Explain the business decision based upon income elasticity
Explain the business decision based upon income elasticity.
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The perception of income elasticity can be utilized for the reason of taking fundamental business decision. A businessman can rely upon the facts as follows:
When income elasticity is greater than Zero, however, less than one, sales of the product will raise but slower than the common economic growth.
When income elasticity is greater than one, sales of his product will raise more quickly than the common economic growth.
Firms that demand functions have high income elasticity have good development opportunities in an expanding economy. That concept helps manager to take accurate decision during business cycle and also assists in forecasting the effect of changes in income on demand.
7. The San Diego Zoo is contemplating a stuffed panda bear advertising promotion. Annualized sales data from local shops marketing the "Can't Bear it When You're Away" bear indicate that: Q = 50,000 - 1,000P where Q is Panda bear sales and P is price. A. How many pandas could the zoo sell at $30
Assume that male nurses are paid more than female nurses for same work. When an “equal pay for equal work” law is enforced and enacted, it may: (w) decrease the wages of male nurses. (x) not influence the wages of female nurses. (y) increa
Define the term full cost concept.
Diminishing returns to labor or questions of monitoring and coordination start to overwhelm any gains by specialization and division of labor within this graph at: (1) point a. (2) point b. (3) point c. (4) point d (5) point e.
Differentiates between short run and long run costs?
Explain the accounting cost concept in brief.
The income effect of a small varies in the wage rate dominates the substitution effect for this worker at point: (w) point a. (x) point b. (y) point c. (z) point d. Q : Hiring more labor in profit maximization When a firm hires an additional worker who adds $100 worth of output daily, and adds $50 daily to the firm’s costs, in that case the firm must: (w) hire more labor. (x) hire less labor. (y) not change its employment of labor. (z) sell off some o
When a firm hires an additional worker who adds $100 worth of output daily, and adds $50 daily to the firm’s costs, in that case the firm must: (w) hire more labor. (x) hire less labor. (y) not change its employment of labor. (z) sell off some o
Explain the Cross elasticity of demand.
Illustrates the elements of managerial economics as a tool for decision making?
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