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timama [110]
3 years ago
12

When producers do not have to pay the full cost of producing a product, they tend to?

Business
1 answer:
Agata [3.3K]3 years ago
6 0
When producers do not have to pay the full costs of producing a product, they tend to OVER PRODUCE THE PRODUCT BECAUSE OF A SUPPLY SIDE MARKET FAILURE.
When producers are required to pay less than their cost of production for manufacturing their products they tend to produce more products, this is because, producing more products will cost less in production costs compare to if they are required to pay the full cost of production.
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A company manufactures a product using machine cells. Each cell has a design capacity of 250 units per day and an effective capa
Blababa [14]

Answer:

1.90

Explanation:

Calculation for how many cells that the company require to satisfy predicted demand

Using this formula

Numbers of cell=Projected annual demand/Annual capacity per cell

Based on the information given we were told that Annual demand is 50,000 units in which it is forecasted that within 2 years it will tripple which means that Annual demand will be calculated as:

Projected annual demand = 50,000*2 years

Projected annual demand=100,000

Let plug in the formula

Numbers of cell=100,000÷(220 units/day × 238 days/year)

Numbers of cell=100,000÷52,360

Numbers of cell=1.90

Therefore the amount of cells that the company require to satisfy predicted demand will be 1.90

6 0
3 years ago
U.S. GAAP for long-lived assets significantly impedes rate-of-return comparisons across companies unless the firms:
kap26 [50]

Answer: Apply the same depreciation methods and the same useful lives among similar groups of assets

Explanation:

US GAAP for long-lived assets significantly impedes rate-of-return that is, the annual income from an investment which is being expressed as a proportion of the original investment comparisons across companies unless the firms apply the same depreciation methods and also the same useful lives are applied among identical groups of assets.

6 0
3 years ago
The four Ps make up the marketing mix, which is the __________ set of decisions or activities that the firm uses to respond to t
Alexeev081 [22]

Answer:

clear and effective strategy comprising

Explanation:

The four Ps make up the marketing mix ,which are product, price, promotion, and place. These four components help determine a clear and effective strategy to bring a product to market. Each element is crucial in its own right and needs to be given due focus .

The product is either a tangible good or an intangible service that is seem to meet a specific customer need or demand. All products follow a logical product life cycle and it is vital for marketers to understand and plan for the various stages and their unique challenges .

Price covers the actual amount the end user is expected to pay for a product. How a product is priced will directly affect how it sells. This is linked to what the perceived value of the product is to the customer rather than an objective costing of the product on offer. If a product is priced higher or lower than its perceived value, then it will not sell. This is why it is imperative to understand how a customer sees what you are selling.

The marketing communication strategies and techniques all fall under the promotion heading. These may include advertising, sales promotions, special offers and public relations.

The place or placement deals with how the product will be provided to the customer. Distribution is a key element of placement. The placement strategy will help assess what channel is the most suited to a product.

5 0
3 years ago
On January 1, 2018, Lowell Corp. acquired 80% of the voting common stock of Boston Inc. During the year, Lowell sold to Boston f
Hitman42 [59]

Answer:

$40,800

Explanation:

The computation of  the net income is shown below:-

With regard to non-controlling interest, Lowell Corp. and the non-controlling interest divided Boston net profits proportionately to their ownership interests.

Non controlling interest share of consolidated net income = Boston net income × Remaining percentage

= $204,000 × (100% - 80%)

= $204,000 × 20%

= $40,800

Therefore for computing the Non controlling interest share of consolidated net income we simply multiply the Boston net income with remaining percentage.

8 0
3 years ago
Ckson's Programming paid its June of $500 cash. demonstrate how to use the accounting equation to record the transaction by comp
Dvinal [7]

Answer:

Decrease <u>Cash </u>and Increase <u>Expense</u>

Explanation:

Jackson Programming paid $500 as rent for the month of June.

The accounting equation is is the basis of the double entry accounting principle system. It is an equation that stipulates that the balance sheet must remain balanced meaning every entry on the debit should be followed with a corresponding credit. It also means for every decrease there should be a corresponding increase.

In Jackson Programming;

A decrease is recorded in CASH because cash was paid, while an increase is recorded in EXPENSE because there is a corresponding increase in rent expenses.

5 0
3 years ago
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