Switching costs, number of buyers, and if the items represent a relatively small portion of the cost of finished products are key considerations regarding the bargaining power of buyers.
Switching costs are the costs which are paid by a consumer as a result of switching brands, suppliers, or products. Some companies may employ high switching costs in order to prevent customers from moving to another brand.
Suppose if the customer purchases large volumes of standardized products from the seller, then the buyer's bargaining power is quite high. Also, when substitute of a product is available in the market, the buyer power increases.
Hence, most prevailing switching costs are monetary in nature.
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It will not affect the current GDP at all. GDP is a measure of all <u>newly produced</u> goods and services during a year, so 2 years ago the TV's full value would have been included in the GDP, but the sale of the TV as a used good later on would not be counted.
Answer:
It will increase expense, thereby reducing the profit mentioned in the income statement and decrease the current asset (debtor) recorded in the balance sheet.
Explanation:
Bad Debt is an expense that is recorded when it is expected that the customer, who owes a debt to the business, might default in clearing their dues.
As such when the bad debt amount is increased it will result in a rise in expense and therefore the profit, as stated in the profit and loss (income statement) of the sole trader would decrease.
Moreover, it will also decrease the value of trade receivables (current assets) mentioned in the balance sheet. The following entry would be recorded:
Bad Debts (Dr) xxxxx
Trade Receivables (Cr) xxxxxx
Hence, the expenses will increase while the current asset will decrease.
Keynesian economists believe: <span>government can implement policy proposals that can positively impact the economy
Keynesian economist generally believed that the Economic situation in a country is a direct result from both private and public sector activities simultaneously, so both positive and negative things could derive from both sectors</span>
Answer:
B. price elastic
Explanation:
we may surmise that demand at New York restaurants is PRICE ELASTIC
