Consumers make that affect the decisions of the suppliers.
Here are the answers that would best complete the given statement above. A firm's market offering might include a range of options from PURE TANGIBLE PRODUCTS such as gasoline or toasters at one end to PURE SERVICES <span>such as a haircut or a trip to the dentist. Hope this helps.</span>
Answer:
1. Private Good: A snow cone
2. Public Good: A community fireworks display
3. Common Resource: An Alaskan king crab
4. Club Good: Satellite Television
Explanation:
Goods can be categorized into four distinct categories as show above. This distinction is based mainly on two things:
A. Excludability: Whether others can be prevented from consuming them.
B. Rivalrousness: Whether consumption reduces the availability for consumption by others.
1. Private Goods: They are both excludable and rivalrous. They have to be purchased in order to be consumed. Anyone who cannot afford it, is excluded from consuming it. Similarly, the purchase of it by one person reduces the availability for another person, proving rivalry.
2. Public Goods: They are both non-excludable and non-rival. Anyone can consume it and one person’s consumption does not reduce what is available for another person.
3. Common Resource: They are non-excludable but are rival products. They are available to be utilized by anyone but one person’s consumption will reduce what is available for another person.
4. Club Goods: These are excludable but non-rival goods. Individuals can be prevented from consuming them if they don’t purchase it, but one person’s consumption won’t impact the consumption of another person.
Answer: A.) Contribution Margin analysis
Explanation: The contribution margin analysis could be explained as an analytical tool in accounting which helps managers in observing variation or differences in the budgeted and actual contribution margin of a product. The contribution margin is used to determine the revenue made on a product after deducting the fixed cost incurred in it's production. It is also used to evaluate the performance of individual product derived from the amount of residual profit after deducting necessary production cost.
