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sergeinik [125]
3 years ago
15

Modern business has evolved through three main stages, the sales concept, the marketing concept, and finally today the productio

n concept. the most successful organizations today focus upon the production concept, viz., they focus upon building a superior product or providing a superior service, knowing that "if you build a better mousetrap, the world will beat a path to your door." good strategic management follows this model and begins with the production concept.
Business
1 answer:
Ymorist [56]3 years ago
7 0
I think building a better product would best fit the quote. Giving the best out of the product and if the consumers see how it would help them would make it to the market. Services is secondary if the product is really good then it would directly be seen by the consumers.
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Suppose you transfer $500 from your checking account to your savings account. With this transaction, M1 _________ and M2________
Luba_88 [7]
Decreased; stayed the same
4 0
3 years ago
Suppose a whale-watching trip in alaska costs orca-spotters tours $800 per run. each whale-watching trip can hold 25 tourists, m
zimovet [89]
<span>Well if they are trying to maximize profits then they need to charge more per seat. At 25 seats costing $32.00 per seat you will break even. If the price is not altered then they will not make a profit. I would up the price at least 30%-50% so that they will make a respectable amount of profit on each seat.</span>
4 0
3 years ago
The builder of a new movie theater complex is trying to decide how many screens she wants. Below are her estimates of the number
DochEvi [55]

Answer:

<u>Part (a):</u>

Make a table showing the value of the marginal product for each screen from the first through the fifth:

<u>Solution: </u>

The answer is attached.

<u>Part (b):</u>  

How many screens will be built if the real interest rate is 5.5 percent?

<u>Answer:</u> 3 screens

<u>Part (c): </u>

How many screens will be built if the real interest rate is 7.5 percent?

<u>Answer:</u> 1 screen

<u>Part (d):</u>

How many screens will be built if the real interest rate is 10 percent?

<u>Answer:</u> 0 screens

<u>Part (e): </u>

If the real interest rate is 5.5 percent, how far would construction costs have to fall before the builder would be willing to build a five-screen complex?

<u>Answer:</u> $727,272.73(approx.)

Explanation:

Part (a):

Make a table showing the value of the marginal product for each screen from the first through the fifth:

Solution:

The solution is attached with working.

<u>Part (b):</u>

<u>How many screens will be built if the real interest rate is 5.5 percent?</u>

<u>Solution:</u>

3 screens

The interest cost of each screen = 5.5% x $1,000,000 = $55,000.

There are no other costs mentioned. The value of marginal product exceeds $55,000 for 3 screens.

Therefore, 3 screens should be built.

<u>Part (c): </u>

<u>How many screens will be built if the real interest rate is 7.5 percent?</u>

<u>Solution:</u>

1 screen

The value of the marginal product exceeds the interest cost (7.5% of $1,000,000, or $75,000) for only the first screen.

Thus, <u>one</u> screen will be built.

<u>Part (d):</u>

<u>How many screens will be built if the real interest rate is 10 percent?</u>

<u>Solution:</u>

0 screens

At 10% interest, the interest cost of a screen is $100,000, more than the value of the marginal product of even the first screen.

<u> </u>Thus, no screens will be built.

Part (e):

<u>If the real interest rate is 5.5 percent, how far would construction costs have to fall before the builder would be willing to build a five-screen complex?</u>

<u>Solution:</u>

The value of the marginal product of the fifth screen is $40,000. At an interest rate of 5.5%, building five screens is profitable only if 5.5% times the per-screen construction cost is no greater than $40,000.

<u>Financial cost per screen = real interest rate x construction cost of per screen </u>

$40, 000 = 5.5% x construction cost per screen Construction cost per screen  = $40,000 ÷ 5.5%

= $727,272.73(approx.)

<u></u>

3 0
3 years ago
Assume that your roommate, Linda, is very messy. Suppose she gets a $100 benefit from being messy but imposes a $200 cost on you
Readme [11.4K]

Answer:

B) to pay your roommate at least $100 but no more than $200 to clean up after herself

Explanation:

According to the Coase theorem, you should work a solution that benefits both Linda and yourself. Since Linda's benefits for being messy = $100, and your costs for her being messy = $200, then you should offer Linda an amount of money that is between $100-$200 so that she cleans her mess.

The Coase theorem states that disputing parties should negotiate an economically optimal solution, regardless of what originated the problem or who had the property rights at the beginning.

In this case Linda is responsible for all the mess but it will not help you to just complain about it, instead you should find an economical solution to the problem.

6 0
4 years ago
Howrley-David, Inc., manufactures two models of motorcycles: the Fatboy and the Screamer. Both models are assembled in the same
Arte-miy333 [17]

Answer:

                                                            Fatboy         Screamer          Total

Direct labor                                 .   $ 2,000,000   $ 4,000,000   $ 6,000,000

Indirect materials                        .       $600,000    $1,200,000    $1,800,000

Other overhead                          .    $1,400,000   $2,800,000    $4,200,000

Materials cost                              .    $4,000,000  $12,000,000   $16,000,000                                                          

Total cost                                     .   $8,000,000 $20,000,000 $28,000,000

Number of units                           .       2,000              4,000               6,000

Unit cost                                       .      $4,000            $5,000            $4,667

Explanation:

Assign the Material Cost to the Products appropriately. The conversion costs musts be allocated based on the number of units assembled. Conversion costs is the sum of Direct Labor and Manufacturing Overheads (Indirect Costs).

7 0
3 years ago
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