Answer: b. Marginal revenue is less than average revenue
Explanation:
Marginal revenue is the extra revenue received by selling one more unit of a good while Average revenue is the revenue generated on average by all units sold thus far.
If the monopolist has to reduce prices to sell more goods then it would mean that for every unit sold, the price would have reduced compared to the price of the last unit which translates to less revenue coming in per unit compared to the last unit.
On the other hand, on average, the higher prices of the earlier goods sold would keep the average revenue higher than the additional revenue (marginal revenue).
If a company buys back $100 worth of stock, this increases the cash flow to the stockholders by exactly $100.
This is further explained below.
<h3>What are
stockholders ?</h3>
Generally, An person or a legal organization that is registered by a company as the legal owner of shares of the share capital of a public or private business is referred to as a shareholder of that corporation.\
In conclusion, When a corporation repurchases $100 worth of its own stock, the result is an increase in cash flow of precisely $100 to the firm's investors.
Read more about stockholders
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Answer:
$0
Explanation:
Common fixed expenses are expenses that cannot be traced to any specific division, business unit or store/office within a larger company. In this case, each division has its own manager and assistant manager, but their salaries can be traced to the corresponding division, therefore, they cannot be considered common fixed expenses. Examples of common fixed expenses are the CEO's salary (or any other upper management or board of directors), their assistants or certain administrative costs that are incurred by them.
Answer:
The correct answer is (A) Localization strategy
Explanation:
It is one of the most important strategic decisions that companies make. Localization can also influence other costs such as taxes, wages, raw materials and income. Companies make location decisions infrequently, usually because demand has exceeded the current capacity of the plant or due to changes in labor productivity, exchange rate, costs or local attitudes. Companies also relocate their manufacturing facilities or services due to demographic changes or consumer demand. Location alternatives include (1) expanding an existing installation instead of moving it; (2) maintain the current sites while opening facilities somewhere else, or (3) close existing facilities and move to a new location.
The location decision often depends on the type of business. For industrial location decisions, the usual strategy is to minimize costs, although innovation and creativity can also be critical. For retail organizations or professional services, the strategy focuses on maximizing revenue. However, the warehouse location strategy can be guided by a combination of costs and speed of delivery. The objective of the location strategy is to maximize the benefit of the location for the company.
Answer:
False
Explanation:
You can only say an aspect of product performance is mission critical is the sensitivity of the price has been suppressed. Hence the safety of an automobile is a very important factor hence price sensitivity should not increase. In a situation where the product performance is not regarded as mission-critical and if the product fails it is not so significant, then price sensitivity increases.