Which is a characteristic of the factors of production?

Consider this argument: "stock today closed slightly lower on moderate trading. this was after an announcement last night that m

Mamont248 [21]

<span>This is called the "post-hoc fallacy" Imeaning after the fact and therefore because of the fact). It suggests that because something happened after a particular event, it must have been caused by that event. This is faulty logic unless a cause-and-effect relationship has been demonstrated to exist.</span>

7 0

3 years ago

Think of a firm that has attained a differentiation focus or cost focus strategy. Are its advantages sustainable? Why? Why not?

quester [9]

Answer:

Yes they are sustainable

Explanation:

The strategies mentioned in the question were laid out my Michael Porter and therefore, we can look analyse his model to understand whether these strategies are sustainable or not.

Porter has categorized strategies into 3 broad categories: Cost Leadership, Differentiation, and Focus strategies (all three are known as "Generic Strategies). Focus strategy is branched out into two sub-segments known as Cost Focus and Differentiation Focus.

Now, the question has already clarified that the strategies in question are both focus strategies. So lets understand what each entails.

Differentiation Focus: A strategy in which the company aims to gain market leadership in a focused market (a specific market) through strategic differentiaion. This strategic differentiaion involves offering a specialized service or a unique product in a niche market. Cost focus strategy is similar in the sense is that that the aim is to offer highly low cost products/services to a niche market. Because of the focus on these niche markets, company's develop a strong understansing of the consumer thereby developing strong brand loyalty with that particular customer base. The key ingredient, again, is that the competitive advantage is being harnessed by focusing just on a particular niche market. Another key component is that the companies using this strategy rely on the consumers in the target market having different needs, tastes, and requirements than consumers in other segments in the industry.

Now, these strategies by desig were put forth my Porter has being sustainable. Hence the term "generic strategies" in that they can be broadly used to create and sustain performance. The focus strategies as defined above are sustainable since they harness the power of having priority knowledge of their target market to provide appropriate services and products. The high brand loyalty and knowledge of consumers give them an edge over competitors (competitive rivalry). Supplier power depends on the nature of products being offered therefore it cant be taken into consideration. Buyer power can be managed since you are prodiving unique service offerings to unique customers. Threat of substitution depends on the product and service offering. Threat of new entry by larger player exists, but due to the focus that the company had in the target market, barriers to entry (long strong brand loyalty) can be developed.

7 0

4 years ago

The reserve requirement is 10%. Suppose that the Fed $ worth of U.S. government securities a bond dealer, electronically the

victus00 [196]

Answer:

D. The money supply decreases by $150,000.

Explanation:

Note: This question is not complete as some figures are omitted. The full question is therefore presented first before answering the question as follows:

The reserve requirement is 10%.

Suppose that the Fed sells $150,000 worth of U.S. government securities from a bond dealer, electronically debiting the dealer's deposit account at Reliable Bank.

Which of the following correctly describes the immediate effect of this transaction on the money supply?

A. The money supply decreases by $1,500,000

B. The money supply decreases by $135,000.

C. There is no change in the money supply.

D. The money supply decreases by $150,000.

E. None of the above.

The explanation to the answer is now provided as follows:

This is an example of Open market operations (OMO).

Open market operations (OMO) is a monetary policy strategy in which the central bank such as the Federal Reserve sells or purchases government securities in order to implement a particular monetary policy.

When the central bank sells government securities on the open market, it aims to reduce the money supply by the worth of the securities. This is called a contractionary monetary policy.

On the other hand, when the central bank purchases government securities on the open market, it aims to increase the money supply by the worh of the government securities. This is called an expansionary monetary policy.

From the question, the sale of $150,000 worth of U.S. government securities from a bond dealer is a contractionary monetary policy and it will reduce the money supply by exactly $150,000.

Therefore, the correct option is D. The money supply decreases by $150,000.

8 0

3 years ago

The cost to manufacture one unit of Rinker Audio Products' bestselling hearing aid, the Magnifier, is $87.50. The CFO of the com

padilas [110]

Answer:

d. economies of scale

Explanation:

Based on the information provided within the question it can be said that this concept is known as an economy of scale. Like mentioned in the question this concept states that as a company scales their operation, the cost of each input unit decreases as their output or production increases, Thus granting the company a cost advantage. As is happening in this scenario.

4 0

3 years ago

A company sells a product for $3. Direct materials are $1.80 per unit. The company prepares a flexible budget at two sales volum

strojnjashka [21]

Answer:

$150 for budgeted direct materials and $180 for budgeted direct materials.

Explanation:

You take direct materials of 1.80 x sales volume of 50 units= budgeted direct material $90

To find a sales volume of 60 units, you take $1.80 of direct material X sales volume of 60 units= budgeted direct material of 108.

3 0

2 years ago