1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
saw5 [17]
3 years ago
11

the authors cited statistical evidence that the price elasticity of demand for royal crown cola is -2.4, and the price elasticit

y of demand for coke is roughly -5.5. Which firm likely has stronger brand loyalty among customers that provides greater potential for monopoly power in the cola market
Business
1 answer:
Mekhanik [1.2K]3 years ago
8 0

Answer:

royal crown cola

Explanation:

Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.

Price elasticity of demand = percentage change in quantity demanded / percentage change in price  

 If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.  

Demand is inelastic if a small change in price has little or no effect on quantity demanded. The absolute value of elasticity would be less than one

Demand is unit elastic if a small change in price has an equal and proportionate effect on quantity demanded

both companies have an elastic demand because their coefficient of elasticities is greater than 1. Coke has a higher elasticity as a result, consumers would respond sharply to changes in price. this makes them enjoy less brand loyalty when compared with royal crown cola that has a lower elasticity of demand

You might be interested in
The income statement for the year 2018 of Fugazi Co. contains the following information: Revenues $70000 Expenses: Salaries and
olga_2 [115]

Answer:

Explanation:

incorrect answer

a credit balance of $7500

correct answer

a debit balance of $7500.

6 0
3 years ago
Read 2 more answers
why did wiesel write the book night how it connect with readers and who should read the book and why?
Thepotemich [5.8K]
He wrote it because he wanted to share his experience with the world and what he went through. All ages should he able to read books like this so they can learn from the history so they don't repeat the past because everyone needs to know about this even that killer many jews for just being Jews this book helps us have a better understanding of why everyone should be equal to each other.
6 0
3 years ago
Which of the following is a correct statement?
Nastasia [14]

Answer:

The answer is B.

Explanation:

In purely competitive firms, there are many buyers and sellers that no single buyer or seller can influence the price of goods. They accept the price set by the market conditions which depend on the market supply and demand. Firms in this market are price-takers.

In monopolistic firm, no one is competing against him. He is the only one in the industry. He is the only seller while buyers are many. In most cases, buyers do not have alternative than to buy the product. Because of this, the firm in monopoly sets its price. He is a price-maker.

8 0
2 years ago
A newly launched twenty-first century addition to production strategy which leverages lean manufacturing strategies, Six Sigma b
victus00 [196]

Answer:

Adaptive manufacturing

Explanation:

Based on the information provided within the question it can be said that the production strategy that is being mentioned is called Adaptive manufacturing. This uses many practices in order to develop, produce, and deliver products with high demand, while also efficiently managing and using all the existing resources that the company has at it's disposal.

5 0
3 years ago
Read 2 more answers
"The following per unit cost information is available: direct materials $10, direct labor $4, variable manufacturing overhead $3
natta225 [31]

Answer:

The target selling price =$45  

Explanation:

The target selling price is the sum of the total unit cost plus 25% of the the unit cost

The target selling price = Total per unit cost + (25% × total unit cost)

The total unit cost is the sum of all the costs involved making the product available to the consumer.

The sum of direct material cost , labour cost variable manufacturing, fixed manufacturing overhead, variable selling and administrative expenses and fixed selling and administrative expenses.

The target selling price would be determined using te steps below:

Step 1: Calculate the unit cost

Total unit cost = 10 + 4 + 3 + 10 + 1 + 8 = 36  

Total unit cost = $36

Step 2: Calculate the target selling price

Target selling price = Unit cost + (25%× unit cost)

The target selling price = 36 + (25% × 36) = $45  

The target selling price =$45  

8 0
3 years ago
Other questions:
  • Vogel Corporation's cost of goods manufactured last month was $136,000. The beginning finished goods inventory was $35,000 and t
    6·1 answer
  • Our company reported the following financial numbers for one of its divisions for the year; average total assets of $4,100,000;
    12·1 answer
  • John Maynard Keynes recommends active fiscal and monetary policy, so that the government can stimulate the economy when necessar
    14·1 answer
  • In _______________________ arbitration, the arbitrator is not constrained to choose either the management or union's offer(s); r
    15·1 answer
  • Perez Company reported the following data regarding the product it sells: Sales price $ 56 Contribution margin ratio 25 % Fixed
    14·1 answer
  • Beyond the IMS, identify and briefly describe the (exogenous) environmental factors that organizations should consider when perf
    5·1 answer
  • Sioux Corporation is estimating the following sales for the first four months of next year:January$210,000February$280,000March$
    15·1 answer
  • What is the distinguishing feature of a market structure with monopolistic competition?
    15·1 answer
  • FCIA deduction consists of
    13·1 answer
  • Ashton, an appraiser, is estimating value using the sales comparison approach. He applies more weight to two comparables over se
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!