The areas are an example of <span>a decrease in the price and an increase in the quantity of the firm's output.
The green areas would decrease the amount of money that the company need to handle waste of production, and social responsibility related cost, which would decrease the price and increase the firm's output.</span>
Answer:Please refer to Explanation
Explanation:
Cross Price Elasticity of Demand is a very useful tool in Economics to ascertain if goods are compliments or Substitutes.
Cross Price Elasticity of Demand (CPSD) measures the change in demand in one good due to a change in price is the other good.
If the CPSD is negative then the goods are Compliments meaning that they are used together which is why when the price of one good goes down, the demand of the compliment goes up because more of the original good will be bought due to the lower price.
If the CPSD is Positive, it means that they are Substitutes and a Decrease in price in one good leads to a decrease in demand for the other good because people will demand less of it and switch to the former (now cheaper) good.
The formula is,
= % change in Quantity Demanded of Product A /% change in Price of Product B
a. Splishy splashies and Flopsicles
CPSD = -18%/-1%
= 18%
The CPSD for both these products is 18% which is a positive figure. This means that they are Substitutes and <u>should not be marketed together. </u>
b. Splishy Splashies and Flopsicles
CPSD = 3%/-1%
= -3%
With the CPSD being a negative figure here, these goods are Compliments.
Splishy Splashies and Flopsicles <u>should be Marketed together</u> as they compliment each other.
Because the financial expenditure
Answer:
Amount after 12 year will be $30762.16
Explanation:
We have given amount invested = $15000
Rate of interest r = 6 %
Time t = 12 years
As investment is compounded daily
So rate of interest 
%
As 1 year = 365 days
So 12 year = 12×365 = 4380 days
We know that future value is given by
So 
$
So amount after 12 year will be $30762.16
Answer:
a) Only hiring workers who have earned good grades in college.
Explanation:
The Marginal Productivity theory defines as change in revenue of a business resulting due to employment of one additional labor.
This theory has many assumptions that perfect competition prevails in the market. All workers have same abilities and skills. Productivity of labors can be measured accurately. Every unit is homogeneous etc.
To overcome this information problem a firm should hire only workers who have earn good grades in college. It assumes that these workers will have greater skills and will contribute in revenue contribution to the organization.
