Answer: Flank attack
Explanation:
Flank attack is a strategy in marketing that is adopted by a competing business to take advantage of an area their competitor is weak at or not paying attention to. It is a strategy used against leading business that are performing less than what is expected in certain segment.
Answer:
The financial advantage (disadvantage) from further processing is $0.40.
Explanation:
Compute the financial advantage (disadvantage) of further processing of T-bone into filet mignon and New York cut steaks using the equation as shown below:
Financial advantage = Total sales from further processing −
Sale revenue lost of one T−bone − Cost of further processing
=$8.90−$7.95−$0.55
=$0.40
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Hence, the financial advantage (disadvantage) of further processing of T-bone into filet mignon and New York cut steaks is $0.40.
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Working Notes:
Compute the total sales from further processing using the equation as shown below:
Sales from further processing = One Fileted Mignon + New York Cut
=$4.50+$4.40
=$8.90
Hence, the total sale from further processing is $8.90.
Compute the Sales revenue from one fileted mignon after further processing using the equation as shown below:
One Fileted Migon = (Selling price per filet mignon×Yeild per ounce / Size of one T−bone steak
)
= $12×6 ounce / 16 ounce
=$4.50
Hence, the sales revenue from one fileted mignon after further processing is $4.50.
Compute the Sales revenue from one New York cut after further processing using the equation as shown below:
New York cut = (Selling price per New York cut × Yeild per ounce / Size of one T−bone steak
)
= $8.8×8ounce / 16 ounce
=$4.40
The correct answer is B.) The problem of scarcity does not exist.
Because since it is a 'perfectly competitive' market then scarcity shouldnt exist.
-Autumn Leaves
Answer:
Demand is Inelastic
Jack : Substitution Effect dominates
Becky : Buy fewer hiking boots
Explanation:
Elasticity of Demand is responsive change in demand due to change in price. Demand is : Elastic - When proportionate change (% change) in demand > proportionate (% change) in price and Inelastic - When proportionate change (% change) in demand < proportionate change (% change) in price .
So, If price rise by 12% & demand decreases by 10% , Demand is Inelastic.
a. Substitution Effect is consumer's shift from dearer to cheaper goods & so, rise in demand of falling prices good , fall in demand of rising prices good . Jake buying lesser T shirts (relatively expensive) when price of Donuts fall (relatively cheaper) means Substitution Effect dominates for him.
b. Income Effect is price - demand inverse relationship, by change in real purchasing power due to price change. Price rise reduces real purchasing power, decreases demand & price fall increases real purchasing power, increases demand. Becky's paint brush price rise reduces her real purchasing power & she consumes less of both paintbrushes & hiking boots.
