Answer:
B. The idea assumes that consumers and firms always make correct decisions.
Explanation:
The idea is based that every economic agent, regardless of its nature people or firms make right decisions because they make rational process in every decision, with all the information available but must important suppose that the emotional factor does not exist and it allows us to make the optimal decision, to maximize the benefits and minimize the costs.
a. How much would Kaufman Manufacturing’s total operating income increase?
Kaufman Manufacturing's total operating income would increase by $300,000.
To calculate the increase in Kaufman Manufacturing's total operating income, we need to compare the cost of purchasing the materials from outside suppliers with the cost of producing the materials in the Electronic Division and transferring them to the Appliance Division at the established transfer price.
If Kaufman Manufacturing purchases 150,000 units of materials from outside suppliers, the cost would be $25 per unit, which gives a total cost of:
150,000 x $25 = $3,750,000
If the Electronic Division produces 150,000 units of materials at a variable cost of $20 per unit, the total cost would be:
150,000 x $20 = $3,000,000
At a transfer price of $22 per unit, the total revenue from transferring the materials would be:
150,000 x $22 = $3,300,000
Therefore, the total operating income would be:
$3,300,000 - $3,000,000 = $300,000
So Kaufman Manufacturing's total operating income would increase by $300,000.
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People may start looking elsewhere for them if an economy is unable to supply the desired products and services.
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Answer:its B
Explanation: yes
Answer:
The options are given below:
A. $17.5 million.
B. $61.25 million.
C. $122.5 million.
D. $0 million.
The correct option is B. $61.25 million.
Explanation:
From the question above, we have the following:
Number of common shares granted = 17.5 million
Price par common share = $1
Market price of common shares = $7
We calculate the effect on earnings in the year after the shares are granted to executives as follows:
$7 X 17.5 million
=> 122,500,000
Now, we divide this by the number of years that the common share is subject to forfeiture if employment is terminated:
=> 122,500,000/2
=> $61,250,000
ANSWER: GOLD JEWELERY
EXPLANATION: Gold Jewelery is a classic example of a product with highly elastic demand. Consumers often tend to sway away to substitute products or postpone buying the gold jewelery if the price increases by a very small amount.
Two factors which makes the product's demand so elastic are:
a. AVAILABILITY OF SUBSTITUTES: People often tend to shift to substitute products when the price of the product increases. For example, for Gold Jewelery, people often tend to shift to jewelery which are artificial in nature or are made up of comparatively cheaper metals like silver.
b. INCOME LEVEL: Income level of the consumer plays a very important role in the market. Buying Gold jewelery after price hike for a person who earns $1000 a month maybe a trouble but for someone who earns as handsome as $10,000 a month may not be burden.
Answer:
... an increase in supply due to an improvement in technology will result in a lower price and decrease in total revenue.
Explanation:
Price Elasticity of Demand = % change in quantity demanded / % change in price
When elasticity < 1, % change in price will be larger than % change in quantity demanded.
Increase in supply means increase in quantity to be sold. There will be a larger decrease in price (Normally when price rises quantity demanded falls and vice versa)
Revenue = Price x Quantity => when price decreases more than quantity increases, revenue will fall
A value chain analysis is the process of identifying the primary and support activities that add value to a product and seek ways to reduce costs or increase differentiation. It is a strategy tool used to analyze the firm’s activities. This will help the firm identify which activities are more valuable and which activities can be improved to gain competitive advantage.