according to the menu cost theory, firms will be slow in changing their prices because:

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Answer 1

According to the menu cost the firms would be slow to changing prices because .the cost of changing the price might exceed the additional profit the price change would generate.

What is the menu cost theory?

This is the theory in the field of economics that helps to ensure the reflection of the effect of the change in price to an establishment.

According to this theory, the the cost of changing the price might exceed the additional profit the price change would generate.

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Related Questions

Steele Plate Units Cost Mar. 3 Purchase 1 $830 10 Purchase 1 840 19 Purchase 1 880 Total 3 $2,550 Assume that one unit is sold on March 23 for $1,125. Determine the gross profit for March and ending inventory on March 31 using (a) FIFO, (b) LIFO, and (c) average cost methods. Gross Profit Ending Inventory a. First-in, first-out (FIFO) $fill in the blank 1 $fill in the blank 2 b. Last-in, first-out (LIFO) $fill in the blank 3 $fill in the blank 4 c. Average cost $fill in the blank 5 $fill in the blank 6

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The answer should be 2

To win back customers after they have discontinued service, when should the initial communication be made? g

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The following methods can be used to successfully win back customers after they have discontinued service.

Successfully Re-engage Customers:Consider the primary cause of the customer's initial reluctance. Take some time to consider what drove your brand to this point before developing unique methods for your re-engagement plan.Surveying your consumers is one of the finest ways to find the answers to your inquiries. Based on how long a consumer has been away from your store, create a survey and email it to them.Targeted email campaigns are a wonderful strategy to re-engage clients in addition to providing a generic email newsletter based on their prior actions and behaviours. Digital re-targeting is the practice of setting cookies on visitors to your website or social media profiles, or tagging them, and classifying them into groups depending on the pages they visit and how they interact with your website.

Existing clients that have already chosen to use your brand for commercial purposes are quite valuable. Don't let them disappear into oblivion.

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To determine the efficiency of a batch of production of electric motors, 8 motors are tested. The average efficiency of the sample is calculated to be 88.5% and the standard deviation of the sample is 0.5 percentage point. (a) Determine a 95% confidence interval for the mean efficiency of the given batch of motors. (b) If we want to cut the confidence interval to one third, how many more motors should be tested

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The 95% confidence interval for the mean efficiency of the given batch of motors is 0.885 [tex]\pm[/tex] 0.418 and 41 motors should be tested to cut the confidence interval to one-third

The 95% confidence interval

The given parameters are:

Mean, [tex]\mu[/tex] = 88.5%Standard deviation, [tex]\sigma[/tex] = 0.5Sample size, n = 8

Here, n is less than 30.

So, we use the t-score

At 95% confidence interval and n = 8, the t-score is:

t = 2.365

So, we have:

[tex]CI = \mu \pm t\frac{\sigma}{\sqrt n}[/tex]

So, we have:

[tex]CI = 88.5\% \pm 2.365 * \frac{0.5}{\sqrt {8}}[/tex]

[tex]CI = 88.5\% \pm \frac{1.1825}{\sqrt(8)}[/tex]

Evaluate the quotient

CI = 88.5% [tex]\pm[/tex] 0.418

Express percentage as decimal

CI = 0.885 [tex]\pm[/tex] 0.418

Hence, the 95% confidence interval for the mean efficiency of the given batch of motors is 0.885 [tex]\pm[/tex] 0.418

The number of motors to be tested

When the interval is cut into one third, we have:

[tex]CI = \frac 13 * (0.885 \pm 0.418)[/tex]

Evaluate

[tex]CI = (0.885 \pm \frac 13 *0.418)[/tex]

[tex]CI = (0.885 \pm 0.139)[/tex]

Recall that:

[tex]CI = \mu \pm t\frac{\sigma}{\sqrt n}[/tex] or [tex]CI = \mu \pm z\frac{\sigma}{\sqrt n}[/tex]

Here, we use the z-score i.e.

[tex]CI = \mu \pm z\frac{\sigma}{\sqrt n}[/tex]

By comparison, we have:

[tex]z\frac{\sigma}{\sqrt n} = 0.139[/tex]

Substitute [tex]\sigma[/tex] = 0.5 and z = 1.960

[tex]1.96 * \frac{0.5}{\sqrt n} = 0.139[/tex]

Evaluate the product

[tex]\frac{0.98}{\sqrt n} = 0.139[/tex]

Solve for [tex]\sqrt n[/tex]

[tex]\sqrt n = \frac{0.98}{0.139}[/tex]

Evaluate the quotient

[tex]\sqrt n = 7.1[/tex]

Square both sides

n = 49

The initial sample size is 8.

Subtract 8 from 49

Difference = 49 - 8

Difference = 41

Hence, 41 motors should be tested to cut the confidence interval to one-third

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Employee compensation systems are generally developed and administered by ____, and pay increases and promotions are usually recommended by ____.

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Employee compensation systems are generally developed and administered by "HRM specialists", and pay increases and promotions are usually recommended by "line managers".

What is Employee compensation systems?

Giving employees money in exchange for their work is a systematic process known as compensation. Incentives can help with hiring, work happiness, and performance, among other things.

The purpose of a compensation system is-

To recruit new employees and keep the ones you already have working for your company are your compensation's main objectives. Compensation is also utilised to boost morale and encourage individuals to perform to their highest potential.Paid time off, disability insurance, stock option plans, health insurance, life insurance, and services like financial counselling are a few examples.

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Which type of financial aid is often based on merit, as opposed to financial need?

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Answer:

Scholarships

Explanation:

Merit-based aid goes to students based on their academic and/or extracurricular achievements rather than their financial need. Scholarships are the most common type of merit-based aid. Students may receive scholarships from nonprofit organizations, private businesses, and colleges and universities.

hope it helps you and give me a brainliest

Answer: scholarships

Explanation:

In response to the need to reinforce the brand promise, ________ is about mixing and matching marketing activities to maximize their individual and collective effects.

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In response to the need to reinforce the brand promise, "integrated marketing" is about mixing and matching marketing activities to maximise their individual and collective effects.

What is integrated marketing?

By using integrated marketing communications, a business may make sure that all of the advertising tactics it uses are transparent, consistent, and directed at the same objectives.

The elements of integrated marketing is strategy. An integrated strategy is the foundation for everything, including

marketing, websites, creative, social media, public relations, SEO, paid social media, paid media.

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Because successive units of a good produce less and less additional satisfaction, the price must fall to encourage a buyer to purchase more units of the good. This statement is most consistent with which explanation for the law of demand? Multiple Choice diminishing marginal utility the rationing function of prices the income effect the substitution effect

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The above statement is most consistent with the diminishing marginal utility.

What is diminishing marginal utility?

Diminishing marginal utility refers to the decline in additional satisfaction derived from the consumption of more and more units of goods.

Hence, the above statement is most consistent with the diminishing marginal utility.

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What's your annual income if you're unemployed?

Answers

$46,819

Unemployed Salary

Annual Salary Hourly Wage

Top Earners $57,500 $28

75th Percentile $57,500 $28

Average $46,819 $23

25th Percentile $32,000 $15

when the money market is drawn with the value of money on the vertical axis, if money demand shifts leftward, then initially there is an:

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if money demand shifts leftward, then initially there is an excess supply of money which causes the price level to rise.

What is excess money supply?

Excess money supply occurs when the supply of money in an economy is greater than the money demand or the level of the total output of an economy.

When there is an excess money supply, its effect is to result into inflation or causes the price level to rise.

Therefore, when the money market is depicted with the value of the currency on the vertical axis, if money demand shifts leftward, then initially there is an excess supply of money which causes the price level to rise.

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Consider an economy with only two goods: bread and wine. In 2000, the typical family bought 4 loaves of bread at 50 cents per loaf and 2 bottles of wine for 9 dollars per bottle. In 2015, bread cost 75 cents per loaf and wine cost 10 dollars per bottle. The CPI for 2015 ( using 2000 as base year) is a) 100 b) 115 c) 126 d) 130

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Based on the cost of bread and wine in those two years, the CPI for 2015 can be calculated to be B. 115.

What is the CPI in 2015?

Find the total cost of goods in 2000:

= (4 x 50 cents) + (2 x 9)

= $20

Total cost in 2015:

= (4 x 75 cents) + (2 x 10)

= $23

The CPI in 2015 is:

= 23 / 20 x 100

= 115

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Depreciation by two methods
a computer system acquired on january 1 at a cost of $35,000 has an estimated useful life of five years. assuming that it will have no residual value.
a. determine the depreciation for each of the first two years by the straight line method.
b. determine the depreciation for each of the first two years by the double-declining-balance method.

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Years Straight line method Double declining-balance method

Year 1 $7,000 $14,000

Year 2 $7,000 $ 8,400

What is depreciation?

Depreciation refers to the monetary value of an assets that decreases over time due to use, wear and tear or obsolescence.

Explanation:- A). Straight line method = (cost of computer - residual value) / Estimated useful life

= ($35,000 - 0) / 5

= $7,000

Note:- Depreciation amount in straight line method would remain the same for every year.

Straight line depreciation = (Depreciation/ Cost of computer) *100

= (7,000/ 35,000)* 100 = 20%

B). Double-declining-balance method = 2* straight line method ( i.e. 2*20%) = 40%

Year 1 = $35,000* 40% = $14,000

Year 2 = $21,000( $35,000- 14,000) *40% = $8,400

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Tristan has found a good job as a bookkeeping clerk after finishing his associates degree at the local community college. He is making a beginning annual salary of $19,760. How can this increased income affect his financial decisions

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An increase in the total income may lead to changes in Tristan's financial decisions in positive as well as negative ways.

What are financial decisions?

A plan or a strategy which is backed by strong logic of an individual to distribute his or her income in different forms of investments, expenses, and savings, are known as financial decisions.

When Tristan gets an increase in his income, his financial decisions may, change in a way that he may start investments and save for future goals. He may also start spending on luxuries, which he otherwise, could not afford to.

Hence, the significance of an increase in income on the financial decisions of Tristan is aforementioned.

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Which sentence best completes the diagram?

Answers

Original Question: A central bank raises interest rates on reserves

Answer: Investors are less likely to purchase bonds:

Reason: When the economy is good, the level of borrowing money becomes extraordinarily high since there is confidence in the market.

As in, people believe that they can return the money back to the bank since there is a high chance of making the money back up again at a profit.

However, as more and more people do that, the economy heads into state of inflation.

To ensure that the inflation rate doesn't go up sky-high, central banks raise the interest rate on loans which discourages investors to get loans or bonds due to how much they need to pay back later on.

Hope that helps!

supplies expense is ______ and supplies is ______ for the amount of supplies used during the period that were originally recorded as an asset when purchased.

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Supplies expense is debited and supplies is credited for the amount of supplies used during the period that were originally recorded as an asset when purchased.

What is supply?

It should be noted that supply simply means the amount of goods and services that the seller is willing to sell at a price.

In this case, supplies expense is debited and supplies is credited for the amount of supplies used during the period that were originally recorded as an asset when purchased.

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Regarding performance, ________ sources of information include complaints or issues raised by employees, existing performance metrics or reports, financial reports, and quality reports, while ________ sources of information include VOC (Voice of the Customer) tools.

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An internal sources is one that include complaints or issues raised by employees while an external sources is one that includes VOC (Voice of the Customer) tools.

What is an internal sources?

This refers to information that comes from outgoing mails, memos, notices, circulars, bulletins and manuals.

What is an external sources?

This refers to information from source other than the Internal Sources such as information from licensed or subscription-based websites.

Answers

Based on the calculation done below, the firm's p-e ratio is 30.

How do we calculate the p-e ratio?

The price-earning (p-e) ratio can be calculated using the following formula:

p-e ratio = MPS / EPS ............................................................. (1)

Where:

MPS = Market price per share = Share selling price = $60

EPS = Earning per share = $2.00

Substituting the values into equation (1), we have:

p-e ratio = $60 / $2.00 = 30

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It took podcasts about 8 years to reach 1 billion downloads
True or False

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True because many people have different styles so might like different things do it can be hard to make something many people like

Keynesian economics argues for the use of _____ policy to stabilize the economy.

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Answer:

Keynesian economics argues for the use of active government policy to stabilize the economy.

Explanation:

In order to alleviate or avert economic recessions, Keynesian economics places a strong emphasis on the employment of proactive government policy to control aggregate demand. Keynes contended that lengthy periods of high unemployment might result from a lack of general demand. Consumption, investment, government purchases, and net exports are the aggregate of four factors that determine an economy's amount of goods and services.

g In order to increase the responsiveness of a forecast made using the moving average technique, the number of data points in the average should be:

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In order to increase the responsiveness of a forecast made using the moving average technique, the number of data points in the average should be: A. decreased

What is a Forecast?

This refers to the prediction about a particular thing that is to occur in the future based on available data or inference.

Hence, we can see that based on the use of the moving average technique when increasing the responsiveness of a forecast, there must be a decrease in the average of the data points because fewer data points result in more responsive moving averages.

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When a country allows international trade and becomes an exporter of a good, Question 11 options: domestic producers of the good become better off. domestic consumers of the good become worse off. the gains of the winners exceed the losses of the losers. All of the above are correct.

Answers

The likely outcome when a country allows international trade and becomes an exporter of a good is that the Domestic producers of the good are better off.

Who are the Domestic producers?

These are the manufacturing firms in the exporting countries.

Hence, when the country allows international trade and becomes an exporter of a good, the Domestic producers of the good are better off because they produces more for exportation purpose.

Therefore, the Option A is correct.

Answers

The Increase in operating income is $159500.

How to calculate the income?

Proposed

Unit sales = 9900 + 5900 = 15800

Sales = 15800 × 45 = 711000

Variable expenses = 15800 × 30 = 474000

Contribution margin = 711000 - 474000 = 237000

Fixed cost = 113000

Operating income = 124000

Current

Unit sales = 9900 l

Sales = 9900 × 45 = 445500

Variable expenses = 9900 × 30 = 297000

Contribution margin = 445500 - 297000 = 148500

Fixed cost = 113000

Operating income = 35500

Increase in operating income:

= 35500 + 124000

= 159500

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Consider the following case: John Smith is a archaeologist with a Ph.D. He has excavated sites across much of South America and unearthed many ancient artifacts. He is a leader in the field of archaeology. John decides that he will market and sell a new haircare product and on his advertisements lists his Ph.D. after his name, though he has never had any training in dermatology or any other health-related science. Evaluate as true or false: John Smith's use of his Ph.D. on advertisements for haircare products is an example of the fallacy of inappropriate expertise. Question 6 options: True False

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According to the case, the use of Ph.D. on the ads for hair care products by John Smith is considered an example of the fallacy of inappropriate expertise.

The provided statement is true.

What is a fallacy?

A fallacy is an unlawful statement that is used by someone in stating any reasoning or argument which can even be harmful to society.

In the given case, John is having Ph.D. degree in the archaeology field, and his attempt to use the word Ph.D. on the haircare goods marketed by him would be a fallacy in respect of inappropriate expertise. The fallacy could be the use of the Ph.D. word on ads and the inappropriate expertise is that he doesn't have any knowledge regarding skincare and dermatology area.

Therefore, this may create a harmful effect on the individuals who are buying them as it is not authorized by a dermatologist.

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which stage in a work-unit activity analysis focuses on the product, information, or service provided?

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The stage in a work-unit activity analysis that focuses on the product, information, or service provided is the output phase, This is further explained below.

What is the output phase?

Generally, the output phase is simply defined as manufacturing or output in general.

In conclusion, The final deliverable is defined. The method of measuring the output is investigated.

Answers

Manu is a distributor.

What is a distributor?

A distributor is an organization that purchases non-competitive products or product lines and sells them directly to consumers or clients. The majority of distributors also offer a number of other services, including technical support, warranty, and service.

To access markets that manufacturers could not otherwise target, distributors are crucial. Because a local business already has clients, relationships, and contacts, and is more familiar with the customs and business culture of the area, businesses frequently hire distributors. A potential customer's first point of contact with the manufacturer is the distributor.

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The airlines sold fewer tickets to business travelers during the "Great Recession" due to more companies using video conferencing software to save money. According to the five forces model, this type of threat is called the

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According to the five forces model, this type of threat is called the threat of substitute products.

What are the five forces model?

The five forces model is used to analyse the competitiveness among firms in an industry. They are also referred to as the Porter's five forces.

One of the five forces is the threat of substitute products. If there are little or no substitutes for the goods produced by other companies, the greater the power the firms possesses. Video conferencing is an alternative to physical meetings.

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When a company develops a product and then attempts to sell it through normal distribution channels in a number of test-market cities, it is engaged in Blank______.

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When a company develops a product and then attempts to sell it through normal distribution channels in a number of test-market cities, it is engaged in "standard test marketing".

What is standard test marketing?

A type of test market where the business chooses a limited number of sample cities to test the entire marketing mix before launching a new product.

There are various ways to test marketing-

Executing a regional product launch before a full launch.Working with a small group of customers who may directly provide product feedback.Implementing a focused direct marketing campaign to assess advertising methods.

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Because the market sector features a few large and dominant competitors, the Big Tech marketplace best illustrates a condition where conditions of ___________ prevail:

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Because the market sector features a few large and dominant competitors, the Big Tech marketplace best illustrates a condition where conditions of "Oligopoly" prevail.

What is an Oligopoly?

A market structure known as an oligopoly occurs when two or more companies hold a large amount of market power. They have the power to control supply and prices when acting as a group. When the top 4 companies dominate 50% of a market, it is generally referred to as an oligopoly.

Some key features of Oligopoly are-

Few firms with large market share Oligopolistic firms maintain their position in the market by a number of high barriers to entry.Interdependence - An oligopolistic business will make decisions depending on how they anticipate rivals will respond.Each firm has little market power on its own - each firm has little market power, because other firms are quick to take advantage.Higher prices than in perfect competition - due to their combined market dominance, oligopolies frequently maintain higher pricing in order to generate greater profits.More efficient - Oligopolistic businesses profit from high market shares. They also profit from economies of scale, which allows for cheaper production.

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During a period of economic expansion, when expected profitability is high, the: select one: a. Equilibrium price of bonds increases. B. Equilibrium interest rate falls

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During a period of economic expansion, the demand curve for bonds shifts to the left.

What is the effect of an economic expansion?

During an economic expansion, the supply of money in the economy rises and the demand for money also increases. This leads to an increase in the interest rate and the price of the bonds would fall.

If expected profitability is expected to be high, people would prefer to hold more risky investment. Thus, there would be a fall in the demand for bonds. The demand curve for bonds would shift to the left.

Here are the options to this question:

A) the demand curve for bonds shifts to the left.

B) the supply curve of bonds shifts to the right.

C) the equilibrium interest rate falls.

D) the equilibrium price of bonds rises.

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Which company was formerly known as the computing-tabulating-recording company? ibm.

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The company formerly known as the computing-tabulating-recording company was IBM.

Who founded IBM?

CTR company was replaced by IBM in the year 1889 and was founded by Herman Hollerith at the end of the 1800s.

IBM was incorporated as a computing-tabulating-recording company in the year 1911.

It was a merger of three minor entities namely, a computing company, tabulating company, and a recording company that was engaged in the manufacturing of punch-card tabulators and various other products.

Therefore, IBM was formerly known as a computing-tabulating-recording company (CTR).

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Which of the baldrige criteria is given the most weight in selecting winners?

Answers

Results are heavily weighted toward the Baldrige criterion. This is further explained below.

What are Baldrige's criteria?

Generally, "Integrated management framework" refers to a set of tools used to analyze and improve business operations.

In conclusion, Sampling acceptance rates for winners are heavily weighted toward those that meet the Baldrige standards.