Answer:
should it hold the price constant and meet all the excess demand with an increase in production
Explanation:
to determine if the firm should increase their price or not, we have to determine the elasticity of demand.
Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.
Price elasticity of demand = percentage change in quantity demanded / percentage change in price
If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.
Demand is inelastic if a small change in price has little or no effect on quantity demanded. the absolute value of elasticity would be less than one
elasticity of demand = 15% / 10% = 1.5
Demand is elastic. if price is increased, the quantity demanded would fall more than the change in price and total revenue would fall.
Answer: $57,600
Explanation:
The differential Cost of Alternative B over Alternative A can be calculated by subtracting the various costs of Alternative B from A and then summing them up.
Materials
= Alternative B costs - Alternative A Costs
= 56,000 - 24,000
= $32,000
Processing Costs
Alternative B costs - Alternative A Costs
= 30,000 - 30,000
= $0
Equipment Rental
= Alternative B costs - Alternative A Costs
= 28,100 - 10,200
= $17,900
Occupancy Costs
= Alternative B costs - Alternative A Costs
= 26,800 - 19,100
= $7,700
Adding them all up we get,
= 7,700 + 17,900 + 32,000
= $57,600
$57,600 is the differential cost of Alternative B over A.
The correct answer is mass production. Mass production is
being defined as having to manufacture products in large quantities by which
they are likely utilized by an assembly of line technology. This is a process
by which it creates similar products in large numbers.
A company's value-creating activities can offer a competitive advantage by contributing to greater efficiency and lower costs and provide a basis for differentiation.
<h3>What is differentiation?</h3>
This is a process whereby organizations ensure that their product are recognized in the market space. The aim is to distinguish a company's product from competitors.
Hence, a company's value-creating activities can offer a competitive advantage by contributing to greater efficiency and lower costs and provide a basis for differentiation.
Learn more about differentiation here: brainly.com/question/26683215
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Answer:
c. are incurred regardless of sales volume
Explanation:
Fixed costs are expenditures that do not vary with changes in production level. They are the costs that remain constant throughout a financial period. A business will incur fixed costs as long as it's operational regardless of its output or sales level.
Examples of fixed costs are rent, depreciation, salaries, and insurance costs. The majority of overhead costs and indirect costs make up the fixed costs. Variable cost contrasts fixed costs as they increase or decrease as production level changes.
