Answer:
Willingness to pay
Revenue
Two
Elastic
Inelastic
Explanation:
Price discrimination is when a producer or a seller charges different prices for the same product usually in different markets.
In price discrimination, a seller attempts to remove or reduce consumer surplus by charging the consumer at his willingness to pay. For price discrimination to be effective, a seller must be able to estimate the willingness to pay of consumers.
Price discrimination is successful when a seller earns higher profits when she discriminates compared to when she didn't price discriminate.
Price discrimination exists in the airline industry. One of the ways price discrimination exists in the airline industry is through charging to check bags. Customers ( people who board airplanes) are distributed into two groups- those who won't pay to check bags and those who would pay to check bags.
It is assumed that those who would pay to check their bags have a price inelastic demand because they are indifferent to paying an extra amount for their luggage.
Inelastic demand is defined as when a small change in price has no effect on quantity demanded.
While it is assumed that those who won't pay to check their bags have an elastic demand because they are unwilling to pay extra to check their luggages.
Elastic demand is when a change in price has effect on quantity demanded.
Answer:
Socially responsible
Explanation:
The term social responsibility refers to give back to the society in which its operates. A firm being socially responsible means that it has an obligation to act for the benefit of society at large.
Being socially responsible helps both the society at large and also the firm. It helps the firm in the sense that it changes the orientation or give a good impression of the firm to the society and also helps the organisation to gain a bigger and larger customer base.
To the society, social responsibility of the a firm provides some basic needs that will improve the well being of the society.
Example of social responsibility by firms may include, organizing seminars that helps the society to gain more knowledge about a particular phenomenal, construction of health care centers, roads and making the environment more beautified.
Answer:
III) Increase its gross margin
Explanation:
If the company increases its gross margin, it will have a direct impact on the company's net profit. The higher a company's net profit, the higher its value = higher stock price.
The only option that increases the value of the company is to increase its net profit, since:
- an increase in inventory will result in a lower stock price
- a decrease in the asset turnover ratio will result in a lower stock price
- the issuing of stock dividends will only increase the price of stock in the short run, later the price will adjust down since the company's book value will lower
Answer:
Part (1) November 1
The amount paid is the rental advances and must be recorded as advances which falls under the current asset category:
Dr Rental Advances $90,000
Cr Bank account $90,000
Part (2) December 31
On this date, some of the rental advances paid would be realized as expenses from the period November 1, 20X1 to December 31, 20X2.
This time duration constitutes to 2 months and the rental advance made on November were for five months. Out of these 5 months, 2 months share must be recognized as expense which is
The relevant entry would be:
Dr Rental Expenses $36,000
Cr Rental Advances $36,000
Answer:
An example email to the company:
Dear Sirs:
I have recently been in contact with some sources that have told me that you baby Powder may be causing ovarian cancer. I would respectfully ask you to look into this issue, as your product may be harming young children.
Thank you for your time,
_Your name herE_
