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3 years ago

Under which conditions is price elasticity of supply relatively elastic or relatively inelastic?

Business

1 answer:

Ulleksa [173]3 years ago

6 0

Answer:

1. Firms are operating in the short run - relatively inelastic

2. Firms would have a hard time storing their goods - relatively inelastic

3. Firms have a large amount of excess capacity - relatively elastic

4. Firms can easily relocate from one location to another - relatively elastic.

Explanation:

The price elasticity of supply is less in the short run than in the long run. In the short run supplier does not have enough time to adjust the production level so supply is inelastic. The firms facing hard to store their goods then the supply is inelastic. If the firm has spare capacity available then the supply is relatively elastic because supplier can produce more if the demand is greater. The mobility factor also effects elasticity, if firm can easily relocate itself then the supply is elastic.

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If our fixed expenses are $20,000, and sales are $550,000, and our unit selling price is $55, and our unit variable expense is $

natka813 [3]

Profit = Sales - Expenses
Expenses = Fixed + Variable 
No. of units sold = $550,000 / 55 = 10,000 
Variable expenses = $44 x 10,000 = $440,000 
Expenses = 20,000 + 440,000 = $ 460,000 
So, profit = 550,000 - 460,000 = $ 90,000.

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3 years ago

Which type of egoism is the theory that humans are only capable of acting in their own self interest?

anygoal [31]

According to psychological egoism, all actions are driven by self-interest. In other words, it implies that everyone's behavior, actions, and decisions are driven by self-interest. Additionally, it implies that all decisions must be driven by personal gain.

A second defense of psychological egoism contends that people always act selfishly because it makes them feel good. For instance, you might assist a turtle crossing a roadway because, if you didn't, you would be concerned for its safety while doing so.

Learn more about psychological egoism here

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2 years ago

What is an Unlimited Liability?

Anastasy [175]

Answer:

An unlimited liability corporation is a Canadian corporation designation, wherein shareholders are liable up to unlimited amounts for any liability, act or default of the corporation. By comparison, in most corporations, shareholders are not usually liable due to a limited liability model.

Explanation:

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3 years ago

Raphael's Performance Pizza is a small restaurant in San Diego that sells gluten-free pizzas. Raphael's very tiny kitchen has ba

IRINA_888 [86]

Answer:

In the short run, these workers are VARIABLE inputs, and the ovens are FIXED inputs.

Explanation:

Workers are variable inputs since Raphael can decide to change the number of employees hired every week or every certain period of time. On the other hand, the number of ovens cannot change immediately since Rapheal would need to move to some other place in order to increase the number of ovens.

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3 years ago

Diamond Boot Factory normally sells its specialty boots for $22 a pair. An offer to buy 120 boots for $18 per pair was made by a

Art [367]

Answer:

Differential income = $960

Explanation:

In a special order decision , the offer should be accepted if the sales revenue from the order is greater than the relevant costs of the special orders.

The relevant costs of the special order = variable cost + additional cost of special stitching machine

Sales revenue (120× $18) 2,160

The relevant costs of the special order

= (120×8) + (120×2) (1,200)

Differential income 960

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3 years ago