Answer:
<u>c. Credence attributes</u>
Explanation:
- Credence is a good that has attributes that cannot be observed by the consumer even after purchasing the thus makes it difficult for them to access its utility such as expert services and medical procedures, automobile repairs, etc.
- Here the seller has the option to change the quality ad quantity of the price by using his tactics and hence can cheat buyers with an inferior good. Like the automobile repair may be insufficient.
Answer:
Decrease in income by $227,000
Explanation:
The computation of the amount of the change in the income in the case when the east territory is eliminated is shown below;
= -Sales + Direct cost + fixed cost - salary per year
= -$980,000 + $343,000 + ($450,000 - $40,000)
= -$980,000 + $343,000 + $410,000
= -$227,000
Hence, the amount of the change in the income in the case when the east territory is eliminated is -$227,000
Decrease in income by $227,000
Answer:
Rise in stock price.
Explanation:
In general, the stock price has increased because the expected earning was $0.52 per share but the actual earnings were $0.83. therefore, we can say that stock prices have increased. moreover, there are other factors that may affect the stock price. But in this case. A positive surprise in the earnings per share results in stock price going up.
