Answer:
Option C. Have a low value-to-weight ratio.
Explanation:
The reason is that the transportation cost is connected with the weight of the product whereas the profit of the profit will diminish if the value to weight is low which means that the profit generated is very low which will be paid off to transport the product. So the option C is correct.
Option A is not connected with transportation cost which turns the profitable products into unprofitable products due to its high cost.
Option B is opposite of option C hence both are incorrect.
Option D is incorrect because if the product is only produced in one region then it will be the only firm offering that product which means it can price its product geographically to adjust the transportation cost. Hence it is also not connected with the transportation cost which turns the profitable products into unprofitable products due to its high cost.
Answer:
The company must sell 10,00 products to break even
Explanation:
If you use the approached suggested in the question, you can solve for break even quantity by setting revenue to equal cost
R = C => 9x = 50,000 + 4x => 5x = 50,000 => x =10,000
<u>Double check: </u>
10,000 products sold as $9 would fetch $90,000 in revenue
Producing 10,000 products would incur 50,000 + 4 * 10,000 = $90,000 in total costs
=>The solution is correct
The pieces will be 3 times something and 5 times something.
3x + 5x = 160
Hi there
Excess reserve balance is
1,000−1,000×0.1=900
Hope it helps
Answer:
opportunity cost
Explanation:
The concept of Opportunity cost deals with the idea that individuals, investors, or business owners, due to scarcity of resources, lost possible benefits that could be gained, as he or she chooses alternative choice.
Hence, the underlying reason or factor trade benefits both sides of a trading arrangement is rooted in the concept of OPPORTUNITY COST.
Therefore, the right answer is Opportunity cost.
