The study of the interaction between individuals and businesses is known as microeconomics.
<h3>What is microeconomics?</h3>
Microeconomics refers to the study of an individual, households the behavior of the firms or organizations in the process of decision making and resources allocation.
It is the study of the outcome, what will come out when an individual changes his or her choices in the response of change in the price, resources and production method.
Basically, microeconomics examines how a firm can maximize its production by minimizing its price for better competition.
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Answer:
b) Economies of scale
Explanation:
In general, value-creating diversification of General Electric under Jack Welch was Economies of scale.
He shut down factories, set workers loose, and offered a promise of "growing rapidly in a slow growth economy," titled a speech he made in 1981 shortly after he became President.
This period of mass restructuring gave him the surname of Neutron Jack when he took people out, much like a neutron bomb as he left the houses.
Answer:
The budgeted net income for 2018 is : $195,300
Explanation:
Prepare the budgeted income statement for 2018 as follows :
Sales $760,000
Less Cost of Sales ($760,000 × 40%) ($304,000)
Gross Profit $456,000
Less Expenses :
Selling Expenses ($84,000)
General and administrative ($93,000)
Net Income before tax $279,000
Income tax expense ($279,000 × 30%) ($83,700)
Net Income for the year $195,300
Conclusion :
The budgeted net income for 2018 is : $195,300
Answer:
the rate of return for each alternative if one year later the stock price is $120 is 100% and 20%
Explanation:
Price of buying call option = 10*1000 = 10000
After 1 year the person can reverse the trade and get profit without having to buy the stock.
Hence profit = 120-100 = 20
Minus call price = 10
Profit per each share = 10
On 1000 shares = 10,000
Hence profit = 10,000/10,000 = 100%
In case we buy stock:
Price of stock = 100*1000 = 100,000
Profit on one stock = 120-100 = 20
On 1000 stock = 20,000
Profit = 20,000/100,000 = 20%
Therefore,the rate of return for each alternative if one year later the stock price is $120 is 100% and 20%
The answer is normal goods.
A normal good, often known as a necessary good, refers to the degree of demand for the good in relation to wage growth or contraction rather than the quality of the good itself.
The relationship between income and demand for a typical good is elastic. To put it another way, changes in income and demand are connected positively or move in the same direction.
The amount by which the quantity demanded for a good changes in response to a change in income is measured as income elasticity of demand. It is employed to comprehend alterations in consumption habits brought by variations in purchasing power.
The income elasticity of demand for a typical good is positive but less than one.
Therefore, Normal goods demand will be more at the point during economic growth. So, inferior goods are sold more at the time of recessions due to less income.
Hence, in the given scenario, where Many gourmet shops go out of business during recessions since they sell almost exclusively normal goods.
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