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WARRIOR [948]
3 years ago
11

First,label the following scenarios as to whether they would create a producer or consumer surplus. Then, after you have labeled

each scenario, calculate the ensuing surplus.
Jeff finds some steaks for $16 for which he would have been willing to pay $20. The butcher notices the meat is near the expiration date and gives him an extra 75% off.
Business
1 answer:
Iteru [2.4K]3 years ago
8 0
Alice is willing to spend $30 on a pair of jeans, and has a coupon for $10 off she found online. She selects and purchases a $35 pair of jeans, pre-discount. 
(Alice's consumer surplus, $5)

<span>Jeff finds some steaks for $16 for which he would have been willing to pay $20. The butcher notices the meat is near the expiration date and gives him an extra 75% off. </span>
(Jeff's consumer surplus, $16)

<span>Nicole has in her possession a hockey puck from the 2010 Winter Olympic Games and sells it on eBay. She will only sell the puck if the winning bid is greater than or equal to $500. After bidding closes, the last bid stands at $500. </span>
(Nicole's producer surplus, $0)

<span>Claire is trying to sell her used calculus textbook online. She asks for $150 or best offer and is willing to sell for anything over $100. She is able to sell it for $125. </span>
(Claire's producer surplus, $25)


<span>Roy is willing to pay $2.50 for a sports drink. He notices the price is $2.79 and chooses not to purchase a sports drink. (Roy's consumer surplus, $0)</span>
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Based on these information, we can use marketing mix to achieve the goal.

Product

If the brand has already chosen the sector to operate it, it should base on the market taste and demand to determine things related to the product, including: the functions, packaging, appearance, added value for customers, quality, and other supported services (such as warranty). These are information that customers usually consider when they make a purchasing decision. So that the brand should clarify the information about features of products, add benefits that the users can earn from the products.

Price

When determining the pricing strategy, the brand does not only consider the product price but also discounts policy, credit terms, etc. These would base on the position of the brand in the marketplace (in low price, premium or low-medium, etc. and providing high, low or medium quality products, etc.). This bases on the products the brand offers after considering the consumption habit, power of the targeted segments.

Place

Brand has to identify where the products are seen, distributed and purchased so as to approach the largest amount of potential customers. In the place strategy, the prioritized goal is to assure the products are accessible to the targeted customers. (For example, the brand can provide their products at convenient stores if this is the more preferred shopping places of targeted customers.)

Promotion

This refers to the activities to make the brand known more and attract more buyers, including types of advertisement, sponsorship, etc. There are two most common ways of promotion is promote directly the users or promote the distributors (the wholesalers) to import and sell the products of your brand.

People

The people strategy involves in the image of people participated in the brand such as staff, salesperson, other employees. This affects mainly the customer services - which would have considerable impact on the perception of customers about the brand. The people strategy can base on the image they want to target, for example to be basic, friendly or to make the customers feel the vibe of luxurious brand.

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3 years ago
A stock just paid an annual dividend of $2.8. The dividend is expected to grow by 6% per year for the next 4 years. The growth r
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3 years ago
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Answer:  E. What the audience already knows about the subject Previous page

Explanation:

When conducting an audience analysis for a presentation, what should you be ready to answer from your audience?  

 E. What the audience already knows about the subject Previous page

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3 years ago
You are offered a chance to buy an asset for $4,500 that is expected to produce cash flows of $750 at the end of Year 1, $1,000
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Answer:

A

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4 years ago
Presented below are various account balances of K.D. Lang Inc.
yulyashka [42]

Answer:

a. Contra Liability and expense account

b. Long-term liability

c. Long-term and current liability

d. current liability

e. Long-term liability

f. Current asset

g. Current liability

h. current liability

i. current liability

Explanation:

Req. A, B and C

<em>A.</em> Contra liability is a credit liability account for that has an explicit debit liability account. In that case, unamortized premium on bonds payable is a liability for which there is a premium, which is a debit liability. $3,000 is an expense, so it is an expense account.

<em>B.</em> Since the current year is 2017 and the maturity date is 2021, it is a long-term liability.

<em>C.</em> As $200,000 will be matured at the end of the year, it is a current liability. $800,000 is a long-term liability.

Req. D, E and F

<em>D.</em> Due to income tax purpose, employees' wages will be withhold for a specific time, it is a current liability.

<em>E(1,2).</em> Since the notes payable will be matured in 2020, it is a long-term liability.  (as operating cycle is more than one year, it is a long-term liability. Whatever assets are used, they are long-term liabilities.

<em>F.</em> Accounts receivable is a current asset account. Therefore, if the balance is credit due to returns, it will not change the account.

Req. G, H and I

G. Since the bonds payable is matured at the end of this period, the entire amount will be current liability.

H. Bank Overdraft is a current liability account whatever the scenario pretends.

I. Since customers paid and goods have not been provided to them, it is a liability for the company. As it is related to products, it is a current liability.

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4 years ago
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