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kiruha [24]
3 years ago
14

Suppose researchers at the University of Wisconsin discover a new vitamin that increases the milk production of dairy cows. If t

he demand for milk is relatively inelastic, the discovery will
a. raise both price and total revenues.
b. lower both price and total revenues.
c. raise price and lower total revenues.
d. lower price and raise total revenues.
Business
1 answer:
finlep [7]3 years ago
5 0

If the demand for milk is relatively inelastic, the discovery will lower both price and total revenues.

Option - b

<u>Explanation: </u>

Reducing prices to gain sales is a famous advertising tool. This type of situation arises mostly with every day products and services. If the quantity is increased, the demand will be inelastic this will lower both price and total revenue. Total revenue is reduced as price is reduced when demand is inelastic. When demand is inelastic, instead of reducing total revenue it could be hiked by raising price instead of reducing price.

Inelastic demand: In Economics, inelastic demand is even when the price of the product increases or decreases, the purchase rate of the product will be the same.

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Gator Corporation manufactures several types of accessories. For the year, the gloves and mittens line had sales of $480,000, va
marin [14]

Answer:

If 41,000 of costs will remain, it is more convenient to maintain the gloves and mittens line. It gives the possibility to keep working, maintain workers and try to make it to positive profit.

Explanation:

Giving the following information:

Gator Corporation manufactures several types of accessories. For the year, the gloves and mittens line had sales of $480,000, variable expenses of $364,000, and fixed expenses of $150,000. Therefore, the gloves and mittens line had a net loss of $34,000. If Gator eliminates the line, $41,000 of fixed costs will remain.

Sales= 480,000

Variable expense= 364,000

Fixed expense= 150,000

Profit= -34,000

If 41,000 of costs will remain, it is more convenient to maintain the gloves and mittens line. It gives the possibility to keep working, maintain workers and try to make it to positive profit.

6 0
3 years ago
Listed below are certain costs (or discounts) incurred in the purchase or construction of new plant assets. Indicate whether the
Ann [662]

Answer:

a. Capitalized : Equipment

b. Expensed

c. Capitalized : Building

d. Expensed

e. Capitalized : Equipment

f.  Capitalized : Building

g. Capitalized : Building

h. Capitalized : Equipment

Explanation:

The Cost of Property, Plant and Equipment item according to IAS 16 includes, the Purchase Cost and any cost directly incurred in putting the assets in location and condition intended for use by management.

The costs exclude amounts collected in tax on behalf of third parties

Also not Capital expenditures increase the earning ability of the asset whilst  revenue expenditure is the maintenance of such asset.

6 0
3 years ago
Is a stackelberg solution a Nash (stable) equilibrium? Explain. 2. Does the solution change if stackelberg game is considered in
e-lub [12.9K]

The Stackelberg solution can be used to find the perfect or stable Nash equilibrium or equilibria.

<h3>What is this equilibrium about?</h3>

Other answers:

Based on the above, Note that the strategy profile is one where one serves best each player, and based on the strategies of the other player and it covers the fact that all player playing in a Nash equilibrium must be in every subgame.

Note also that The Stackelberg leadership model is said to be a kind off strategic game  that is played in economics where the leader firm is known to moves first and then the follower firms is said to then move in a sequential manner and I think, the solution do not change if stackelberg game is considered in the long run.

I believe that the stackelberg leader will not collude with the stackelberg follower but in a lot of cases, there may be a collusion.

Yes, a Stackelberg leader can be more likely or less likely to merge with the follower firm as a merger can be profitable to them.

Learn more about equilibrium from

brainly.com/question/517289

#SPJ1

8 0
2 years ago
According to proponents of the efficient-market hypothesis, the best strategy for a small investor with a portfolio worth $40,00
viktelen [127]

Answer:

E. Invest in mutual funds.

Explanation:

Individual investors tend to have relatively small portfolios and are usually unable to realize economies of size. The best strategy is to pool funds with other small investors and allow professional managers to invest the funds. Here, a fund manager is hired to invest the cash the investors have contributed, and the fund manager's goal depends on the type of fund; a fixed-income fund manager, for example, would strive to provide the highest yield at the lowest risk.

3 0
3 years ago
A cafeteria buys muffins daily. Demand varies Uniformly between 30 and 50 muffins per day. The cafeteria pays $.20 per muffin an
kakasveta [241]

Answer:

The optimal stocking level is 45 muffins.

Explanation:

First we have to calculate the Overage cost Co = Purchase price - Salvage value = $0.2 - 0 = $0.2

Then the Underage cost Cu = Selling price - Purchase price =$0.80 - $0.2 = $0.60

Service level = Cu / (Cu + Co) = $0.60/($0.60+$0.2) = $0.75

Hence, optimal stocking level = Minimum demand + Service level *(Maximum demand - Minimum demand)

optimal stocking level = 30 + 0.75*(50-30) = 45

The optimal stocking level is 45 muffins.

Optimal stocking level = 68.75 Muffins

5 0
3 years ago
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