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2 years ago

When manufacturers such as pampered chef sell directly to consumers, they perform both production and retailing activities?

1 answer:

8 0

That statements is true

Manufacturer is a type of business that transform raw materials into a sellable goods, so technically they can be considered as a producer in the market.
Retailers is someone that sell the goods that produced by the manufacturers to the consumers.

So, in this case, they did perform both production and retailing activities

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Shelly’s preferences for consumption and leisure can be expressed as U(C, L) = (C – 100) * (L – 40). This utility function impli

ludmilkaskok [199]

Answer:

Explanation:

U(C, L) = (C – 100) × (L – 40)

(a) C = (w - t)[110 - L] + 320

C = 10[110 - L] + 320

C + 10L = 1420

where,

C- consumption

w - wages

t - taxes

L - Leisure

(b) Given that,

L = 100 then,

C = 420

$MRS=\frac{MU_{L} }{MU_{C} }$

$MRS=\frac{C-100 }{L-40}$

$MRS=\frac{320}{60}$

= 5.33

C = 320

Reservation wage:

$MRS=\frac{C-100 }{L-40}$

$MRS=\frac{220}{70}$

= 3.14

(d) At optimal level,

$\frac{C-100}{L-40}=\frac{10}{1}$

C - 100 = 10L - 400

C - 10L = -300

C = 10L - 300

Using budget constraint:

C + 10L = 1420

10L - 300 + 10L = 1420

20L = 1720

L* = 86 and C* = 560

4 0

2 years ago

Imagine a linear demand curve graphed with Quantity on the x-axis and Price on the y-axis. We know the middle of the curve is th

Murrr4er [49]

Answer:

A. That's the point where total revenue is maximized

Explanation:

Demand Curve is a downward sloping curve representing inverse relationship between price & quantity demanded.

Elasticity of Demand is the responsiveness of quantity demanded to price change. It can be measured geometrically on a demand curve point by :

Demand curve segment below the point / Demand curve segment above the point.

This way the elasticity keeps on decreasing as we move downwards on the demand curve [Ed=∞ to Ed >1 to Ed = 1 to Ed < 1 to Ed = 0] i.e [from perfectly elastic to elastic to unitary elastic to inelastic to perfectly inelastic demand].

If Demand is Elastic [Ed >1] : There is negative relationship between price and Total Revenue. This point is on the upper segment of demand curve as per geometric method, P- TR negative relationship implies that TR can be increased by decreasing Price.

If Demand is Inelastic [Ed <1] : There is positive relationship between price &total revenue. This point is on the lower segment of demand curve as per geometric method, P-TR positive relationship implies that TR can be increased by increasing price.

So: The best Total Revenue Maximising point is on the middle of demand curve where demand is unitary elastic [Ed=1] - as any other deviation from this point would create an incentive to change price to generate higher revenue.

3 0

3 years ago

Labor unions are restrained in their wage demands because Multiple Choice

MAVERICK [17]

Answer:

the labor demand curve is downsloping is the correct option is

Labor unions are restrained in their wage demands because the labor demand curve is downsloping

8 0

2 years ago

When a person receives an increase in wealth, what is likely to happen to consumption and saving?

Arturiano [62]

When a person receives an increase in wealth, Consumption increases and saving decreases

Both present and future consumption rises as a consumer's current income does as well. Savings increase because current spending increases but does so at a slower rate than current income growth. Again, both present and future consumption rises when the customer receives an increase in predicted future income.

Savings declines because current consumption rises while current income does not. Current and future consumption both grow when the consumer's wealth increases. Again, because current income has not increased, saving has decreased. These individual actions to adjust one's consumption and saving habits have a cumulative effect on the aggregate amount of desired consumption and saving.

To learn more about consumption here,

brainly.com/question/14975005

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8 0

1 year ago

2. How will the presence of Amazon affect the Illini Union Bookstore (both positively and negatively) in the future

mel-nik [20]

The Illini Union Bookstore on the University of Illinois campus has partnered with Amazon to create the first pickup location for Amazon products in Illinois.

What benefits does the collaboration offer?

For orders ordered before noon and for orders placed before 10 p.m., Amazon Prime members will enjoy Free Same-Day Pickup and Free One-Day Pickup, respectively. For a six-month free trial period followed by a 50 percent discount on the standard price of Prime, students can join up for an Amazon Prime Student membership. The worry that a shipment might be harmed or stolen after it has been delivered is also removed.

How will the presence of Amazon affect the Illini Union Bookstore?

The University of Illinois campus' Illini Union Bookstore and Amazon have teamed up to provide the state of Illinois' first Amazon merchandise pickup site. Customers can have their purchases delivered to the store rather than having them transported to their homes thanks to the staffed location.

Learn more about the partnership between amazon and Illini union bookstore: brainly.com/question/17182214

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1 year ago