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2 years ago

What factors under the control of owners and managers make a firm successful and allow it to earn economic profits?

Business

1 answer:

mafiozo [28]2 years ago

8 0

Answer: E. The firm's ability to differentiate its product

Explanation:

The factor under the control of owners and managers that make a firm successful and allow it to earn economic profits is the firm's ability to differentiate its product.

Product Differentiation has to do with making a product unique from that of its rivals so that it'll be attractive to the customers and the target market. This will slow be vital for the company to produce at a average cost that is lower than that of its competing firms. This will help the company to have a competitive edge over others.

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Ben Palman owns an art gallery. He accepts paintings and sculpture on consignment and then receives 20% of the price of each pie

Elan Coil [88]

Answer:

1. The cost formula for the gallery's costs for a year would be Total cost=$80,000+$500X

2. The total cost for Ben in a year with 12 opening shows Using the cost formula developed is $86,000

Explanation:

1. According to the given data the cost formula for the gallery's costs for a year would be as follows:

Total cost=Fixed costs+Variable costs for the level of activity

Total cost=$80,000+$500*number of opening shows

Total cost=$80,000+$500X

2. The total cost for Ben in a year with 12 opening shows Using the cost formula developed above would be as follows:

Total cost=$80,000+$500X

Total cost=$80,000+$500*12

Total cost=$80,000+$6,000

Total cost=$86,000

3 0

3 years ago

$1000 Principal with a 6% Interest Rate, Compounded Semi-Annually for 3 years.

umka2103 [35]

Answer:

$1,194.05

Explanation:

The applicable formula is A = P x ( 1+ r) ^ n

Where A is the future amount

P is principal amount $1000

r is 6% per year or 0.06

n= time in years; 3 years

Since interest is compounded semi-annually, r will be 0.06 /2 = 0.03

n will be 3 years /2 = 6 periods

A = $1000 x ( 1 + 0.03) ^ 6

A = $1000 x 1.194052

A=$1,194.05

8 0

3 years ago

Lycan, Inc., has 7.9 percent coupon bonds on the market that have 6 years left to maturity. The bonds make annual payments and h

eimsori [14]

Answer:

$912.68

Explanation:

Particulars Time PVF at 9.9% Amount Present Value

Cash Flows (Interest) 1.00 0.9099 79.00 71.88

Cash Flows (Interest) 2.00 0.8280 79.00 65.41

Cash Flows (Interest) 3.00 0.7534 79.00 59.52

Cash Flows (Interest) 4.00 0.6855 79.00 54.15

Cash Flows (Interest) 5.00 0.6238 79.00 49.28

Cash Flows (Interest) 6.00 0.5676 79.00 44.84

Cash flows (Maturity) 6.00 0.5676 1,000.00 567.60

Intrinsic Value of Bond or Current Bond Price $912.68

Thus, the Current bond price is $912.68

5 0

3 years ago

Does a rising GDP benefit everyone? Explain

Nastasia [14]

Answer:When a country's GDP is high it means that the country is increasing the amount of production that is taking place in the economy and the citizens have a higher income and hence are spending more. However, increase in GDP does not necessarily increase the prosperity of each and every income class of the nation.

Explanation:

3 0

3 years ago

Scenario 5 Guemmer Specialty Foods can produce their famous cherry pies at a rate of 1650 cases per day (this is the daily produ

Arturiano [62]

Answer:

c) Annual set up cost= $9878.04

Explanation:

Economic batch quantity (EBQ) is also known as economic production run, It is the optimum production run that a manufacturer should operate to minimize set up cost and carrying cost.

Carrying cost is the cost of keeping inventory while set up cost is cost of getting machines ready for production

Annual inventory cost = = Set up cost per run× Annul demand / EBQ

Annual demand / the economic production run(EBQ)

It is calculated as follows:

Economic batch quantity =√2× Co× D / Ch(1-D/P)

Where ,

D - annual demand - 62,500

Ch -holding cost per unit per annum - $11.50

Co- set up cost - $320

Production rate = 1650 units per day × 250 days =412,500 units

Economic batch quantity

= √(2× 320× 62,500) / (11.50× (1- 62500/412500) )

=2024.69 units

Annual set up cost

= Set up cost per run × Annul demand / EBQ

= $320× 62,500/2024.69

Annual set up cost= $9878.04

6 0

2 years ago

What factors under the control of owners and managers make a firm successful and allow it to earn economic​ profits?

What factors under the control of owners and managers make a firm successful and allow it to earn economic profits?