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kirill115 [55]
2 years ago
11

Suppose that the demand for picture frames is highly inelastic, and the supply of picture frames is highly elastic. A tax of $1

per frame levied on picture frames will decrease the effective price received by sellers of picture frames by
Business
1 answer:
Vladimir [108]2 years ago
5 0

Answer:

The decrease in the effective price received by sellers is between $0.51 and $1.

Explanation:

Given the demand for picture = Inelastic

The supply of picture frames = highly elastic

Levied tax on picutre frames = $1

It is given that the demand for the frames is highly inelastic therefore the response of the buyer will be less. That means the proportionate change in demand will be lower than the proportionate change in the price of a commodity. Thus, the answer will be between $0.50 and $1.

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Which of the following statements is correct? ACars typically lose the most value in the first year after purchase. BHouses will
VashaNatasha [74]

I believe the answer is: A. Cars typically lose the most value in the first year after purchase

As the miles usage in cars increase, the quality of the machine tend to deteriorate, which would lead to the decrease in the cars' value. On top of that, the new model that given by car companies tend to possess better technology/design. On average, cars tend to lose 15 - 25 % in value during the first year.

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3 years ago
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EcoAthlete determines that the target market for its running shoes is people who are environmentally conscious. It uses only env
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Answer:

C) Lifestyle and Behavior

Explanation:

The reason is that Eco-Athlete is using its customer behavior and lifestyles to target a particular market segment which has common thinking and opinion about a particular item. In this case, Eco-Athlete is using Eco-friendly items because its customer are environmentally conscious which is their behavior that effects their lifestyle. So the company Eco-Athlete is basically using lifestyle and behavior dimension of market segmentation.

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3 years ago
Suppose that you observe a market with four firms, each with about 25% market share. What does it suggest about the following at
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Answer:

It suggests that they are not doing anything competitively different.

Explanation:

Network externalities if well harnessed should bring about an increase in end users satisfaction and value derived.

Multi housing costs, ordinarily, and when taken as a whole, should results to an overall minimization of the total costs. Economics of scales and other resources are centrally allocated here, and the effect should be a gain to the entity.

Level of differentiation across firm's offerings - products or services, signals the procedures an organization adopt to mark the uniqueness of their products or services. It shows how distant they are among the other varying sets.

Thus, from the case given, the four firms have the same share of the market - 25%. The implication is that as far as we are concerned, their level of activities and postures in the market is same and/or similar. This ultimately cuts across the network externalities, multi housing costs and the level of differentiation of firm's offerings. They are thus not competitively different.

5 0
3 years ago
_____________________ can lead to a situation where, even if sellers are faced with a situation of _______________, they will de
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Answer: Answers are:<u> Imperfect information; excess supply; higher quantity.</u>

<u />

Explanation: <u>Imperfect information</u> can lead to a situation where, even if sellers are faced with a situation of <u>excess supply</u>, they will decide not to cut prices for awhile because they know that buyers in this situation will not react by purchasing a <u>higher quantity.</u>

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2 years ago
Wilturner Company incurs $82,000 of labor related directly to the product in the Assembly Department, $31,000 of labor related t
tensa zangetsu [6.8K]

Answer:

Debit Work in Process Inventory $113,000;

Debit Factory Overhead $18,000.

Explanation:

$82,000 of direct labor related is associated with assembly department.

and $31,000 of labor not directly related to the product but related to the Assembly Department as a whole . Therefore its a indirect cost means overhead

$18,000 of labor services this cost is not associated with the product, but indirectly incurred in making material to the final product. hence this cost is also part of indirect cost.

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