Answer: A. substitutes in consumption.
Explanation:
The substitutes in consumption are products that can be replaced by others and satisfy the same desires or the same need. They respond to the buyer's need to consume a product whose price increases or can no longer purchase it.
<em>For example,</em> in this case, Tomas can no longer acquire pistachios (which are a snack) because increased in price, therefore the potato chips are replacing the pistachio as a snack because it is cheaper.
<em>I hope this information can help you.</em>
Answer:
Sales 950,000
Less: Relevant cost:
Variable expenses 380,000
Avoidable fixed manufacturing expenses 217,000
Avoidable fixed selling and administrative expenses 178,000
Contribution 175,000
The total profit of Furrow Corporation reduces by $175,000 if the product is discontinued.
Explanation:
In this question, there is need to determine contribution, which is the excess of sales over relevant costs. Relevant costs are comprised of variable cost and avoidable fixed costs. The product should not be discontinued since the contribution is positive. Deleting a product with positive contribution reduces the total profit of the company by the amount of positive contribution.
Answer:
$2 billion
Explanation:
Foreigners spend $7 billion on U.S net exports
Americans spend $5 billion on imports
Therefore the value of U.S net exports can be calculated as follows
= $7 billion-$5billion
= $2 billion
Hence the value of U.S net exports is $2 billion
Answer: Private good
Explanation:
According to the given scenario, the Pennsylvania Turnpike is classified the private type of good on the basis of given situation as private good is one of the type of goods that must be purchased by the customers due to its positive advantages or benefits.
The private goods are consumed by the customer in maximum amount in the market as it is one of the essential type of good as it is Rivalry and excludability.
The following are some example of the private goods are as follows:
- Food
- Clothes
- Fresh air
- Knowledge
Therefore, Private good is the correct answer.
