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3 years ago

A Giffen good is a good for which price and quantity demanded are positively related. A Giffen good arises when:_______.

Business

1 answer:

IRISSAK [1]3 years ago

7 0

Answer:

Explanation:

A giffen good is a good whose quantity demanded increases with price increase and reduces with price decreases. This leads to an upward sloping demand curve which is not in line with the law of demand

Example of a giffen good is bread.

For a giffen good there would a negative income effect and a positive substitution effect but the income effect would outweigh the substitution effect

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Discuss the optimal method for procuring inputs that have well-defined and measurable quality specifications and require highly

son4ous [18]

Answer:

The optimal method for procuring inputs that have well-defined and measurable quality specifications and require highly specialized investments is the contract.

Explanation:

The contract is signed between the seller and the buyer, and establishes formal and legal terms, and agreed responsabilities. The primary advantages are that firms and buyers are allowed to focus in producing and getting what they need as contracts are used for tangible goods and for rendered services, reducing the opportunistic behaviour and underinvestment.

The CONASUPO, mexican government office, signed a contract with the mexican ranch owners to get all their milk production at low prices to feed the thousands of low income families.

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3 years ago

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Pittsboro Corporation produces and sells a single product. Data for that product are: Sales price per unit $590 Variable cost p

Fofino [41]

Answer:

The company will need to sale 3,883 units to maintain its current operating income of 400,000

Explanation:

We will calculate the point at which the company mantains his current income in units at the new scenario:

$\frac{Fixed\:Cost + target \: income}{Contribution \:Margin} = Break\: Even\: Point_{units}$

<u>Where:</u>

$Sales \: Revenue - Variable \: Cost = Contribution \: Margin$

625 - 190 = 435 each units contributes this amount to afford the fixed cost and make a gain.

Current income: contribution x units sold - fixed cost

(590-190) x 4,000 - 1,200,000 = 400,000

(1,200,000 + 89,000 + 400,000) / 435 = 3,882.75862 = 3,883 units

The company will need to sale 3,883 units to maintain its current operating income of 400,000

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3 years ago

Basel lll mainly focuses on _.

icang [17]

To strengthen requirements from basel ll on the bank’s minimum capitol ratios.

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3 years ago

Cynthia Knott's oyster bar buys fresh Louisiana oysters for $3 per pound and sells them for $8 per pound. Any oysters not sol

iragen [17]

Answer:

111 pounds

Explanation:

The number of pounds Cynthia should order each day can be calculated as follows

Calculation

Standard deviation = 20

Mean = 100

Cost of actual utilization = 8-3 = 5

Cost of Under utilization = 4-2 = 2

Probability of sale = Co/(Cu+Co)

Probability of sale = 5/(5+2)

Probability of sale =0.714

Z score at above probability = z = 0.57

hence cynthia should order= mean+z*standard deviation

Order = 100+0.57*20

Order = 111.4 or 111 pounds

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3 years ago

Why should you save your files on a regular basis?

stich3 [128]

Answer:

in case if anything happens

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3 years ago

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