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cluponka [151]
3 years ago
14

If the elasticity of demand for a company’s product is estimated to be 1.72, what would you advise the company to do if their ob

jective is to decrease revenue?
Business
1 answer:
polet [3.4K]3 years ago
7 0

Answer:

Raise price

Explanation:

Elasticity of demand refers to the responsiveness of quantity demanded with any change in the price level of the product.

Here, the elasticity of demand is 1.72 which indicates that the demand for the product is more elastic. This means that a slightly increase in prices would reduce the quantity demanded by the a larger amount.

Therefore, if this company wants to decrease its revenue then it should raise the price of the product which results in lower quantity demanded and hence, reduction in the revenues.

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Eliminating _______ pushes idea creation and decision-making out of headquarters and into the field. none of these pay bonuses p
natima [27]

The correct answer is layers of management. Layers of management is defined as a centralized, bureaucratic organization structure by which it is composed of three levels of management that are; top-level, middle level, and first level managers that are less top level managers.

3 0
2 years ago
Radovilsky Manufacturing Company , in Hayward, California, makes flashing lights for toys. The company operates its production f
IRISSAK [1]

Answer:

Explanation:

Given Demand D = 12,500 lights per year

Set up cost S = $51

Cost of each light (C) = $1 .05

Holding cost = $0.1 per light per year

Production p= 100 lights per day

Usage (d) = 12,500/300 days = 41.66(round up to 42)

= 42 lights per day

a) What is the optimal sizeof the production run?

Q =√{(2×D×S) / (H(1-(d / p)))}

Q =√{(2×12500×51)/(0.1(1-(42/100)))}

= 4688.577 = 4689 units

Q = 4689 units

b) What is the average holding cost per year?

Average holding cost per year = average inventory level * H

= (Q/2)H[1- (d/p)]

= (4689/2)0.1[1-(42/100)]

= $135.98

c) What is the average setup cost per year?

average setup cost per year = (D/Q)S

= (12,500/4689)× 51

= 135.97

d) What is the total cost per year, including the cost of the lights?

Total cost = D*C + total set up cost + total holding cost

12,500 ×1.05 + 135.98 + 135.97

Total cost = $ 13,396.95

6 0
2 years ago
What is the difference between patronizing your favorite store and patronizing your little brother?
Ugo [173]
Patronizing a store means helping it buy going there often, and basically buying things often and consequently giving it money.. 

Patronizing a little brother means behaving condescendingly towards, a kind of master-slave relationship... One should never do that... 


3 0
3 years ago
Read 2 more answers
g Ms. White has entered the housing market in search of a suitable home. She has saved $10,000 for a down payment and has found
Svetradugi [14.3K]

Answer:

$89,418

Explanation:

It is important to realize that Ms. White has been honoring her mortgage payments for the 18 months that she owned the house.

So we can determine the amount of outstanding debt by constructing an amortization table.

Here, i will use a Financial Calculator to prepare the amortization table.

PV = $90,000

N = 20

I = 12

FV = 0

P/YR = 1

PMT = $11,172.93 (CALCULATED)

Period                 Principle        Interest        Payment            Balance

Beginning                                                                                $90,000

Year 1 End         $373              $ 10,800        $11,173               $89,627

Year 2 End        $417               $ 10,755         $11,173              $89,209

But for the Year 2 she only owned the house for 6 month (to 18 months).

Thus amount outstanding after 18 months is $89,418 ($89,627 - $209)

3 0
2 years ago
6
TEA [102]

Answer: Four pies.

Explanation:

Marginal cost is the additional cost of producing one extra unit of a good or service.

From this graph we see the marginal cost rise when the first pie is produced and then it subsequently decreases as the second and third pie is produced which is where it reaches its lowest point.

From the fourth pie, the marginal cost begins to rise again which means the marginal cost begins to increase when the producer makes four pies.

3 0
3 years ago
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