Answer:
The statement is true
Explanation:
Market-clearing price is the price of a product or a service in which the quantity sold is equal to the quantity demanded and There are no surpluses or shortfalls on the market, it's also known as the price of equilibrium. The theory suggests that consumers tend to shift to that price
Answer:
It is more convenient to continue the production in house.
Explanation:
Giving the following information:
The company is currently operating at capacity and has received an offer from one of its suppliers to make the 12,000 awnings it needs for $25 each. Old Camp’s costs to make the awning are $12 in direct materials and $7 in direct labor. Variable manufacturing overhead is 70 percent of direct labor. If Old Camp accepts the offer, $42,000 of fixed manufacturing overhead currently being charged to the awnings will have to be absorbed by other product lines.
Make in house:
Variable costs= 12 + 7 + (7*0.70)= $23.9
Total variable costs= 23.9*12000= 286,800
Buy= 25*12,000= $300,000
It is more convenient to continue the production in house.
If you were in the dry cleaning business you would benchmark the business itself for their technological innovations
Answer:
True
Explanation:
When the price increases, more people will be unwilling to buy the product. However, simply lowering the price will not necessarily gain a large number of new customers.
