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Shalnov [3]
3 years ago
14

Suppose an economic boom causes incomes to increase and, at the same time, drives up wages for the sales representatives who wor

k for cell phone companies. Assume that smartphones are a normal good. This will cause the: price of cell phones and the equilibrium quantity to rise O price of cell phones to rise, but the change in the equilibrium quantity is unclear and depends on whether the shift in demand is larger or smaller than the shift in supply. price of cell phones and the equilibrium quantity to fall. quantity of cell phones to rise, but the change in the equilibrium price is unclear and depends on whether the shift in demand is larger or smaller than the shift in supply.
Business
1 answer:
Juli2301 [7.4K]3 years ago
5 0

Answer:

Option (B) is correct.

Explanation:

Given that smartphones are a normal good and income of the individuals increases because of economic boom. We know that there is a direct relationship between the income of an individual and demand for normal goods.

Increase in the income level of the individuals will result in higher demand for smartphones. This will shift the demand curve of smartphones rightwards.

Simultaneously, the wages of sales representatives who work for cell phone companies also increases. This will increase the cost of production for the firms and shifts the supply curve of smartphones leftwards.

Hence, the equilibrium price of smartphones increases but the effect on equilibrium quantity is indeterminate because its effect will be depend upon the magnitude of the shift of supply and demand curve.

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In the former Soviet Union, producers were paid for meeting output targets, not for selling products. Under those circumstances,
Firlakuza [10]

Answer:

The economic incentive was to produce enough to meet the output target, without regard for quality or cost.

Explanation:

As the only condition for the payment to the producers is linked with the output thus there is no constraint for the quality and the sales of the product. This indicated that the producer will get the reward irrespective whether the quality or cost of the product is feasible or not.

8 0
3 years ago
Read 2 more answers
Souza Inc, which produces and sells a single product, has provided its contribution format income statement for October. Sales (
Kipish [7]

Answer:

Net operating income is $300

Explanation:

We know that,

The net operating income = Sales - variable cost - fixed expenses

And, the contribution margin = Sales - variable cost

So, contribution margin - fixed expenses = Net operating income

Since we have to compute the net operating income for 3,500 units So, first we have to compute the contribution margin per unit which is shown below:

= Contribution margin ÷ number of units

= $48,000 ÷ 4,000 units

= $12

Now for 3,500 units, the contribution margin would be

= 3,500 units × $12

= $42,000

So, the net operating income would be

= $42,000 - $41,700

= $300

The fixed expenses would not be changes. It remains constant

5 0
3 years ago
The field of operations management is shaped by advances in which of the following fields?
natulia [17]

Answer:

E) all of the above

Explanation:

THIS ARE THE OPTIONS FOR THE QUESTION BELOW

A) chemistry and physics

B) industrial engineering and management science

C) biology and anatomy

D) information technology

E) all of the above

Operations management can be regarded as administration of business practices which brings about creation

of highest level of efficiency that can be created within an organization. It is responsible for conversion of materials as well as labor to goods/services so that profit can be maximized efficiently

in an organization. It should be noted that The field of operations management is shaped by advances in fields such as ;

✓chemistry and physics

✓management science

✓ biology and anatomy

✓information technology

✓Industrial engineering

7 0
3 years ago
7. Two farmers, A and B, each apply 100 tons of manure on their fields. To reduce manure runoff, the government has decided to r
valentinak56 [21]

Answer:

Explanation:

1) The total cost of reducing runoff if the farmers are not allowed to trade permits is:

total loss = farmer A' loss + farmer B's loss

where:

  • farmer A's loss = (100 - 50) x $25 = $1,250
  • farmer B's loss = (100 - 50) x $50 = $2,500

total loss = $1,250 + $2,500 = $3,750

2) The total cost of reducing runoff if the farmers are allowed to trade permits is:

Since farmer A will be willing to sell his permits to farmer B for a price that is ≥ $25 and ≤ $50, the total cost of reducing runoff is $2,500.

If farmer A sells his runoff permit at a price higher than $25 his costs will decrease but farmer B's costs will increase, so any gain due to price change is offset by the other farmer's loss.  

8 0
3 years ago
Broker Needa leaves for vacation. In his absence, associate Wanna will be handling the escrow accounts. If Wanna errors with the
ANEK [815]

Correct/Complete Question:

Broker Needa leaves for vacation. In his absence, associate Wanna will be handling the escrow accounts. If Wanna errors with the accounting procedures:

A. Broker Needa's license will be revoked

B. Broker Needa's vacation may be permanent as he is ultimately responsible

C. The Commission will excuse Needa and Wanna; everyone needs a vacation

D. Broker Wanna's solely responsible for her actions

Answer:

B. Broker Needa's vacation may be permanent as he is ultimately responsible

Explanation:

Since Broker Needa is the employer of Wanna, he is ultimately responsible for the errors as the assistant works under his license. Brokers are always responsible for agents under their license.

I hope this helps.

4 0
3 years ago
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