2. The case says that Kayem Foods is not meeting its profit targets. Why is it difficult for this firm to make money in this mar
1 answer:
Companies often set target for themselves. The reasons why it is difficult for this firm to make money is that;
- As a result of poor demand for the products
- It can be also be like due to the power or prestige gained over the years by the supermarkets is depreciating.
- This can be due to the small price margin or the price competition from other manufacturers.
- Losses encountered via the issue of Private Label
- Poor marketing and advertisement strategy and poor budget allocation for it.
Kayem Foods is a very popular brand. It is known to be a 4th generation family owned business. It has it headquartered in Chelsea, MA.
It is commonly known in the world to be the biggest processed meat company that is found in New England. They are based on natural casing, fully cooked and fresh sausage etc.
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Answer: d. AD2 and then to AD3
Explanation:
The Long Run Aggregate Supply Curve represents the supply in the Economy when the Economy is at full employment. Operating at this level would be most ideal for an economy.
The point where AD and AS intersect is the quantity produced in the short run. Government policy should therefore be geared at an equilibrium level where Aggregate Demand = Aggregate Supply = Long Run Aggregate Supply because at this point, the Economy will also be at Full Employment in the Short Run which is ideal.
The Fed should therefore attempt to raise investment by enough to shift aggregate demand from AD1 to AD2 and then to AD3 because at AD3, the Aggregate Demand would intersect the AS at the Full Employment quantity which is ideal.
