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Fed [463]
3 years ago
12

Assume an analyst has been hired to estimate the price elasticity of demand for hamburger (which sells for about $2.30 per pound

) and filet mignon (which sells for about $20 per pound), respectively. Considering the different determinants of the price elasticity of demand, we would expect the coefficient of price elasticity of demand to be:(A) larger for hamburger than for filet mignon.(B) larger for filet mignon than for hamburger.(C) approximately the same for both hamburger and filet mignon.(D) none of the above because different determinants would have opposing effects on the two estimates.
Business
1 answer:
Pepsi [2]3 years ago
6 0

Answer:

The correct answer is B

Explanation:

Price elasticity of the demand evaluates the demand responsiveness after the change or variation in the product own price.

The formula for computing the coefficient of price elasticity, is the factors which affect the elasticity and also elasticity is vital for business when deciding the prices.

So, Filet mignon(F) sells for $20 per pound when compared to that of hamburger (H) which sells the product for $2.30 per pound. F have the higher price as compare to the H, therefore, the coefficient of the price elasticity of demand in absolute value will be high or larger for F than that of H.

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The recognition of the need for organizations to improve the state of people, the planet, and profit simultaneously if they are
romanna [79]

Answer:

The need for organisations (which may be governmental or non-governmental) to improve the condition of living of people and protect their environment whilst they pursue increased profitability has been termed

The Triple Bottomline.

It is also referred to by economists as the 3P - People, Planet and Profit.

It speaks to the fact that other than the usual making financial success the sole metric of measurement by which organisations are evaluated, their impact on people and the environment should be considered as well.

In simple terms, a firm should be termed more successful than others if it's activities besides being profitable also impacts positively on people and protects if not improves the environment.

Cheers!

7 0
3 years ago
occurs in markets with a high concentration of sellers. Any price offered by one company will be matched by its competitors in o
Vera_Pavlovna [14]

Answer:

The answer would be PRICE SIGNALING

Explanation:

Price signaling may occur when consumers have  imperfect information about product quality. To infer quality, consumers may rely on previous experience or may use some of the product’s observable characteristics, such as  the product’s price. We examine the scenario whereby the firm can endogenously change  consumers’ beliefs about the product’s quality by altering both the price and quality of its product. Our main findings are that, in this type of setting, price signaling causes  the firm to raise its price, lower its quality, and dampen the degree to which it responds to cost shocks. If the cost of adjusting quality is sufficiently high, the dampening effect  is pronounced in the downward direction, meaning that price signaling  causes prices to  respond less to cost decreases than cost increases.

8 0
3 years ago
In 2020, Marigold Corp., issued for $102 per share, 86000 shares of $100 par value convertible preferred stock. One share of pre
lapo4ka [179]

Answer:

$2322,000

Explanation:

The computation of amount credited to additional paid-in capital is shown below:-

Amount credited to additional paid-in capital = Issued per share × Number of shares) - (Number if shares × Preferred stock shares converted into three shares × Par value of common stock

= ($102 × 86,000) - (86,000 × 3 × $25)

= $8,772,000 - $6,450,000

= $2322,000

So, for computing the amount credited to additional paid-in capital we simply applied the above formula.

4 0
2 years ago
In a business combination in which an acquiring company purchases 100% of the outstanding common stock of another company, if th
spin [16.1K]

Answer:

It will be reported as gain.

Explanation:

If the fair value of the net identifiable assets acquired exceeds the fair value of the consideration given (purchase cost) will be a <u>negative goodwill.</u>

It will be due to <em>"bargain purchase"</em> and the accounting records the "negative goodwill" as a gain in the income statment

4 0
2 years ago
A company's strategy is unlikely to succeed unless:
Montano1993 [528]

Answer:

d.both answers 1 and 3 occur.

That is

a.the company has competencies and capabilities to efficiently sustain its competitive differentiation.

c.the company's competitive advantage grows out of the entire system of activities working together.

Explanation:

In a perfectly competitive market firms have similar products and so they must compete with each other to get market share.

Gaining a competitive advantage is key in surviving within the market.

Differentiation of its products is the first step to success. When a firm's product is differentiated from others it will gain more customer loyalty as the end user identies the product with a particular trait for example high quality.

When the companie's activities are well synchronised the company achieves efficiency which is a competitive advantage of higher output than other firms.

8 0
3 years ago
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