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Amiraneli [1.4K]
3 years ago
9

If 20 percent increase in the price of a good leads to a 60 percent decrease in the quantity demanded, then what is the price el

asticity of demand?
Business
1 answer:
sp2606 [1]3 years ago
7 0

Answer:

3

Demand is elastic

Explanation:

Elasticity of demand measures the responsiveness of quantity demanded to changes in price.

Elasticity of demand = percentage change in quantity demanded / percentage change in price

60 / 20 = 3

Demand is elastic because the coefficient of elasticity is greater than 3.

This means that a small change in price has a greater effect on the quantity demanded.

I hope my answer helps you

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An apparel manufacturing plant has estimated the variable cost to be $2.40 per unit. Fixed costs are $2,000,000 per year. Forty
marta [7]

Answer:

BEP units:          42,017

BEP dollars: 2,100,850

unit cost at 100,000 units produced: 22.40 dollars

operating profit :    1,656,000

Explanation:

Sales \: Revenue - Variable \: Cost = Contribution \: Margin

50 - 2.4 = 47.6 contirbution margin per unit

\frac{Fixed\:Cost}{Contribution \:Margin} = Break\: Even\: Point_{units}

2,000,000/47.6 = 42.016,80 BEP units

BEP units x sales price = BEP dollars

42,017 x 50 = 2,100,850

(B)

fixed cosy/ units produced = fixed cost per unit

2,000,000/ 100,000 = 20 fixed cost per unit

fixed cost + variable cost = total cost

20 + 2.40 = 22.4

(C)

There are 40% units sold at the preferred customer at cost

So we sale at gain only 60% of the units:

100,000 units x 60% x 50       =  3,000,000

100,000 units x 40% x 22.40  =     896,000

Total revenue                              3,896,000

Cost: 100,000 x 22.40          <u>     (2,240,000)  </u>

operating profit                            1,656,000

4 0
2 years ago
What is the difference between comparative advantage and absolute advantage?
goldenfox [79]

Answer:

Absolute Advantage: The ability of an actor to produce more of a good or service than a competitor.

Comparative Advantage: The ability of an actor to produce a good or service for a lower opportunity cost than a competitor.

Explanation:

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The goal of operations management is to produce a good or service at the highest possible cost while maintaining the lowest poss
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That answer is True because it says that the lowest possible quality and it is true
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Assume that you have already completed a 5-year international assignment working for KPMG as a Tax Consultant in Singapore.
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From the information, it can be inferred that it's an indication of the uncertainty that exists in the Vietnamese cultural model.

From the complete information, Vietnam has low points in the avoidance index. This implies that they're less associated with their cultural roots and don't have concern for hiring white people.

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