluctuate in line with inflation.

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8 0

2 years ago

Someone help me please?

laila [671]

Answer:

a) Cost of goods Manufactured = $610,000

b) Cost of sales = $ 580,000

c) Net income = $ 140,000

Explanation:

a) Ferruccio Fashion

Schedule of Cost of Goods Manufactured

For the Year Ended 12/31/X2

Particular $ $

Direct Materials:

Raw Materials, 1 January 40,000

Add: Purchase 180,000

Materials available for use 220,000

Less: Raw materials, 31 December 25,000

Materials used 195,000

Direct Labor 200,000

Prime Costs 395,000

Manufacturing Overhead:

Indirect Material 11,000

Indirect Labor 16,000

Plant Utilities 40,000

Depreciation, plant and equipment 60,000

Other 78,000 205,000

Total Manufacturing Costs 600,000

Add: Work-in-progress, 1 January 40,000

Less: Work-in-progress, 31 December (30,000)

Cost of goods manufactured 610,000

b) Ferruccio Fashion

Schedule of Cost of sales

For the Year Ended 12/31/X2

Particular $

Finished goods inventory, 1 January 20,000

Add: Cost of goods manufactured (From a) 610,000

Goods available for sale 630,000

Less: Finished goods inventory, 1 January (50,000)

Cost of sales 580,000

Now, this cost of sales will be used to find gross and net profit.

C) Ferruccio Fashion

Income Statement

For the Year Ended 12/31/X2

Particular $

Sales Revenue 945,000

Less: Cost of sales (From part B) 580,000

Gross Profit 365,000

Less: Selling and administrative expenses 145,000

Income before income tax 220,000

Less: Income tax expense 80,000

Net Income 140,000

8 0

3 years ago

Which activity is a good practice when selling online media?

nikdorinn [45]

Answer:

For Plato the answer is D: Avoid quoting too high a price.

Explanation:

I got it right

4 0

3 years ago

Many banks and phone companies now charge fees for once-free services to ensure minimum customer revenue levels. This helps bank

Mamont248 [21]

Complete Question: Many banks and phone companies now charge fees for once-free services to ensure minimum customer revenue levels. This helps the banks to ________.

A) reduce the rate of customer defection

B) make low-profit customers more profitable

C) enhance the growth potential for each customer through cross-selling

D) increase the longevity of the customer relationship

E) focus disproportionate effort on high-value customers

Answer:

B) make low-profit customers more profitable

Explanation:

Many banks and phone companies now charge fees for once-free services to ensure minimum customer revenue levels. This helps the banks to make low profit customers more profitable.

The basic logic behind this strategy is that when customers find something coming free, then they start taking it for granted, they don't pay much attention to it, therefore, when the some services are free, customers will not be spending much on them, like upgrading, monthly plan up-gradations, monthly or annual subscriptions. Consequently, to turn the those customers into highly valuable customers, companies charge for the services which were free of cost in the past.

3 0

3 years ago

Payment for the use of a copyrighted work is called a

tatyana61 [14]

Payment for the use of a copyrighted work is called a tax

7 0

3 years ago