From the graphs presented for both the perfect competition and monopoly, the price for 5 purses in perfect competition is $30 and that in the monopoly is $50. The price is obviously lower in the perfect competition than in monopoly by $20. Thus, the answer would be letter C.
Answer:
The correct answer is Cost leadership.
Explanation:
Cost leadership are those strategies with which products similar to those of other companies are offered at a lower cost, that is, a certain company is considered to be the lowest cost producer in its industrial sector in order to achieve a differentiation.
At lower prices than its rivals, the leader's position translates into higher returns, however, standard products should not be sold ignoring the basis of product differentiation itself, since, if the customer does not perceive the product as comparable, The company must set very low prices in relation to the competition to achieve sales.
The sources to obtain this type of advantages are varied and depend on the structure of the industrial sector itself, including economies of scale, the use of proprietary technology, preferential access to the raw material, among others.
The cost leadership strategy aims to make a company the leader, rather than several companies struggling to reach that position, as this implies tough rivalry and competition that can have unfavorable consequences for all.
Answer:
- Differences in values
- C. Tariffs and import quotas generally reduce economic welfare.
Explanation:
Yvette and Sean most likely have a difference in values because they believe that one thing is better for the economy than the other. This means that when it comes down to the economy, they value a certain approach over other approaches.
Economist don't usually find common ground on many things but there are some things where they have a general consensus and one of them is that tariffs and import quotas are bad for the economy. They believe that people stand more to gain from free trade than restricted trade.
Answer:
The correct answer is letter "B": assigning indirect resource costs to activity pools.
Explanation:
Activity-based costing or ABC is a managerial accounting method that assigns indirect costs to the products which incur the bulk of those costs. In the manufacturing sector, ABC is mainly used to help measure the true cost of output per unit.
<em>The two-step ABC approach involves assigning indirect costs of support departments -e.g., maintenance, quality control- to pools of production departments in the first step. In the second step, activity costs are combined with the indirect costs and overhead rates are added.</em>
Answer:
Total fixed cost= $9,200
Explanation:
Giving the following information:
variable costs= $0.80 per unit.
production= 27,000 units
The total production costs incurred were $30,800.
First, we need to calculate the total variable cost at the production level of 27,000 units.
Total variable cost= 0.8*27,000= $21,600
Total cost= total fixed cost + total variable cost
30,800= total fixed cost + 21,600
Total fixed cost= 30,800 - 21,600
Total fixed cost= $9,200
