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never [62]
2 years ago
10

For example, the sticky-price theory asserts that the output prices of some goods and services adjust slowly to changes in the p

rice level. Suppose firms announce the prices for their products in advance, based on an expected price level of 100 for the coming year. Many of the firms sell their goods through catalogs and face high costs of reprinting if they change prices. The actual price level turns out to be 90. Faced with high menu costs, the firms that rely on catalog sales choose not to adjust their prices. Sales from catalogs will _____________.
Business
1 answer:
WARRIOR [948]2 years ago
7 0

Answer:

fall

Explanation:

We know that when demand for goods and services are low, this can impact prices since there would be a fall in sales. This happened due to the fact that people would reduce their demand for the good given the increase in their price. From the question that we have here we have been told that the prices that were set by the catalogue when compared to the actual price level is on the high side.

given this explanation, the conclusion is that the sales from catalogues are going to fall

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Bondholders tend to offset the effects of selfish strategies implemented by shareholders by: Multiple Choice increasing the inte
Zepler [3.9K]

It should be noted that bondholders offset the effects of selfish strategies that are implemented by shareholders by A. increasing the interest rate on monies loaned to the firm.

A bondholder simply means an individual that's owning a bond that was issued by the government or a public company.

The effects of selfish strategies that are implemented by shareholders are offset by increasing the interest rate on monies loaned to the firm.

Learn more about bonds on:

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8 0
2 years ago
fatima is struggling in her job and is experiencing increased dissatisfaction. She related to you that her manager has been unfa
KonstantinChe [14]

<u>Answer:</u>

Fatima's statement that she intends to continue in her job in spite of her dissatisfaction makes you think that Fatima will likely experience​ "Cognitive Dissonance".

<u>Explanation:</u>

Cognitive dissonance is a psychological concept when an individual experiences non consistent thoughts and emotions (regardless of the environment). In this example, Fatima had been expected to quit her job (because she hated the manager).

In spite of that, she continued to work. That caused the cognitive dissonance in her behavior, as she changed her attitude. People correlate decisions and feelings many times, but due to some factors like patience, need of job etc, worked for an individual to be consistent and continue job.

4 0
3 years ago
An economy has five people: george, sarah, mason, abbot, and jin. george works for plastics, inc., 40 hours a week. sarah works
Katena32 [7]
The unemployed people in this economy are MASON AND ABBOT. 
Unemployment is said to occur in an economy, when people who are in the working age bracket actively search for work for a long time without getting any. There are different types of unemployment. Unemployment rate is usually used to gauge how healthy an economy is. In the scenario given above, it can be seen that both Mason and Abbot are of working age and they are both actively searching for work without finding one. <span />
3 0
3 years ago
_____ gives the property owner an allowance for the decline in the physical condition of real estate over time.
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Depreciation gives the property owner an allowance for the decline in the physical condition of real estate over time., the actual decline in an asset's fair value, such as the annual decline in value of factory equipment due to use and wear, and second, the allocation in accounting statements of the asset's original cost to periods during which the asset is used.

Depreciation in accounting refers to two different aspects of the same idea: first Depreciation is the process of reallocating, or "writing down," the cost of a tangible item (such as equipment) over the course of that asset's useful life.

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6 0
1 year ago
Ken consumes two goods, Sprite and potato chips. Sprite costs $1 per can, and he consumes it to the point where the marginal uti
borishaifa [10]

Answer:

The correct option is c. $8.

Explanation:

Ken will maximize utility where the following equation holds:

MU of Sprite / Price of Sprite = MU of potato chips / Price of potato chips ................. (1)

Where;

MU of Sprite = Marginal utility of Sprite = 3

Price of Sprite = $1 per can

From the table in the question, equation (1) holds at the point where Marginal utility of potato chips is 6 since the Potato chips cost $2 per bag.

Substituting the values into equation (1), we have:

MU of Sprite / Price of Sprite = MU of potato chips / Price of potato chips => 3 / 1 = 6 / 2 = 3

Since when the marginal utility of potato chips that maximizes utility is 6, Ken consumes 4 Bags of Potato chips monthly and pays $2 per bag at this point, the amount he spends on potato chips each month can be calculated as follows:

Amount spent on potato monthly = Number of bags of Potato chips consumed monthly * Cost of potato chips per bag = 4 * $2 = $8

Therefore, the correct option is c. $8.

3 0
2 years ago
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