Answer
The answer and procedures of the exercise are attached in the following image.
Explanation
Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.
The cost of advertising is part of the firm's variable cost and if advertising enables the firm to sell a greater output, its average total cost does not change.
Variable costs are dependent on the production output and sales. The variable cost of production is a constant amount per unit produced.
As the volume of production and output increases, variable costs will also increase. Alternatively, when fewer products are produced, the variable costs associated with production will consequently decrease.
Different examples of variable costs are sales commissions, cost of raw material, direct labor costs, used in production, and utility costs.
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Answer:
What would be the result? What additional information, if any, would you need to know to decide the case?
To determine who would win this case, we need to know two things:
- The non-compete agreement was supposed to last how many years, e.g. 1 or 2 years, maybe 3?
- When did Clifford Witter stopped working for Arthur Murray Dance Studios and when did he started to work for Fred Astaire Dancing Studios?
Most states consider non-compete agreements valid only if they last up to 2 or 3 years at most (which is considered a reasonable time). If Clifford started to work at Fred Astaire before the non-compete clause was over (assuming it lasted a reasonable time) then Arthur Murray would win. But if Clifford started to work at Fred Astaire after the non-compete clause was over, then there is nothing Arthur Murray can do to win the case.
Answer:
<em>Some advertisement use </em><em>exaggerated and false praise in order to increase their sales.</em>
Explanation:
In the above situation this advertisement is using the Slogan which is termed as puffery because there is no such thing as light beer all kinds of beer has same amount of sugar and calories.
The advertisement is a false praise of serving a light beer which will help you feel light and won't grow the beer tummy. Therefore, this is a correct example of Puffery slogans.
