Answer:
The correct answer is A. Life-cycle costs
Explanation:
In the life cycle of costs, all the costs associated with the production of a good or the provision of a service over a given period of time interfere. For this reason, professionals in charge of this area should consider not only the information directly related to production, but also the costs associated with the maintenance of the product during its useful life.
Answer:
The correct answer is a. more elastic demands.
Explanation:
There are some goods whose demand is very price sensitive, small variations in their price cause large variations in the quantity demanded. It is said of them that they have elastic demand. The goods that, on the contrary, are not sensitive to price are those of inelastic or rigid demand. In these large variations in prices can occur without consumers varying the quantities they demand. The intermediate case is called unit elasticity.
The elasticity of demand is measured by calculating the percentage by which the quantity demanded of a good varies when its price varies by one percent. If the result of the operation is greater than one, the demand for that good is elastic; If the result is between zero and one, its demand is inelastic.
The factors that influence the demand for a good to be more or less elastic are:
1) Type of needs that satisfies the good. If the good is of first necessity the demand is inelastic, it is acquired whatever the price; On the other hand, if the good is luxurious, the demand will be elastic since if the price increases a little, many consumers will be able to do without it.
2) Existence of substitute goods. If there are good substitutes, the demand for good will be very elastic. For example, a small increase in the price of olive oil can cause a large number of housewives to decide to use sunflower.
Answer:
The correct answer is Through the franchise agreement, he can ensure that the new stores are operated according to his own standards.
Explanation:
The Franchise Agreement is a binding contract that sets out in detail the responsibilities and expectations for the franchisor and the franchisee.
You have to keep in mind that Franchise Agreements are written to be generally more advantageous for the franchisor. Once signed you are legally bound to uphold all the provisions of the Settlement, therefore it is essential that your attorney has reviewed the contract and explained everything correctly to you in plain language and not in specific terms that may not be easy to understand.
Before signing, if any verbal promises have been made, make sure they are included in writing in the Agreement. Once signed, the Franchise Agreement determines your relationship with the franchisor, and any disagreement or misunderstanding will be subject to the terms of the Agreement.
Since it is a binding contract, there are certain critical elements found in all business contracts and others that are unique to franchising. Here are some aspects of the contract that you and your lawyer should review carefully to make sure you understand all that it entails.
Answer:
The answer is letter A. Earning normal profits because their returns on investment are equal to the opportunity costs of the time invested.
Explanation:
Because all resources are being used efficiently and there is no need to use them elsewhere.
