Answer:
Explanation:
ed= 2 , Price increase by 5%.
Elasticity of Demand = % Change in Quantity demanded/ % change in price
% change in quantity demanded = 2*5%=10%
Since, the elasticity > 1 and price has decreased, the total revenue will decrease. The impact of price change on Total revenue is based on the relationship between elasticity of demand and Total revenue.
Thus, there will be 10% fall
Answer:
a. Retained earnings
b. Net income
Explanation:
The statement of the retained earning is shown below:
Retained Earning statement
For the year ended
Beginning balance of retained earning XXXXX
Add: Net income XXXXX
Less: Cash Dividend paid XXXXX
Ending balance of retained earning XXXXX
With the help of the retained earning, net income, and the dividend the statement of the retained earnings should be prepared.
Answer:It will not be ethical for Aaron to attend the meeting and share relevant cost data
Explanation:
Sharing of the relevant cost data will enable the competitor to have a good idea of what goes into Aaron production and it's pricing policy which may be use to the advantages of the competitor.
Furthermore there is no law that protect a firm from his competitor abuse of information obtain through mutual consent.
Answer:
corporate social responsibilities
Explanation:
Corporate Social Responsibility refers to the form of global self-regulation for private companies aimed at contributing to community objectives of an entrepreneurial, political, or humanitarian type or by participating in or promoting voluntary or ethically focused action.
Although before it was easy to explain CSR as an inner organizational practice or a business ethics technique, the period followed when different international legislation were established and different organizations used their power to move beyond person and even sector-wide programs.
Although it has long been known a type of organizational self-regulation, it has changed significantly over the past decades from voluntary actions at just the individual level companies to compulsory systems at local, domestic and international scale.
Answer:
False.
Explanation:
(1) Units produced = 24 units of output
At the 24th unit of output,
Marginal revenue = $5
Marginal cost = $4
MR ≠ MC
At the 25th unit of output,
Marginal revenue = $4.50
Marginal cost = $4.50
MR = MC
At the 26th unit of output,
Marginal revenue = $4
Marginal cost = $5
MR ≠ MC
A firm maximizes its profit at a point where the marginal revenue is equal to the marginal cost i.e. MR = MC.
It is clear from the above scenario that this firm doesn't stop at 24 units of output because at this point of production profit maximizing condition is not fulfilled which means MR ≠ MC.
This firm should stopped at 25 units of output where marginal revenue is equal to the marginal cost from the 25th unit of output.
