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2 years ago

Economists consider both explicit and implicit costs when measuring economic profit

1 answer:

7 0

Explicit and Implicit costs should be considered when measuring economic profit because a business must cover its opportunity costs as well as its out-of-pocket expenses to be truly profitable. Economic profit consists of revenue minus implicit (opportunity) and explicit (monetary) costs. Explicit costs are monetary costs a firm has. Implicit costs are the opportunity costs of a firm’s resources.

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Soffia Inc. manufactures a moisturizing soap with anti-ultraviolet properties, which is sold under the brand name DewMist. The c

Lerok [7]

Answer:

Multibranding strategy

Explanation:

Multibranding strategy can be defined as a type of strategy in which a company gives its product a different brand name. It involves a producer selling different brands under the same product segment.

In Multibranding strategy there is no space for other competitors in the market. This strategy also strengthens the influence of these various products in the market.

A Multibranding strategy can lead to a great loss if it is not properly handled by the management of the organisation.

8 0

3 years ago

Read 2 more answers

Business behavior is derived in large part from the basic cultural environment in which the business operates and, as such, is s

solong [7]

Answer:

TRUE

Explanation:

The influence of cultural on business behavior is broadly encompassing. Cultural impacts ranges from understanding employee behavior and employees management methodologies; i.e. how best to manage employees based on their values and priorities. It also impacts the functional areas of marketing and distribution: what people appreciate and the peculiarities of their environment. It also greatly impact and is a strong determinant factor of success when a company is taking a decision on how best to enter a new market.

When business ignore cultural factors they are guilty of ethnocentrism and could be orchestrating business failure.

7 0

2 years ago

Jack's manufacture company have experienced inflation for the past three years as follows: the first year's periodic inflation r

ankoles [38]

Answer:

8.09%

Explanation:

Year Inflation rate 1 + Inflation rate

1 0.03 1.03

2 0.04 1.04

3 x 1+x

Average rate 0.05 0.05

1 + Average rate = [(1+r1)*(1+r2)*(1+r3)]^(1/3)

1.05 = [1.03*1.04*(1*x)]^(1/3)

[1.0712*(1+x)] = (1.05)^3

[1.0712*(1+x)] = 1.157625

1 + x = 1.157625 / 1.0712

1 + x = 1.080681

x = 1.080681 - 1

x = 0.080681

x = 8.09%

Thus, the periodic Inflation rate in year 3 is 8.09%

5 0

2 years ago

On March 15, American Eagle declares a quarterly cash dividend of $0.105 per share payable on April 13 to all stockholders of re

rodikova [14]

Answer:

March 15 Debit Credit

Dividends $22,470,000

Dividends Payable $22,470,000

March 30 No entry

April 13

Dividends Payable $22,470,000

Cash $22,470,000

Explanation:

In order to record American Eagle's declaration and payment of cash dividends for its 214 million shares first we would require to calculate the dividends as follows:

Dividends=214,000,000 shares*$0.105

Dividends=$22,470,000

Therefore, the journal entries would be the following:

March 15 Debit Credit

Dividends $22,470,000

Dividends Payable $22,470,000

March 30 No entry

April 13

Dividends Payable $22,470,000

Cash $22,470,000

7 0

3 years ago

If a government chooses a system of marketable permits as its environmental managing tool, the reduction in pollution will

Natali5045456 [20]

If a government chooses to do this, the reduction in pollution will TAKE PLACE IN THE FIRMS WHERE ITS LEAST EXPENSIVE TO DO SO. If a government desire to establish a marketable permit program, it must first define the pollutants that will be allowed and their overall amounts that will be permissible. Companies that will mostly participate in the program will be those that do not produce much pollutants.

4 0

3 years ago