1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Deffense [45]
4 years ago
6

Recently, Verizon Wireless ran a pricing trial in order to estimate the elasticity of demand for its services. The manager selec

ted three states that were representative of its entire service area and increased prices by 5 percent to customers in those areas. One week later, the number of customers enrolled in Verizon’s cellular plans declined 4 percent in those states, while enrollments in states where prices were not increased remained flat. The manager used this information to estimate the own-price elasticity of demand and, based on her findings, immediately increased prices in all market areas by 5 percent in an attempt to boost the company’s 2016 annual revenues. One year later, the manager was perplexed because Verizon's 2016 annual revenues were 10 percent lower than those in 2015—the price increase apparently led to a reduction in the company’s revenues. Did the manager make an error
Business
1 answer:
Anettt [7]4 years ago
8 0

Answer:Yes, the Manager made an error.

Explanation:

Increasing the revenue of a firm depends on two factors which are price and effective demand. An increase in price without a fall in demand will increase revenue, an increase in demand without a fall in price will equally increase revenue.

However when manipulating price only in order to increase revenue care must be taken to ensure same or higher level of demand for an increase in price which lead to a fall in demand may boomerang for the firm.

E.g

Year. $ Price. Demand. Revenue$

1. 5. 100. 500

2. 6. 80. 480

The above illustrate an increase in price without a rise or maintaining the same level of demand leads fall in revenue.

You might be interested in
The major advantage of a regular partnership or a corporation as a form of business organization is the fact that both offer the
posledela

Answer:

True

Explanation:

Some owners of a regular partnership (limited liability partnership) or a corporation (S-corporation) enjoy limited liability, unlike the owners of proprietorships, whose business liabilities and solvency are backed with the personal assets of the owners.  The owners of a C-corporation enjoy full limited liability unless the corporate veil is lifted by the court, depending on prevailing circumstances.  With limited liability also comes limited participation in the management of the entity.

3 0
3 years ago
The following data give the dates of successive turning points in U.S. economic activity and the corresponding levels of real GD
solong [7]

Answer:

Point of trough = B and D

Explanation:

As per the data given in the question,

The troughs are those points where the real GDP of economy fails and then later it increases. In July 1953 real GDP is 1992.2, which further fails to 1941 in May 1954, and then increases again to 2182.7 in April 1957. Hence B is that point where trough takes place.

Likewise, Real GDP is falling to 2,117.4 in April 1958, which Rising to 2391.0 in April 1960. Therefore D is also that point where trough takes place.

Thus, Option (e) : point (B) and (D) is correct answer.

7 0
3 years ago
What are some reasons for pleading not guilty in criminal case
timofeeve [1]
You must have an Alibi
5 0
3 years ago
A conceptualization the firm as an "activity system" is a means of depicting: A. The extent to which a management is motivated t
tia_tia [17]

Answer:

D. Consistency among a firm’s activities.

Explanation:

Conceptualisation is the process by which an enterpreneur writes out concepts that will later make up the basis of the business model.

These concepts ensures uniformity in the activities of the business.

For example he can decide to break down business activities into 3 departments.

4 0
3 years ago
Genova Corporation has a four year 10% annual coupon bond. The price of the bond is $956.12. The Yield to Maturity is 11.43%. Wh
lbvjy [14]

Answer:

10.46%

Explanation:

Data provided in the question

NPER = 4 years

Price of the bond is $956.12

Yield to maturity is 11.43%

Coupon rate = 10%

We assume the face value be $1,000

So the coupon payment is

= Face value × Coupon rate

= $1,000 × 10%

=  $100

Now the current yield on this bond is

= Coupon payment ÷ Price of the bond

= $100 ÷ $956.12

= 10.46%

8 0
3 years ago
Other questions:
  • As a junior congress person you have been asked to help promote a bill to allow casino gambling in your state. There is much opp
    7·1 answer
  • If you are trying to move your audience to do something, you should choose which organizational style?
    13·1 answer
  • The scenario approach to strategic planning involves:A. devising plans for coping with a number of different possible future sta
    13·1 answer
  • Job 243 was recently completed. The following data have been recorded on its job cost sheet:______.
    6·1 answer
  • Gipple Corporation makes a product that uses a material with the quantity standard of 8.2 grams per unit of output and the price
    11·1 answer
  • How much will a $1 deposit be worth after 24 years if the interest rate paid by the bank is 7%?
    13·2 answers
  • The _____ provides a roadmap to guide the management actions at each stage of the introduction of a new system.
    14·1 answer
  • Next Managing Files and Directories: Mastery Test 2 Select the correct answer from each drop-down menu. How will you identify a
    5·1 answer
  • Suppose Nike, Inc. reported the following plant assets and intangible assets for the year ended May 31, 2022 (in millions): othe
    12·1 answer
  • If someone is discriminated by a law based on gender, the burden is on the state to show that the law is substantially related t
    14·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!