The price elasticity of a good will tend to be larger if the fewer number of substitute goods will be available.
The cross elasticity of demand for substitute goods is always positive because the demand of one good increases at the time when the price for the substitute good increases however the cross elasticity of demand for complementary goods is always negative.
For example, if the price of coffee rises, the quantity demanded for tea which is the best substitute of coffee beverage will increase as consumers will switch to a less expensive but the substitutable alternative.
This is reflected in the cross elasticity of the demand formula, as both the numerator which is the percentage change in the demand of tea and denominator which is the price of coffee shows a positive increase.
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Answer:
for minimum cost the intersection point should be calculated i-e
By using calculator
As x can't be negative so x=0.4828
It's the minimum value because as we decrease the operating cost further the capital value will increase so this is the minimum value.
Graphical solution:
Answer:
a. flow of costs.
Explanation:
job order costing system is used mainy by companies that make small quantities of distinct products or performs unique services that sticks to specifications as design by the purchaser.
