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3 years ago

Does this "stiff competition" mean that the demand curve for McDonald's Chicken McNuggets is horizontal? Briefly explain.

Business

1 answer:

blagie [28]3 years ago

8 0

Answer: I found the complete question on Google:

By 2017, McDonald's had stopped selling Chicken McNuggets and other products made from chickens fed antibiotics. The change increased McDonald's costs, but an article in the Wall Street Journal noted that "...McDonald's ability to raise its prices is limited because of stiff competition."Source: David Kesmodel, Jacob Bunge, and Annie Gasparro, "McDonald's to Curb Antibiotics in Chicken," Wall Street Journal, March 4, 2015. Does this "stiff competition" mean that the demand curve for McDonald's Chicken McNuggets is horizontal? Briefly explain.

And the correct answer is: "B. No, the demand curve is not horizontal because Chicken McNuggets are not identical to other chicken products.".

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Which of the following is not one of the conditions that make it more likely that firms will be able to coordinate their efforts

tatyana61 [14]

Answer:

The condition that make its difficult for firms to coordinate their efforts to control output quotas and pin point cheating is A) when market demand tends to be more volatile.

Explanation:

All the options except A will make it difficult for firms to control output quotas and detect cheating. From reading the options B,C and D it is quite clear that in the market there is a presence of cartel ( which can be defined as a association of producers in an industry who comes together to set the prices and output quotas ) but even if there is presence of cartel in industry, the efforts to restrain output will fail if the demand of the products and services in volatile in the market, it would become difficult for them to pin point where the cheating has taken place.

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4 years ago

Your grandparents would like to establish a trust fund that will pay you and your heirs $225,000 per year forever with the first

xz_007 [3.2K]

Answer:

They must deposit $5,113,636.36.

Explanation:

Giving the following information:

Cash flow= $225,000

Interest rate= 4.4 percent

To determine the amount to be deposited today, we need to use the perpetual annuity formula:

PV= Cf/i

Cf= cash flow

PV= 225,000/0.044

PV= $5,113,636.36

They must deposit $5,113,636.36.

3 0

3 years ago

One of the advantages of the Weighted Point Evaluation Method is that it: A. Keeps the number of suppliers in a Supply Chain low

sergejj [24]

Answer: B. Allows supplier performance to be tracked over time

Explanation:

The Weighted Point Evaluation Method is used to select the best supplier to provide for the company's type of need.

It works by assigning weights to the different characteristics of the product which enables one to add high weights to more preferred characteristics. The products offered by various suppliers are then given weights based on these characteristics/categories as well and then a weighted average is computed.

The highest supplier can then be chose. One advantage of this is that it allows for Supplier performance to be tracked overtime as those performances are used in this method to decide the optimal supplier.

8 0

3 years ago

Fei, morgan, and lakesha are all in the market for new levi’s jeans. The marginal benefit for each pair of jeans for each of the

Klio2033 [76]

a. If the price of a pair of Levi’s jeans costs $32, Fei will purchase 2.66 pairs of jeans ($85/$32), Morgan will purchase 1.25 pairs of jeans ($40/$32), and Lakesha will purchase 2.81 pairs of jeans ($90/$32).

b. The consumer surplus from the last pair of jeans purchased is<u> i) largest</u> for Lakesha.

c. The total consumer surplus that each of them receives at a price of $32 is as follows:

i) Fei’s total consumer surplus is $53 ($85 - $32).

ii) Morgan’s total consumer surplus is $8 ($40 - $32).

iii) Lakesha’s total consumer surplus is $58 ($90 - $32).

d. The collective consumer surplus that they receive is $119 ($53 + $8 + $58).

<h3>What is the marginal benefit?</h3>

The marginal benefit is the maximum amount Fei, Morgan, Lakesha are <u>willing to pay</u> for an additional good (a pair of jeans) or service.

The marginal benefit can also be defined as the additional satisfaction or utility that Fei, Morgan, Lakesha receive when they purchase an additional pair of jeans.

<h3>What is consumer surplus?</h3>

Consumer surplus refers to the difference between the price that Fei, Morgan, and Lakesha pay for a pair of jeans and the price they would be willing to pay instead of not buying the pair.

<h3>Complete Question:</h3>

Welfare and Efficiency — Fei, Morgan, and Lakesha are all in the market for new Levi’s jeans. The marginal benefit for each pair of jeans for each of them is provided in the accompanying table.

Quantity Fei Morgan Lakesha

1 $85 $40 $90

2 $60 $32 $75

3 $32 $24 $55

4 $20 $16 $32

5 $15 $8 $25

a. If the price of a pair of Levi’s jeans costs $32, Fei will purchase ----, Morgan will purchase -----, and Lakesha will purchase -----.

b. The consumer surplus from the last pair of jeans purchased is

i) largest for Lakesha.

ii) largest for Fei.

iii) the same for Fei, Morgan, and Lakesha.

iv) largest for Morgan.

c. How much total consumer surplus will each of them receive at a price of $32?

i) Fei’s total consumer surplus is $

ii) Morgan’s total consumer surplus is $

iii) Lakesha’s total consumer surplus is $

d. How much consumer surplus do they receive collectively?

Collective consumer surplus is $

Thus, the consumer surplus can be computed as the difference between the marginal benefit from each pair of jeans and the cost of a pair.

Learn more about consumer surplus and marginal benefits at brainly.com/question/5012315 and brainly.com/question/8136407

8 0

3 years ago

The price of cups increased from $3.75 to $4.05 and the quantity demanded of plates decreased from 4,950 to 4,450. Calculate the

raketka [301]

Answer:Cross elasticity of demand = -1.25

Explanation:

Cross elasticity of demand= Per entage change in quantity of commodity A (plates)/ Percentage change in price of commodity B(cups)

Percentage change in quantity demanded for plates = (New quantity - old quantity/ old quantity ) x 100

={ (4450-4950)/4950] ×100

=-500/4950

= - 0.10×100= - 10%

Percentage change in price of cups =(New price - old price/ old price) x 100 [(4.05-3.75)/3.75]×100

=0.3/ 3.75

= 0.08×100= 8%

Cross price elasticity of demand = - 10%/8%

= - 1.25

Here, the cross elasticity of demand for these goods of cups and plates is negative(-1.25) showing that they are complementary goods since as the price for cups increases, the demand for plates decreased.

5 0

3 years ago

Does this​ "stiff competition" mean that the demand curve for​ McDonald's Chicken McNuggets is​ horizontal? Briefly explain.

Does this "stiff competition" mean that the demand curve for McDonald's Chicken McNuggets is horizontal? Briefly explain.