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hammer [34]
3 years ago
7

If a utility company were considering an increase in electricity or gas prices in order to cover the costs of a capital investme

nt, which sector would result in the smallest change in quantity demanded in the long run and thus higher profits. True or false?
Business
1 answer:
Firlakuza [10]3 years ago
8 0

Question:

If an utility company were considering an increase in electricity or gas prices in order to cover the costs of a capital investment, this sector would result in the smallest change in quantity demanded in the long run and thus higher profits. True or false?

Answer:

The answer is True.

Explanation:

Change in the demand for gasoline and or electricity is primarily set by the number of industrial or bulk users.

Scarce goods are allocated though the help of prices. It is important to note that demand for gasoline or electricity is <u>more elastic in the long term</u>, so small changes in price will alter supply and demand in either direction in the shortrun.

The demand for gas or electricity are by nature <em><u>inelastic.</u></em> This means that when prices go up, demand goes down <em><u>but not by much.</u></em>

It means that in the short term, the individuals cannot alter their lifestyle immediately to adjust for the hike in prices.

To adjust they would have to probably purchase new devices which or cars which consume less gas or electricity.

The effect this has for the company on the overall is that they are able to achieve their aim of recouping their capital investments from the planned increase in price.

Cheers!

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Comfy Fit Company manufactures two types of university sweatshirts, the Swoop and the Rufus, with unit contribution margins of $
BlackZzzverrR [31]

Answer:

Comfy Fit Company

Contribution margin per hour of machine time:

Contribution margin for 1 hour of machine time will be equal to:

Swoop = $5 x 60/6 = $50 per hour

Rufus = $15 x 60/6 = $150 per hour

Explanation:

If Contribution margin:

Swoop = $5 for 6 minutes' machine time

Rufus = $15 for 6 minutes' machine time

Therefore, contribution margin per hour will be

Contribution x 60/6.

Since 60 minutes make an hour, there will be ten times more contribution for each.

This gives an hourly contribution of $50 ($5 x 10) and $150 ($15 x 10).

7 0
3 years ago
Marginal utility:
Monica [59]

Answer:

a. is the change in total satisfaction derived from consuming one more unit of a good.

Explanation:

Marginal utility: It defines as changes in total satisfaction of consumers with one additional unit changes in the consumption of goods. It derives satisfaction level of consumer with the units of goods consumed, similarly usage of product changes with the number of the product we have in stock or purchased.

Formula; Marginal utility= \frac{Changes\ in\ total\ utility}{Changes\ in\ number\ of\ units\ consumed}

There are several types of marginal utility:

  • Zero marginal utility.
  • Positive marginal utility.
  • Negative marginal utility.
  • Increasing marginal utility.
  • Diminishing marginal utility.
7 0
3 years ago
When thinking about gender, Jeff sees men as the dominant social group and women as the subordinate group. He thinks that the ex
otez555 [7]

Answer:

Conflict Theory

Explanation:

Conflict theory as purposed by Karl Marx is a theory which states that there is permanent conflict in the right to use the resources as they scarce in the market. People tend to overrule because of the powers they have.

Similarly in the given instance Jeff sees men as ruling and being dominant in nature and that the women are not ruling and are subordinated. And because of this men exercise to dominate women for their rights, and accordingly they grab more options and use of resources. This will ultimately lead to conflict as this is a gender bias which do not hold any reason to be valid.

7 0
3 years ago
When an organization lacks policies, its operations become less predictable. Which of the following is a challenge you can expec
levacccp [35]

Answer:

The correct answer is letter "C": Customer dissatisfaction.

Explanation:

In front of a lack of policies, companies are likely to fail in accomplish their basic objectives such as manufacturing their goods on time or covering the minimum quality standards for the product to be attractive to consumers. Under that scenario, little by little the company will lose its market share as a result of <em>customers' dissatisfaction</em>.

6 0
3 years ago
Porter Plumbing's stock had a required return of 11.75% last year, when the risk-free rate was 5.50% and the market risk premium
Anni [7]

Answer:

The answer is: Porter Plumbing's stock new rate of return is 14.38%

Explanation:

First we calculate beta:

beta = (stock's rate of return - risk free rate) / market rate of return

beta = 6.25% / 4.75% = 1.32

If beta remained the same (1.32% and the market rate of return increased by 2%, then to find the new value for Porter's stock (P):

1.32 = (P - risk free rate) / 6.75%    

P - risk free rate = 1.32 x 6.75% = 8.88%

P = 8.88% + risk free rate            

P = 8.88% + 5.50% = 14.38%    

​

7 0
4 years ago
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