FALSE
In some industries, high switching costs can act as an important barrier to entry.
Barrier to entry is defined as conditions which prevent companies to enter in a market. It limit the competition as no new firm easily join the market.
Some examples of the barrier to entry is high start-up cost, government regulations, high customer switching cost.
Business earn its profit from customers only , if customers will switch to the substitute product , then company will incur high loss. It will act as a barrier to entry.
It protects the market share. Because if no new comer join then market share will not get shared with other new comer.
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Answer:
Key Points
Explanation:
The government may artificially increase prices through purchasing a portion of the consumer surplus or artificially increase quantity through offering subsidies to producers. This allows the government control over the established equilibrium in agriculture.
Answer:
(C) Joss should charge Iris $500 and Daphne $800, that way economic surplus is maximized.
Explanation:
Assuming information asymmetries in the market, and Iris and Daphne are incapable of compare their willingness to pay against the average price of the market for this type of service, C is true since Joss maximize the economic surplus by increasing his productivity using the time better than his opportunity cost.
<span>Materials purchased on account during the month amounted to $190,000
</span><span>Materials requisitioned and placed in production totaled $156,000
</span><span>Entry to record the transaction for materials =
Work in process = 156,000
Materials = 156,000
This is the entry record requisitioned by the Production department.</span>
Answer:
C. This variable is categorical
Explanation:
A categorical or discrete variable is one that has two or more categories (values). There are two types of categorical variable, nominal and ordinal.
A nominal variable has no intrinsic ordering to its categories. For example, gender is a categorical variable having two categories (male and female) with no intrinsic ordering to the categories.
An ordinal variable has a clear ordering. For example, temperature as a variable with three orderly categories (low, medium and high).
Hence, the variables used in this scenario is an ordinal variable because it has a clear ordering.
