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Helga [31]
3 years ago
14

At the profit-maximizing level of output, the amount by which the firm can mark up price is: Group of answer choices directly re

lated to the price elasticity of demand for item in question. totally unrelated to the price elasticity of demand for item in question. equal to the ratio of the marginal and average costs of production. inversely related to the price elasticity of demand for item in question.
Business
1 answer:
dem82 [27]3 years ago
6 0

Answer:

inversely related to the price elasticity of demand for item in question.

Explanation:

Price can be defined as the amount of money that is required to be paid by a buyer (customer) to a seller (producer) in order to acquire goods and services. Thus, it refers to the amount of money a customer or consumer buying goods and services are willing to pay for the goods and services being offered. Also, the price of goods and services are primarily being set by the seller or service provider.

Generally, all businesses and entrepreneurship go into the business of buying and selling or providing services to service takers (consumers) for the sole purpose of making profit and maximizing the profits over time.

At the profit-maximizing level of output, the amount by which a business firm can mark up price is inversely related or proportional to the price elasticity of demand for the item (product) in question. Thus, the amount by which a business firm can mark up price increases as the price elasticity of demand for a item (product) decreases and vice-versa.

A price elasticity of demand can be defined as a measure of the responsiveness of the quantity of a product demanded with respect to a change in price of the product, all things being equal.

Also, a mark-up price is simply the difference between the cost price of a good (product) or service and its selling price.

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When Tim earned​ $65,000 he purchased 10 novels a year. His income has just increased to​ $68,000 and he plans to purchase 15 no
trasher [3.6K]

Answer:

8.88

Explanation:

Data provided in the question:

Initial income, I₁ = $65,000

Initial novel purchased, D₁ = 10

Final income, I₂ = $68,000

Final novel purchased, D₂ = 15

Now,

Tim's income elasticity of demand for novels will be

= \frac{(\frac{D_2-D_1}{D_1+D_2})}{(\frac{I_2-I_1}{I_1+I_2})}

on substituting the respective values, we get

= \frac{(\frac{15-10}{10+15})}{(\frac{68,000-65,000}{65,000+68,000})}

= [5 ÷ 25] ÷ [3,000 ÷ 133,000 ]

= 0.2 ÷ 0.0225

= 8.88

5 0
4 years ago
For sustainable development to become a reality, which approach offers the best opportunity for this to happen?
ss7ja [257]

Answer:

<u>Stakeholder.</u>

Explanation:

The best opportunity for this to happen is the stakeholders.

Stakeholders can be defined as the strategic audience that every company has, that is, it is made up of people, organizations, shareholders, suppliers, customers, the community, the press, etc., which constitutes all the interested parties directly affected by a project. or indirectly.

Therefore, this approach that offers the greatest opportunity for sustainable development to become a reality in the organizational environment, as stakeholders correspond to the integration between society and business, therefore the company must carry out its activities in accordance with the interests of stakeholders, acting with ethics and social and sustainable responsibility, as organizations are inserted in a broad context, which corresponds to society. Being ethically aligned with socio-environmental values ​​ensures that the company has a better perception in the active market and consequently more success.

3 0
3 years ago
Chartreuse County Choppers Inc. is experiencing rapid growth. The company expects dividends to grow at 25% per year for the next
LuckyWell [14K]

Answer:

Stock price is $142.13

Explanation:

Given that:

Dividends (D) = $1.74

Dividend grow rate (g) = 25% = 0.25

Required return (R) = 12% = 0.12

Growth rate period (T) = 11 years

Perpetuity (p) = 6% = 0.06

Stock price = [D(1 + g) / (R-g)] {1 -[(1 + g) / (1 + R)]^T}+ [(1 + g)/(1 + R)]^T[D(1 + p)/(R-p)]

Substituting values:

Stock price = [1.74(1 + 0.25) / (0.12-0.25)] {1 -[(1 + 0.25) / (1 + 0.12)]¹¹}+ [(1 + 0.25)/(1 + 0.12)]¹¹[1.74(1 + 0.06)/(0.12 - 0.06)]

Stock price = [(-16.73) × (-2.34)] + [(3.35) ×(30.74)] = 39.1482 + 102.979 = $142.13

Stock price is $142.13

4 0
4 years ago
an example of the frictionally unemployed is a(n): Group of answer choices geologist who is permanently laid off from an oil com
Anna35 [415]

Answer:

real estate agent who leaves a job in Texas and searches for a similar, higher paying job in California

Explanation:

Frictional unemployment occurs when Labour leaves his job in search of another one. It is the period between Labour leaves current employment and get another one.

geologist who is permanently laid off from an oil company due to a new technological advance is an example of structural unemployment

worker at a fast-food restaurant who quits work and attends college is am example of voluntary unemployment.

autoworker who is temporarily laid off because of a decline in sales is an example of cyclical unemployment.

I hope my answer helps you

8 0
3 years ago
When a nation’s currency appreciates, what is the most likely result?
vichka [17]
When a nation's currency appreciates that means there is an increase in the exchange rate. It would result to cheaper imports and lower inflation rates which would be advantageous to those countries who are importing goods. While a weak currency would be better for an economy that's exporting goods to other countries. 
8 0
3 years ago
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