The statement,"A disadvantage of vertical integration is that by pooling demand for parts from a number of companies, a supplier may be able to enjoy economies of scale that result in higher quality and lower cost than if every company makes its own parts" is True
.
<u>Explanation:
</u>
The drawback to vertical integration is that a producer can have economies of scale, and incorporate demand for components from certain companies and therefore improve quality and cost in contrast with the production of their own products by each company.
Market power is a framework in which an organization manages the microeconomics and administration supply chain. In general, a supply chain leader creates another goods or services and the products satisfy a certain criteria.
A retailer such as Wal-Mart, which has its own products, is an example of vertical integration. This owns the inventory, manages the distribution and is the seller. Because it splits the guy in between, the company will deliver a much lower price, such as the brand name drug.
Answer:
The fixed cost per unit decreases when volume increases.
Explanation:
As the name implies the fixed cost are a constant value.
They total cost do not change by the activity of the business
Using common sense we can already notice that if do not change with volume at the total level, it is better to produce as much as possible to generate a better use of the fixed cost.
Now moving to the unit cost, this is calculate by dividing the fixed cost by the volume
As the volume increase the quotient decrease because, the same number is divided by a bigger figure.
So the unit fixed cost are smaller.
<u>EXAMPLE</u>
If a factory cost 1,000,000 per month
and only produce 1 chair, then the cost of that chair was 1,000,000
while if the production is 500,000 chairs the cost is 2 per chair.
Answer:
- Increase
- Increasing
- Rise above
Explanation:
The sticky wage theory is based on the fact that everyone's wages tend to change more slowly than other changes in the economy. This question uses the example of inflation, but the sticky wage theory also applies for unemployment rate. If unemployment rate increases, the wages of currently employed individuals will not decrease, they might even increase a little bit. This is true even for CEOs, remember when the CEOs of General Motors and Chrysler still earned tens of millions of dollars while their companies went bankrupt?
Answer:
D) $25,000
Explanation:
Even though Dana and Larry are married, since they are filing separate tax returns, then all the income that Larry must declare are his $25,000 earned as rental income.
If they were filing together, then they would declare $70,000 as combined income (= $25,000 + $45,000).
Answer:
c. A magazine ad that asks you to call a toll-free number for more information
Explanation:
The direct response print advertising is the advertising in which the customer get the immediate response from the advertiser about the advertisement in which the customer has an interest
Since in the given situation, the third options reflects the direct response print advertising in which the customer called the toll free information and immediately he or she get the response from the advertiser