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Mariulka [41]
3 years ago
8

TerraLoc competes in the market for global positioning devices and services. The company manufactures its own GPS units, which a

re smaller than those of any other competitor and include a proprietary battery that lasts 200% longer than any other competitor's battery and that TerraLoc manufacturers on-site. TerraLoc also has developed proprietary software that is much faster and more precise than that of any competitor. When developing the proprietary battery, TerraLoc decided to manufacturer the battery in-house to reduce the possibility that the company it outsourced the battery manufacturing to might reverse engineer the battery and sell a similar product to competitors. This possibility was especially troubling given that the company expected a significant increase in demand due to the improved battery life. Additionally, TerraLoc sells its products and services through its own direct sales force to ensure that its representatives highlight the longer battery life of TerraLoc's units.
TerraLoc's decsion to manufacture the battery in-house is most consistent with which theory(s) of vertical integration?

a. Firm capability-based explanations
b. Alliance-based explanation
c. Opportunism-based explanations
d. Flexibility-based explanations
Business
1 answer:
faust18 [17]3 years ago
6 0

Answer:

The correct answer is the option A: firm capability-based explanations.

Explanation:

To begin with, given the fact that the company decided to manufactured the battery in-house in order to reduce the possibility of helping other competitors when using an outsourced manufacturer then the company is using its firm capability in order to achieve the goal of manufacturing that component of the final product. Therefore that if the company would not have the resources and capability of doing it then it would necessary outsourced the manufactured of it.

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Suppose the government in this economy decides to decrease government purchases by $300 billion. The decrease in government purc
Zepler [3.9K]

Answer:

Consider a hypothetical closed economy in which households spend $0.80 of each additional dollar they earn and save the remaining $0.20. The marginal propensity to consume (MPC) is <u> 0.80</u><u> </u>, and the multiplier for this economy is <u>   5 </u><u> </u>.

Suppose the government in this economy decides to decrease government purchases by $300 billion. The decrease in government purchases will lead to a decrease in income, generating an initial change in consumption equal to <u>    </u><u>–$240 billion</u><u>    </u>. This decreases income yet again, causing a second change in consumption equal to <u>    </u><u>–$192 billion </u><u>  </u>. The total change in demand resulting from the initial change in government spending is <u>  </u><u>–$1.5 trillion</u><u>   </u>.

Explanation:

Note: This question is not complete. The complete question is therefore provided before answering the question as follows:

Consider a hypothetical closed economy in which households spend $0.80 of each additional dollar they earn and save the remaining $0.20. The marginal propensity to consume (MPC) is <u>              </u>, and the multiplier for this economy is <u>                </u>.

Suppose the government in this economy decides to decrease government purchases by $300 billion. The decrease in government purchases will lead to a decrease in income, generating an initial change in consumption equal to <u>             </u>. This decreases income yet again, causing a second change in consumption equal to <u>                </u>. The total change in demand resulting from the initial change in government spending is <u>                    </u>.

The explanation of the answer is given as follows:

MPC = The portion of the amount households spend of each additional dollar they earn = 0.80

MPS = Marginal propensity to save = 1 - 0.80 = 0.20

Multiplier for this economy = 1 / 0.20 = 5

Change in government purchase = –$300 billion

Initial change in consumption = Change in government purchase * MPC = -$300 * 0.80 = –$240 billion

Second change in consumption = Initial change in consumption * MPC = –$240 billion * 0.80 = –$192 billion

Total change in demand = Change in government purchase * Multiplier for this economy = –$300 billion * 5 = –$1,500 billion, or –$1.5 trillion

6 0
2 years ago
1. Why is the production department of a company important? (1-2 sentences. 2.0 points)
ELEN [110]
They're important because The production departement is the one that's responsible in transforming all resources/material into the products that are ready for the market.
Without the production department, companies will not be able to fulfill their sales order and many consumers will left dissatisfied with their services
4 0
3 years ago
According to the classical dichotomy, when the money supply doubles, which of the following also doubles?
masha68 [24]

Answer: Option (C) is correct.

Explanation:

Correct option: The price level and nominal wages.

According to the classical dichotomy, nominal variables moves proportionately with the quantity of money whereas real variables remains unchanged.

A classical model that is based on the flexibility of prices and wages, conclude that any changes in money supply only affects the nominal variables whereas real variables remains constant. This theory results in the independence of the real variables from any changes in the money supply and nominal variables.

7 0
3 years ago
A company's structure should be aligned with:________
diamong [38]

A company's structure should be aligned with its strategy.

Aligning a company's structure to its approach is critical for strategy execution success. The organization structure needs to assist the strategy and its execution. while possible, management must make sure that the company structure is obvious, decentralized, and formalized.

A company's structure is about converting its organizational structure to benefit a competitive part in a patron fashion. This new client conduct could be very profitable, and the agency sees the sales that may stem from it. Entrepreneurial is not a diagnosed form of organizational structure. Intrapreneurs are personnel who work inside a business in entrepreneurial ability, developing progressive new merchandise and procedures for the organization.

A traditional line organizational shape is simply the location to start for most groups, especially the smaller ones that don't always comprise a considerable range of departments or require the main variety of hyperlinks within the chain of conversation.

Learn more about the company's structure here:-brainly.com/question/23879809

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3 0
2 years ago
The process of choosing an option after evaluating the available information and weighing the costs and benefits of the alternat
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Answer: Decision-Making

Explanation:

Decision-making is the process by which we choose the best perceived alternative to follow after evaluating the available alternatives for their costs and benefits.

These costs and benefits are not only monetary in nature. They can include our values as well as our beliefs and the things we prefer. They also include time as well. Every decision is unique with these and that is why every decision must be evaluated in its own right.

5 0
3 years ago
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