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3 years ago

Because a monopolistic competitor has some monopoly power, advertising to increase that monopoly power makes sense as long as

Business

1 answer:

densk [106]3 years ago

5 0

Answer: the marginal benefit of advertising exceeds the marginal cost of advertising

Explanation: Under a monopolistic competition, there are fewer sellers in the market, and due to the fact that a monopolistic competitor has some monopoly power, advertising to increase that monopoly power makes sense as long as the marginal benefit of advertising exceeds the marginal cost of advertising allowing the monopolist to turn a profit for the business while keeping it relevant for as long as is possible.

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The title of this talk is “Profit’s Not Always the Point.” But do you think profit is an added perk for companies that make the

Fantom [35]

Explanation:

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3 years ago

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3 years ago

A distributor of large appliances needs to determine the order quantities and reorder points for the various products it carries

blondinia [14]

Answer:

a. 32 refrigerators

b. 29 refrigerators

Explanation:

a. The computation of the economic order quantity is shown below:

$= \sqrt{\frac{2\times \text{Annual demand}\times \text{Ordering cost}}{\text{Carrying cost}}}$

$= \sqrt{\frac{2\times \text{500}\times \text{\$100}}{\text{\$100}}}$

= 32 refrigerators

The carrying cost is come from

= $500 × 20%

= $100

b. And, the reorder point is

= Annual demand ÷ total number of days in a year × lead time + service level × Standard deviation during lead time

= 500 ÷ 365 days × 7 days + 1.90 × 10

= 29 refrigerators

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4 years ago

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3 years ago

Read 2 more answers

The break-even in units sold will decrease if there is an increase in: a. unit sales volume. b. total fixed expenses. c. unit va

s2008m [1.1K]

Answer:

d. Selling Price

Explanation:

Break even point is calculated as $\frac{Fixed\ cost}{Contribution\ per\ unit}$

Thus, break even point in units only in two cases,

Fixed cost is reduced that is decreased,
Contribution per unit is increased.

Now, here the options are

a. Increase in units sales volume is of no relevance as will not impact the fixed cost or contribution per unit.

b. Increase in fixed cost will result in higher break even point, as numerator in the fraction will increase.

c. Increase in unit variable cost will ultimately decrease the contribution thus, it is of no relevance.

d. Increase in selling price will increase the contribution per unit, that is the increase in denominator value in fraction, thus, break even units will decrease.

Correct option is

d. Selling Price

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4 years ago