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aivan3 [116]
2 years ago
7

The largest component of GDP by far is A. net exports. B. personal consumption expenditures. C. government purchases of goods an

d services. D. gross private domestic investment. If a household purchases a new car and a new​ refrigerator, this would be classified as spending on A. consumer services. B. consumer durables. C. consumer nondurables. D. None of the above.
Business
1 answer:
Lady_Fox [76]2 years ago
8 0

Answer:

B. personal consumption expenditures.

B. consumer durables.

Explanation:

The GDP is the value of the products and services that are produced by a country. It is the result of adding consumption, government purchases, investments and net exports and frequently, the largest one of this components is consumption as it includes the expenditures of all the households.  

Consumption includes durable, non-durable goods and services. The durable goods are products that doesn't get damage quickly like cars, jewelry and appliances.

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When Tesla first launched their electric vehicles in the United States, they deviated from the norm in the automobile industry a
Damm [24]

Answer:

The choice of Tesla is known as Forward Integration.

According to the principles of Transaction Cost Economics, this is a good decision.

Explanation:

Companies sometimes take over the operations/businesses that deal with the distribution and supply of their products and or services. This move is known as forward integration.

Traditionally, companies focus on production then bring in middle-men such as Franchise owners, wholesales, dealers, and retailers to distribute their merhandise to the end user. Whilst there are associated benefits with this model, it's been found that the interests of the middle men also generate considerable costs.

In order to competitive advantage, companies are modifying their business models such that end users can deal directly with them thus reducing the final price of their goods and or services making them more accessible and easier to purchase for the consumers.

Transaction Cost Economics refers to the various ways in which an organisation can be set up in order to manage or control the costs associated with its transactions. The goal of transaction cost economics is to reduce overall costs in order to optimize profits, stay competitive and maintain growth by managing and modifying organisational structures and business models.

The most optimized organisational structure/business model is that which is able to attain the highest efficiency possible by operating at the lowest cost possible.

Good or Bad Decision

The market for motor vehicles is an oligopoly.

Therefore, price is an important factor to consider. As a more recent entrant into that space, this is very crucial for Tesla.

Tesla is not only entering into a market dominated by giants, but is also tryin to modify the way people know to drive cars (at least in most parts of the world). Therefore, it is a great move that it is going with a Price Penetration Strategy. Thus by cutting off the Franchise-Oriented dealerships and selling directly, Tesla is able to retain control over the price of it's vehicles.

The whole essence of reducing it's costs is so that it is able to make its products available to the consumers as an alternative to fossile fuel powered vehicles at the lowest cost possible. Despite it's best efforts, there are still petrol powered cars that are at least $10,000 cheaper that what Tesla is offering.

Besides price, one major factor that influences the choice to go with hybrid or 100% of electric cars is that they are clean and very environmental friendly.

Cheers!

5 0
3 years ago
Evaluating whether or not to go forward with the preparation of a proposal is referred to as the __________.
timofeeve [1]

A. Bid/no bid decision

A "bid" is what contractors call their proposals, and in some cases it will not be worth it to even submit a proposal on a job. The stage where contractors decide if it is worth it is called bid/no-bid.

8 0
3 years ago
What is the point of getting points?
Naddik [55]

Answer:

So that you can go ask ur question

Explanation:

mark me as brainleist if that helps!!!!!!

8 0
3 years ago
Read 2 more answers
Nire   has a comparative advantage in producing butter, whereas Nire   has a comparative advantage in producing guns.Consider a
riadik2000 [5.3K]

Answer:

False

Explanation:

A proposed trade of 12.5 pounds of butter for 20 guns may NOT be mutually agreeable to both countries.

The main idea of comparative advantage is NOT trade by barter but buying and selling. Comparative advantage is a principle that states that a country should produce more of the goods and services which it can produce at a lower opportunity cost than that of trade partners and thereafter sell to those partners at a lower cost than they would have produced it themselves in the bid to be self reliant.

It is difficult to agree to such a deal of 12.5 pounds of butter for 20 guns because it is impossible to conclude that they are even or equal in value. The both countries should sell to each other as money is a common means of exchange.

5 0
2 years ago
How do you know, as a consumer shopping for a product, whether goods are in
Aloiza [94]

Answer:

Prices act as a signal that tells producers and consumers how to adjust. Prices tell buyers and sellers whether goods are in short supply or readily available. The price system is flexible and free, and it allows for a wide diversity of goods and services.

Explanation:

5 0
3 years ago
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