Answer:
The answer is because of product differentiation
Explanation:
Under monopolistic competition, the sellers' product are differentiated from one another and this gives the sellers the power to influence prices.
Like perfect competition, the market has many buyers and sellers, free entry and exit but the major difference between the two is the product differentiation.
For example in the mobile phone market, we have Samsung, Infinix, Iphones, Oppo etc. They are all mobile phones but they are different from from one another in the aspect of specifications. iPhones usually charge highest. There is customers' loyalty in this market.
Complete Question is as under:
JJ Manufacturing builds and sells switch harnesses for glove boxes. The sales price and variable cost for each follow:
PRODUCTS Selling Price Per Unit Variable Cost Per Unit
TRUNK SWITCH $60 $28
GAS DOOR SWITCH $75 $33
GLOVE BOX LIGHT $40 $22
Their sales mix is reflected in the ratio 4:4:1. If annual fixed costs shared by the three products are 18,840.
Requirement 1: How many units of each product will need to be sold in order for JJ to break even?
Requirement 2: Use the information from the previous exercises involving JJ Manufacturing to determine their break-even point in sales dollars.
Kindly Find the Solution in the attachment.
Answer:
B. fixed costs, variable costs, and mixed costs
Explanation:
Mainly there are three types of cost i.e variable cost, fixed cost, and the mixed cost. The variable cost is that cost which is change when the production level change whereas the fixed cost is that cost which remains constant whether production level changes or not
.
The mixed cost is a semi-variable cost which include some part of the fixed cost and some part of the variable cost
So, the variable cost includes indirect material, indirect labor, and factory supplies
The fixed cost includes supervision, taxes, and depreciation expense.
And, the mixed cost includes insurance, utilities, etc.
The answer to the given blank above is SELF-FULFILLING PROPHECY. From the term itself, self-fulfilling prophecy refers is a kind of prediction made by someone which most likely becomes true, may it be directly or indirectly. Usually, this is a result of both belief and behavior. In the given scenario above, the waiter, serving poorly dressed customers, predicts that he is going to be tipped low and so he gives them bad service. As a result, he did really get a smaller tip, just as he expects or believes.
Answer:
The correct answer is C. The producer's price index in that area.
Explanation:
The producer price index (PPI) is an indicator of the evolution of producer sales prices, corresponding to the first marketing or distribution channel of goods traded in the economy. The difference with the consumer price index (CPI) is explained because a good can be marketed or distributed by different intermediaries that will modify the sales price until it reaches the final consumer.
