Answer:
The profit will decrease.
Explanation:
For example, if the company increases the value of the product to its customers and incurs a cost of $200 per unit in doing so while it increases the selling price by $150. This implies that its profit will decrease by $50 because anytime the cost is more than the selling price of a product, there is a reduction in the profit margin. However, this remains true in the short-run. However, in the long-run, when customers start appreciating the increased value of the product, demand for the product may skyrocket, leading to an increase in price. By this time, the company will recover more cost and even report a higher profit margin.
Answer:
$4,010
Explanation:
Given that
Provide lesson on account = $4,200
The company received on account = $3,600
And, in addition the amount received from customers on account is $410
So, the operating cash flow is
= The company received on account + the amount received from customers on account
= $3,600 + $410
= $4,010
Ignored the company received on account
Answer:
If the Fed lowers the interest rates below the marginal product of capital, the Fed will boost consumption but promote less saving, because saving and investing in more capital will become less profitable.
However, the increased consumption will stimulate demand, and thus, increase ouput, but only in the short-run, because economic growth in the long-run depends on capital investment.
Answer:
350 the number of pretzels that must be sold to maximize profit.
Explanation:
P(x) = -0.002x2 + 1.4x - 400
Differentiating P(x) with respect to dx:
Putting , P(x)' =0
we get , x = 350
Differentiating P(x)' with respect to dx:
P(x)''<0 (maxima)
350 the number of pretzels that must be sold to maximize profit.