Answer:
Willingness to pay
Revenue
Two
Elastic
Inelastic
Explanation:
Price discrimination is when a producer or a seller charges different prices for the same product usually in different markets.
In price discrimination, a seller attempts to remove or reduce consumer surplus by charging the consumer at his willingness to pay. For price discrimination to be effective, a seller must be able to estimate the willingness to pay of consumers.
Price discrimination is successful when a seller earns higher profits when she discriminates compared to when she didn't price discriminate.
Price discrimination exists in the airline industry. One of the ways price discrimination exists in the airline industry is through charging to check bags. Customers ( people who board airplanes) are distributed into two groups- those who won't pay to check bags and those who would pay to check bags.
It is assumed that those who would pay to check their bags have a price inelastic demand because they are indifferent to paying an extra amount for their luggage.
Inelastic demand is defined as when a small change in price has no effect on quantity demanded.
While it is assumed that those who won't pay to check their bags have an elastic demand because they are unwilling to pay extra to check their luggages.
Elastic demand is when a change in price has effect on quantity demanded.
Answer: The correct option therefore is > upward sloping
Explanation:
When resources are limited in quantity, the cost of production would increase. Hence, in the long run, the supply curve will be upward sloping.
Answer:
25%
Explanation:
the formula for the margin of safety is as follows
margin = current sales level -breakeven point/ current sales level x 100
expected sales unit = 20,000 units
the break-even point is fixed costs/contribution margin
fixed costs= $360,000
contribution margin = sales price- variable costs
=61-37
=24
breakeven point = $360,000/ 24
=15000
the margin of safety = 20,000-15,000/20,000 x 100
=5000/20000 x 100
=25%
The project's projected NPV is $185.11. (second option)
<h3>What is the NPV?</h3>
Net present value is the present value of after-tax cash flows from an investment less the amount invested. Only projects with a positive NPV should be accepted.
A project with a negative NPV should not be chosen because it isn't profitable. NPV is calculated by taking the present value of all cash flows over the life of a project. Then, the present value of cash flows is subtracted from the investment's initial investment
NPV = -1200 + 400 / 1.0975 + 425 / 1.0975² + 450 / 1.0975³ + 475 / 1.0975^4
= $185.11
To learn more about net present value, please check: brainly.com/question/25748668
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