Answer: The answer is b
Explanation:
The concept of advertising response function is based on the theory of marginal physical product and shows the relationship between advertising and the level of consumption of the goods by the consumers. The theory of marginal physical product states that when there is a change in total product resulting from one unit change in the quantity of the resources used per unit of time. When average product is increasing ,marginal physical product is greater than average product,when average product is maximum ,marginal physical equals average product .when average product is decreasing marginal physical product is less than average product.The theory of marginal physical product can also be called the law of diminishing return which states that if increasing quantities of one factor of production are used in conjunction with a fixed quantity of other factors then, after a certain point each successive unit of the variable factor will make smaller and smaller addition to the total output. In this case, the law tells the Trend Inc when to stop adding more input of the variable factor to a fixed factor.
Invariably, we are saying that it high time for Trend Inc, should spend proportionately less on advertising than on newer line. It should now spend more money on bringing of new product into the market than spending more on the advertisement of the sport shoes because at a certain point the demand for the old product will fall when diminishing return must have set in on the product demand.
Answer:
IBM could either diversify by the strategy of market penetration, which consists in increasing the market share in a particular sector (in this case, cloud computing) through more marketing efforts.
Or it could integrate horizontally, acquiring a possible competitor that is more advanced in the cloud-computing business. Or even a start-up with good prospects, because with the amount of capital that IBM has, it could more easily expand the start-up operation as a new internal business division.
Solution :
We calculate the advances form the customer to be reported as the current liability as on Dec. 31, 2009 in the balance sheet as follows :
<u> Particulars </u> <u> Amount ($)</u>
Customer advances the balance Dec 31, 2008 110
Add : advances that is received with 2009 orders is 195
Less : advances applicable to the orders in 2009 -180
Less : advances from orders that are canceled in 2009 <u> -45 </u>
Advances from the customers liability Dec. 31, 2009 80
Therefore, the advance from the customer to be reported in the balance sheet as the current liability is $80.
Answer:
b
e
Explanation:
A perfect competition is characterized by many buyers and sellers of homogenous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry.
In the long run, firms earn zero economic profit. If in the short run firms are earning economic profit, in the long run firms would enter into the industry. This would drive economic profit to zero.
Also, if in the short run, firms are earning economic loss, in the long run, firms would exit the industry until economic profit falls to zero.
Answer:
The service sector grows because of the same reason that any other economy sector grows: the demand for it increases.
Explanation:
Demand increases because new services are created, or existing ones obtain more customers: a larger market share.
In the case of Amazon, the service it offers is deliveries, but Amazon took deliveries to its logical conclusion, becoming an online store that essentially sells everything, from books to car accessories, to fruits and vegetables.
Amazon has become a giant company because it exploited a existing market that had a lot of untapped potential, and customers at the same time responded by demanding even more of these services. In other words, Amazon and the customers formed a virtous cycle that feeds economic growth.
