Why don’t more companies create disruptive innovations? more than one answer may be correct.

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Answer 1

Disruptive innovations are not initially profitable enough and because their development could divert limited resources from sustaining innovations.

Why do good companies often fail to address disruptive innovations?Market leaders' business environments prevent them from pursuing disruptive innovations when they first appear because they are not initially profitable enough and because their development could divert limited resources from sustaining innovationsDisruptive innovation frequently has lower margins since it is more accessible and straightforward.Such breakthroughs cannot be pursued by large firms given their business strategies.For the current business, they have a sizable and well-established cost structure, but the meager profit doesn't correspond. Adopting disruptive innovation is also hindered by a lack of strategy level orientation, inadequate resource allocation, and a focus on maintaining existing strengths.Cost, accessibility, time, and talent are some of these obstacles.Let's quickly go over each one and how more recent inventions have taken use of them to open up new doors.When a product or service is excessively expensive, "cost" is a typical barrier that reduces its market potential.

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Related Questions

In what way is the work of the adirondack land trust different from the other organizations described in the activity?.

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The way in which the work of the Adirondack land trust, is different from the other organizations described in the activity is because its operates on a living model of how people embrace and respect the natural world.

What is the Mission of Adirondack land trust?

First, a land trust refers to a legal entity that takes ownership of or authority over a piece of property at the request of the property owner. These land trusts are living trusts that allow for the management of property while the owner is alive.

The mission of the Adirondack Land Trust, an organization involved in land trust as explained above, is to continually conserve the forests, farmlands, waters and wild places that advance the quality of life of our communities and the ecological integrity of the Adirondacks.

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What does a decrease in federal government purchases do to the neo-keynesian model used in class?.

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Keynesians believe that due to the fact expenses are extremely inflexible, fluctuations in any component of spending—consumption, funding, or government fees—purpose output to exchange.

If government spending will increase, for an instance, and all different spending additives continue to be consistent, then the output will grow.

It blanketed tax cuts/credit and unemployment benefits for families; it also earmarked expenses for healthcare, infrastructure, and education. those stimulus measures and federal interventions helped America's economy get better, preventing the splendid Recession from turning into any other complete-blown depression.

He argued that uncertainty prompted people and agencies to stop spending and making an investment, and government have to step in and spend cash to get the financial system lower back on course.

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bryson sciences is planning to purchase a high-powered microscopy machine for $385,000 and incur an additional $31,300 in installation expenses. it is replacing older microscopy equipment that can be sold for $116,500, resulting in taxes from a gain on the sale of $42,600. because of this transaction, current assets will increase by $11,000, and current liabilities will increase by $5,200. calculate the initial cash flow in the high-powered microscopy machine.

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Initial cash drift is the complete money that is available when a challenge or enterprise is in the planning stages.

The determine consists of any loans or investments made in the project.

How do you calculate preliminary capital?

To calculate the initial investment outlay, take the price of new equipment for the task plus working costs such as supplies. Subtract the cost of any historic equipment you promote off, then add any capital good points tax or loss you make on the sale. That gives you your outlay.

How many techniques are there to calculate cash flow?

The important aspects of the CFS are cash from three areas: Operating activities, investing activities, and financing activities. The two techniques of calculating cash glide are the direct method and the indirect method.

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Once the adjusting entries are posted, the adjusted trial balance is prepared to?.

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To guarantee the accuracy and balance of the period-ending financial statements, the adjusted trial balance is finished.

What is prepared after the adjusting entries are entered?At the conclusion of an accounting period, a trial balance is created, and adjusting entries are then made in your accounting journals.The same as with any other accounting journal entry, adjusted entries are made in your accounting journals and then posted to the general ledger.An adjusted trial balance is used to make sure that the total debits and total credits of all accounts are equal. It is a list of all the accounts with their adjusted balances.The final financial statements are created using the corrected trial balance.

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A firm that uses __________ segmentation divides a market into groups based on values, attitudes, or interests.

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A firm that uses psychographic segmentation divides a market into groups based on values, attitudes, or interests.

What is the importance of segmentation in business?

Businesses may use time, energy, and other resources more effectively by segmenting their customers. It aids in the identification and improvement of your target markets and ideal clients.

The research method known as "psychographic segmentation" is used to examine consumers and categorize them based on psychological traits. It made identifications based on social structure, attitudes, and values.

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What did george w. Bush’s council of economic advisers conclude was a long-run effect of immigration on government budgets?.

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The George W. Bush administration's council of economic advisers came to the conclusion that there was no long-term impact of immigration on government spending since immigrants from Europe and the Caribbean do not rely on social assistance.

What was the Council of Economic Advisers?The President receives impartial economic advice from the Council of Economic Advisers, a unit of the Executive Office of the President, on how to formulate both domestic and foreign economic policy.Currently, the Council consists of a Chairman and two Members. Jason Furman serves as the Chairman. Jay Shambaugh and Sandra Black are the Council's members. A team of senior professional economists, staff economists, research assistants, a statistical office, and staff economists support the Council.Since immigrants from Europe and the Caribbean do not rely on social assistance, the economic advisers to the George W. Bush administration came to the conclusion that immigration had no long-term impact on government spending.

Therefore, the George W. Bush administration's council of economic advisers came to the conclusion that there was no long-term impact of immigration on government spending since immigrants from Europe and the Caribbean do not rely on social assistance.

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If the economy is in long run equilibrium with 6% inflation and 3% economic growth, and the federal reserve permanently decreases the rate of money supply growth, the long run result will be?.

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An inflation rate less than 6%, and economic growth rate of 3%.

How does low inflation lead to economic growth?Because the price level growth rate is simply another term for the inflation rate, the inflation rate must fall.Increased economic growth means more products for money to "chase," putting downward pressure on the inflation rate. The lower the inflation rate, the greater are the productive effects of a reduction.Economic growth is assessed by the rate of increase in national income, deflated by the cost of living index.National income was deflated in constant prices by the population indices to account for population growth. Low inflation usually indicates that demand for products and services is lower than it should be, which slows economic growth and lowers wages.This poor demand can even cause a recession with increased unemployment, as we witnessed during the Great Recession a decade ago.

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in the months prior to the chapter 7 bankruptcy, what actions were taken by ashmark to reduce their risk? how effective were those actions?

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in the months before the chapter 7 bankruptcy, the action taken by ashmark to reduce its risk was to spend money before filling. This is very effective.

Bankruptcy is a legal process involving a person or business that is unable to repay its debts. The bankruptcy proceedings begin with an application filed by the debtor, which is most common, or on behalf of the creditor, which is less common. All debtor assets are measured and evaluated, and these assets can be used to repay part of the debt.

Bankruptcy offers individuals or businesses the opportunity to start over by writing off unpaid debts while giving creditors the opportunity to obtain multiple payment measures based on the individual or business assets available for liquidation. In theory, the ability to file for bankruptcy benefits the economy as a whole by providing people and companies with a second chance to gain access to credit and by providing some debt repayments to creditors. After successfully completing the bankruptcy process, the debtor is released from debt obligations that arose before filing for bankruptcy.

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How do most companies pay the current liabilities incurred by day-to-day operations?.

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Current assets, or possessions used up within a year, are generally used to settle current liabilities.

Why do you use the term "current liabilities"?Current liabilities are debts or commitments that fall due within a year or during the regular business cycle. Additionally, current obligations are paid off by using a current asset, either by generating a fresh current liability or by using cash.In accounting, current liabilities are frequently interpreted as all debts owed by a company that must be paid in cash within the fiscal year or the operational cycle of that particular company, whichever is longer.Current assets, or possessions used up within a year, are generally used to settle current liabilities. Accounts payable, short-term loans, dividends, and notes payable are a few examples of current liabilities, along with any outstanding income taxes.  

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according to the department of justice, an agreement between competitors to establish or adhere to uniform price discounts is a type of which antitrust violation?

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Agreement of setting uniform price discounts is violation of federal and state antitrust laws

Price fixing is a conspiracy or agreement between business competitors to set their prices to buy or sell goods or services at a certain price point.

Antitrust laws typically require that each business establish prices and other competitive terms independently, without consulting a competitor.

The enforcement of government antitrust laws is highly concerned with price fixing. The FBI and other federal law enforcement organisations routinely look into people and businesses that knowingly enter into price-fixing agreements, and these people and businesses may face criminal charges. Long prison sentences (up to ten years) and hefty fines (up to $1 million for people, $100 million for businesses, or twice the gain or loss from the offense) are among the possible punishments. The FTC may also file a civil enforcement action when necessary.

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What is the difference between the contractual interest rate and the market interest rate?.

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A market interest rate is not unique to a particular loan; rather, it is universal in nature. One individual loan agreement between two parties is subject to the contract interest rate.

What are the bond market rate and contract rate?A market interest rate is not unique to a particular loan; rather, it is universal in nature. One individual loan agreement between two parties is subject to the contract interest rate.The interest rate specified on a bond is known as the contractual interest rate, which is defined as "the interest the borrower must pay and the interest the lender receives," as opposed to the market interest rate, which is defined as "the investors demand for loaning funds." As a result, bonds may be sold at face value, a discount, or a premium.Bonds will trade at a discount if the market interest rate is higher than the agreed-upon rate. Discounted bonds will also have an issuance price that is lower than their face value.      

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nancy bought 50 shares of abc stock for $50 per share. she made additional purchases at the end of each of the following years: year 1: 10 shares at $52 per share year 2: 10 shares at $53 per share year 3: 10 shares at $45 per share abc stock has not paid any dividends during her holding period. at the end of year 4, the stock is trading for $55 per share. which of the following is nancy's return over the past four years on abc stock (assume she sells the stock for the current trading price)? a) 2.95% b) 3.25% c) 5.00% d) 4.65%

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The answer is 2.95%. The dollar-weighted return is calculated as follows:

Briefing:-

CF0 (2,500) [50 × $50]

CF1 (520) [10 × $52]

CF2 (530) [10 × $53]

CF3 (450) [10 × $45]

CF4 4,400 [80 × $55]

Solve for IRR/YR = 2.95%

How much money has Marty invested overall in Harley-Davidson?

Therefore, Marty has a total of $16,000 invested in Harley-Davidson.

When shares are held in street name, what does that mean about the shares?

When a brokerage holds a securities on behalf of a client, it is said to be held in "street name. The broker's name is listed on the stock or bond certificate, but the owner of the securities is the one who made the purchase.

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Resources x Give Upe Rambutan is a fruit prized in Eastern Asia for its unique hairy look. Once peeled, it reveals a sweet, slightly sour grape-like gummy tasting fruit. Consider the graph for marginal revenue (MR), marginal cost (MC), and average total cost (ATC) for a perfectly competitive rambutan farmer. Move point A to label the profit-maximizing output and price for this farmer Price (5 per bushel) ONWOO0ONGOS 0 1 2 3 Quantity of rambutan (bushels) This firm is currently incurring a prolit . In the long run, other firms will enter this market. If the market price falls to $8 per bushel, then this firm is at its shut down price. this firm is making an economic profit. this firm is breaking even (zero profil). this firm is incurring a loss.

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Option C.  If the market price falls to $8 per bushel, then this firm is breaking even (zero profit).

What does it mean for the the firm to break even?

The break-even threshold is reached when overall costs and total revenues are equal, leaving your small firm with no net benefit or loss. In other words, you've achieved the point in production where the revenue from a product equals the cost of manufacture.

When revenue and costs are equal, that is the moment at which the company becomes profitable. Break-even point is calculated as follows: (average selling price - variable costs)

A company starts to produce normal profits at break-even point. Total income and total expense are equal at this time.

At the long run. other firms are also going to have to enter this market. If the firm continues to make its profit, it would be able to survive., Otherwise it may have to exit the market.

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the segmented markets theory can explain a. why yield curves usually tend to slope upward. b. why interest rates on bonds of different maturities tend to move together. c. why yield curves tend to slope upward when short-term interest rates are low and to be inverted when short-term interest rates are high. d. why yield curves have been used to forecast business cycles.

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The segmented markets theory can explain why yield curves tend to slope upward when short-term interest rates are low and to be inverted when short-term interest rates are high. 

An amount over and above the repayment of the principal sum is known as interest and is paid by a borrower or deposit-taking financial institution to a lender or depositor at a set rate. Interest is the cost of borrowing money or the fee you charge to lend it. Most frequently, interest is shown as an annual percentage of the loan amount. The interest rate for the loan is denoted by this proportion.

A financial market is a setting where businesses and individuals negotiate contracts to buy or sell a particular good, like a stock, bond, or futures contract. The total number of buyers and sellers in a given area or region is referred to as the market.

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assume drivers of private cars are required to buy private auto insurance. if the cost of private auto insurance were to increase, then

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Assume that owners of private vehicles must get private auto insurance. The demand for private vehicles would decline and the need for public transit would rise if the price of private auto insurance were to rise.

Following the country's involvement in the conflict, massive government propaganda encouraged people to carpool, walk, or take public transportation, which had an immediate and significant impact on the daily lives of normal Americans.

Giving more people access to transportation to their place of employment is one approach to increasing the workforce and boosting a city's economy. This makes it less difficult to rely on someone who owns a car to make a living or to require to be able to buy a car and gas.

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in which stage is a visit from a meeting planner likely to occur to a hotel when trying to decide on an appropriate location for an important meeting?

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The stage where a visit from a meeting planner is likely to occur to a hotel is the general need description.

Finding the perfect location is one of the very first steps in preparing for a meeting or a conference. Understanding the target audience is recognized to be a factor that can help someone decide what information to include, how to organize that information, and what kind of supplementary material would be required. All this is included in a general need description.

The overall qualities and amount that is required of an item or any other thing the firm desires to take up are described in the general need description. It also shows a meeting planner visiting a hotel to determine whether the setting for an important gathering will be adequate.

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17. a firm with variable-rate debt that expects interest rates to rise may engage in a swap agreement to

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The correct answer is B) Pay floating rate and receive a fixed rate. Thus A firm with fix rate debt that expects interest rates to fall may engage in a swap agreement to pay a floating rate and receive a fixed rate.

This statement is correct because the firm is already paying fixed interest on its debt which may fall. So, the firm will swap this agreement using a floating-to-fixed swap in which the firm will going to pay an interest rate (floating rate) and will get a fixed interest rate. Here the firm is already paying a fixed interest rate on its debt so it will not choose to pay a fixed interest rate. It will not swap it with fixed to floating swap.

The complete question is: A firm with fix rate debt that expects interest rates to fall may engage in a swap agreement to:

A) pay fix rate interest and receive floating-rate interest.

B) pay floating rate and receive a fixed rate.

C) pay a fixed rate and receive a fixed rate.

D) pay a floating rate and receive a floating rate.

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What type of relationship do a lawyer and a client have? a. a labor relationship b. a tort relationship c. an administrative relationship d. an agency relationship please select the best answer from the choices provided a b c d

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The answer is d lawyers have an angency relationship with clinets since they can't have personal relations

discuss 3 motivational and 3 time management success strategies that you will incorporate after you have read this week's chapter and watched the videos. how do you plan on implementing the strategies in school and beyond?

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The answer to this question should be subjective. These are the basic time management and motivational strategies given on the bases of Padrón's story are given.

The three time-management and motivational success methods that I'll use in school and afterward are as follows:

Motivational Success Strategies

Maintain my priorities while also making time for fun: In this situation, I will be very aware of my priorities and accomplish tasks properly. I'll also recreate it, though, because it will help me stay energized and increase my productivity. focusing on short-term objectives while keeping my long-term objectives in mind: I will constantly endeavor to accomplish the following immediate goal while reaching for the future goal, whether it is in school or any other professional organization.

Working with a good attitude: Regardless of whether I experience success or rejection while carrying out any of my activities, I would still move forward and work in a very upbeat manner.

Strategies for Successful Time Management

Divide up big undertakings into smaller ones: One must frequently experience a setback at the beginning of a big project as a student, whether it's a written paper or assignment for class, reading a book, or a long assignment. As a result, it is always practical to divide a large project into stages, schedule them at various times, and start with the first section that would require the least amount of time.

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Ed decided he had to say something. He thought about saying, "barry, you’re ruining my life with all the work assignments. " instead, he said, "barry, lately i’ve felt overworked and wondered if we could talk about my work assignments. " what principle of holding a difficult conversation is most at play here?.

Answers

The solution is remaining composed and blocking out noise. Instead of reacting quickly and telling Barry that he was wrecking his life, Ed remained composed and talked to him about his tasks.

Explanation

Barry and Ed had been coworkers for more than five years. They actually regarded one another as close friends.

But recently, there has been tension in their relationship. Ed felt that Barry was assigning him too much work without providing any genuine incentives or rewards. As a result, Ed had frequently canceled family commitments in order to complete the task. Barry, on the other hand, couldn't fathom Ed's recent icy treatment of him.

Ed finally made the decision that he had to speak up. Barry, you're killing my life with all these job assignments, he considered saying. The alternative was, "Barry, I've feeling overworked lately and wondering if we might talk about my work duties."

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Marketing research is the process of defining a marketing problem and opportunity, systematically collecting and analyzing information, and ________.

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Marketing research is the process of defining a marketing problem and opportunity, systematically collecting and analyzing information, and recommending actions to improve an organization's marketing activities.

The key purpose of marketing is to get humans interested in the products or offerings of a company. This takes place via market evaluation, studies, and considering the hobby of a commercial enterprise's ideal customers and attracting them through messaging which would be academic and useful to a commercial enterprise's goal institution.

An advertising plan is the advertising strategy that an enterprise will implement to sell its products or services. The marketing plan will assist determine who the target marketplace is, how high-quality to attain them, at what fee factor the services or products need to be sold, and the way the business enterprise will degree its efforts.

Well, you could and that tool is the net, the maximum powerful advertising, and marketing tool on the planet with nearly limitless reach. Many small agencies feel that old-college advertising and marketing approaches are sufficient. If this sounds like you, you then are not utilizing the internet to its full ability.

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consider two option-free, 5% annual-pay bonds from the same issuer and with the same seniority. one of the bonds has a modified duration of 3.5 and approximate convexity of 15. the other has a modified duration of 8.5 and approximate convexity of 75. can the lower- duration bond have more price volatility than the higher-duration bond?

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Because its price will react to fluctuations in yields relatively less, a short-duration bond may not have more price volatility than a long-duration bond.

A fixed-income or bond investor who is focused on purchasing bonds with a short tenure is said to be using a short-duration strategy. This typically indicates that the investor is concentrating on bonds with a short period of maturity.

These bonds are regarded as being extremely safe because they are guaranteed by the full faith and credit of the United States. A fund of short-term bonds also entails little interest rate risk for the investor. The price of the fund's bonds won't be significantly impacted by rising or declining interest rates.

The length of long-term bonds is longer than that of short-term bonds.

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the menu of actions management can take to change problem culture does not include which of the following? a. making a compelling case for why the company's new strategic direction and culture-remodeling are in the organization's best interests and why company personnel should wholeheartedly join the effort to doing things somewhat differently. b. replacing senior executives who are strongly identified with the old culture and who may be stonewalling needed organizational and cultural changes. c. promoting individuals who are known to possess the desired cultural traits, who have stepped forward to advocate for the shift to a different culture, and who can serve as role models for the desired cultural behavior. d. revising policies and procedures in ways that will help drive cultural change. e. shifting from decentralized to centralized decision-making so as to give senior executives more authority and control in driving the cultural change.

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The menu of actions the management team can take to change the existence of problem culture does not include (E) shifting from decentralized to centralized decision-making so as to give senior executives more authority and control in driving the cultural change.

Making a difference may be simpler than you think if the cultural issue you've identified only affects one group or one person. If the issue just affects one person, attempt direct communication. Discuss the effects you are witnessing with the person and make an effort to comprehend their point of view.

If a straightforward discussion doesn't resolve the issue, you should seek HR's guidance on a positive course of action. Make sure you comprehend each of the main players' perspectives if the issue is the team dynamic.

Listen without passing judgment. You can begin to serve as a mending bridge if you can establish confidence with each of the parties involved.

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considerations must be made in order to successfully integrate the usage of business intelligence systems in a company. these considerations include:

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Considerations, in order to successfully integrate the usage of business intelligence systems in a company, include organizational culture, utilization of the system, and the mission of users valued by the system.

The system must be used and accepted by the users in order to add value to the organization. If the system does not further the users' mission, they will not use it. Success can be improved by involving senior management to help integrate BI into the organizational culture. Business intelligence (BI) combines business analytics, data mining, data visualization, data tools and infrastructure, and best practices to assist organizations in making decisions that are more data-driven.

In actuality, you can tell if you have modern business intelligence when you can use your organization's data to drive change, eliminate inefficiencies, and respond quickly to supply or market changes. Flexible self-service analysis is a top priority for modern BI solutions.

 

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a company has actual unit demand for four consecutive years of 100, 105, 135, and 150. the respective forecasts were 120 for all four years. which of the following is the resulting mad value that can be computed from these data? multiple choice 20 30 2.5 22.5 10

Answers

The mean absolute deviation value, based on the data on the demand for four consecutive years, is A. 20.

How to find the mean absolute deviation?

To find the mean absolute deviation, first find the absolute error, between the forecasts and the actual unit demand in the four years.

Year 1:                                                                         Year 2:

= Forecasted - actual unit demand                        = 120 - 105

= 120 - 100                                                                = 15

= 20

Year 3:                                                                         Year 4:

= 135 - 120                                                                  = 120 - 150

= 15                                                                              = 30

The mean absolute deviation value is therefore:

= ( 20 + 15 + 15 + 30) / 4 years

= 20

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The feeder conductor ampacity shall not be less than that of the service-entrance conductors where the feeder conductors carry the total load supplied by service-entrance conductors with an ampacity of ___ amperes or less.

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The feeder conductor ampacity shall not be less than that of the service-entrance conductors where the feeder conductors carry the total load supplied by service-entrance conductors with an ampacity of 55 amperes or less.

Service-entrance conductors (aka, "carrier feed wire") run from the weather-head (outdoors factor of attachment) from the software pole to the electrical panel (typically the circuit breaker container). For maximum homes, the carrier entrance conductor may be placed on or near the roof and tie into the overhead electric lines.

The provider entrance, as the name implies, is where the wires related to the load aspect of the meter enter the house or building. The carrier front in a residence is usually thought of as a breaker or fuse box.

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true or false: connie can clean windows in large office buildings at a cost of $1 per window. the market price for window-cleaning services is $3 per window. if connie cleans 100 windows, her producer surplus is $100. select one: true false

Answers

The statement is False. The cost of production and producer surplus is that the worth of a trafficker is paid. Unless markets area units absolutely competitive, they'll fail to maximize the overall profit to patrons and sellers.

Let P represent price; let Q^S represent the amount supplied; and assume the equation of the provision curve is: P = ten + (1/4)Q^S. For a deal to achieve success, the worth should fall between the minimum the vendor can settle for, and therefore the most the customer can pay.

Consequently, the vendor receives quite their lowest acceptable worth (producer surplus), and therefore the client gets the item for less than they were willing to pay (consumer surplus).

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which of the following is true of how agency relationships are created? a.) they are typically classified as formal or informal. b.) they are rarely created in the modern economy. c.) they must be created by lawyers. d.) they can be created by contract or by agreement.

Answers

They are rarely created in the modern economy.

Corporation relationships require a trade of consideration to be shaped. Legally binding agency relationships may be fashioned among a primary who's a minor and an agent if the agent is a fully successful adult

All enterprise relationships are fiduciary relationships. this indicates the connection involves a positive level of trust and confidence. The agent is obligated to act within the quality interests of the major because the agent's moves will create legal duties for the fundamental.

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Answer:

d.)

They can be created by contract or by agreement.

Explanation:

Most agency relationships are created by contract or agreement.

1-a. using these estimates, calculate the amount by which income from operations would increase (decrease). 1-b. should the company extend credit?

Answers

Operations revenue is reduced by $4,343.75

Since the corporation increases its credit by $5,000, it follows that the credit would be increased.

At the conclusion of the accounting period, the corporation prepares the financial statement of profit and loss. It displays the overall earnings for the accounting period as well as the total costs incurred. The difference between the entire revenue and the total expenses is the income from operations.

The following details have been provided for Nutty Productions Inc.

$32,000 is the total revenue for the service.

The operating revenue is $11,000.

Percentage of income from operations to total service revenues

= (income from operations / total service revenues) x 100

= ($11,000 / $32,000) x 100

= 0.34375 x 100

= 34.375%

The current operating income margin is 34.375%.

$63,000 has been added to the revenue as a result of the credit extension.

The increased revenue is computed as follows.

Additional revenue times the percentage of income from operations equals additional revenue earned.

=$63,000 x 34.375%

=$21,656.25

The increased earnings total $21,656.25.

the $26,000 in additional costs that must be paid

Below is a calculation of how much Income from Operations has increased or decreased.

increase/ (decrease) in Income from Operations

= additional income generated - additional expense incurred

=$21,656.25 - $26,000

= ($4,343.75)

The income from operations is down by $4,343.75

The entire income would be if credit were not granted, which would be

= Service revenue + operating income

= $32,000 + $11,000

= $43,000

In the event that credit is granted, the total revenue would be

= Service revenue - Additional costs for wages and bad debts - Income from operations

= $63,000 + $11,000 - $26,000

= $48,000

Since the business offers credit increases by $5,000 then it means that the company will extend its credit.

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COMPLETE QUESTION:

Nutty Productions Inc. generated service revenue of $32,000 and income from operations of $11,000. The company estimates that had it extended credit it would have instead generated $63,000 of service revenue, but it would have incurred $26,000 of additional expenses for wages and bad debts.

1-a. Using these estimates, calculate the amount by which Income from Operations would increase (decrease).
b. should the company extend credit?

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Answer:

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Explanation:

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