Sailmaster makes high-performance sails for competitive windsurfers. Below is information about the inputs and outputs for one m
odel, the Windy 2000. (Please note that the second part of this question is different from other examples found online). Units sold 1,217
Sales price each $1,700
Total labor hours 46,672
Wage rate $12/hour
Total materials $60,000
Total energy $4,000
Calculate:
I. the productivity in sales revenue/labor expense
(I think that I have done this part correctly; part II is what I don't understand)
(1217 x 1700) / (46672 x 12) =
2068900 / 560064 = 3.69
II. the total productivity.
I understand that total productivity could be expressed in units sold, or dollars of sales; please show both.
Competition in business occurs when a two companies produce and sell similar product. It is further grouped into direct and indirect competition.
While direct competition occurs between companies producing almost the same products , for example breweries producing beers , indirect competition happens between companies selling goods that are not directly similar but can also be used to achieve the same purpose if the other good is not available. Indirect competitors always have a way of sharing or winning over potential customers.
The answer is: Consume more good Y and less good X.
Explanation:
The marginal utility of good Y is greater than the marginal utility of good X. This means that an extra unit consumed of good Y will give the consumer a grater satisfaction than consuming an extra unit of good X. So if the consumer wants to increase his total utility (satisfaction) he should buy more units of good Y.
