Answer:
It will lead to an increase in consumption of good X only if X is a normal good ( D )
Explanation:
If consumer has rational, monotonic and convex preference the decrease in price of good X will lead to an increase in consumption of good X only if X is a Normal good .
This is because the demand for Normal goods increases with increase in consumers income. therefore <em>a decrease in price will automatically lead to an increase in demand because of the increase in the purchasing power of the consumer's income.</em>
Answer:
Targeting.
Explanation:
In marketing, Targeting refers to dividing your whole market into specific groups, and focus all your marketing effort to the group that is most likely would find your product relevant and appealing.
In the example above, we now that NOVA only markets its plastic chemical products to food and electronics industry because these industries have a lot more application for NOVA's product compared to other industries.
(For example, the food industries could use the plastic products for their packaging and utensils. The electronic industries could use NOVA's product for its product's structure.)
Answer:
d. a $10,000 decrease.
Explanation:
The computation of the impact on the income is given below:
In case of making the product
= Direct material + direct labor + variable manufacturing overhead + rented
= $100,000 + $160,000 + $60,000 + $10,000
= $330,000
And, in case of buying the product
= 20,000 × $17
= $340,000
So there is a decrease of $10,000
B. owner contributions; retained earnings
