1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Over [174]
3 years ago
11

Your business depends a lot on gas to transport your goods to stores. The price of oil decreases. This will most likely cause th

e price of your product to _____.
increase ,
decrease,
stay the same
History
2 answers:
Ahat [919]3 years ago
8 0

The correct answer is "decrease".

Gas (oil) is considered a necessary input in the business, as it is required for the production process. Its price would be taken into account as a production cost.

<u>One of the factors that affects the supply of a good or service is the price of the inputs used during the manufacturing process.</u> The higher the price of inputs, the higher the costs of production, and the higher the price that the firm needs to set in order to gain an acceptable profit margin per unit sold.

On the other hand, the relationship between the price of inputs and the price of the products also works in the opposite direction. If the costs of the factors of production decrease, the firm can become more competitive in the markets by establishing a lower price for the product while it can continue earning the same, or even a larger, profit margin. <u>Therefore, the price of the product will decrease if so do the prices of inputs. </u>

Blababa [14]3 years ago
8 0

Answer:

Your business depends a lot on gas to transport your goods to stores. The price of oil decreases. This will most likely cause the price of your product to decrease .

Explanation:

If your business depends on gas to carry the goods, it means that gas is a production cost of your business.

Production costs are those related to the production process, which can be divided into indirect costs, direct material and direct labor, ie all items that are mandatory in the production process.

Production costs are an important factor in determining the price of the product or service that your business offers. So if a cost of production decreases, you will spend less to produce your product and with that the price of the product or service may decrease.  In this case, if the price of oil has decreased, the price of gas, which is a cost of production, also decreased, so the price of the product should also decrease, since it is spending less to produce.

You might be interested in
When did Texas ask to be annexed
Vlada [557]

December 29, 1845 was when they became a state

3 0
2 years ago
How did Perry help the United States expand its influence in Asia? Perry defended the Philippines against Spanish invaders. Perr
Eva8 [605]

Perry help the United States expand its influence in Asia as he negotiated the first treaty between the United States and Japan (Kanagawa Treaty).

The Kanagawa Treaty was signed on March 31, 1854 between Commodore Matthew Perry of the United States and the authorities of Japan, in the Japanese port of Shimoda. This treaty ended with 251 years of Japan's isolation and, at the same time, with its policy of exclusion (Sakoku), thus opening the Japanese ports of Shimoda and Hakodate to trade with the United States, guaranteeing the safety of American shipwrecks and establishing a permanent consul.

8 0
3 years ago
Read 2 more answers
Economically speaking, why was slavery so widely practiced in the South? a) Enslaved people were not familiar with the landscape
vagabundo [1.1K]
B. slaves were not paid,
8 0
3 years ago
How did Sparta benefit from its location during the Peloponnesian War?​
cricket20 [7]

Answer:

As a result of the Peloponnesian War, Sparta, which had primarily been a continental culture, became a naval power. At its peak, Sparta overpowered many key Greek states, including the elite Athenian navy.

4 0
3 years ago
What dis robert owen do in ressponse to the capitalism problems
Arlecino [84]

Robert Owen was an English manufacturer, philanthropist and social reformer. He was known for finding Utopian Socialism and Cooperative Movement. He was of the belief that capitalism was creating class difference on the basis of economics. He worked to create a classless society for the equal division of capital and resources.  


3 0
3 years ago
Other questions:
  • What were the long lasting effects of the exploration by the first american explorers of the west?
    9·1 answer
  • In lecture, it was explained that the Pope issued a Papal Bull dividing the East and West trade routes and lands between Spain a
    10·2 answers
  • QUICKLY PLZ 50 POINTS NOO FAKE ANSWERS I WILL DELETE QUESTIONS PLZ
    12·2 answers
  • Which of the following is not correct regarding the differences between the two images below?
    5·2 answers
  • During the Roman Republic, two magistrates were elected for one year at a time to serve as both chief executive and military com
    13·2 answers
  • What geographic conditions posed the greatest challenge for early civilizations? (this is about stuff like Mesoamerica, Olmec, A
    14·1 answer
  • Imagine that an exchange student from China visits your class. While your teacher discusses how the United States has a limited
    5·2 answers
  • What did the civil rights act of 1968 end?
    7·2 answers
  • How does Industrialization influence competiton...
    9·1 answer
  • How were the earliest Muslims treated by the leaders of Mecca?
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!