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2 years ago

The impact of crowding out

Business

1 answer:

Nat2105 [25]2 years ago

4 0

Answer:

The correct answer is D

Explanation:

The crowding out in economics is defined as the phenomenon which happen when increased government involvement in the sector of the market and the economy substantially affects the remainder of the market through demand or the supply side of the market.

Open economy is the economy where not only the domestic companies but also entities of another country in trade of products whereas the closed economy is the economy where there is no trading activity with the outside economies.

So, the crowding out impact would be larger in the open economy as compare to the closed economy.

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Suppose that Walgreens (a major drug store chain) wants to introduce its own brand of cough medicine that is similar in contents

antoniya [11.8K]

Answer:

Letter b is correct. <em>Private-label brand</em>

Explanation:

Private-lebel brand is when products are supplied or manufactured by a particular company and then labeled with another company's brand. The advantages added to a company that decides to sell a private label product are varied, these items can increase the credibility and reliability of the company, such as increasing the sales flow and diversifying the marketed product lines.

3 0

2 years ago

Laura is a gourmet chef who runs a small catering business in a competitive industry. Laura specializes in making wedding cakes.

Tanya [424]

Answer:

The correct answer is option a.

Explanation:

The monthly total revenue is $5,000.

The marginal cost of producing 19th, 20th and 21st unit is $200.

Laura will earn profit if the price is able to cover marginal cost.

Total revenue is the product of price and quantity.

Price of cake when Laura produces 19 units

= $\frac{TR}{Q}$

= $\frac{5,000}{19}$

= $263.15

Price of cake when Laura produces 20 units

= $\frac{TR}{Q}$

= $\frac{5,000}{20}$

= $250

Price of cake when Laura produces 21 units

= $\frac{TR}{Q}$

= $\frac{5,000}{19}$

= $238.09

So we see that the price is able to cover marginal cost till 21st units, so Laura should produce more than 20 units and go on producing till price becomes equal to marginal cost.

4 0

2 years ago

Selected information taken from the accounting records of Vigor Company follows:

MariettaO [177]

Answer and Explanation:

The computation is shown below:

But the following calculations must be done

Account receivable turnover = Net sales ÷ average account receivable

5 = Net sales ÷ ($900,000 + $1,000,000) ÷ 3

5 = Net sales ÷ $950,000

Now the net sales is

= $950,000 × 5

= $4,750,000

And,

Inventory turnover ratio = Cost of goods sold ÷ average of account receivable

4 = Cost of goods sold ÷ ($1,100,000 + $1,200,000) ÷ 3

4 = Cost of goods sold ÷ $1,150,000

Cost of goods sold

= $1,150,000 × 4

= $4,600,000

Now the gross profit is

a. The gross profit is

= Sales - cost of goods sold

= $4,750,000 - $4,600,000

= $150,000

2. The days sales outstanding in both the cases are as follows:

DSO in inventory

= 360 ÷ 4

= 90 days

And, DSO in account receivable

= 360 ÷ 5

= 72 days

7 0

2 years ago

A customer tells you that they “must have” a particular item that you are out of in your store. You can tell that the customer i

saul85 [17]

Tell them to wait patiently, and give them a
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3 years ago

Read 2 more answers

You bought a car for $17,250. You put down $3,000 cash and have to take a loan out to pay for the rest. The car dealership is of

LuckyWell [14K]

Answer:

Interest will be $855 x 10 years= $8,550

Explanation:

Interest

6÷100=0.06

0.06x14,250=$855

$855x10=$8,550.

How much to have paid back

At the end of 10years $8,550 would have been paid as interest

Total sum will be $14,250+$8,550=$22,800 to be paid back.

8 0

3 years ago