Answer:
C. None of these would be considered a fixed cost.
Explanation:
Fixed cost is a cost that do not vary with any level of output. It is a cost that does not change irrespective of an increase or decrease in a company's production output.
Example of fixed cost are interest payment on loan, payment of rent, depreciation and cost of land acquisition. All these costs remain the same no matter how high or low production output is.
As in the case above,
•The cost of rope would form part of the total cost (which is sum of all the cost expended by a company in certain production output) and NOT a fixed cost because the rope is used to prepare the final packaged product.
•The packaging material would also form part of the total cost. The cost expended on this material is what makes it a total cost as it forms part of the final production output.
•Employee wages would be regarded as variable cost(cost that vary with the level of output) because it is a production company, hence employee's wages will be dependent on the number of products they are able to produce.
Answer:
exclusive distribution
Explanation:
The exclusive distribution refers to the agreement between the distributor and the manufactured stated that the manufactured will only sell the products and services to the distributor only no other person is involved in this agreement. There is a binding agreement between the manufactured and distributor
So according to the given situation, it is mentioned that the designers ready to sell their designs for the first two years to the retailers which shown that there is an exclusive distribution
Answer: Group A
Explanation:
Price Elasticity of demand refers to the sensitivity of quantity demanded given a change in price. In other words, how much will quantity demanded change if price changes. Higher elastcities mean that when prices change, their quantity demanded changes more. For instance, an elasticity of demand of 2 means that when prices rise by 2%, demand will decrease by 4%.
The group that will be paying the most therefore will have to be the group that is least sensitive to paying that high price. That would be Group A. As they are not very sensitive to price changes with an elasticity of 0.2, the Monopoly can increase their price to a higher point than others knowing that they won't demand less goods.
Answer:
The correct answer is A
Explanation:
The financial activity is that activity which is undertaken by companies in order to accomplish their economic objectives and goals.
FDI (Foreign direct investment), which is an investment that is controlling the ownership or possession of the business in one country by an entity in another country.
Therefore, the FDI is the one activity which will help the company based in another country.
