When Ben left the corporate rat race to start his own pottery business, he used some of his retirement savings to finance the business. This practice is known as bootstrapping.
<h3>What is bootstrapping?</h3>
Bootstrapping is a word used in business to describe the process of starting and growing a firm utilizing solely available resources, such as personal funds, personal computing equipment, and garage space.
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Answer:
It occur where MR = MC
Explanation:
Perfectly competitive organization or firm is the one who is price taker, which states that they must accept the price at which it sells the goods to consumer.
In a firm that is a perfectly competitive, the level of output as well as the price happen where the Marginal Cost is equal to the Marginal Revenue.
It is stated as MR = MC.
Answer:
Direct material price variance= $5,000 unfavorable
Explanation:
Giving the following information:
Standard cost per unit 3 pounds at $2 per unit
Actual cost per unit 2.5 pounds at $3 per unit
During the month, 5,000 pounds of raw materials were purchased.
<u>To calculate the direct material price variance, we need to use the following formula:</u>
Direct material price variance= (standard price - actual price)*actual quantity
Direct material price variance= (2 - 3)*5,000
Direct material price variance= $5,000 unfavorable
The consumer will buy 56 Units
Procedure to solve
Δp = 20% of 15
Δp = 20/100 × 15
Δp = 3
e = 0.6
Formula:
e = (Δq/Δp)×p/q
0.6 = (Δq/-3)×15/50
0.6 × (-3) = Δq × 0.3
Δq = 1.8/0.3 = 6
Price decreases and quantity increases
Therefore
q' = q+Δq
q' = 50+6
q' = 56
p is the given price, q is the given quantity, Δp is the change in price, Δq is the change in quantity, e is the elasticity, q' is the new quantity.
Price Elasticity
The price elasticity of demand can be said to be an economic measure of the increase in the quantity of commodity demands or consumes in relationship to its change in price.
The price elasticity of demand refers to the percentage change in the quantity demanded of goods divided by the percentage change in the price.
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