If the market is price sensitive, this means consumers react to small variations in price. In this case, if you were to lower your price to below your competitors, and the market was price sensitive, you would expect to gain more customers. Consumers are wanting to maximize their utility (get the most for the smallest amount of money). If they are price sensitive, they will look for the lowest price that still has an acceptable quality.
Answer:
Bill shouldnt trade movie tickets for basketball tickets, since MRS > Pb/Pm.
Explanation:
Price ratio = Pb/Pm
= $46/$10
= 4.6
MRS = 5/1
= 5
MRS > Pb/Pm
Therefore, Bill shouldnt trade movie tickets for basketball tickets, since MRS > Pb/Pm.
Answer:
C. $ 13.31 per machine hour.
Explanation:
Standard variable manufacturing overhead allocation rate is calculated by dividing the Budgeted overhead by the Budgeted level of activity on which the overhead is allocated. It is a rate at which the overhead is allocated to a product / project/ department.
First we need to calculate the standard variable manufacturing overhead allocation rate using machine hours.
Standard variable manufacturing overhead allocation rate = Budgeted overheads / budgeted Machine hours
Standard variable manufacturing overhead allocation rate = $5,325 / 400 machine hours
Standard variable manufacturing overhead allocation rate = $13.3125 per machine hour
Standard variable manufacturing overhead allocation rate = $13.31 per machine hour
Answer:
personal care service workers because they know what they are doing and are good