Answer:
c. Real GDP in long run
Explanation:
Potential GDP refers to the level of real GDP in long run.
Answer:
negative consumption externality.
Explanation:
A negative externality arises when the production or consumption of a finished product or service has negative impact (cost) on a third party.
On the other hand, a positive externality arises when the production or consumption of a finished product or service has a significant impact or benefits to a third party that isn't directly involved in the transaction.
In this scenario, your neighbor enjoys seeing the grass in his yard grow wild and free, a practice with which you disagree because it poses a danger on the people around as snakes and other poisonous animals may breed or live there.
Hence, this is an example of a negative consumption externality because it's the potential of causing you harm or endangering your life.
Answer:
the 5Cs of opportunity identication:
1. Circumstance
2. Context
3. Constraints
4. Compensating behaviors
5. Criteria
Explanation:
According to Scot Anthony, to identify opportunities it's important to understand the 5Cs of opportunity identication.
1. Circumstance: Know the specific problems which your customers care about and how they get solutions to it.
2. Context: Know what the customer did in the past and work around it to present something realistic.
3. Constraints: Get to understand customers' barriers and constraint.
4. Compensating behaviors: Understand the compensations that engage your customers.
5. Criteria: In order to know a good solution, it's important to understand the criteria that matter to your customers.
Answer: Diversification
Explanation: Diversification strategy involves widening the scope of the organization across different products and market sector. Furthermore, it is used to expand firms operations and productivity by adding markets, products, services, or stages of production to the existing business and the main aim of diversification is to minimize the risk by investing in range of products. It helps in reducing the market volatility.
Given:
Q0 = 1000 units
Q1 = 1400 units
P0 = $25
P1 = $35
Required:
Price elasticity of Supply =?
Solution:
The price of elasticity of supply is a ratio between the change in quantity demand and the change in pricing. Thus, it can be calculated as:
Price of elasticity of Supply = (Q1-Q0)/((Q1+Q0)/2) ÷ (P1-P0)/((P1+P0)/2)
Subsituting values,
Price of elasticity of Supply = (1400-1000)/((1400+1000)/2) ÷ (35-25)/((35+25)/2)
Price of elasticity of Supply = 1
