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1 year ago

Why do you think average income is an important criterion for development explain.

1 answer:

7 0

Average income is important because it tells us the income of an average person and gives an idea about the rising standard of living of people.

Average income is basically income earned per person in a given area in a specific year. More income means more money to fulfill your needs and wants. It is believed that the prosperity of a country depends on it. Money is considered an important factor in the development of a country. If the average income of a country increases there are chances of an increase in the development of that country. If the average income is lower there are fewer chances of development.

A country with high average income is considered rich and low average income country is considered poor. The World Bank also uses the average income to measure the development of any country. Therefore average income is considered a very important criteria for development.

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Head-First Company had planned to sell 5,000 bicycle helmets at $75 each in the coming year. Unit variable cost is $45 (includes

aksik [14]

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

Sales= 5,000 units

Selling price= $75

The unit variable cost= $45

Total fixed cost equals= $49,500

Operating income at 5,000 units sold is $100,500.

Degree of operating leverage= 1.5

Now Head-First expects to increase sales by 10% next year.

1) % Change on income= ?

We know that the degree of operating leverage is calculated by the following formula:

degree of operating leverage= %change in income/ %change in sales

1.5= %change in income/0.10

0.15= %change in income

15%= %change in income

2) Net operating income

Sales= 5,500*75= 412,500

Total variable cost= 5,500*45= (247,500)

Contribution margin= 165,000

Fixed costs= (49,500)

Net operating income= 115,500

Change in income= (115,500 - 100,500)/100,500= 0.1493= 14.93%

5 0

3 years ago

Suppose that a price-discriminating firm divides its market into two segments. If the firm sells its product for a price of $22

Mashcka [7]

Answer:

The correct answer is: less than $22.

Explanation:

Price discrimination is a situation where a firm charges different prices for the same product. Different price is charged generally from consumers with different price elasticities.

A firm charges a higher prices from the consumer with lower price elasticity because with a higher price there demand will decrease less than proportionate.

Lower price is charged from consumers having a higher price elasticity of demand because these consumers will decrease their demand more than proportionate at a higher price.

So if a firm charges $22 in the market segment with less elastic demand, the price in the more elastic market segment will be lower than $22.

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3 years ago

Firms that exhibit priceminustaking behavior A. are independently capable of setting price. B. wait for other firms to set pric

olga55 [171]

Answer:

D. have outputs that are too small to influence market price and thus take it as given.

Explanation:

In perfect competition there are large number of firms and individual contribution is less in industry output , it means that firms have output which are too small to influence the market price ans thus it is as given .

Hence ,

The firms which exhibit price - taking behavior have the output which is too small to be influenced by the market price , and therefore remains as it is .

3 0

3 years ago

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Tatiana [17]

Answer:

Explanation:

Whether you have a loan or a credit card, making late payments or missing payments can cause your credit score to fall.

7 0

2 years ago

What is a significant factor to consider when marketing a business in the hospitality and tourism industry?

EastWind [94]

Answer:

Explanation:

In the hospitality business you would be focusing on the customers needs first. Therefore you would try and accept the form of payment that is easiest for them.

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3 years ago