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Ira Lisetskai [31]
1 year ago
8

The business cycle affects output and employment in capital and durable goods industries more severely than in industries produc

ing non-durable goods because, ______.
Business
2 answers:
Feliz [49]1 year ago
4 0

The business cycle affects output and employment in capital and durable goods industries more severely than in industries producing non-durable goods because, large investment requirements and greater demand fluctuations.

Consumer nondurable goods are purchased for immediate or almost immediate consumption and have a life span ranging from minutes to three years. Common examples of these are food, beverages, clothing, shoes, and gasoline.

In economics, a durable good or a hard good or consumer durable is a good that does not quickly wear out or, more specifically, one that yields utility over time rather than being completely consumed in one use.Products made of paper and paperboard comprise the largest portion of nondurable goods. Other nondurable products include paper and plastic plates, cups and other disposable food service products, disposable diapers, clothing and footwear, linens, and other miscellaneous products.Examples of consumer durables include appliances such as washers, dryers, refrigerators, and air conditioners; tools; computers, televisions, and other electronics; jewelry; cars and trucks; and home and office furnishings.

Learn more about nondurable goods here:

brainly.com/question/23965700

#SPJ4

KonstantinChe [14]1 year ago
3 0

Answer:

during a recession, business investment in new capital goods and consumer spending on new durable goods can be postponed

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3 years ago
An external competitor to Construction (from another island) is offering to build the new homes for $1300 each. Here are facts a
cupoosta [38]

Answer:

a. The minimum transfer price (per home) that Construction would be willing to accept would be $1,270

b. The maximum transfer price (per home) Island Evaluations would be willing to accept would be $1,300

Explanation:

a. According to the given data If Construction accepts the proposal of Island Evaluations, then it has to foregone the profits which could have been earned if Construction accepted the proposal of local villagers to build an incline, a bridge and a campground.

Hence, minimum transfer price (per home) for Construction should be such that it covers the profit foregone as given above:

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Figures in $

Particulars Revenue Cost Profit

Incline        1400          600 800

Bridge         1500 950  550

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Total        5600 2750 2850

Therefore, the transfer price should be such which can generate a profit of $2,850 for Construction.

Therefore, total revenue which should be generated = Cost of building five new homes + Profit foregone

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Hence, minimum transfer price (per home) should be = 6350/5 = $1,270

b. The maximum transfer price (per home) that Island Evaluations will be willing to accept is $1,300 per home as quoted by the external competitor from another island.

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