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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

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Billy Boi Corporation applies manufacturing overhead on the basis of direct labor-hours. At the beginning of the most recent yea
Lena [83]

Answer:

The correct answer is $5,160.

Explanation:

According to the scenario, the given data are as follows:

Estimated OH = $88,480

Estimated direct labor hour = 2,800 labor hour

So, Estimated OH per labor hour = $88,480 ÷ 2,800 = $31.6 / labor hour

Actual OH = $80,160

Actual Direct labor hour = 2,700 labor hour

Now,  Applied OH = Estimated OH per labor hour × Actual Direct labor hour

= $31.6 × 2700

= $85,320

Since, Applied OH is Greater than Actual OH, it is underapplied OH.

Underapplied OH = Applied OH - Actual OH

= $85,320 - $80,160

= $5,160.

Hence, the underapplied OH for the year was $5,160.

6 0
3 years ago
Company Z has sales of $3,000,000, net income of $600,000, total assets of $1,000,000 and 800,000 shares of common stock outstan
Marizza181 [45]

Answer:

Price per share = $18.75

Explanation:

The P/E ratio is the measure of how much the investor's are willing to pay for every $1 earnings of the stock. The p/e ratio is calculated by dividing the price per share of the stock by the earnings per share. The formula for p/e ratio is as follows,

P/E ratio = Price per share / Earnings per share

Earnings per share = Net Income / Number of Common stock outstanding

Earnings per share = 600000 / 800000  =  0.75 per share

25 = Price per share / 0.75

25 * 0.75 = Price per share

Price per share = $18.75

3 0
2 years ago
During the current month, Standard Corporation completed Job 310 and Job 312. Job 310 cost $71,000 and Job 312 cost $51,500. Job
julsineya [31]

Answer:

310

Explanation:

because its like that

4 0
3 years ago
1. Your older sister, Anna is trying to figure out how she's going to pay for college in the
Elis [28]
1.) student loans due to the fact that they are more secure than credit card debt and maybe have long periods before they have to be paid off.
2.) chad has a maximum amount of money he can use before it has to be paid back. Unfortunately chads maximum was so low he couldn’t even buy popcorn, or he already maxed out his card.
6 0
3 years ago
Which of the following describes the results of an increase in supply on price and quintity in the market?
Furkat [3]

Answer:

This question is incomplete. However, I found the full question with choices from the web ;

Which of the following describes the results of an increase in supply on price and quantity in the market?

a.) Both price and quantity increase

b.) Both price and quantity decrease

c.) Price increases and quantity decreases

d.) Price decreases and quantity increases

e.) Insufficient information

Explanation:

If the supply of a product or service  increases in the market, it means that there will be an increase in the quantity of that product/service. Due to the interplay of  the law of demand and supply, competition among suppliers will increase, driving the price down. Therefore, there will be a  fall the equilibrium price and increase in quantity , making choice D correct.

7 0
3 years ago
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