Answer:
Mrs Smith either shut down the business or invest in efficient equipements that lowers the total cost to below $7
Explanation:
The reason is that the you can not make profit if you product is sold in the market at a higher price than the competitor who offers the same product with the same features. So here, Smith can not make profits by selling the product at $8 because here total cost is $8.25 per unit.
So either she should invest in the business equipments which bring efficiencies and keeps the total costs to below $7 or she should shut down her business because the business is turned into loss making machine.
Answer:
Forward integration
Explanation:
Forward integration is a type of business strategy in which the business activities should be carried forward for incorporating the complete production of the product i.e. from the raw material to the end manufacturing of the product along with the supply chain and its logistics. In this, the supplier of the raw material should extend the business to the end manufacturing of the product
So as per the given situation, it is a forward integration
Answer:
Strategic Planning
Explanation:
Strategic plan accounts for long term <em>goals </em>and <em>vision</em> of a company. While planning strategically, leaders draw the road map for their company which solves <em>how-to questions</em> in achieving those goals. Moreover, through their set priorities, the company's <em>value</em> and <em>vision</em> would also be sorted out. As there are multiple planning dimensions, strategic planning can be differentiated from the others by identifying these 2 factors.
- Time Horizon: Strategic planning is done for the long term usually for 5-6 years.
- Formation of plan: Within the hierarchy of an organization only high-level leaders are the ones responsible to come up with strategic planning.
Answer:
An overdraft is an extension of credit from a lending institution that is granted when an account reaches zero. ... Basically, an overdraft means that the bank allows customers to borrow a set amount of money. There is interest on the loan, and there is typically a fee per overdraft
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Expansionary fiscal policy is most suitable when an economy is in slump and producing below its possible GDP. Contractionary fiscal policy reduces the level of aggregate demand, either through cuts in state spending or growths in taxes.
<h3>
Does an increase in government spending increase GDP?</h3>
The mix of interests doesn't affect the level of GDP, as long as the full amount paid on them doesn't change. Total spending—and thus the equilibrium level of GDP—declines.
Rental agents, landlords, and property management companies can thrive during a recession when leasing is probably to become a more attractive option, if not the only one available.
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