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SCORPION-xisa [38]
2 years ago
10

Max and maddy charge people to park on their lawn while attending a nearby craft fair. At the current price of $10, seven people

park on their lawn. If they raise the price to $15, they know that only five people will want to park on their lawn. Whether they have seven or five cars parked on their lawn does not affect their costs. From this information it follows that
a. They should leave the price at $10.
b. It does not matter if they charge $10 or $15.
c. They would do better charging $15 than $10.
d. They should raise the price even more.
Business
1 answer:
guapka [62]2 years ago
5 0

Answer: c. They would do better charging $15 than $10.

Explanation:

It is given that Max and Maddy total cost of car parking remains the same, that is it does not matter whether they have seven or five cars parked on their lawn. So, since total cost is constant, Max and Maddy's decision would depend on total revenue.

Profit = TR- TC

Total revenue from charging, $10 is $70,

Total revenue from charging $15 is $75.

Since, total cost is constant, Max and Maddy will choose to charge $15 since it is giving them $5 more.

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Sammie is planning a persuasive request. What advice should she follow for the opening of her request? a. Capture the reader's a
Andrei [34K]

Answer:

a. Capture the reader's attention and interest.

Explanation:

To be able to make a request to someone persuasively, , it is very pertinent to lead the person to a point where such person can listen to you. This can only work in a context where you are very efficient in using story telling and other means of interaction that are capable of winning the persona interest and loyalty. Otherwise, you cannot have the person respond to your request.

4 0
3 years ago
In this situation, the male employees are individual members of an organization that are engaged in a conflict because of their
N76 [4]

Answer:

<u>Interpersonal </u>

Explanation:

When a conflict arises between individual members of an organization owing to differences in goals and values, such a conflict is referred to as interpersonal conflict.

As the word interpersonal suggests, inter i.e between and personal i.e person to person conflict, interpersonal conflict arises when the goals and values of individuals differ owing to which disagreements arise.

Goals and values may differ owing to several factors. Individual values are an outcome of an individuals own conscience and judgement apart from the society, an individual belongs to.

Such a situation is undesirable as it disrupts the coordination among employees and at the same time creates an atmosphere which is non conducive.

8 0
3 years ago
Prices tend to be sticky because Multiple Choice government controls most prices. foreign competition discourages domestic firms
maria [59]

Answer:

firms are worried that frequent price changes would annoy consumers.

Explanation:

A price is said to be sticky when there are resistance in market price to change immediately even when changes in the economy of a particular country entails differing price of products is optimal.

In Economics, when there are monetary disturbances and a great level of macroeconomic factors in the economy of a particular country, this usually result in prices of goods and services being sticky.

Hence, prices tend to be sticky because firms are worried that frequent price changes would annoy consumers. This ultimately implies that, price stickiness arises due to the fact that business firm or entity are very much concerned or worried that a frequent change in the price of goods and services would make the consumer annoyed.

4 0
2 years ago
Many gas stations with convenience stores sell gas at, or close to, cost. In these organizations, profit comes from the convenie
OLga [1]

Answer: build traffic.

Explanation:

The pricing model employed by such gas stations is built in a way to drive traffic. traffic is important and has an impact in many ways  1. low traffic can bog your business down at some level.

2. When you increase your traffic along with the quality of the visitors, the better you will be able to increase your sales.

traffic in this context refers to customers the more you are able to pull customers over the more sales you make.

4 0
3 years ago
Casey Motors recently reported net income of $55 million. The firm's tax rate was 40.0% and interest expense was $19 million. Th
nadezda [96]

Answer:

$31.76 million

Explanation:

Economic Value Added is the residual wealth left for shareholders after having accounted for the financing needs of the company as shown by the formula below:

EVA=NOPAT-(WACC*invested capital)

NOPAT is the net operating profit after tax =operating profit(EBIT)*(1-tax rate)

Net income=Earnings before tax*(1-tax rate)

net income= $55 million

EBT=unknown

tax rate=40.0%

$55=EBT*(1-40.0%)

$55=EBT*0.60

EBT=$55/0.60

EBT=$91.67

EBIT=EBT+interest

EBIT=$91.67+$19

EBIT=$110.67

NOPAT=$110.67*(1-40%)

NOPAT=$66.41

WACC=9.0%

perating capital employed=$385

EVA=$66.41-(9.0%*$385)

EVA=$31.76 million

operating capital em

3 0
3 years ago
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