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3 years ago

Explain what test marketing is and its purpose?

1 answer:

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Test marketing is a marketing method that aims to explore consumer response to a product or marketing campaign by making it available on a limited basis before a wider release. Consumers exposed to the product or campaign may or may not be aware that they are part of a test group.

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Consider the following data on the factor endowments of two countries, A and B: Labor Force (millions of workers) 45 20Capital S

Alexus [3.1K]

Answer:

a. Country A

b. Country B

c. Country A

Explanation:

Given

For Country A

Labor force = 45 million = 45000000

Capital Stock = 15 thousand= 15000

For Country B

Labor Force = 20 million = 20000000

Capital Stock = 10 thousand = 10000

a. Which country is relatively capital abundant

A country is capital abundant if its endowment of capital relative to other factors is large compared to other countries.

We calculate the capital/labor ratio for each country.

For A, Ratio = 45000000÷15000 = 3000

For B, Ratio = 20000000÷10000= 2000

The Ratio of country A is greater than B.

So, A is capital redundant.

b. Which country is relatively labor abundant

A country is labour abundant if its endowment of labour relative to other factors is large compared to other countries.

We calculate the labor/capital ratio for each country

For A, Ratio = 15000÷45000000 = 0.000333

For B, Ratio = 10000÷20000000 = 0.0005

The Ratio of country B js greater than A

So, B is capital redundant.

c. Suppose that good S is capital intensive relative to good T. Which country will have comparative advantage in the production of S?

Heckscher–Ohlin theorem in the two-factor case, it states: "A capital-abundant country will export the capital-intensive good, while the labor-abundant country will export the labor-intensive good"

So, if product S is capital intensive relative to T then country A will have more advantage in production of product T to aid their exportation.

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2 years ago

Read 2 more answers

Darlene Company had checks outstanding totaling $5,400 on its June bank reconciliation. In July, Darlene Company issued checks t

Pie

Answer:

b. $18,000

Explanation:

The computation of outstanding checks is shown below:-

Outstanding checks as of the end of July = Start with outstanding checks as of June + Amount of checks issued in July - Amount of checks that cleared in July

= $5,400 + $38,900 - $26,300

= $44,300 - $26,300

= $18,000

Note, The $300 check was issued by a customer, not Darlene.

So, for computing the outstanding checks as of the end of July we simply applied the above formula.

4 0

3 years ago

A company has annual sales of $160 million, a net profit margin of 4%, and total assets of $90 million. It carries $10 million i

sasho [114]

Answer:

18.29%

Explanation:

Return on Equity is the net profit available for equity/ Total equity value.

Total equity = Total assets - Total debt

= $90 million - $55 million = $35 million

Earnings for equity = Annual sales $\times$ net profit margin 4%

= $160 million $\times$ 4% = 6.4 million

Therefore, return on equity = $\frac{Net\ profit\ for\ equity}{Total\ value\ of\ equity}$

= $\frac{6.4\ million}{35\ million} \times 100 = 18.2857$

Therefore, ROE = 18.29%

4 0

3 years ago

When Mi Ola’s purchasing manager places the weekly order for new bikinis based on how many of each type have sold that week, thi

geniusboy [140]

Answer:

The process of making this decision By the CLASSICAL MODEL of decision making

Explanation:

The classical general equilibrium model was developed in the 18th century within the neoclassical economics and it is related to classical economics.

The classical general equilibrium model aims to describe the economy by taking an aggregate of the behavior of individuals and firms.

Decision taken using this Method is usually based on what the eyes are seeing. Facts.

From the text, Ola buys new bikinis weekly based on the designs the customers are buying more. He decides on what to buy for the new week by looking at the designs that his customers went for the previous week. This is a clear case of Classical model of Decision making.

5 0

3 years ago

Gino, a team leader at a business process outsourcing firm, tells the human resource department that a significant share of his

Olegator [25]

Answer:

The department's recommendations would most likely be based on Performance management

Explanation:

Performance management is undertaken to ensure that the activities that are performed are as per the requirements of the organization. It evaluates the performance. It can be of an employee or a department.

Here the actual performance is compared with the standard performance and if any deviation arises then steps are taken to overcome it. Like in this example department is providing training on time management to improve performance.

6 0

3 years ago

Explain what test marketing is and its purpose?​

Explain what test marketing is and its purpose?