This is an example of LOOSE BRICKS.
Loose bricks refers to an ignored market segment that a competitor exploited in order to make its initial landing in a foreign market. In this kind of situation, the competitor usually gained ground for itself before the native businesses realizes what is happening.<span />
Answer:
A. Will be the nine month period between August 15 and May 15; any time period longer than this will be long run for her.
Answer:
The correct answer is C that is $(140,000)
Explanation:
Elimination of the North Division will result in the overall net income or loss which is computed as:
Elimination of the North Division will result in the overall net income or loss = South Net Income (NI) - North's allocated costs
where
South Net Income is $100,000
North's allocated costs is $240,000
So,
= $100,000 - $240,000
= $(140,000)
Therefore, it will result in loss of $140,000
Note: The Net Income will be decline or decrease by $240,000 when the division was dropped.
it's A) key. I just took it.
Answer:
- Government legal minimum price $4.50 : Price Floor [Binding]
- Government maximum set price $4.50 : Price Ceiling [Non Binding]
Explanation:
Price Ceiling is the maximum mandated price by the government , at which a commodity can be sold in the market. It is binding if price ceiling is set below the free market equilibrium price level. It is usually set to protect interests of buyers.
Price Floor is the minimum mandated price by the government, at which a commodity can be sold in the market. It is binding if price floor is set above the free market equilibrium price level. It is usually set to protect interest of sellers.
'The government has instituted a <u>legal minimum price</u> of $4.50 per gallon for gasoline' is an example of Price Floor. As floor price 4.50 > equilibrium price 4 , it is binding.
'The government <u>prohibits</u> gas stations from selling gasoline for <u>more than</u> $4.50 per gallon' is an example of Price Ceiling. As price ceil 4.50 > equilibrium price 4 , it is non binding.