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
Norma-Jean [14]
3 years ago
5

The concept of ________ suggests that when a company has built significant value into its product offerings, trying to increase

the value of the products by even a small amount requires a significant financial investment.
Business
1 answer:
Vinvika [58]3 years ago
5 0

Answer:

diminishing returns

Explanation:

I'll provide you with a situation as an example.

Let's say that you are running a successful ice cream company. Typically, ice creams are made with dairy. This made a certain percentage of population couldn't consume it since they are lactose intolerant. (Basically eating dairy will give them diarrhea ).

There are not many people who have this condition. Let's say that you want to increase the value of your product and use the materials that makes your product become consumable to this specific population while maintaining the original taste.

This would resulted in a small amount  increase in customers base , but the investment that you need to make in order to make it happen will be substantial. You basically have to invest in researches to find the perfect ingredients, invest in additional marketing expense to educate the customers on the new product, change your current production flow, etc.

You might be interested in
During the recession of 2007−2009, the u.s. federal government's tax collections fell from about $2.6 trillion down to about $2.
STALIN [3.7K]
Yes. The U.S. tax system has a built-in stabilizers.

These built-in stabilizers are called automatic stabilizers. Automatic stabilizers are defined as the features of tax and transfer system that lends stability of the economy without direct intervention from the policy makers.

These stabilizers tempers the economy when it overheats and provides economic stimulus when it slumps. 

When:                           Automatic Stabilizers:
Incomes are high          <span>tax liabilities rise and eligibility for government benefits falls
Incomes are low            </span><span>tax liabilities drop and more families become eligible for government                                         transfer programs (food stamps, unemployment insurance)</span>
6 0
3 years ago
Which of the following statements is true of absorption​ costing? A. It considers variable selling and administrative costs as p
Sonja [21]

Answer:

C. It considers fixed manufacturing overhead cost as product costs.

Explanation:

The statement that is true of absorption​ costing is that it considers fixed manufacturing overhead cost as product costs.

Absorption costing uses the concept of cost drivers to ascertain the quantum of fixed manufacturing overhead cost a product generates, and ties that fraction to the product as its own cost.

By so doing, what would ordinarily have been periodic costs that will be apportioned among products become fixed costs that are directly traceable to those products.

6 0
3 years ago
Calculate the present value of annual payments of $3,000 per year for ten years at 8%.
AlexFokin [52]
Annual payments is $240
6 0
3 years ago
Read 2 more answers
The static budget, at the beginning of the month, for Beacon Banner Company follows:
olasank [31]

Answer:

D. $3885 U

Explanation:

7 0
3 years ago
Assume that the money demand function is (M / P)d = 2,200 – 200r, where r is the interest rate in percent. If the price level is
Wittaler [7]

Answer:

The money supply should be set at 800

Explanation:

In this question, we are asked to calculate the value at which Fed should set the money supply at after fixing the interest rate at 7 percent.

We proceed as follows;

Let the new money supply be M.

To fix the interest rate at 7%, r= 7 and P = 2

(M/P)d = 2,200 - 200r

= 2200 - 200(7)

=2200-1400

= 800

M = 800

8 0
3 years ago
Other questions:
  • 9. Objective of IS security is to ensure
    13·1 answer
  • Employees who handle and prepare food should:
    9·1 answer
  • A monopoly:
    7·1 answer
  • Which of the following statements about the admission process is FALSE?
    8·1 answer
  • A 20-tooth spur pinion has a diametral pitch of 8, runs at 1200 rev/min, and drives a gear at a speed of 400 rev/min. Find the n
    9·1 answer
  • In producing a budget constraint line for combinations of staples and paper clips, which are sold by the box, a student labels t
    8·1 answer
  • Which of the following differences would result in future taxable amounts? Expenses or losses that are tax deductible after they
    8·1 answer
  • The following forecasted sales pertain to Rapid City:
    5·1 answer
  • Refer to the accompanying data, which is for a specific year in a hypothetical economy for which Okun's law is applicable. The a
    5·1 answer
  • If 7% is deducted from Matthew's annual pay of $1,771 to pay for state taxes, then how
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!