Robert has a passion for making ice cream. Assume that ice cream parlors have a market structure of monopolistic competition. Between the local Amy's, Cold Stone Creamery, Marble Slab, Ben & Jerry's, and Baskin Robbins, he has an uphill battle to break into the local ice cream market-
<u>Robert differentiate his ice cream shop, JubJub's, -BY OPENING IT IN "The Triangle</u><u>" area(where the elementary,middle school and the high school are less than 5 minutes away)</u>
Explanation:
The main characteristic of a Monopolistic market are:-
- Their exist many firms in the market.
- The products sold by the firms are similar in nature not identical.
- The firm are free to enter and exit the market.
- The firms have little power to increase their prices.
So considering the above option the only valid choice left with Robert to differentiate his ice cream shop, JubJub's is that he opens his shop near <u> "The Triangle</u><u>" area (where the elementary,middle school and the high school are less than 5 minutes away)</u>
Answer:
The correct answer is option d.
Explanation:
If the government provides subsidies to home construction company it will reduce their cost of producing homes. So at the earlier cost, they will be able to provide more homes. This will cause the supply of homes to increase. This will cause a rightward shift in the supply curve.
At each price, the number of homes supplied by the companies will increase.
Answer:
The correct answer is: Service Quality Gap.
Explanation:
The Service Quality Gap refers to the difference between what a company understands a customer's desires and what must be really done to satisfy that consumer. Firms should make all the efforts in their hands to close that breach and provide the customer with the good or service they need to keep their businesses going. When the gap is not closed, the customer's loyalty fails, pushing them to look for different options in other organizations.
Answer:
Break-even point (dollars)= $219,000
Explanation:
Giving the following information:
Selling price per unit $270
Variable expense per unit $78.30
Fixed expense per month $ 155,490
To calculate the break-even point in dollars, we need to use the following formula:
Break-even point (dollars)= fixed costs/ contribution margin ratio
Break-even point (dollars)= 155,490/ [(270 - 78.3)/270]
Break-even point (dollars)= $219,000
Answer:
b.0.22
Explanation:
Return on investment (ROI) = Operating income/ Beginning Operating Asset = $ 92,000/ $440,000 = 0.22
