Answer:
<u>to keep their prices the same</u>
Explanation:
Remember, having a higher Menu cost implies that such a firm would suffer more if it adjusted its prices.
So the sticky-price theory makes the assumption that a firm that notices an increase in the prices of their products would <em>keep their prices low</em> out of fear that doing so would result in losses for the firm if demand changes negatively.
Answer:
create awareness
Explanation:
Based on this scenario it can be said that the main goal of this promotion was to create awareness. This means grabbing the attention of as many individuals as possible in order to spread the company's reach. Doing so allows a wider population to get to know the company which in term leads to more clients doing business with Mercury Appraisal Company, and more business means more profits.
Answer: To increase sale by 10%, the seller must lower the price of the good by 12.5%.
Explanation: Price elasticity of demand measures the responsiveness of quantity demanded to a change in the price. Since, demand and price for a normal good are negatively related to each other, price elasticity is also negative. It can be calculated using,
Therefore, to increase sale by 10%, the seller must lower the price of the good by 12.5%.
Answer: Statement A
Explanation: Convertible bonds is a type of bond security which gives its holder the right to convert each bond to a specified number of shares. These are hybrid securities having features of both equity and debt.
.
Warrants are securities that give their holder the right to purchase the common shares of the company at a specified price and before a certain time period.
.
Thus, from the above explanation we can conclude that statement A is correct.
Answer:
Direct expenses.
Explanation:
The departmental contribution is determined by deducting the direct expense from the amount of sales
In mathematically,
The following formula should be used
Departmental contribution = Department revenues - direct expense
Here The expenses to be - rent, utilities, taxes, insurance, etc
ANd, It is arrive after paying off the direct expenses that related to the overhead.
