All categories

4 years ago

How does price discrimination help cover fixed costs?

1 answer:

3 0

For the case of a consumer with an inelastic demand curve, it is less costly to cater for them, hence reducing the production fixed cost. given that different customers will be charged differently for the same product, it is easy to cover for a low profit range.

You might be interested in

All of the current year's entries for Zimmerman Company have been made, except the following adjusting entries. The company's an

Nina [5.8K]

Answer:

prepaid rent 6,400 debit

rent revenue 6,400 credit

--to record accrued rent revenue--

interest expense 540 debit

interest payable 540 credit

--to record accrued interest on the note--

depreciation expense 3,500 debit

accumulated depreciation-truck 3,500 credit

--to record the depreciation on company's truck--

Explanation:

earned rent:

9,600 for six months: 9,600 / 6 = 1,600 dollars per month

months from September 1st to December 31th: 4 months

earned rent revenue: 1,600 x 4 = 6,400 dollars

interest acrued on the note:

principal x rate x time

18,000 x 0.12 x 3/12 = 540

we ddebit the expense and credit the payable

depreciation:

for the amount stated we debit the expense and credit the accumulated depreciation

4 0

3 years ago

The Fed's control over interest rates, quantitative easing, and direct lending to financial institutions are some of the tools o

AlexFokin [52]

Answer:

Monetary Policy

Explanation:

The Fed is the shortened term for the Federal Reserve or the United State's Central Bank and Tools of Monetary Policy are communications, actions and tools employed by the Fed to regulate the activities of the economy by regulating the activities of the its member financial institutions.

Specifically, the Federal Reserve has three economic goals as directed by the Congress and they include, moderate long-term interest rates, stable prices and maximum employment. By controling interest rates, making direct lending or buying the treasury bill sof financial institutions among others, the Fed carries out these three economic goals.

8 0

3 years ago

If you want to know whether a company had a profit or a loss during a specific period of time, which financial statement would b

riadik2000 [5.3K]

Answer:

The answer would be D. Income Statement!

Explanation:

8 0

3 years ago

Nan presents her plan for a slip-on shoe that is water repellent, inexpensive, and highly fashionable. She believes that the mar

Mazyrski [523]

Answer:

c. the exaggerated hockey stick

Explanation:

Based on the information provided within the question it can be said that the business plan error that Nan is incurring is the exaggerated hockey stick. In the context a business, "a hockey stick" explains a startups growth as a linear steady growth at launch until it hits a certain tipping point and has a growth explosion. It seems though, that in this scenario Nan is exaggerating the initial growth aspect of the startup as saying that they can capture 40% of the market, which is an extremely high value.

5 0

3 years ago

PLEASE HELP :(

daser333 [38]

When you invest into a businesses, down the road you will end up make it more money if the businesses does well, if it does not you lose the money you invested in that businesses. It’s a risk. I don’t really understand what your asking.

3 0

3 years ago