Answer:
D) Susie would buy more massages and fewer rounds of golf,as predicted by the substitution effect.
Explanation:
Let's check the utility that Susie gets from consuming these products.
The second round of golf gives her 20 units of satisfaction at $20 = 20/20 = 1
The third massage gives her 30 units of satisfaction at $30 = 30/30 = 1
But now the price the price for massage has come down to $15. The ratio of their prices would be
20/15 = 1.333
1.3 is greater than 1
So she should substitute golf for massages
Rent
car payment
insurance
property taxes
salaries
utilities
equipped rental
Answer:
Establish incentives for autonomous division managers to make decisions that are in the overall organization's best interests (i.e., goal congruence).
Answer: True
Explanation: This quiz question explains the relationship between income and demand.
Answer:
A company that establishes a profit-sharing plan must make annual contributions to the plan, even if the company fails to earn a profit during the year.
Explanation:
A profit sharing plan is defined as the type of contribution plan where the plan helps in saving for the retirement of the employees while providing them the flexibility of the plan features. It is a way for the owners of the business to share the profits with the investors and also a great way to attract investment in his business.
In a profit sharing plan, the organization does not have to make or contribute any amount to the plan annually. Such a plan is best suited for the companies which experiences a fluctuating cash flow.
