Answer: Option (C)
Explanation:
Here, in this particular case we can state that the following circumstance is an example of price lining. Alex Knot's shop applied the process of price lining, that is also known as product line pricing. It is the marketing process under which the commodities or the services in a particular group are evaluated at the unlike price.
In using a marginal cost pricing rule to regulate a natural monopolist, losses would be sustained by the firm because the price is below the average total cost.
The marginal cost, or price of producing more, is the variation in total cost that results from increasing the quantity produced in economics. It can refer to an increase of one unit of output in some settings and to the rate of change of total cost as output increases by a tiny amount in others. The marginal cost is the slope of the total cost, or the rate at which it increases with output, and is expressed in dollars per unit while the total cost is expressed in dollars. The difference between average cost, which is the entire cost divided by the quantity of units produced, and marginal cost is that latter.
Learn more about marginal cost here:
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Answer and Explanation:
The computation is shown below;
a. Total assets are
= Stock + Cash
= [$294,000 ÷ 1500 × 300] + [$300,000 - $225,000 - $69,000]
= $64,800
And, Total expenses is
= Materials + Labor
= $225,000 + $69,000
= $294,000
The Name of the expense is Purchases, Salaries
b. Total assets are
= Cash
= $300,000 - $225,000 - $69,000
= $64,800
And, the Total expenses = $294,000
The Name of the expense is Supplies, Salaries
Answer:
A
Explanation:
Envelopement in business is defined as the entrance of the producer of a particular line of product into another market , incorporating the features of the new product into its already existing line to achieve a multi-platform.
This is especially common to the producer of mobile phones as they can now have features of music and video players incorporated into mobile phones.
In these scenario, the smartphone and music players manufacturer began to offer video recording features , taking over the benefit provided by Pure gear's offering.
In this situation , it will be cheaper and even more portable to use a video recorder and a smart phone . This apparently was the threat to the survival of the Flip video recorder in the market
