firms that can effectively price discriminate can increase profitability when they engage in multiple choice predatory pricing. limit pricing. predatory pricing, limit pricing, and strategies that raise rival costs. strategies that raise rivals' costs.

Answers

Answer 1

Firms that can effectively price discriminate can increase profitability when they will engage in predatory pricing, Limit Pricing as well as strategies that raise rival cost.

Predatory pricing is the practice of lowering prices in order to drive competitors out of business. By eliminating competition, the company moves closer to becoming a monopoly, a privileged position of market dominance that could allow it to fix prices and defy natural supply and demand laws. Predatory pricing violates antitrust laws enacted in a variety of countries to protect consumers from predatory business practices and to ensure fair competition. The problem is that predatory pricing is not always easy to establish. Companies can deny that they cut prices to eliminate competition and instead claim that the actions were taken simply to compete.

A limit price is a price, or pricing strategy, in which a supplier sells products at a low enough price to make it unprofitable for other players to enter the market. Monopolies use it to discourage entry into a market, and it is illegal in many countries. The issue with limit pricing as a strategic behavior is that once an entrant has entered the market, the quantity used as a threat to deter entry is no longer the best response for the incumbent firm.

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Related Questions

Loggers are much likely to supply wood to the market if property rights are not enforced. True or false?.

Answers

Loggers are much likely to supply wood to the market if property rights are not enforced. This statement is False.

Is a loggers a lumberjack?

The term lumberjack is largely historical. The logger is used by his 21st century worker. When lumberjack is used, it usually refers to lumberjacks of an earlier era, before the advent of chainsaws, lumberjacks, and other modern logging equipment.

Why do loggers cut down trees?

Logging or commercial logging includes cutting trees for sale as timber or pulp. Wood is used for houses and furniture, and pulp is used for paper and paper products. Logging generally falls into two categories: selective logging and clear logging.

How does the loggers chop down trees?

The loggers will work with you to harvest the trees marked by the rangers and bring these logs to the 'landing pad' or 'cutter'. For transportation to sawmills or pulp mills. Logging and felling is done by logging crews.

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Organizations using information systems to deal with competitive forces __________.

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Organizations that use information systems to deal with competitive forces aim to achieve the lowest operating costs.

An information system can be defined as an integrated set of components for collecting, storing, and processing data and for providing information, knowledge and digital products. Companies, businesses, organizations and government agencies rely on information systems to run and manage their operations, interact with their customers and suppliers, and compete in the marketplace.

Even information systems are used to run supply chains between organizations/companies and electronic markets. For example, companies use information systems to process financial accounts, to manage their human resources, and to reach their potential customers with online promotions. Many large companies today have been built entirely using information systems.

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when a toothpaste manufacturer divides the marketplace into smaller targets based on benefits sought by consumers, this is an example of market blank .

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When a toothpaste manufacturer divides the marketplace into smaller targets based on benefits sought by consumers, this is an example of market segmentation.

What is market segmentation?

Market segmentation is the process of dividing the customer base of a company into specific groups based on shared characteristics.

There are different methods that can be use to segment consumers:

Benefit segmentation is the grouping of customers based on the benefit that is derived from the goods. In demographic segmentation, people are placed into groups based on age, gender, ethnicity and other demographic factors

A benefit of segmentation is that it enables the producers to better suit consumers by providing them with services that meet their needs.

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nena’s naan, an indian-style restaurant, has wait staff, cooking staff, and managers who must work together to ensure the customers have a smooth and pleasant dining experience. nena’s naan is an example of a(n)

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Nena's Naan has staff that must work together to ensure that customers have a smooth and pleasant experience means that Nena's Naan is system.

What is a system?

A system or organization refers to a body that has different parts and organs that work together to provide a service.

The wait staff, cooking staff, and managers are the parts of the Nena's Naan system that need to work together to provide a pleasant dining experience for people.

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when a store hires a new worker, which arena of exchange is involved—the factor market or the product market

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When a store hires a new worker the Factor market  is involved, because production factors are traded.

What is Factor market?

Economists refer to all of the resources that firms utilize to buy, rent, or hire the equipment they use to generate goods or services as the "factor market." The factors of production—raw materials, land, labor, and capital—are what are required to meet these needs. The input market is another name for the factor market.

Businesses invest in resources to manufacture goods and services on a factor market. People travel to product markets, also known as goods and services markets, to buy finished goods.

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A detailed record of all increases and decreases that have occurred in a particular asset, liability, or equity during a period.

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An in-depth report of all increases and decreases that have occurred in a selected asset,  liability, or equity at some point in duration is known as an account.

A liability is something someone or an organization owes, typically a sum of money. Liabilities are settled over time through the transfer of financial advantages such as cash, items, or offerings. liability is defined as the kingdom of being liable for something or something that a person is answerable for. An instance of legal responsibility is someone having to pay returned pupil loans. An instance of liability is the price of an automobile coincidence.

Liability is any money owed to your business enterprise, whether or not it is bank loans, mortgages, unpaid payments, IOUs, or some other amount of money that you owe a person else. if you've promised to pay someone an amount of cash in the future and haven't paid them yet, it is a liability.

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the section of the purchase agreement you reviewed is not for the buyer to fill out. it is where the seller indicates whether the offer is accepted or countered.

Answers

Documents the agreement between a seller and a listing broker to cease selling a property and specifies the terms for doing so cancellation of Listing.

Purchasing contract

A purchase agreement is a type of agreement that summarizes terms and conditions related to the sale of goods. As a legally binding contract between buyer and seller, the agreements commonly relate to buying and selling goods rather than services. They protect transactions for nearly any type of product.

What is the difference between sale and purchase agreement?

Before a transaction can happen, the buyer and the seller negotiate the price of the item to be sold and the term for the transaction. The SPA is a framework for the negotiation method.

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the manufacturer has put in place a price discrimination policy, where it charges its household customers more per unit than it charges its industrial users. the manufacturer wants to keep the retailer from arbitraging away the profits from the policy. the manufacturer should a. ​vertically integrate into the retail operations in the household market b. ​vertically integrate into the retail operations in the industrial market c. ​reward the household market retaile

Answers

The manufacturer wants to keep the retailer from arbitraging away the profits from the policy. the manufacturer should vertically integrate into the retail operations in the household market . Thus , Option A is correct.

What is Price descrimation?

A selling tactic known as price discrimination involves charging clients various rates for the same good or service depending on what the vendor believes they can persuade the customer to accept. When a merchant uses pure price discrimination, they charge each consumer the highest price they will agree to. In more prevalent types of price discrimination, the supplier divides clients into groups based on particular characteristics and assesses a different price to each group. When a seller discriminates on pricing, each consumer pays a different price for the same good or service.The basis for price discrimination is the seller's conviction that specific groups of customers can be requested to pay more or less depending on their demographics or how much they value the goods or service in question.

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a researcher is interested in whether increased job satisfaction is related to increased job performance. he measures employees’ job satisfaction with a questionnaire and asks the supervisor to complete a questionnaire assessing the employees’ performance. what type of research design is being used?

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According to the paragraph, the type of research design is being used is Experimental Research Design.

What do you mean by Experimental Research Design?

Experimental research design is being considered as the design that is used to investigate the relationship between independent and dependent variables that is helpful to determine the cause-effect relationship.

Adding to it, the experimental method consists of the controlling of variables in order to create motive and effect relationships.

Furthermore, the main features of experimental research design include controlling conditions, observation of the object of the study and dependent and independent variables.

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why is it difficult, or maybe impossible, to calculate a total increase in brand awareness from a campaign spanning multiple media channels?

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Multiple media channels may use different tools to measure brand lift.

What is media channels?

"Multichannel Binding Order" shall refer to the Binding Order by which the Advertiser purchases an advertisement on multiple Media Channels concurrently; "Media Channels" shall mean TV Channels NOVA, the Servers, and/or other media channels that the Provider specifies as such in the future.

"NovaPlus TVC" refers to moving image sequences with or without sound, the content, form, and function of which form an independent unit, and which are made accessible to the public in a linear or non-linear regime by the Provider through an internet server at the website (URL): https://novaplus.nova.cz/, provided that Official Data is available.

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if the value ratio for a good or service is high, the good or service is perceived favorably by customers.

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True, if the value ratio for a good or service is high, the good or service is perceived favorably by customers.

Who is referred to as customers?

An individual or business that purchases goods or services from another company is known as a customer. Customers are crucial to businesses because they generate income; without them, they would cease to exist. Any individual or group that has purchased goods or services from a business is considered a customer. You represent a business's consumer every time you pay a bill or make a purchase there. There are three main categories of clients in general. A person who visits an electronics store and purchases a TV is an illustration of a consumer. (informal) A person, particularly one involved in social interaction.

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randall is applying for a unit in a really desirable part of town. his application has to be approved by a review board and includes an interview, documents, and a formal application form. what type of ownership is randall pursuing?

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Randall is pursuing coop ownership.

Ownership is the kingdom or fact of prison ownership and control over property, which may be any asset, tangible or intangible. possession can contain multiple rights, collectively called title, which can be separated and held via extraordinary events.

Ownership refers to the criminal proper of a person, institution, organization, or authorities to the possession of an aspect. The difficulty of possession is of two sorts material and immaterial matters. cloth possession is that which is tangible like belongings, land, vehicle, book, etc.

To constitute possession the owner must be entitled to the possession of the assets. Proper to possess the factor, which he owns. This is proper in strict feel. He might not have necessarily had the ownership for he may additionally have been wrongfully deprived of it or can also have voluntarily divested himself of it.

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the blank operates on the premise that the common interest of all nations in a workable international monetary system far transcends their conflicting national interests.

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The United Nations operates on the premise that the common interest of all nations in a workable international monetary system far transcends their conflicting national interests.

The economic device is the set of institutions and preparations that supports the monetary system. It includes money and payment systems.

A monetary system is a mechanism through which a central authority provides cash to a country's economic system. cutting-edge monetary systems generally include the national treasury, the mint, the primary banks, and business banks.

There are 3 commonplace kinds of financial structures – commodity cash, commodity-based totally cash, and fiat money. Presently, fiat money is the most common type of financial machine in the world. As an example, us dollar is fiat money.

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the protection of these faculties is the first object of government. from the protection of different and unequal faculties of acquiring property, the possession of different degrees and kinds of property immediately results; and from the influence of these on the sentiments and views of the respective proprietors, ensues a division of the society into different interests and parties.

Answers

The 1st object of government from the federalist paper states that

the protection of these faculties is the first object of governmentfrom the protection of different and unequal faculties of acquiring property,the possession of different degrees and kinds of property immediately resultsand from the influence of these on the sentiments and views of the respective proprietors ensues a division of the society into different interests and parties.

What was the federalist paper?

It refers to the collection of essays written in the 1780s in support of the proposed Constitution and a strong federal government that the people has advocated for. In 1787, the argument for the ratification of the Constitution and essays which were actually written by the statesmen Alexander Hamilton, James Madison and John Jay enforced the ratification.

In this papers, the 1st object of government from the federalist paper states that the protection of these faculties is the first object of government from the protection of different and unequal faculties of acquiring property, the possession of different degrees and kinds of property immediately results, and from the influence of these on the sentiments and views of the respective proprietors ensues a division of the society into different interests and parties.

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a major role of government is to address market failures caused by goods that have external costsand benefits or public benefits. in this part we discuss when the private market can and cannotsolve these problems and the prospects for government success in addressing the problems. 5 externalities: problems and solutionswhen do externalities cause private markets to fail, and what tools does government have tocombat this failure? 6 externalities in action: environmental and health externalitieswe use theoretical tools to examine examples of environmental and health externalities (such asacid rain, global warming, cigarette smoking, and obesity) public finane and publc policy

Answers

One role of governance is to correct problems of market failure associated with public goods, external prices and benefits, and imperfect match.

What is the role of management in addressing the implication of externalities?

Government can discourage negative externalities by taxing goods and services that yield spillover costs. Government can encourage positive externalities by subsidizing goods and services that cause spillover benefits.  Its role is to supply a repeatable and robust system via which an organization can manage its capital assets.

Government intervention to repair market failure always has the potential to move markets closer to efficient solutions, and thus facilitate deadweight losses.

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Having a savings account can contribute to a person’s overall financial well-being. Which one of the following is not a benefit of maintaining a savings account?.

Answers

Having a savings account gives individuals the ability to borrow money from members in the community

An essential sort of financial instrument is a savings account, which enables you to deposit funds and normally earns a moderate rate of interest. These accounts provide a safe location to keep your money while generating interest and are federally insured up to per account owner.

What uses are there for a savings account?

If you want to save money for future needs and objectives, consider opening a savings account. You can deposit funds into savings accounts for protection and to receive interest on your balance. These accounts can be opened with a credit union or bank.

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Complete Question - Having a savings account can contribute to a person s overall financial well-being. Which one of the following is NOT a benefit of maintaining a savings account?

a. A savings account provides security in tough financial times

b. With a savings account, you can invest when the opportunity presents itself

c. Having a savings account gives individuals the ability to borrow money from members in the community

d. A savings account allows an individual to fulfill life long dreams

When a restaurant prices pizza at $10 per slice they sell 100 slices in a night. If they sell pizza for $5 per slice, they sell 300 slices in a night. What is the slope of this demand curve for pizza?.

Answers

Based on the restaurant prices for pizza and the different quantities that they will offer the pizzas, the slope of demand curve is -0.025

What is the slope of the demand curve?

The slope can be found as:

= Change in price / Change in quantity

Solving gives:

= (5 - 10) / (300 - 100)

= -5 / 200

= -0.025

In conclusion, the slope of the demand curve is -0.025

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the gross profit data series is already selected. select just the 2022 data point in the series and change the outline color to black, text 1 (the second color from the left in the top row of theme colors).

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The gross profit data series is already selected. select just the 2022 data point in the series and change the outline color to black, text 1 the second color from the left in the top row of theme colors In the Mini Toolbar, you clicked the Fill button. In the Shape Fill menu, you selected the Green, Accent six color option.

A facts point or commentary is a hard and fast of one or more measurements on a single member of the unit of remark. for instance, in having a look at the determinants of cash demand with the unit of commentary being the individual a records point might be the values of profits, wealth, age of the character, and quantity of dependents.

A single value is located in a worksheet cell plotted in a chart or graph. data Marker A column dot, pie slice, or another image inside the chart represents the value of a record. as an instance in a line graph, every point on the line is a records marker representing a single information cost located in a worksheet cell. A scatter plot or scattergram chart will show the relationship between two different variables or reveals distribution trends.

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you add two new items to your menu. total sales grow from $4,567 to $5,112 but your food cost average climbs from 22% to 28%. did your dollar gross margin increase?

Answers

Yes, there was an increase in the gross margin by 6%. If the sale was to grow from $4,567 to $5,112 there was an increment in the sale by 12%.

What is the meaning of a gross margin?

Gross margin is the amount of money that remains after all direct expenses associated with creating or acquiring the products or services that a business sells have been deducted. The more money the corporation may give toward indirect costs and other expenses like interest, the larger the gross margin.

Given,

Sale = $4,567

Increased sale = $5,112

Average Cost = 22%

Increased Average cost = 28%

Required to Find Gross Margin increase =?

Gross Margin = Increased sales (%) - Increase Average cost (%)

Percentage change in sales = Increase sales - Sale x 100 / sale

Percentage change in sales = $5,112 - $4,567/ $4,567 x 100

Percentage change in sales = 545/4,567 x 100

Percentage change in sales = 12%

Gross Margin = 12% - 6% = 6%

If the sale was to grow from $4,567 to $5,112 there was an increment in the sale by 12% (approx) but due to the increment in sales, the average cost is also increased by 6% i,e. (28 - 22). so the net Gross margin is increased by 6% i,e. (12 - 6).

Thus, the Gross Margin increased by 6%. Gross profit margin, which calculates the proportion of income kept as profit after deducting the cost of goods, is calculated by dividing gross profit by total revenue and multiplying the result by 100.

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The election of john f. Kennedy to the presidency of the unites states ushered in _____, a period during which the federal government continued to work with sub-national governments, particularly by transferring funds via categorical grant programs.

Answers

The election of john f. Kennedy to the presidency of the unites states ushered in Pound Cake Federalism, a period during which the federal government continued to work with sub-national governments, particularly by transferring funds via categorical grant programs.

Dual federalism, also referred to as layer-cake federalism or divided sovereignty, could be a political arrangement during which power is split between the federal and state governments in clearly defined terms, with state governments exercising those powers accorded to them without interference from the national. Dual federalism is defined in contrast to cooperative federalism ("marble-cake federalism"), during which federal and state governments collaborate on policy.

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modern marketers use blank to focus how they approach their customers and market their products.

Answers

Data analytics are a tool that modern marketers utilize to target their consumer interactions and product promotions.

Analyzing data collections to identify trends and make judgments about the information they contain is known as data analytics (DA). Data analytics is increasingly carried out with the use of specialist hardware and software. In order to help businesses make better business decisions, data analytics technologies and methodologies are widely used in the commercial sector. Analytics tools are also used by scientists and researchers to support or refute scientific models, theories, and hypotheses. Initiatives including data analytics can support a company's attempts to boost customer service, optimize marketing campaigns, and generate revenue.

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the general duty clause states that each employer shall furnish ""a place of employment which is free from recognized hazards that are causing or are likely to cause death or serious physical harm to its employees."" true false

Answers

Every employer is required to provide each of their employees with employment and a place of employment that are free from known risks that are already causing or are anticipated to cause death or significant physical harm to his employees.

Around 1.5% of the 61,000+ citations issued by OSHA in the 2018 fiscal year were for violations of the General Duty Clause.

OSHA must pass a four-part test, which includes demonstrating the seriousness of the hazard and the viability of its mitigation, in order to issue a General Duty Clause citation.

Section 5(a)(1) of the Occupational Safety and Health Act of 1970, often known as the General Duty Clause, was created to give OSHA a way to handle hazards for which there are no existing standards. Violence in the workplace in the fields of health care and social services are two recent examples.

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energyone wants to install a high-capacity gas pipeline extension in the region. shareholders anticipate better delivery of energy at lower costs, which will increase profitability. state and local governments are expecting increased tax revenue as well as new jobs in the region during construction of the expansion. some customers look forward to lower gas rates as a result of more efficient delivery. residents of the area, including customers and environmental groups, are opposed to the pipeline because of the increased risk for explosion and danger to the surrounding area. if energyone cannot meet the needs of each stakeholder, what is the most critical way the firm prioritize them?

Answers

The most critical way the firm prioritize them is By identifying its level of dependence on each stakeholder.

What are stakeholders?

A stakeholder is a party with an interest in a business who has the potential to influence or be impacted by it. A typical corporation's investors, workers, clients, and suppliers make up its main stakeholders.

However, the idea has been broadened to encompass communities, governments, and trade groups as a result of the growing focus on corporate social responsibility.

What are the types of stakeholders?

1 Clients: Stake: Employees and the value of the product or service.

2 Employment: money, and safety are at risk.

3 investors: The stakes are financial gains.

4 Vendors and suppliers: Revenues and safety are at risk.

5 Communities.: Health, security, and economic growth all at risk.

government

6. Governments :Taxes and GDP are at risk.

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services act as a middleman, allowing individuals to securely send and receive money. select all that apply. a. p2p b. b2b c. b2c d. c2b

Answers

Services act as a middleman, allowing individuals to securely send and receive money is A. p2p

How to illustrate the information?

It should be noted that p2p simply means the peer to peer platform that allows two individuals to be able to interact directly without the third party.

Peer-to-peer (P2P) lending eliminates the need for a middleman financial institution by allowing borrowers to get loans directly from other borrowers. P2P lending has become much more popular as a substitute for traditional funding thanks to websites that make it possible.

It should be noted that they act as services that act as a middleman, allowing individuals to securely send and receive money.

Therefore, the correct option is A.

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the going concern assumption is critical to the measurement of assets because if a business were going to cease operations, its assets would be measured at theirmultiple choice question.

Answers

The correct answer is liquidation values.

In accounting, a corporation is considered a going concern if it has the resources to operate indefinitely, unless it can prove otherwise. This phrase also describes a business's capacity to generate sufficient revenue to stay afloat or avert bankruptcy. If a company cannot continue as it was, it has filed for bankruptcy and had its assets liquidated. As an illustration, numerous dot-coms are no longer going concerns as a result of the late 1990s tech bust.

Accounting professionals decide what kinds of reporting should appear on financial statements based on the going concern principles. Companies that are still in business may choose to list long-term assets at cost rather than at current value or liquidation value. When the sale of assets does not compromise a company's capacity to run its business, as in the case of closing a minor branch office and moving the staff to other divisions of the business, it is still considered a going concern.

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on october 1, eder fabrication borrowed $60 million and issued a nine-month, 12% promissory note. interest was payable at maturity. prepare the journal entry for the issuance of the note and the appropriate adjusting entry for the note at december 31, the end of the reporting period.

Answers

55,110,929 in cash; debit

55,110,929 in credit notes

Promissory note with discounted interest to be recorded

debt 1.583.741,77 in interest

Credit Card Amount Due: 1.583.741,77 Note

—to record interest that has accrued on a payable note —

What is interest ?

The cost of borrowing money is known as interest, and it is typically stated as a percentage, such as an annual percentage rate (APR). The rate of inflation, the length of the loan, the availability of funds, and the risk of default are important variables that determine interest rates. Ownership in a business can alternatively be expressed as interest.

The sum of money paid for using someone else's money is known as interest. The $20 you earned this year on your savings account is an example of interest. The $2000 in interest you paid on your home loan this year is an example of interest.

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suppose that you are deciding between seeing a move and going to a concert. the movie ticket is $10. you are willing to pay up to $60 for the concert and the ticket costs $50. assuming that going to the concert is the next best thing to seeing a movie, the opportunity cost of going to the movie is: question 4 options: $5 $10 $50 $60

Answers

Suppose that you are deciding between seeing a movie and going to a concert. the movie ticket is $10. you are willing to pay up to $60 for the concert and the ticket costs $50. assuming that going to the concert is the next best thing to seeing a movie, the opportunity cost of going to the movie is $ 50.

The opportunity price of attending the concert is what you would have spent the time on as an alternative if you failed to attend the live performance. The opportunity cost of an object is what you give up to get that item. In this case, the possible cost of going to a film consists of each the entire coins expenditure needed to go to the movie plus the fee of the time you gave up so as to watch the movie.

The possible value is time spent studying and that money to spend on something else. A farmer chooses to plant wheat; the possibility price is planting an extraordinary crop or alternate use of the resources land and farm device. A commuter takes the train to paintings in preference to using. whilst an enterprise should pick between extra options that have unique returns.

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during its first year of operations, forrest company paid $32,410 for direct materials and $50,100 in wages for production workers. lease payments, utility costs, and depreciation on factory equipment totaled $14,900. general, selling, and administrative expenses were $20,100. the average cost to produce one unit was $5.10. how many units were produced during the period?

Answers

The number of units produced during this period is 19,100 units

what is operational cost?

This is the expenses incurred on the course of producing an item. Examples of some of them include: material cost, wages for production workers and so on.

Given data

material costs = $32,410

wages = $50,100

total overhead costs = $14,900

general, selling, and administrative expenses = $20,100

cost  = $5.10.

how to find the units that was produced during the period

let x represent quantity of units produced

production cost = 32,410 + 50,100 + 14,900

production cost  = 97,410

production cost = unit cost * units produced

therefore

production cost = 5.10 * x = 97,410

5.10 * x = 97,410

x = 97,410 / 5.10

x = 19,100

The number of units produced is 19,100 units

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Fascinating fez, a 125-year-old hat and cap manufacturer, markets very high-quality stylish headwear, many of which cost more than $1,000 each, to fashionistas globally, always maintaining its reputation of superior value in its narrow market. Fascinating fez is using a cost-focus strategy.

Answers

False. it is not true that the strategy that Fascinating Fez is using is the cost focus strategy.

What is the cost focus strategy?

This is the term that is used to refer to the strategy that companies would have to use in the attraction of customers to get their products through the reduction of their prices.

This is false because we can see that the question is telling us that the company is very focused in the production of goods that have good quality.

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Complete question

Fascinating fez, a 125-year-old hat and cap manufacturer, markets very high-quality stylish headwear, many of which cost more than $1,000 each, to fashionistas globally, always maintaining its reputation of superior value in its narrow market. Fascinating fez is using a cost-focus strategy.

True

False

topher owns and operates a gym. in 2022, he purchased and placed the following new assets into service for his business: march 17, a $1,700 sound system. july 4, a $500 desk. september 2, a $2,000 computer. he did not opt out of bonus depreciation. what is the total 2022 depreciation for the desk? $89 $117 $250 $500

Answers

Depreciation for the desk is $500.

Computation of total 2022 Depreciation for the desk:

According IRS Provisions for assets Placed onwards 2018 to 2022 for Qualifying assets, The bonus depreciation can be claimed up to 100% of cost for asset, If bonus depreciation did not opt out.

In the given case Topher did not opt out of bonus depreciation, so he is eligible for 100% of cost of desk. Hence total Depreciation for dusk is $500.

What is Depreciation?

Depreciation is an accounting technique for spreading out the expense of a tangible item over the course of its useful life. How much of an asset's value has been used is shown through depreciation. It enables businesses to purchase assets over a predetermined length of time and generate income from those assets.

The immediate cost of ownership is greatly lowered because businesses do not have to fully account for them in the year the assets are purchased. A company's profits can be significantly impacted by not accounting for depreciation. Long-term assets can also be depreciated by businesses for tax and accounting reasons.

Depreciation is comparable to amortization, which takes into account the increase in value of intangible assets over time.

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