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2 years ago

A marketing manager has just estimated that her firm's marginal revenue will become negative if a proposed price cut is made.

Business

1 answer:

Viktor [21]2 years ago

7 0

Answer:

D. More Units may be sold - but total revenue will be less than it would be at the higher price

Explanation:

Marginal Revenue (MR) represents the additional revenue that can be obtained if sales of a product are increased by one unit.

MR= is change in Total Revenue/Change in Total Output Quantity

In this situation as envisaged by the Marketing Manager, a price cut will lead to an increase in revenue based on more (marginal) units of the product sold at a lower price. The challenge, however, is that this increase in income will not be enough to offset the decrease in revenue that will result as a result of the price cut.

In other words, the organisation is better off selling fewer products or units at its current price than sell more (marginal units) at a reduced price.

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TVs and VCRs are: A. needs B. wants C. resources D. markets

Yanka [14]

Answer:

I believe I is B-wants

Explanation:

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2 years ago

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The Wiz Co. owes $60 to its bondholders. The company expects to have a cash flow of $136 if the economy continues as is but that

Schach [20]

Answer:

$24

Explanation:

Calculation for the amount that the bondholders

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Amount to be paid by Bondholder = $54 − $30

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Therefore the amount that the bondholders will paid in the case of a recession is $24

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2 years ago

From what part of income should someone take savings?

vovikov84 [41]

Answer:

nowhere

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2 years ago

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In perfect competition, each additional unit of output that a firm sells will yield a marginal revenue that is:

il63 [147K]

Answer:

The correct answer is equal to price.

Explanation:

A perfectly competitive firm is a price taker. This is because of the large number of firms, no single firm is able to influence the price. So each firm faces a horizontal demand curve. This horizontal line shows demand, marginal revenue, and average revenue.

The price level is determined at the point where the marginal cost is equal to price. The marginal revenue is always equal to price because the price is fixed at a point, each output level is supplied at the same price.

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3 years ago

Real GDP per capita is not a perfect measure of the well-being of a country's individual citizens because: Instructions: You may

nasty-shy [4]

Answer:

it does not measure quality-of-life factors ; it does not account for distribution of wealth ; it fails to measure non monetary (home production) activities

Explanation:

Real GDP is the total value of goods & services produced in an economy, during a period of time. But it is not correct measure of welfare level.

It does not measure non monetary production, like hobby production eg kitchen gardening, self made paintings, music. But, they increase welfare
It does not take into consideration the qualitative factors affecting welfare like pollution, crime & literacy. Externalities cause extra benefit or harm to welfare level, but are excluded from GDP.
Inequitable distribution of per capita (average) GDP increases rich poor standard of living divide. So, the distribution effect ignored make GDP an inapt measure of average welfare level.

Real GDP adjusts the value of goods & services for price change (Inflation), it is a correct measure of increase in real flow of goods & services. GDP & health positive correlation is a favouring point for GDP as a measure of welfare. So, these options are incorrect.

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2 years ago