Marginal utility will be calculated for movies by: 14/(4*4) which would mean 0.875 utils per dollar per movie. Whereas, for apps, it would be: 8/(3*4) which would mean utils per dollar per app to be 0.667. Hence, movies tend to carry higher utility.
Answer:
Hub and spoke system
Explanation:
Costco Wholesale Corporation is a company that operates in the warehouse industry. They store merchandise at a lower cost than other wholesale or retail sources.
They aim to reduce warehousing cost for small and medium scale businesses.
In the hub and spoke system each component of the warehousing system are independent and contribute to the central warehousing activity.
It is also called the master feeder structure.
Freight traffic is moved to the central hub through spokes that are arranged around the centre like a wheel.
This system reduces the travel time and therefore is more efficient with lower cost
Answer: A. Lowering the degree of operating leverage.
Explanation:
The degree of operating leverage measure how much the earnings from a project will change as a result of sales.
If you are worried about the cash flow forecasts, it would be best to lower the operating leverage so as to reduce the forecasting error associated with the project. If the operating leverage is high then a small change in sales could impact income in a relatively huge way. By reducing the DOL, the cashflow from the project is easier to forecast and therefore more reliable.
Answer:
An investor has her money segregated into checking, savings, and investments. The allocation among the categories is subjective, yet the investor spends freely from the checking account and not the others. This behavior can be explained as _______________.
Mental accounting
Explanation:
Mental accounting is the concept with which the management sciences explain the mental processes in which people perform categorization, evaluation, and coding of economics. It was proposed by Richard Thaler and suggests that people can perform it with easiness when they manage the accounting of their finance in their minds.
Answer with its Explanation:
In the 1800s, advertising was done in local newspapers and in a number of magazines. The cost of advertising in newspapers was very high in those days because the only source of communication with the public was newspaper and magazines.
The designing of copying and opting to art was very common in those days which was adopted to attract key customers and placement of the advertisements in a specific place which would result in higher sales was also common to attract customer attention.
The telephone was invented in 1876, but still telemarketing started in 1970s. So the primary source of advertising and sales promotions was either by newspaper and magazines or face to face selling.
