All categories

3 years ago

(a) If the demand equation is pq=k for a positive constant k, compute the elasticity of demand.

Business

1 answer:

nirvana33 [79]3 years ago

8 0

Answer:

a.Elasticity of demand is p = k/q (an inverse relationship between the price and quantity)

b.My answer in part (a) means that an increase in the price of the item will lead to a decrease in its demand, hence the following applies

1.All prices are critical points of the revenue function.

2.Revenue is increased by lowering the price

You might be interested in

Price of Quantity Quantity

hoa [83]

Answer:

d) 110; 180

Explanation:

Price ceilings is put in place to ensure a price does not rise above a particular level.

When a price ceiling is below the equilibrium price, the quantity demanded for will e greater than quantity supplied, and excess demand will arise.

original equilibrium of $12

180 units would be exchanged in a free market (when equilibrium price is $12), and 110 units would be exchanged with the price ceiling in effect.

5 0

3 years ago

Read 2 more answers

H&M does not own any of the factories that produce its clothes. Instead, it relies on some 1,900 factories and 900 suppliers

nalin [4]

Answer:

Quality assurance team, authorized factories and suppliers

Explanation:

H&M is a renowned fashion brand and it is expected to provide the best quality of products. As mentioned that H&M does not own the factories or the suppliers, then the firm will have to implement strict policies to ensure the quality of the product is maintained. Below are the measures that H&M can take to ensure only a high quality product comes out of the brand:

1. Quality assurance team: is the most needed and crucial department of H&M. This department needs to ensure the product entering and leaving with the name of H&M are able to maintain the standard of the brand. A hired team of professionals with strict instructions need to asses all the products and clear them if they pass the required tests of quality.

2. Authorized factories: ensuring that the makers of the product for H&M are reputable and are cleared by their own legal systems. In this manner the certainty of receiving a reliable quality and product.

3. Authorized Suppliers: having a trusted supplier assures the supply of a trusted product. Outsourcing the creation of its product, H&M needs to ensure that its suppliers can be trusted. Thus a thorough research into the suppliers need to be made to ensure the highest quality of products.

8 0

3 years ago

Lake Company recorded the following data for the month of January 20xx: Inventories January 1, 20xx January 31, 20xx Direct Mate

Allisa [31]

Answer:

A.Materials consumed in January = $31,000

B.Total Manufacturing Overhead Costs = $83,000

C. Cost of Goods Manufactured = $157,000

Explanation:

Direct Material $24,000 $23,000

Work in Process 18,000 15,000

Finished Goods 22,000 27,000

Net Sales Revenue $325,000

Direct Labour Costs 40,000

Indirect Labour Costs 45,000

Sales Commissions 15,000

Administrative Expenses 18,000

Direct Materials Purchased during January 30,000

Depreciation, factory 10,000

Factory Maintenance and Supplies 8,000

Utilities, (80% factory , 20% office) 25,000

General Office Salaries 12,000

A. Amount of direct materials used in January

Opening Direct Material $24,000

Add Purchased Direct Material $30,000

Less Closing Direct Materials $23,000

Materials consumed in January = $31,000

B. Manufacturing Overhead Costs:

Indirect Labour Costs 45,000

Depreciation, factory 10,000

Factory Maintenance and Supplies 8,000

Utilities, (80% factory) 20,000

Total Manufacturing Overhead Costs = $83,000

C. Cost of Goods Manufactured

Cost of Direct Materials Consumed = $31,000

Add :

Opening Work in Process $18,000

Less Closing Work in Process $15,000

Transfer to Finished Goods $3,000

Add Direct Labor Costs $40,000

Add Manufacturing Overhead Costs $83,000

Cost of Goods Manufactured = $157,000

4 0

3 years ago

A company purchased a machine for $140,000 with a useful life of 8 years and a residual value of $10,000. It is estimated that t

densk [106]

Answer:

The amount of accumulated depreciation at the end of the second year is $49,700.

Explanation:

Determining the depreciable cost

Determine the depreciable cost = Acquisition - Residual value.

The depreciable cost = 140,000 - 10,000.

The depreciable cost = $130,000.

Determining the depreciation rate per unit

The depreciation rate per unit = depreciable cost / No. of activity units

replacing:

The depreciation rate per unit= 130,000 / 80,000

The depreciation rate per unit= $1.6 per activity unit.

Determining the amount of accumulated depreciation

The depreciation expense for year 1= Activity units in year 1 × depreciation rate per unit.

The depreciation expense for year 1 = 17,000 × 1.6

The depreciation expense for year 1 = $27,200.

The depreciation expense for year 2= Activity units in year 2 × depreciation rate per unit.

The depreciation expense for year 2 = 15,000 × 1.6.

The depreciation expense for year 2 = $22,500.

The amount of accumulated depreciation = depreciation expense for year 1 + depreciation expense for year 2.

The amount of accumulated depreciation = 27,200 + 22,500.

The amount of accumulated depreciation = $49,700.

6 0

3 years ago

Marla, a bookkeeper, would like to work at home in order to be with her young children. But before setting up her home-based boo

nadya68 [22]

The best thing that Marla should do in this type of problem is letter d, investigate the market. It is because in doing business especially to the field that she is going to take on, it is best to assess and evaluate the decision and the outcome of it. It is best to make sure if she could benefit from it and could be a potential as she runs the business.

3 0

4 years ago

Read 2 more answers