Answer:
Letter E is correct. <em>Their share of the cost is hig</em>h.
Explanation:
Price sensitivity is characterized by consumer behavior in relation to the price of a product or service.
The degree of price sensitivity can be measured using the price elasticity of demand, which is the study of the percentage change in the amount of demand for a good or service divided by the percentage change in price.
Some variables may affect consumer behavior, price sensitivity may be higher when there are many substitute products and lower when the consumer values a higher quality good and <u>when its profitability is higher compared to the total cost of the product.
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Answer:
c) the mean, upper control limit, lower control limit and warning lines that are two sigma from the mean are indicated by horizontal lines in the control chart.
Explanation:
Walter Shewhart is regarded as an important personality in the history of quality management. He asserted that the behavior of real processes had the tendency to change as time changed and it was not the behaviur of theoretical random distributions.
Walter Shewhart posited that causes of variation could be divided into two which are chance cause and assignable cause. He maintained that chance causes could be ignored if they did not cause too much variation, and any attempt to eliminate them usually made the problem worse. He however posited that it was possible to fix assignable causes.
Walter Shewhart invented control chart in order to differentiate between variations caused by random events and trends that indicated assignable causes. There is time and a plot of sample measurements on the bottom axis of a control chart. The mean, upper control limit, lower control limit, and warning lines that are two sigma from the mean are indicated by horizontal lines.
Based on the above explanatio, the correct option is c) the mean, upper control limit, lower control limit and warning lines that are two sigma from the mean are indicated by horizontal lines in the control chart.
Answer:
Concerns exist about supplier capacity for future volume.
Explanation:
The multisourcing is a method in which the supplier base is expanded increasing the actual number of suppliers, because the needs of the company are increasing.
Advantages:
-Alternative sources of materials in case of delivery stoppage by a supplier.
-Reduced probability of bottlenecks due to insufficient production capacity to meet peak demand.
- Increased competition mong suppliers leads to better quality, price, delivery, product innovation and buyer´s negociation power.
-More flexibility to reat to unexpected events that could endanger supplier´s capacity.
Disadvantages:
-Reduced efforts by supplier to match buyer´s requirements.
-Higher cost for the purchasing organization (greater number of orders, telephone calls, records, and so on).
Answer:
Explanation:
(a) HPR = Ending Price - Beginning Price + Cash Dividend / Beginning Price
a. The holding period returns for the three scenarios are:
Boom: (48 - 40 + 2.8)/40 = 0.27 = 27%
Normal: (43 - 40 + 1.8)/40 = 0.120 = 12.0%
Recession: (34 - 40 + .90)/40 = -0.1275 = -12.75%
= [(1/3) × 0.27] + [(1/3) × 0.120] + [(1/3) × (-0.1275) =0.08750 or 9%
Variance = [(1/3) × (0.27 - 0.08750)^2] + [(1/3) × (0.120 - 0.08750)^2] + [(1/3) × (-0.1275 - 0.08750)^2] = .026863
Std. Dev = Sq. Rt .026863 = .16390 = 16.39%
(b) E(r) = (0.5 × 8.75%) + (0.5 × 5%) = 6.88%
σ = 0.5 × 16.39% = 8.19%
Thanks
Answer:
D. total variable costs
Explanation:
A purely competitive firm should produce in the short run if its total revenue is sufficient to cover its <u>total variable costs</u>.
In short run, fixed cost had to be incurred even if it shuts down. So it should operate as long as price is greater than average variable cost.
