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kari74 [83]
3 years ago
5

Corporate social investment definition

Business
1 answer:
IgorLugansk [536]3 years ago
3 0
Definition: 

Contributions that bring benefits over and above those directly associated with the core business activities and events. These contributions can include monetary, employee time, employee resources, and gifts of any kind. 
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Which of the following may occur as a result of a increase in the price of cell phones?
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<span>.increase in supply</span>

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Fresnas Designs Inc. is a company known for its quality interior decorations, customized service, and affordable prices. Given t
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Earning Satisfactory Profits

Explanation:

Based on the information provided within the qeustion it seems that the management of Fresnas Designs Inc. bases its pricing policy on Earning Satisfactory Profits. This is basically when a company revolves all their decisions around trying to make a reasonable level of profits that is consistent with the level of risk that they face. Which is what Fresnas is doing by pricing their products reasonably as opposed to pricing them higher even thought hey can.

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Ball Bearings, Inc., faces costs of production as follows:
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Q        Fixed       Variable    Total    Marginal    Aver.     Aver.     Aver.

<u>           Costs        Costs         Cost    Cost           FC         VC         TC      </u>

0          100             0              100         -               -             -             -

1           100           50               150       150           100         50         150

2          100           70               170         20            50         35          85

3          100           90               190        20           33.33      30        63.33

4          100          140               240       50            25          35          60

5          100         200               300       60            20          40          60

6          100         360              460      160           16.67       60        76.67

The firm's profit in this case is <u>-$360</u>.

True or False: This was a wise decision. ⇒ <u>False</u>

Depends on the situation and which costs are avoidable if the company shuts down operations. If it produces 4 cases, the losses reduce from -$100 to -$40, but the contribution margin is positive since revenues exceed variable costs by $60. But under the current price level, the company will not be able to generate profits unless it increases its sales price or decreases its fixed costs.

Vaguely remembering his introductory economics course, the company's chief financial officer tells the CEO it is better to produce 1 case of ball bearings, because marginal revenue equals marginal cost at that quantity.

At this level of production, the firm's profit is <u>-$100</u>.

True or False: This is the best decision the firm can make. ⇒ <u>False</u>

Accounting profit is maximized at 4 cases since marginal cost ($50) = sales price ($50). At this point the total profit is -$40.

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A= $1120

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What is gained by using the Circular Flow Diagram to illustrate GDP?
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