1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
nikklg [1K]
3 years ago
10

All else equal, the price elasticity of demand for a good tends to be lower: A. if the good represents a large share of a consum

er's budget. B. if the good has many close substitutes. C. if the good has few close substitutes. D. in the long run.
Business
1 answer:
kvasek [131]3 years ago
3 0

Answer:

C. if the good has few close substitutes.

Explanation:

The price elasticity of demand refers to the percentage of change in the demand when the price suffers a variation. The price elasticity of the demand is higher when a change in the price of the product generates a big change in the demand which can be the result of the good having many substitutes. Also, the price elasticity of the demand is lower when a change in the price causes a small change in the demand which can be explained by the good having few substitutes. According to this, the answer is that all else equal, the price elasticity of demand for a good tends to be lower if the good has few close substitutes.

You might be interested in
Charles owns a water pump. Because pumping large amounts of water is harder than pumping small amounts, the cost of producing a
timofeeve [1]

Answer:

Cost of each bottle of water is $7.

Explanation:

This is the case for economies of scale. When Charles produce 1 bottle of water, it costs him $1 per bottle, when 8 bottles are produced it costs him  $7. The cost per bottle of water reduces as units increases.

3 0
2 years ago
True or False: Marginal analysis involves comparing the additional or extra benefit derived from consuming an additional unit of
Likurg_2 [28]

Answer:

True

Explanation:

Marginal - the dictionary meaning of such word is additional of anything. Here, in the given case, marginal analysis as per costing is the analysis of each additional revenue from each additional sale or production.

Marginal analysis does not consider fixed cost generally, as that is fixed and don not add on on additional units, within a standard range.

Thus, the statement stated here is True.

7 0
2 years ago
Coronado Company's record of transactions concerning part X for the month of April was as follows.
Olin [163]

Answer:

1.FIFO 5,631.4

2.LIFO 7,685

3.8.8542 per unit

Explanation:

Coronado Company's

1)First-in, first-out (FIFO)

(520×8.47+ 150×8.18)

= 4,404.4+1,227

= 5,631.4

2)Last-in, first-out (LIFO)

(420×7.30+ 620×7.45)

= 3,066+4,619

= 7,685

3.Cost of goods available for sale

Date Transactions Units ×Rate =Total

Apr-01 Beginning inventory 420 ×$7.30 =$3,066

Apr-04 Purchase 720×$7.45 =$5,363

11-Apr Purchase 620 ×$7.74 =$4,798.8

18-Apr Purchase 520×$7.81 =$4,061.2

26-Apr Purchase 920 ×$8.18= $7,525.6

30-Apr Purchase 520 ×$8.47 $4,404.4

Total: 3,300 $29,219

720+620+520+920+520=3,300

$3,066+5,363+4,798.8+4,061.2+7,525.6+4,404.4 =29,219

Average cost per unit =

Total cost of goods available for sale / Units available for sale

Hence:

$29,219 / 3,300

=8.8542 per unit

8 0
3 years ago
Playful Pens, Inc., makes a single model of a pen. The cartridge for the pen (which contains the ink) is manufactured on one mac
Elan Coil [88]

Answer:

a) B. Machine 2

b) $220,000

b-2) Yes , positive differential profit.

c-1) $162,000

c-2) Yes , positive differential profit.

Explanation:

B) Differential revenues  = $10.40 x 200,000 = $2,080,000

Differential costs:

Variable cost on new production = $5.20 x 200,000 = $1,040,000

Fixed costs = $820,000

differential profit = $2,080,000 - $1,040,000 - $820,000 = $220,000

c) Differential revenues  = $10.40 x 100,000 = $1,040,000

Differential costs:

Variable cost increase on current production = ($4.62 - $4.10) x 800,000 = $416,000

Variable cost on new production = $4.62 x 100,000 = $462,000

differential profit = $1,040,000 - $878,000 = $162,000

5 0
2 years ago
Ron is interested at working at Gas’N’Go, but whenever he looks on their company Web site he doesn’t see any openings listed. Wh
Brrunno [24]

Answer: c). Ron should send a prospecting letter to see if there are any unadvertised openings

Explanation: Since Ron is interested at working at Gas’N’Go, but is unable to find an opening on the company Web site he should try and send a prospecting letter to see if there are any unadvertised openings. It might happen at times that companies do not post online for certain positions. but when Ron send a letter he might have a chance to get a call from them.

4 0
3 years ago
Read 2 more answers
Other questions:
  • Which of the following is an example of how advanced technology has helped the modern economy ?
    14·1 answer
  • Sue, a vita/tce site coordinator, was watching the local news when she saw aaron, a new tax law-certified volunteer, in a story
    5·1 answer
  • Firms that charge relatively low prices and offer substantial differentiation are following a best-cost strategy. A best cost st
    15·1 answer
  • According to Colorado Real Estate License Law, how long is an agent responsible for maintaining client confidentiality?
    14·1 answer
  • Using the following end-of-year information, calculate the number of days' sales in receivables for Year 2.
    11·1 answer
  • You own a $36,800 portfolio that is invested in Stocks A and B. The portfolio beta is equal to the market beta. Stock A has an e
    13·1 answer
  • A team is trying to determine the best process type for producing a new product family. The product consists of a base model wit
    6·1 answer
  • What are THREE purposes of monetary policy? A to eliminate competition B. to promote price stability c. to eliminate unemploymen
    11·1 answer
  • How do you change your profile name on brainly?
    14·2 answers
  • Dave Ramsey's investing principles.
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!