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REY [17]
2 years ago
5

An article in the New York Times about J.C.​ Penney's pricing strategy under former CEO Ron Johnson​ observes: ​"Penney had pull

ed up the​ anchor, only to see many of its customers sail​ away." ​Source: Stephanie Clifford and Katherine​ Rampell, "Sometimes We Want Prices to Fool​ Us," New York Times​, April​ 13, 2013. In behavioral​ economics, an​ "anchor" is A. linking the price of one product to another product. B. relating an unknown value or price to another similar known value or price. C. setting the highest possible price for a product. D. setting the lowest possible price for a product.
Business
1 answer:
kap26 [50]2 years ago
5 0

Answer:

B. relating an unknown value or price to another similar known value or price.

Explanation:

Anchoring is the term used to describe a phenomenon where individuals after being exposed to a particular figure (in this case a price) tend to subsequently use that figure as a reference point.

Thereby fixing of future prices will be biased towards this figure.

In this instance an anchor was in place and kept the customers loyal. But when Penney pulled up the​ anchor, many of the ccustomerswent away.

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Marginal cost is ________ the average variable cost and the average total cost when they are ________
fredd [130]

Answer: equal to; at their minimum.

Explanation: Marginal cost is equal to the average variable cost and the average total cost when they are at their minimum.

Thus, when average total cost is increasing, marginal cost must be above average total cost; and when at its minimum, marginal cost is equal to average total cost. Also, when average variable cost is at its minimum, marginal cost equals average variable cost.

Marginal cost is the increase in the cost that accompanies a unit increase in output; the partial derivative of the cost function with respect to output.

8 0
3 years ago
Given the following information and assuming beginning inventory was zero and a periodic inventory system was used, what is the
aivan3 [116]

Answer:

A.  $650 $750 $677

Explanation:

period                 purchases                            sales

1                        20 units at $50                15 units at $60

2                       35 units at $40                35 units at $45

3                       85 units at $30                85 units at $35

total revenue = $900 + $1,575 + $2,975 = $5,450

COGS:

  • using FIFO = (15 x $50) + (5 x $50) + (30 x $40) + (5 x $40) + (80 x $30) = $4,800
  • using LIFO = (15 x $50) + (35 x $40) + (85 x $30) = $4,700
  • cost average = ($4,950 / 140 units) x 135 units = $4,773.21

Gross profit:

  • using LIFO = $5,450 - $4,800 = $650
  • using FIFO = $5,450 - $4,700 = $750
  • using cost average = $5,450 - $4,773.21 = $676.79 ≈ $677
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When you're attending a college fair, the best way to make use of your time is to
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The production possibilities curve illustrates the basic principle that
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Answer:

If all the resources of an economy are fully used, more of one item could be produced only if less of another item is produced

Explanation:

The concept of production possibility curve shows the different commodities that can be produced in a given economy, given the prevailing level of technology, if all available resources are efficiently utilized.  The idea behind production possibility curve is that in other for in order to produce a particular commodity, the production of another commodity has to be scarified provided that i.e if all the resources of an economy are fully used, more of one item could be produced only if less of another item is produced  

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How do seat belts and air bags save lives?
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