Answer:
True
Explanation:
If a natural disaster occurs, house insurance can prevent you from further financial loss, as some compensation would be given.
Answer:
C) Make its demand curve more inelastic
Explanation:
A product is inelastic if the demand for it does not change a lot when price changes. For example, gasoline is a perfect example of a good with inelastic demand because customers buy gasoline even if the price rises.
A firm will always want to have inelastic products because this will assure revenue even if production costs have to be raised, and the sales price therefore increases.
Advertising can achieve that by increasing brand loyalty, product differentiation, or good perception about the product. Customers may feel that no matter how high the price is, the product is worth it.
Answer: Revenue is maximum at x=25 and y=0. That is when the firm makes only yellow cakes and no strawberry cakes.
Explanation:
x- Number of Yellow cakes
y- Number of Strawberry cakes
Time constrain is given by
Revenue is given by,
At the vertices, revenue is
At (0,0)
TR = $0
At (0,150)
At (225,0)
Therefore, Revenue is maximum at x=25 and y=0. That is when the firm makes only yellow cakes and no strawberry cakes.
Answer:
$27,500
Explanation:
As mention in the question the company selling the 2000 seats
also the manufacturing cost is =$40
Direct labor cost =$15
As the seat company A =500 seats
So the Direct Material Cost= seat company A allotment *manufacturing cost
=500*40
=$20,000
Also the Direct labor cost =seat company A allotment *direct labor cost
=$500*$15
=$7500
Therefore the total relevant cost of the firm is
=Direct Material cost +Direct labor cost
=$20,000+$7500
=$27,500
