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bekas [8.4K]
3 years ago
6

Can a business succeed without having ALL four of the Factors of Production (Land, Capital, Labor and Entrepreneurs)? Why or why

not?
PLS HELP ILL MAKE U BRAINLIEST
Business
1 answer:
NNADVOKAT [17]3 years ago
3 0
The answer is Yes.
A business can run properly and the problems are solved considering only labor and capital and sometimes land in the production process.
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An economy produces only 500,000 tables valued at $100 each. Of these, 100,000 are sold to consumers, 200,000 are sold to busine
torisob [31]

Answer:$ 50 million

Explanation:

We know GDP is calculated as the sum of consumption spending(C),Investment spending(I),Government spending(G) and net export(X).

Here

  • Consumption spending=100,000\times 100=\$10 million
  • investment spending=200,000\times 100=\$20 million
  • Government spending=100,000\times 100=\$10 million
  • $5 million worth tables are sold abroad
  • no tables are imported.

At the end of year

GDP=C+I+G+X-M

GDP=10+20+10+5-0=$45 million

and the remaining 50,000 table worth of $5 million in inventory goes to the investment made by private sector

thus value of GDP is $ 50 million.

4 0
3 years ago
Burberry's competitive advantage is through its differentiation strategy. What risk should Burberry remain aware of?
Mumz [18]

Answer:

c.Burberry may run out of creative ideas to remain differentiated.

Explanation:

After considering the Burberry story, which business-level strategy is the company attempting to pursue?

a. Focused Differentiation

b. Focused Low Cost

c. Broad Low Cost

d. Integrated Differentiation and Low Cost

Burberry's competitive advantage is through its differentiation strategy. What risk should Burberry remain aware of?

a. Customers might decide that the price differential between the differentiator's product and the cost leader's product is too large.

b. Customers may decide that it is "too different".

c. Burberry may run out of creative ideas to remain differentiated.

d. There are no risks to differentiation strategies.

In addition to the new designer, Burberry also stepped up its involvement in social media, relationships with style magazines and connecting with high-profile trendsetters. This is an example of which concept?

a. Streamlining processes to take out unnecessary steps  

b. Customization of the product offering to reach different market segments  

c. Reaching efforts focused on building relationships and adding customers

d. Increasing customer retention and reducing customer churn

5 0
3 years ago
Haden Company has determined that the standard material cost for the silk used in making a dress is $27.00 based on three square
Kruka [31]

Answer:

$3,600 unfavorable

Explanation:

Given:

Standard material price = $9 per square foot

Actual material price = $9.2 per square foot

Standard material = 3 square feet

Standard material allowed = 1,000 × 3 = 3,000 square feet

Actual material used = 3,400 square feet

Direct material quantity variance = (Standard material allowed - Actual) × Standard price per unit

= (3000 - 3400) × 9

= $3,600 unfavorable

Actual material used is more than standard material allowed, so variance is unfavorable.

6 0
3 years ago
Broadway Inc. is considering a new musical. The initial investment required is $880,000. Every year, the free cash flow from the
masya89 [10]

Answer:

Broadway Inc.

a. NPV of the project:

= $120,000 ($1,000,000 - 880,000)

b. Expected NPV of the project if the company cannot abandon the project:

= $120,000 ($1,000,000 - 880,000)

c. True NPV if the company can abandon the project after the first year:

= NPV = $74,080 - $880,000

= -$805,920

d. Value of the option to abandon:

= NPV = $74,080 - $880,000

= -$805,920

Explanation:

a) Data and Calculations:

Initial investment cost = $880,000

Assumed cost of capital = 8%

Expected annual free cash inflow = $80,000 in perpetuity

NPV = PV of Cash inflows minus PV of Cash outflows

PV of  a perpetuity = Expected Annual Cash Inflows divided by cost of capital

= $80,000/0.08

= $1,000,000

$80,000 * 0.926 = $74,080

NPV = $74,080 - $880,000

= -$805,920

b) Broadway's Present Value of its perpetual annual cash inflow is calculated by dividing the cash inflow by the rate of interest, which is the cost of capital.

3 0
3 years ago
For most normal goods the income effect and the substitution effect work in the same direction; so when the price of a good fall
bezimeni [28]

Answer:

The income effect and substitution effect work in opposite directions and income effect is dominant.

Explanation:

In case of a normal good, both the income effect as well as substitution effect work in the same direction. A fall in the price of a product will increase the purchasing power of the consumer so its quantity demanded will increase.  

The consumers will also prefer the cheaper good so the substitution effect will cause the quantity demanded to increase.  

In case of an inferior good, however, income elasticity is negative. The income effect and substitution effect work in opposite directions.  

A price decrease in the case of an inferior good will increase the real income and purchasing power of the consumer. This will cause the quantity demanded of the inferior good to decline as the consumer will prefer a substitute normal good.

8 0
3 years ago
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