Answer:
He will sell 600 pizzas per week if he cuts the price by 10%.
Explanation:
Price Elasticity of demand measure the responsiveness of demand to change in the price of a product. It calculates the ratio of change in demand and change in price.
Price elasticity of demand = % change in demand / % change in price
-2 = % change in demand / 10%
% Change in in demand = -2 x 10%
% Change in in demand = -20%
Following the law of demand as price decreases the demand of the product increases. So the sale of Pizzas will be increased by 20%.
Current Sale of Pizzas = 500 pizzas
Increase in sales = 500 x 20% = 100 pizzas
Increased sale = 500 + 100 = 600 pizzas
- Shut down, if the minimum possible average variable cost is $5
In the purely competitive market majority of the producers is price taker as there are many sellers of the same homogenous product. When in the situation of Marginal Cost (MC) of product at the current rate of production is equal to the market price. This shows that the firm isn’t in profit, it is selling at which they are producing. So, the Average Variable Cost AVC of product at this level indicates the shutdown of the firm production.
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Answer:
Threats
Explanation:
This is the influence strategy known as threats. Influence strategies can be as a result of threats, manipulation, promises, persuasions and relationships. These are particularly popular with sales representatives, managers, parents, etc.
Threats
In a strategy based on threats, a manager might want a desired behavior and the ounishment that will be given if the desired result is not accomplished. Threats are normally used as a last result.
Answer:
C. Backing up her points with general principles rather than data.
Explanation:
This is due to the fact that all the other options would not play well psychologically with the state of mind the employees are in other than letting them know the truth with the value of important principles attached to them.