This scenario highlights a specific business practice known as <u>reciprocity</u>.
<h3>What is reciprocity</h3>
Reciprocity can be defined as the process in which two companies engages in a business transaction with one another by buying product from each other . This simply means that companies A buy product from company B and company B return the favor by buying a product from company A.
Based on the given scenario the both companies engages in what is called reciprocity by exchanging business transaction with each other.
Therefore this scenario highlights a specific business practice known as <u>reciprocity</u>.
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Answer:
South American country should lower price
Explanation:
The elasticity of demand can be computed by finding the derivative of the demand function as D(p)=75-3*p^2
the elasticity of demand=-p*D'(p)/D(p)
D'(p) is the derivative of D(p)
elasticity of demand=-p*d/dp(75-3p^2)/(75-3p^2)
d/dp(75-3p^2)=0-(2*3p^2-1)
=-6p
elasticity of demand=-p*-6p/75-3p^2)
=6p^2/(75-3p^2)
since p=$3
elasticity of demand=6*(3^2)/(75-3(3^2)
=6*9/(75-3*9)
=54/(75-27)
=1.125
Since elastic of demand is greater than 1 , a reduction in price would lead more revenues as more small % change reduction in price would bring about more % increase in quantity demanded
Answer:
Her net pay for the month is $6274.522
Explanation:
The computation of net pay is calculated by applying an equation which is shown below:
Net pay = Total pay - fica tax for social securtity - fica tax for medical care - federal income tax
where,
total pay is $8,738
fica tax for social security = total pay × fica tax rate for social security
= 8,738 × 6.2%
= $541.756
fica tax for medical care = total pay × fica tax rate for medical care
= 8,738 × 5.4%
= $471.852
And, federal income tax is $1449.87
So, the net pay is equals to
= $8,738 - $541.756 - $471.852 - $1449.87
= $6274.522
The suta tax rate would not be considered as full information is not given in the question. So, this part should be ignored.
Hence, her net pay for the month is $6274.522
Answer:
Willing to pay $3,800 for a used car.
Explanation:
Low Quality Used Car = $1000
Probability of getting low quality used car = 60%
High Quality Used Car = $8,000
Probability of getting high quality used car = 40%
Since both the low quality and high quality are used cars, we can calculate how much to pay for used car by taking weighted average of high quality and low quality used cars, and, assign weights as the probability of getting each car:
⇒(1,000 * 60%) + (8,000 * 40%)
⇒ 600 + 3,200
⇒ $3,800
Answer: Full service retailer
Explanation: In a full service retailing a business organization makes use of fully trained personnel to actively attend to each customer demands. These sales representative answers questions about the product while outlining benefits of purchasing the product to the purchaser.
The carat organization is actively using the full service retailing method. Where each customer is actively attended to and appropriate explanation on the product is given
