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Yuri [45]
3 years ago
13

When XYZ firm entered the market for good A two years​ back, it kept the price of its product low to attract customers away from

its leading competitor. The firm has now established itself and has a market share of 20 percent. The management of XYZ is planning to increase price of A from the current​ $6 per unit to​ $7 per unit. Timothy​ Walters, the marketing​ head, however, feels this is not a good idea because it will reduce quantity demanded drastically from the current​ 1,200 units to 900 units. His colleague and the head of the sales​ department, Jake​ Mayers, feels that the quantity demanded would only decline by 250 units. According to​ Jake, the firm can afford to increase the price because even after the price increase they would still have significant market share
Business
1 answer:
Sonja [21]3 years ago
4 0

Answer:

B) The demand for good A is elastic.

Explanation:

Both Timothy and Jake believe that the demand is elastic, Timothy believes the PED = 1.75, while Jake believes the PED = 1.46. The difference is that Timothy believes the demand is more elastic.

Option A is not correct because Timothy believes total revenue will fall while Jake believes it will increase.

Option C is not correct because both believe that their market share will decrease.  

Option D is not correct because both Timothy and Jake are arguing about higher prices, not lower prices.

Option E is not correct because an increase inn the price of a good does not shift the demand curve, it moves the equilibrium point within the given demand and supply curves.

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Jerry's Flowers had the following cost information related to its purchases of merchandise. Calculate the total cost of merchand
ch4aika [34]

Answer:

$91,100

Explanation:

Calculation to determine the total cost of merchandise purchased

Using this formula

Total cost of merchandise purchased = Invoice cost of merchandise purchases + Cost of transportation in - Purchase returns and allowances - Purchase discount

Let plug in the formula

Total cost of merchandise purchased= $100,000 + $500 - $400 - $9,000

Total cost of merchandise purchased= $91,100

Therefore the total cost of merchandise purchased is $91,100

3 0
3 years ago
Why does actual group productivity never equal potential productivity?
Rama09 [41]

The answer to the question is (C) time is lost to coordinating and organizing group members.

Actual group productivity is never quite equal to the expected productivity mainly because there are other processes involved in the team that the team members must do in order to reach the set common goal. Some of these processes usually include determining how to do the work and distributing the assignments to the right person, as well as setting the roles in the team.

4 0
2 years ago
When the director/manager allows employees to guide themselves toward the goal, then a(n) _______ leadership style is being used
kondaur [170]

Answer:

Free Rein Style

Explanation:

leadership can be described as research area that encomposses the ability of an organisation or an individual to lead a team, individuals or entire organisations.

Free rein style is the most suitable.

7 0
3 years ago
A payday loan company charges 6.00 percent interest for a two-week period. What is the annual interest rate? (Do not round inter
Mashcka [7]

Answer:

The annual interest rate is 156  percent

Explanation:

If   6.00 percent interest for a two-week period then annual interest rate =

rate for a two-week period * (52 weeks/ 2 weeks)  = 0,06 * 26 = 1,56

1,56 * 100 =  156  percent for a year period

<u>Note</u>: One year have 52 weeks

8 0
3 years ago
Delivery of stock index futures a. is never made. b. requires delivery of 1 share of each stock in the index. c. is made by a ca
jolli1 [7]

Answer: c. is made by a cash settlement based on the index value

Explanation:

Stock index futures are settled by cash sort of like index options.

This means that there is no delivery of the actual underlying asset at the end of the contract.

The cash / profit is determined by the starting and ending prices of the futures contract.

6 0
2 years ago
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