Answer:
A) True
Explanation:
A good way to think about it is that industry, a general term for businesses engaging in productive practices, is concerned with the production of goods. These are the goods that are demanded by consumers. So as 'industry' is supplying those goods, it must be on the supply side of the market.
Answer:
Make arrangements or preparations for (an event or activity)
Answer:
The primary advantage they refer to is additional sales revenue.
Explanation:
Extending credit to customers is generally done through use of credit cards these days. This does allow the customers to buy goods and services on credit and pay later for those goods.
Offering credit is beneficial for both the shopkeepers or merchants and the buyers. Customers do not have to pay cash (as they can run out of cash at times), so they buy more and this increases the sales revenue for the merchants, which becomes the primary advantage for them and outweighs the costs.
Answer:
11.14%
Explanation:
Blume's formula is used to combine both arithmetic and geometric returns. This is because using arithmetic growth rate exclusively would be overly optimistic for longer time horizons and on the other hand, using geometric growth rates exclusively would be overly pessimistic for short time horizons.
Using the attached formula, plug in the given numbers;
R(T) would be the sale growth rate we need to calculate.
R(T) = 
R(T) =0.0257 + 0.0857
R(T) = 0.1114 as a decimal
Therefore, the forecast sales growth would be 11.14%
Answer and Explanation:
The computation is shown below:
Fixed cost is
= $500,000 + $1,000,000
= $1,500,000
And, the marginal cost is
= $0.25 + $0.10
= $0.35 per paer
Now
as we know that
AFC = FC ÷ Q
Now for At 1,000,000 papers,
AFC is
= 1,500,000 ÷ 1,000,000
= $1.50/mo
At 800,000
, it would be
AFC = 1,500,000 ÷ 800,000
= $1.875/mo
MC = $0.35 per paper and the same is not changed
Now for break even, the average total cost is
ATC = AFC + AVC
ATC = FC ÷ Q + VC ÷ Q
VC = MC × Q
ATC = FC ÷ Q + MC
ATC = FC ÷ Q + 0.35
At Q = 1,000,000,
ATC = 1.50 + 0.35
ATC = $1.85
At Q = 800,000
, it would be
ATC = 1.875 + 0.35
= $2.225
As it can be seen that
The AFC changes from 1.50 to 1.875 which shows an increment of 0.375.
The MC remains constant or same at 0.35 as the printing and delivery costs per paper are remain same
And, The minimum amount that we must charge to break even rises i.e. from 1.85 to 2.225. That is a rise of 0.375
