Answer: Test marketing
Explanation:
The test marketing is one of the concept that helps in explaining the various type of marketing and the business field concepts as it providing the various types of opportunities for testing the goods.
The man aim of the test marketing is that it evaluating the overall sales performance of an specific organization.
According to the given question, the McDonald's is start promoting and also offer the various types of products and examining the success this is known as the test marketing evaluation process.
Therefore, Test marketing is the correct answer.
Answer:
a. oligopoly.
b. an economic profit.
c. economic profits will fall.
Explanation:
An oligopoly can be defined as a market structure comprising of a small number of firms (sellers) offering identical or similar products, wherein none can limit the significant influence of others.
Hence, it is a market structure that is distinguished by several characteristics, one of which is either similar or identical products and dominance by few firms.
The characteristics of an oligopolistic market structure are;
I. Mutual interdependence between the firms.
II. Market control by many small firms.
III. Difficult entry to new firms.
Hence, a firm operating in the United States of America with only two other competitors in the industry is likely to be an industry that would be characterized as oligopoly.
Additionally, business firms operating in this industry (oligopolistic market) will likely earn an economic profit. Also, if foreign business firms begin supplying the product, increasing the number of competitors, it is likely that economic profits will fall because the industry is now being competitive and controlled by other business firms.
Predictions usually refer to the collective behavior of large groups rather than individual because looking at the behaviors of a large group of individuals allows economist to discern General patterns of actions and therefore make more reliable generalization.
Answer:
a.
Relevant costs:
Supplies costs
Inspection costs
Assembly costs
Irrelevant cost:
power cost
b.$20,000
Explanation:
The following costs are relevant because they would be incurred as a result of investing in either of the two alternatives:
Supplies costs
Inspection costs
Assembly costs
Power costs is not relevant because is not incurred as direct consequence of the two alternatives,even when none of the alternatives is chosen power cost would still be incurred.
Costs of alternative M=$77,000+$49,000+$42,000+$168000
Costs of alternative N=$68,000+$49,000+$31,000=$148,000
Differential cost=$168,000-$148,000=$20,000
