Answer:
The correct answer is a. buyers will go elsewhere.
Explanation:
This situation occurs when there is competition, that is, other businesses that offer the same or similar products as those of a particular company. In this scenario, the potential buyer will notice the difference according to their previous experiences and will find a way to acquire products from another brand that offer the same satisfaction as the product that rose in price. You must be very cautious with this practice, since it can end up damaging the operation, and in the worst case, leading to bankruptcy.
Answer:
3) laissez-faire
Explanation:
Laissez-faire is a French expression that means to let us do, or applied to economics, let the economy self regulate itself. It was not a doctrine developed by Adam Smith, but rather by French economists who supported the idea of no government intervention in the economy.
President Coolidge believed that the government should not interfere with businesses and that businesses themselves were able to create prosperity for the nation.
Answer: They are both right.
Explanation:
Firms in every market will always maximise profit where their Marginal Revenue equals Marginal Cost because at this point, resources are being fully utilized. This is therefore no different in a Perfectly competitive market so Skip is correct.
Peggy is also correct however because in a Perfectly Competitive market, the demand curve is perfectly elastic. This creates a situation where the Price, Marginal Revenue and Average Revenue are all the same and represent the demand curve as well.
With the Price being the same as the Marginal Revenue in a Perfectly competitive firm, that means that where the Price equals Marginal Cost is where the Marginal Revenue equals Marginal Cost as well so indeed perfectly competitive firms maximize profit where price equals marginal cost.
Answer:
d) Sales increase at a decreasing rate as fewer new buyers enter the market.
Explanation:
The life cycle has four stages - introduction, growth, maturity and decline. While some products may stay in a prolonged maturity state, all products eventually phase out of the market due to several factors including saturation, increased competition, decreased demand and dropping sales
Answer:
Accounts payable (opening) = $ 45000.
Account rec during year = $464570
Cash payment during year = $351570.
Explanation:
As we know that:
Account payable (open) + Purchases - Accounts payable(end) = Paid cash
Accounts payable (open) + 201400-59900= 186500
Accounts payable (open)= 186500+59900-201400
= $45000.
As we know that:
Account receivables (open) + A/c receivable during year - A/c receivable (end)=Cash collected.
A/c receiable during period= 449600-115800+130770
= $464570.
As we know that:
Cash (open) + Cash collected - Cash (end)= Cash payment during period.
46200+248600 - 56770 = Cash payments during year.
Cash payment during year = $351570.
