As both the supply and demand curves move to the left, the equilibrium quantity declines, but the equilibrium price may move in either direction depending on how much the two curves shift.
Both the price and the quantity will fluctuate when supply and demand both vary. When supply and demand are flowing in the same direction, price is unpredictable. This is due to the fact that higher prices will result from increased demand, whilst lower prices will follow from the rising supply. The price axis travels in both directions, thus the overall impact depends on whether the change is more pronounced. An increase in the quantity is inevitable because both movements cause the equilibrium quantity to rise. According to this, quantity is uncertain when supply and demand shift in opposing directions because one shift will provide an increase while the other will produce a decrease.
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your tenant, tom, has called to complain about a broken water heater. you hire someone to replace it. what type of maintenance are you performing?
Corrective maintenance is to be done when tentant complained about broken water heater.
Corrective Conservation is a conservation task performed to identify, insulate, and amend a fault so that the failed outfit, machine, or system can be restored to an functional condition within the forbearance or limits established for in- service operations. Corrective conservation( CM) involves the relief or form of outfit after it fails.
In response to outfit failure, CM tasks identify the failure( it may be an outfit element or outfit item) and amend the failure so that the outfit can be reinstated and the installation product restored. Unplanned corrective conservation generally occurs when there's no set preventative conservation plan in place. For illustration, you may have a trolley or forklift that isn't audited, but breaks down. Fixing such an item is unplanned corrective conservation.
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How will I know when my loans are forgiven?
According to White House announcement, borrowers who are single and make less than $125,000 annually or who live in households that make less than $250,000 annually eligible for a $10,000 loan forgiveness.
What does the forgiveness of a loan mean?The removal of a borrower's responsibility to repay all or part of a loan is known as loan forgiveness, cancellation, or discharge. The term "forgiveness" or "cancellation" is typically used to describe situations when you are no longer needed to make loan payments because you worked in the nonprofit or public sector.
Who may be forgiven of their school loans?According to a White House announcement, borrowers who are single and make less than $125,000 annually or who live in households that make less than $250,000 annually are eligible for a $10,000 loan forgiveness. Forgiveness will total $20,000 for borrowers who meet the income limits and had Pell Grants during their undergraduate studies.
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true or false: merchandise inventory is generally converted to cash more quickly than accounts receivable. true false question. true false
Answer: False
Explanation:
bev and noah are librarians at summit elementary school. bev works on mondays, wednesdays, and fridays, and noah works on tuesdays and thursdays. they divide the single librarian position, salary, and employee benefits proportionately. what is the name for this type of arrangement?
Job sharing is the name for this type of arrangement as Bev and Noah share their work as librarians.
What is Job sharing?Work sharing, sometimes known as work sharing, is a work arrangement in which two persons, or occasionally more, are kept on a part-time or reduced-time basis to carry out tasks that are typically completed by one person working full-time.
As a result, there is a net decrease in per-employee income. The individuals who share the job are jointly accountable for the workload of the shared job and work together to fulfill the task.
The workers are assigned a percentage of the pay, holidays, and working hours. Superannuation is deducted as a simple percentage in some nations, and mechanisms like pay as you go and PAYE assist in deducting national insurance.
In the 1970s and 1980s, the news media started to cover job sharing seriously.
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the government just increased the legal amount of horse meat available for sale. by itself this change would ? a. make the gdp rise over time. b. make the gdp fall over time. c. not make any change in the gdp over time. d. change the gdp, but in an uncertain direction.
The government just increased the legal amount of horse meat available for sale make the GDP rise over time. GDP is the monetary value of a country's final goods and services (those purchased by the final user) produced over a given time period (say a quarter or a year).
It encompasses all output produced within a country's borders. GDP is the total monetary or market value of all finished goods and services produced within the borders of a country during a given time period. Because it is a broad measure of overall domestic production, it serves as a comprehensive scorecard of a country's economic health. The final monetary value of goods and services produced within a country over a given time period.
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knightmare, incorporated, will pay a dividend of $7.15, $9.95, and $13.15 per share for each of the next three years, respectively. the company will then close its doors. investors require a return of 11.4 percent on the company's stock. what is the current stock price?
According to the aforementioned question we have only the stock's current price of $23.95.
What makes it a firm, and why?An organization is referred regarded be a business since its employees desire to generate value. The word "generate," which meaning to push forth or push forth, has a Latin origin.
Old French, where the words "campaigned" and "companionship" are synonymous, is where the word "company" first appeared. Old English roots for the word "business" combine bustling and -ness.
For the following three years, Knightmare, Inc. will pay dividends of $7.15, $9.95, and $13.15 per share; the stock is now trading at
cash flow 1 = $7.15
cash flow 2 = $9.95,
cash flow 3 = $13.15
discount rate = required rate of return = 11.4 %
The share value =
[tex]\mathrm{\dfrac{ CF_1}{(1+r) } + \dfrac{ CF_2}{(1+r)^2 } + \dfrac{ CF_3}{(1+r) ^3} }[/tex]
Put the values in the formula and we get:
[tex]\dfrac{\$7.15}{(1 + .114)} + \dfrac{\$ 9.95}{(1 + .114)^2} + \dfrac{ \$13.15}{(1 + .114)^3} = \$23.95[/tex]
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Mariah would like to start eating healthier by making low-sugar meals. Which
of the following word searches should she use in order to get the most
specific results?
• A. "sugar'
B. 'recipes for healthy meals-low sugar"
• c. "Iow sugar recipes"
. D. "healthy eating, especially eating low-sugar meals"
true or false? one useful way to review the validity of a financial plan is to compare the projected financial ratios with historical values.
True. Comparing projected financial ratios with historical values can help identify potential discrepancies and allow for adjustments to the financial plan.
Financial ratios provide a snapshot of a company's financial health and performance. They are calculated by dividing one financial statement item by another, such as net income by total assets, and are used to measure liquidity, profitability, efficiency, and other important aspects of a company's financial performance.
Comparing projected financial ratios with historical values can help determine if a company's financial health is improving, declining, or remaining stable. This information can be useful for identifying potential problems or opportunities, and can guide decisions related to financing, investment, and other strategic choices.
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initially a prepayment for items such as rent or insurance are recorded as assets and later are recorded as a(n) in the period the benefit expires
Rent and insurance prepayments, for example, are initially recorded as assets and later recognized as expenses when the benefit expires.
What are expenses?An expense is something that calls for the transfer of funds, or fortune in general, from one person or organization to another as payment for a good, service, or another type of cost.
Rent is a cost to a tenant.
Tuition is a cost to parents or students.
Purchasing anything like food, clothing, furniture, or a car is frequently referred to as a cost.
A cost that is "paid" or "remitted" usually in exchange for anything of value is referred to as an expense.
"Expensive" refers to something that appears to be very expensive.
"Inexpensive" refers to something that appears to be inexpensive.
Prepayments for things like rent or insurance are first recorded as assets and are later recognized as expenses during the time the benefit expires.
Therefore, rent and insurance prepayments, for example, are initially recorded as assets and later recognized as expenses when the benefit expires.
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Correct question:
Initially, a prepayment for items such as rent or insurance is recorded as assets and later is recorded as a(n)___ in the period the benefit expires.
outside providers of market research, artwork, printing, photography, and other services or materials do not allow agencies to take a commission. to cover the cost of administering these services while making a reasonable profit for their efforts, agencies apply a mark-up called
To cover the cost of administering these services while making a reasonable profit for their efforts, agencies apply a mark-up called percentage charges.
Agencies add a markup known as percentage charges to the cost of providing these services in order to pay those costs and still make a profit that is fair for their work. A commission can't be taken by agencies from outside vendors of market research, artwork, printing, photography, or other goods or services. Percentage Charge is the sum of the amounts generated by dividing the following percentages by the total balances of the Funding Accounts as of the prior January 31. A percentage is a division by 100, also referred to as percent. A percentage, which is defined as "per 100," denotes a component of an overall amount. For instance, 45% represents the number 45 out of 100. Calculating a percentage is the process of finding the proportion of a whole in terms of 100. equally manual calculations.
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Identify the negative consequences of establishing a price floor on milk. Negative Consequence Drag appropriate answer(s) here + Consumers will demand higher-quality milk as they are forced to pay more. There will be a surplus of milk. - + There will be a decrease in the quantity of milk demanded Sellers will be tempted to engage in illegal activity to recoup some of their costs due to milk that went unsold. Drog appropriate answer(s) here Not a Negative Consequence
A price floor is a cap placed well above equilibrium price point to stop vendors from overcharging customers.
What is an example of a consumer?Consumers are any person or entity who uses an item or service in its entirety. a customer who pays for a hairdresser to style and cut their hair. a company that buys a printer to use in the office.
Amount provided always surpasses quantity requested in the market when a pricing system is placed on any item or service.
Due to the large number of unsold properties, this will result in an excess supply of goods on the market.
The producers may even engage in unlawful activity to sell their remaining units in order to profit.
Based on the justification provided, we may categorize the negative and positive effects of a minimum price on milk as follows:
detrimental effects
1. There will also be a milk surplus.
2. The amount of milk that is desired will decline.
3. Due to the unsold milk, sellers may be encouraged to do illicit behavior in an effort to recover part of their expenditures.
Not a bad outcome
1. As consumers are compelled to pay more, they will expect milk of a higher caliber.
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securities that are not as safe and liquid as other securities are never considered for investment by anyone. a. true b. false
A security is a fungible, negotiable financial instrument that typically takes the shape of a stock, bond, or option and reflects some kind of financial value.
What do you mean by negotiable?
The phrase "negotiable" can be used to denote either a product's pricing or loosely defined contract terms. Securities with easily transferable ownership are referred to as 'negotiable instruments'. Currency and certificates of deposit are two examples of negotiable instruments. When a price is stated as negotiable, it suggests that you can discuss it until you find a solution. Thus, avoid making your highest offer first. Negotiable can also refer to the ability to utilise a route or path.
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identify some of the other measures of total production and total income other than gdp. which do you think is the most important of these other measures? why?
Gross Domestic Product (GDP) is a commonly used measure of total production and total income in an economy, but it is not the only measure.
Other measures of total production and total income include:
Gross National Product (GNP): Similar to GDP, but includes income generated by citizens and businesses of a country, regardless of where they are located in the world.
Net National Product (NNP): Similar to GNP, but adjusted for depreciation of capital goods.
National Income (NI): The total income earned by citizens and businesses in an economy in a given period, including wages, profits, and rental income.
Personal Income (PI): The total income received by households in an economy, including wages, salaries, and transfer payments.
Disposable Personal Income (DPI): Personal income minus taxes.
Gross Output (GO): Measures the value of all goods and services produced in an economy, including intermediate goods that are used in the production process.
All of these measures provide insight into the level of production and income in an economy, and each has its own strengths and weaknesses.
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if businesses are increasing production and raising their prices, what situation is being eliminated in the market for that good?
If businesses are increasing production and raising their prices, A shortage is a situation being eliminated in the market for that good.
What exactly is a market?
In order to expedite the trade or transaction of products and services, sellers and buyers can come together in a market. A market may be actual, like a real store, or it may be virtual, like an online retailer.
When the price exceeds equilibrium, a surplus results, which motivates sellers to reduce their prices to minimize the surplus. An imbalanced price leads to a shortage.
Therefore, Any place where producers, sellers, or merchants promote their products and make sales is referred to as a market.
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on january 1, merchant company purchases $100,000 bonds at 98. the bonds mature in five years and pay 6% interest semi-annually on june 30 and december 31. merchant decides to utilize the straight-line method of amortization. on december 31, year 1, merchant should credit interest revenue for:
To utilize the straight-line method of amortization. on December 31, year 1, the merchant should credit interest revenue :$3,000.
The straight-line method of amortization of a loan or bond by spreading the principal evenly over the life of the loan. it is considered the simplest and most widely used method of amortization. in this case, since the bond was purchased for $100,000 and pays 6% interest semi-annually, the interest revenue for December 31, year 1 is calculated as follows: interest rate x bond principal =6% x $100,000=$6,000 .
Interest income for december 31, year 1 =(1/2 of principal X interest rate) x (number of daysin period/number of days in a year) = $100,00 x 6% x (182/365)= $3000
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bianca is a business professor who serves on the board of directors for power shake, a nutritional drink company. she brings her unique perspective from the field, and she is qualified, knowledgeable, and independent of the company. bianca is a(n)
Correct answer is Field Director.
A discipline director is defined as any individual who organizes neighborhood outreach and controls the area operations of, typically, political or advocacy outreach.
This commonly entails managing canvassers and setting out the areas and engagement with residents required via the project.
What is the accountability for area director?OVERVIEW OF RESPONSIBILITIES: The National Field Director is accountable for the development and management of assigned area campaigns and yr round discipline activities.
The AFL-CIO implements campaigns at all ranges with country and local federation bodies, affiliated unions and allied organizations.
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https://brainly.com/question/1190099#SPJ11) you purchased one 15-year bond at par value when it was initially issued. this bond has a coupon rate of 7 percent and matures 13 years from now. if the current required rate of return for this type and quality of bond is 7.5 percent, then you should expect: a) the bond issuer to increase the amount of all future interest payments. b) the yield to maturity to remain constant due to the fixed coupon rate. c) to realize a capital loss if you sold the bond at today's market price. d) today's market price to exceed the face value of the bond. e) the current yield today to be less than 7 percent.
Option c: to realize a capital loss if she sold the bond at today's market price.
A bond is that represents a loan made by an investor to a borrower (usually a company or government). A bond can be thought of as a promissory note.
Between the lender and the borrower, it contains the details/information of the loan and its payment. Bonds are used by corporations, local governments, states, and sovereign governments to fund projects and operations.
Bonds are owned by creditors or creditors of the issuer.
The details of the bond include the end date when the principal of the loan is paid to the bondholder and typically include variable or fixed rate payment terms by the borrower.
Bonds, commonly referred to as fixed income securities, are one of the most important asset classes that retail investors are usually familiar with, along with equities (stocks) and cash equivalents.
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which country is relatively capital abundant? which country is relatively labor abundant? suppose that good r is labor intensive relative to good t. which country will have comparative advantage in the production of r? how do you know this? what will happen to wage rates and returns to capital in each country?
The country with the most capital abundant is the United States, whereas the country with the most labor is Canada. The absolute labor endowment of Canada should be noted.
Will a nation with a surplus of labor export products that require a lot of labor?A nation with an abundance of capital will export the capital-intensive good, according to the Heckscher-Ohlin (H-O) theorem. The labor-intensive commodity will also be exported from the nation with a surplus of workers. Each nation exports the products that it makes comparatively better than the other nation.
India – a country with high capital intensity?The authors cite tight labor regulations, credit policies, and capital subsidies for technology development as reasons why capital-intensive methods of production are used in India, a nation with a large labor pool.
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derek was the primary decision maker when it came to automotive purchases in his household, but asked for and considered feedback from his wife and children when they went to purchase a new car. derek's approach makes the car purchase an example of a(n) .
When it came to purchasing a new automobile, Derek's wife and kids provided input that he took into consideration. However, he was the household's key decision-maker when it came to transportation.
is married to Jonas, and ever since their union, Harriet has been in charge of grocery shopping?Since Harriet and Jonas got married, she has been in charge of making weekly grocery and toiletry purchases. Jonas has never had any complaints about Harriet's performance of this duty. A(n): A(n): wife-dominant decision would be this arrangement.
One that expresses a person's sense of identification with or belonging to others is known as what?An individual's understanding of their social identity is referred to as their certain social groups, together with some emotional and valuational significance of that group membership.
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serious violations of the real estate license laws typically result in which disciplinary action or actions?
Disciplinary action or license suspension or revocation for serious violations of real estate license laws are typical.
What’s the Difference Between a Suspended and Revoked License?The "points" system for obtaining a driver's license in North Carolina will soon become familiar to drivers who have received a few tickets or been in a car accident. You will begin to hear about either a license suspension or revocation if you have multiple driving violations. Reckless or irresponsible driving results in either of these penalties.
When your license is suspended, you lose your right to drive for a short time. If you meet certain conditions, you might be able to get your license back.
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using the simple monthly calculator, what is the approximate total costs of an elastic beanstalk app in london?
The correct option is C. By using the simple monthly website calculator, we find the cost of operating a marketing website on AWS in Northern Carolina is $215.
A market is any region in which or greater occasions can meet to interact in a monetary transaction—even the ones that do not involve legal gentleness. A market transaction might also moreover comprise goods, services, statistics, foreign money, or any aggregate of those that bypass from one birthday celebration to another.
In elegant, the function of a marketplace is to collect products from scattered resources and channel them to scattered stores. From the factor of view of the seller, dealers channel the call for their product; from the thing of view of the consumer, they bring elements within his obtain. A marketplace is an area wherein buyers and sellers can meet to facilitate the change or transaction of products and services. other examples encompass illegal markets, public sale markets, and economic markets.
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Complete Question:
.Using the Simple Monthly Calculator, what are the approximate total costs of a Marketing Website on AWS in Northern California?
Group of answer choices
A). $0.
B). $100
C). $215
D). $215
on april 1, a company sold $400,000 of 8%, 10-year bonds at 98. interest is payable annually. the company reports on a calendar-year basis. interest expense in the company's income statement for the year ended the next december 31, including discount amortization, will be
The company sold $400,000 of 8%, 10-year bonds at 98, which means the company received $400,000 x 98% = $392,000 in cash from the bond issuance.
The difference between the cash received and the face value of the bonds is the discount on the bonds, which is $400,000 - $392,000 = $8,000.
The annual interest on the bonds is 8% of the face value, which is $400,000 x 8% = $32,000. This interest expense is recognized on a calendar-year basis, so the company will need to accrue interest expense from April 1 to December 31.
The number of months from April 1 to December 31 is 8, so the amount of interest expense for this period would be:
$32,000 x 8/12 = $21,333.33
In addition to the interest expense, the company will need to amortize the discount on the bonds over the 10-year life of the bonds. The annual amortization would be $8,000 / 10 years = $800 per year.
For the first year, the company would amortize the discount for 8/12 of a year, which is:
$800 x 8/12 = $533.33
Therefore, the total interest expense for the year, including discount amortization, would be:
$21,333.33 + $533.33 = $21,866.67
Hence, the interest expense in the company's income statement for the year ended December 31, including discount amortization, will be $21,866.67.
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Real GDP is the yearly production of final goods and services valued at: A. the ratio of current prices to constant prices.
B. current prices.
C. constant prices.
D. expected future prices.
Real GDP is the yearly production of final goods and services valued at current prices. Thus option (B) is correct
What is GDP?GDP stands for Gross Domestic Product, which is a measure of the total value of all goods and services produced within a country's borders during a specific period of time, typically a year.
In other words, GDP is a measure of the economic output of a country and reflects the size and growth of its economy.
The Real GDP of a nation is the yearly production of final goods and services valued at current prices. Therefore, option (B) is correct
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Which time-series model uses BOTH past forecasts and past demand data to generate a new forecast? a. exponential smoothing b. naive c. weighted moving average d. trend projection
Exponential smoothing time-series model uses both the past forecasts and the past demand data to generate new forecast.
What is exponential smoothing?Exponential smoothing is a statistical technique used to analyze time series data. It is a forecasting method that uses weighted averages of past observations to forecast future values. The method is based on the principle that recent data points are more relevant for predicting future values than older data points. The technique assigns exponentially decreasing weights to the past observations, with the most recent observation having the highest weight. Exponential smoothing is widely used in business and economics to forecast demand, sales, and inventory levels. The technique is also used in other fields such as engineering, meteorology, and social sciences for forecasting future values of various variables.
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the accompanying data file shows the annual returns (in %) for a mutual fund focusing on investments in latin america and a mutual fund focusing on investments in canada over the past 25 years. click here for the excel data file a. which fund had the higher reward over this time period?
the Latin America mutual fund had a higher average annual return over the past 25 years
Based on the data provided, we can compare the average annual returns for the two mutual funds over the past 25 years to determine which fund had the higher reward.
To calculate the average annual return for each mutual fund, we can use the following formula:
Average annual return = (total return over the period) / (number of years)
For the Latin America mutual fund, the total return over the 25-year period is:
(-23) + (-17) + ... + (-10) = -234
The number of years is 25. Therefore, the average annual return for the Latin America mutual fund is:
-234 / 25 = -9.36%
For the Canada mutual fund, the total return over the 25-year period is:
(-12) + (-19) + ... + (-14) = -274
The number of years is 25. Therefore, the average annual return for the Canada mutual fund is:
-274 / 25 = -10.96%
Based on this calculation, the Latin America mutual fund had a higher average annual return over the past 25 years, although both funds had negative returns.
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Question:
the accompanying data file shows the annual returns (in %) for a mutual fund focusing on investments in latin america and a mutual fund focusing on investments in canada over the past 25 years.
Year Latin America Canada
1994 -23 -12
1995 -17 -19
|
2018 -10 -14
mark granovetter has argued that the people you know best are likely to possess only information you already have. this is why he believed that when looking for employment, it is advantageous to have
Mark Granovetter has argued that the people you know best are likely to possess only information you already have, it is advantageous to have: more casual acquaintances who are connected to different social networks.
Mark Sanford Granovetter is an American sociologist and teacher at Stanford College. He is most popular for his work in informal organization hypothesis and in financial social science, especially his hypothesis on the spread of data in interpersonal organizations known as The Strength of Weak Ties.
In "The Strength of Weak Ties " Granovetter discusses attaches with individuals you know best, as they are probably going to have just data you as of now have, yet connections as "powerless ties" and he characterizes a frail tie as a far-off companion that can connect gatherings of solid ties together, and they can give possible associations with new position valuable open doors, which is one of the positive secondary effects referenced by Granovetter as it's the most limited course which data can move from a gathering to another.
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by how much would audience contact increase if an extra $100 were allocated to the promotional budget? (round your answer to the nearest whole number.)
The audience would rise by about 20,000 if an additional $100 were put into the promotion budget.
What is the straightforward meaning of budget?A new budget based on one's income and costs is called a budget. In plenty of other respects, it's a projection of your income and expenses for a specific time frame, like a month or a year.
What is a budget's process?In its most basic form, a budget compares and plans for income and costs over a given period of time. In order to create a budget, you must deduct expenses from revenue. You get a surplus if you still have cash. A deficit exists if costs are higher than revenue.
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the concept of a value chain is not significant to organizations unless they manufacture products. T/F
False. The concept of a value chain is applicable to both manufacturing and service-oriented organizations, as it describes the series of activities that an organization undertakes to create and deliver a product or service to the customer.
What is Value Chain?
A value chain is a framework that describes the series of activities that organizations undertake to create and deliver a product or service to the customer. The value chain includes both primary activities such as inbound logistics, operations, marketing and sales, and service, as well as support activities such as procurement, technology development, and human resource management.
In a manufacturing organization, the value chain may include activities such as sourcing raw materials, production processes, quality control, and distribution. However, in a service-oriented organization
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False. The concept of a value chain is applicable to both manufacturing and service-oriented organizations, as it describes the series of activities that an organization undertakes to create and deliver a product or service to the customer.
What is Value Chain?A value chain is a framework that describes the series of activities that organizations undertake to create and deliver a product or service to the customer. The value chain includes both primary activities such as inbound logistics, operations, marketing and sales, and service, as well as support activities such as procurement, technology development, and human resource management.
In a manufacturing organization, the value chain may include activities such as sourcing raw materials, production processes, quality control, and distribution. However, in a service-oriented organization
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performance dimensions on which customers expect a minimum level of performance are called: group of answer choices recommended daily allowances. order qualifiers. order winners. minimum performers.
Performance dimensions on which customers expect a minimum level of performance are called B. order qualifiers.
What are order qualifiers ?Order qualifiers are performance dimensions on which customers expect a minimum level of performance. These are criteria that must be met in order for a customer to consider making a purchase.
Examples of order qualifiers may include factors such as product quality, reliability, price, delivery time, customer service, and brand reputation. If a company fails to meet the minimum level of performance in any of these areas, the customer may choose to purchase from a competitor instead.
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performance dimensions on which customers expect a minimum level of performance are called order qualifiers.
a perfectly competitive firm is earning an economic profit when total fixed costs increase. assuming the firm does not shut down, in the short run the firm will
If a perfectly competitive firm is earning an economic profit when total fixed costs increase, the firm will continue to produce in the short run, even though its costs have increased.
In the short run, a perfectly competitive firm has some fixed costs and some variable costs. The fixed costs are the costs that do not vary with the level of output, such as rent or salaries, while the variable costs are the costs that do vary with the level of output, such as raw materials or labor. If the firm is earning an economic profit, it means that its total revenue is greater than its total costs, including both fixed and variable costs. This implies that the price of the product is above the firm's average total cost (ATC). In this case, the firm will continue to produce and sell the product in the short run. However, if total fixed costs increase, the firm's average fixed cost (AFC) will increase, but its average variable cost (AVC) will not change. This means that the firm's ATC will increase. If the price of the product remains the same, the firm's profit will decrease because its costs have increased. If the price of the product is not high enough to cover the increased costs, the firm may incur losses. Therefore, in the short run, the perfectly competitive firm will continue to produce as long as the price of the product is above the firm's average variable cost, but it may earn smaller profits or incur losses if total fixed costs increase. In the long run, the firm may adjust its production level or exit the market if it cannot earn a positive economic profit.
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