Ajax Inc. is one of the customers of a well-known linenmanufacturing company. Ajax has not ordered linen in some time, but when
it did order in the past it ordered frequently, and its orders were of the highest monetary value. Under the given circumstances, Ajax is most likely to have a[n] RFM score of 511.
RFM analysis scores customers on a ranking that goes from 1 - 5, with 5 being the best parameter (555 is the ideal customer). The factors used in a RFM analysis are recency, frequency, and monetary value.
Companies perform RFM analysis based on the idea that 80% of the company's total business comes from only 20% of its customers.
In this case, Ajax would get:
1 for recency since it hasn't purchased anything in a long time,
5 for frequency because when it used to purchase goods, they did it quite frequently
5 for monetary value because they were the largest sales
For someone who is currently renting an apartment, he or she should be better off with rent control as long as they keep renting the same apartment. They will pay a lower price.
For someone who is moving to Lowell, he or she will be worse off because the quantity supplied for apartments on Lowell will decrease (price ceilings always decrease the quantity supplied). So it will be very hard for him to find a suitable apartment.
For the landlord that abides by the law, he will be worse off because he will lose money. He should be earning more money but due to the rent control, his earnings decrease.
For the landlord that decides to ignore the, he will eventually be worse off by his actions, since illegal activities always have a sour ending. He will eventually be caught and will probably have to pay a fine of some sort.
The difference between the terms supply and quantity supplied is supply includes all the possible market prices and the amount of quantity while quantity supplied deals with one specific market price and amount of quantity.
1 is the base index of CPI, so a value of 0.418 means that the prices were 0.418 times the base index and 2.4 means that prices were 2.4 times the index
The 1972 graduate's job paid $7200 in nominal terms and (7200/0.418) in real terms
Real terms 1972= 17224
Real terms 2016= 25000
17224/25000= 68%
The 1972 graduate's job paid 68 percent of the 2016 graduates job in real terms.
