Answer: The answer is b. Reduce output in the short run.
Explanation: In production, to determine the quantity of products to supply, the demand of the consumer plays a very vital role. This is because the consumer demand will determine the price at which a company will sell its products.
In the case of Techno above, they would do well to reduce the output in the short run, since demand has reduced, pending when the demand increases. This is because if they maintain their current output of 3000 TV sets per week, they will sell less units and their revenue (price x quantity sold) will be lower than their cost and this will lead to them incurring loss.
So until the recession scare passes, output should be reduced in the short run.
<span>As people generally become apprehensive about investing and taking risks during recession, the interest rates should be decreased in order to spur economic growth. Since the demand has decreased, the interest rates also need to decrease in order to stimulate the economy and not let it stagnate.</span>
Answer:
B) false
Explanation:
This is false because the statement from the question is not the only option.
To balance the conflicting demands by firm could be challenging but can be achieved,
✓Look out for the communication needs, then data can as well be turned to information.
✓The only thing a firm can and should do to balance the conflicting demands of being agile in a dynamic environment is to design systems and processes that can identify, assess, and develop technology based opportunities.
Answer:
Option C is correct one. 5575
Explanation:
Percentage change in output due to percentage change in capital
= (0.3)*(10%) = 3% So, increase in output = (3%)*(5000) = 150
Percentage change in output due to percentage change in labour
= (0.7)*(5%) = 3.5% So, increase in output = (3.5%)*(5000) = 175
Increase in output due to increase in productivity
= (5%)*(5000) = 250
So, increased output = 5000 + 150 + 175 + 250 = 5575
