Answer:
d. Change to a just-in-time inventory system and make the shoes as they are ordered rather than making and storing many shoes and hoping to sell them.
Explanation:
In the Just-in-time inventory management system, materials purchased go straight to the production line. The business keeps minimum or nil raw material in its stores. Demand for goods guides the production process.
Should Alfredo manufactures adopt a Just in time production style, its inventory budgetary requirement will significantly reduce. Alfredo will be ordering for material need for production at that moment. The company will be manufacturing shoes that customers are ready to buy. Its cost of finished inventory will also decrease.
For Just-in-time system to work well at Alfredo, managers must learn how to predict demand accurately and employ an excellent order management system
Answer:
The firm will not sell any bundle, the amount of bundle to be sold will be zero.
Explanation
Solution
Since firm sells at $25 each for coats and pants, then If consumer wants to purchase both Pant and Coat, the customer will have to pay 25 + 25 = $50.
Also, If consumer purchase Pant and Coat as a Bundle then, he will pay 150. From the question stated we can conclude that their is a form of interest to pay for Pant and Coat for Both consumers are higher than 25.
However, they will have to pay an amount less for 1 coat and 1 pant if they buy this in a separate way instead of a Bundle.
We can say, that type of consumers (both) will not buy the pants and coat as a bundle, but will want to buy them separately.
Therefore, any bundle will not be sold by firm. the amount of Bundle sold will be known as a zero Bundle
The term spillover refers to a market exchange that affects a third party who is outside or external to the exchange
Answer:
Lenders loose and borrowers gain
Explanation:
Whenever inflation increases the value of money falls and technically erodes interest rates (hence real interest rate falls although nominal rate stays the same)
In the scenario, if the inflation rate rises to 5.5%, then the real interest rate falls further from 1.5% to (5.75% - 5.5%) 0.25%, demonstrating that the lender is loosing further.
Contrarily, the borrower will technically be paying lesser interest to the lender because he will be paying lesser money in value to the lender both in terms of interest and principal
