Answer:
The correct answer is A. consumer surplus will be smaller, producer surplus will be greater, and there will be a reduction in economic efficiency.
Explanation:
Monopoly is a form of market totally opposed to perfect competition. It is part of the so-called "imperfect competition", those markets that do not meet the assumptions of perfect competition.
Three situations can be distinguished:
- Monopoly of offer. There is only one bidder and many plaintiffs. An example is that of companies that operate an exclusive public service.
- Monopoly of demand or monopsony. There is only one plaintiff and many bidders. One case is the dependence of the defense industry on state contracts.
- Bilateral Monopoly. When there is only one plaintiff and one sole offeror. An example is the labor market where the negotiation of a wage increase is carried out between the employer's association and the union platform.
However, when we talk about monopoly in general, we refer to the offer that is what we are going to focus on.
In this type of market, the monopoly company has the power to set prices and quantities since there is no competition. The monopolist will offer a smaller quantity at a higher price than if the market were of perfect competition. In addition, having the sale insured, the company does not care about product quality or consumer satisfaction.
Answer and Explanation:
The journal entries are shown below:
On Sep 1
Cash $500
To Sales revenue $500
(Being the sale is recorded))
On Sep 1
Cost of goods sold $200
To Finished goods inventory $200
(Being the the cost of mower sales is recorded)
On Sep 1
Warranty expense (8% × $500) $40
To Warranty liability $40
(Being the estimated warranty expense is recorded)
On Jan 24
Warranty liability $35
To Repair parts inventory $35
(being the cost of warranty repairs is recorded)
Answer:
1.2
Explanation:
The computation of the minimum number of servers required to avoid an overloaded system is shown below:-
Average service time = Average service time ÷ number of minutes in a hour
18 min = 18 ÷ 60 per hr
= 0.3 hr per customer
Now for four customers, it would be
min servers = 4 × 0.3
= 1.2
So, the correct answer is min servers = 2 as servers cant be in fractions
Therefore we have applied the above formula.
Answer: d. coupon bond that pays a fixed coupon rate and does not mature.
$3250
Explanation:
A consol is a coupon bond that pays a fixed coupon rate and does not mature. Consols are consolidated annuities that are perpetual. A steady amount of interest is paid for a consol even though they're not redeemable
Price of a consol will be gotten as fixed coupon amount divided by the rate of return. Let's assume that the fixed coupon amount is $65, then the price will be:
= 65/2%
= $3250
Answer:
When a firm shifts from transactional to value-added and relationship approach of selling the following changes takes place in the way the salesperson approaches he customer and their job:
- Whilst the objective the transactional approach is to make a sale, the relational approach is to build trust. When a customer trusts their sales person, it means they hold the sales person to put their interests first or at least take care of their interests whilst taking care of their too.
- The relational approach is more focused on retaining existing customers than making new ones. This is the obverse of a transactional relationship. It is said that it costs about 5 times extra to get a new client than what it takes to keep one. Thus the smart company focuses on honing this skill until they are better off for it.
- in a transactional approach, the nature of the relationship is relatively short, whilst it is stronger and longer in a relational approach. A Relational approach to selling can sometimes occur in the grey line between personal and official relationships.
- In a relationship-based approach to selling, the firm focuses on adding value in the primary areas of concern for the client as well as other areas. For example, a client - the CEO of a start-up requires recruitment, onboarding, and standard operating procedure as services from a HR firm. As a relational HR person, the best way to proceed would be to give him exactly what he wants and stil go ahead to add more value in other areas by giving templates of letter of appointment to the client.
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