I believe the answer is: For whom it should be produced.
There are only 3 basic economic questions that should be asked before opening a business. What to produce, for whom it should be produced, and how to produce it.
By knowing the target consumers, Jordan could determine the best possible place to set up his store that can be easily accessed by his target consumers.
For example, if he produce the lemonade to children, he need to place the stand on the roads where many of the students cross on their way from school to home.
Answer:
7.5%
Explanation:
A forever series formula for the interest rate is i = A / PV
Annual benefits = $75,000
Present value = $1,000,000
Thus, i = $75,000 / $1,000,000
i = 0.075
i = 7.5%
Therefore, the internal rate of return is 7.5%
Answer:
The budgeted selling expenses for the month of July is $220,000
Explanation:
The computation of the budgeted selling expenses are shown below:
= Sales commission + sales manager's salary + shipping expenses + miscellaneous selling expenses
where,
Sales commission = Sales × commission percentage
= $400,000 × 4%
= $16,000
Shipping expenses = Sales × expenses percentage
= $400,000 × 1%
= $4,000
The other expenses amount would remain the same
Now put these values to the above formula
So, the value would equal to
= $16,000 + $190,000 + $4,000 + $10,000
= $220,000
<span>In the long run, profits will equal zero in a competitive market because of free entry and exit.
Because there is free entry in a market, the competition can come and go as they please. This stops the ability for a company to have a monopoly because any company can come and sell the product. Companies are also able to leave a market but they may leave behind their goods without profit.
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Answer:
Walking to the convenience
store to buy a snack.