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3 years ago

Which of the following are necessary conditions for successful price discrimination?

Business

1 answer:

mixer [17]3 years ago

6 0

Answer:

d. at least two different markets with different price elasticities of demand

Explanation:

The theory of microeconomics about price differentiation is based on the concept of elasticity of demand. Price elasticity of demand is a measure of the sensitivity of demand for a good or service to changes in the price of that product. We say that the price elasticity of demand is elastic when a percentage change in the price of this good has major impacts on demand. On the contrary, we say that the price elasticity of demand is inelastic when variations in the price of goods have little or no influence on demand.

For price discrimination to take place, the offeror must be able to sell the same product at different prices to at least two different groups. This will depend on the price elasticity of consumer demand for the good in each of the markets. Thus, if one group is less elastic than the other, the offeror will be able to sell the goods at different prices.

An example: air market. Consumers are often more price sensitive when traveling for tourism than for business. Thus, a higher price may be charged to executives. which has lower price elasticity of demand than tourists.

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Acme Manufacturing Company prepared a fixed budget based on the expected sales of 160,000 units. That fixed budget included vari

Ksju [112]

If Acme Manufacturing Company uses flexible budgeting and actually sells 200,000 units during the period, these amounts will be included in its flexible budget performance report:

Variable costs = $1,000,000

Fixed costs = $240,000

<h3>What is a flexible budget?</h3>

A flexible budget adjusts the budget according to the activity or volume levels of the company.

For instance, if the total variable costs is $800,000 with expected sales of 160,000 but the actual sales equal 200,000, the flexible budget will be adjusted to $1,000,000 ($800,000/160,000 x 200,000).

<h3>Data and Calculations:</h3>

Expected sales = 160,000 units

Fixed Budget Figures:

Total variable costs = $800,000

Total fixed costs = $240,000

Flexible Budget Figures:

Total variable costs = $1,000,000 ($800,000/160,000 x 200,000)

Total fixed costs = $240,000

Thus, the flexible budget will still maintain the total fixed costs since they do not vary according to the volume level, within the relevant range.

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3 0

1 year ago

What are some ergonomic considerations for auditors?

Leya [2.2K]

Some ergonomic considerations for auditors include safety, comfort, efficiency in performance, and efficiency in productivity to name a few.

<h3>Who is an auditor?</h3>

A professional who is involved in the scrutiny of the financial statements and records of an organization and the one who is responsible for verification of actual transactions with business records, is an auditor.

Hence, the significance of an auditor is aforementioned.

Learn more about an auditor here:

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6 0

2 years ago

Coffee Bean Co. Competes in the crowded coffee bean product category and sells its products in grocery stores and other stores s

Naddika [18.5K]

Answer:

"Commodity-like" is the appropriate response.

Explanation:

A commodity seems to be a simple item that would be compatible with other commodities of almost a similar sort used in exchange.
Commodities have been used another very commonly in the manufacture of other products or services as inputs. The consistency of the product in question may vary marginally, but it is generally standardized across suppliers.

6 0

3 years ago

Weber believed that:

BartSMP [9]

Answer:

The correct answer is d. property could bring prestige, and prestige could bring property.

Explanation:

The textual definition of Weber is the following: "The set of probabilities is inherited property appropriated by an individual or a community or a society; being free property in the event that it is disposable" (Weber, 1922: 36) .

The "stratum" is the conglomerate of individuals who occupy a similar position in the hierarchy of prestige of a society. These men have a very weak and relative community of culture and gender of life and can hardly become the support of a common conscience and action. The "class" is instead a totality, a group, which is characterized above all by conscience, will and action (organization, party)

4 0

3 years ago

Three months ago, you purchased a stock for $54.14. The stock is currently priced at $57.36. What is the EAR on your investment?

Crazy boy [7]

Answer:

The EAR on the investment is 23.79%

Explanation:

Here, we are concerned with calculating the EAR on the stock investment.

Firstly, we start with calculating the return on shares

Mathematically, that is; P1 - P0

From the question P1 = $57.36 while P0 = $54.14

So Return on shares = $57.36-$54.14 = $3.22

We proceed with calculating the Return on shares in percentage

Mathematically;

Return on shares in % = Return on shares/P0 * 100

= 3.22/54.14 * 100 = 5.95%

Lastly we calculate the effective annual interest;

The effective annual interest = 5.95%/3 * 12 = 23.79%

5 0

3 years ago