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Shkiper50 [21]
3 years ago
13

. In a perfectly competitive market, the demand curve facing each individual seller is assumed to be ... a) perfectly inelastic

b) moderately inelastic c) unit elasticity d) moderately elastic e) perfectly elastic
Business
1 answer:
bagirrra123 [75]3 years ago
8 0

Answer:

e) perfectly elastic

Explanation:

Elasticity is a measure of the sensitivity of demand to the price of a product. If demand is elastic, bidders should avoid raising prices as demand decreases considerably. Conversely, when demand is inelastic, consumers are less sensitive to price changes. When demand is perfectly elastic, this means that a slight increase in the price of a good will cause all demand to flow to a competing supplier. This is observed in competitive markets where providers provide the same type of good for the market price. If one of them raises the price, he loses all of his market share. This is because consumers are rational and will buy the product that is offered at the lowest possible price.

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3 years ago
Other things held constant, which of the following actions would increase the amount of cash on a companys balance sheet? Select
Leokris [45]

Answer:

Correct option is (c)

Explanation:

When the company repurchases common stock, it has to pay cash to the shareholders to gain rights on the stocks. So, cash decreases in this case.

Payment of dividend also decreases cash from balance sheet.

When company needs cash for investment or growth purpose, it issues common stock to raise funds, thereby increasing cash in the company's balance sheet.

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3 years ago
Windathon, Inc. expects sales volume totaling $500,000 for June. Data for the month follows:
ivann1987 [24]

Answer:

Here the variable cost can be computed using the following formula:

Variable cost = (Sales commissions  + Shipping expense + Miscellaneous selling expenses) ×Sales

Variable cost = (4% + 1% + 3/4%) x $500,000 = $28,750

Fixed cost = Sales manager's salary + Advertising expense + Miscellaneous selling expenses

= $30,000 + $25,000 + $2,100

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<em>Total selling expense budget = Variable cost + Fixed cost</em>

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3 years ago
When establishing criteria to measure the success of a customer-oriented business, managers should:?
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Think of a product that you purchased within the past 6 months
dalvyx [7]

Answer:

<em>Product purchased:</em> a purse

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Through a need for more space to carry personal items to work.

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Buying online is one of the facilities made possible by new technologies, which allows us to choose the product that meets our desires and needs without having to go to a physical store, in addition to the possibility of comparing prices and getting special discounts.

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The alternatives found were fast fashion sites that offered a bag of the ideal size, with the expected quality and defined average price.

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I bought the product at Zara, which is a top quality fashion department store that would meet all requirements and needs with the purchase.

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<u>Were you satisfied after using or consuming the product? Explain.</u>

Yes, because the benefits added to the product met my needs and desires.

<u>There are 5 categories of influences as described in your text: economic, psychological. social, culture and ethnicity, purchasing situation. Which one(s) do you think had the greatest effect on your purchase decision? Please explain.</u>

The item that had the most effect on the purchase decision was the psychological and economic item, as the choice of the product was made due to a need for work, but whose purchase decision process took into account factors such as brand, quality and the price of the product.

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3 years ago
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