The principal-agent problem refers to a situation where the goals and interests of the principal (in this case, Renault) may not align perfectly with the goals and interests of the agent (Qualcomm) who is acting on behalf of the principal. This misalignment can lead to conflicts and challenges in the partnership. In the context of the Renault-Qualcomm collaboration, the principal-agent problem may apply in the following ways:
1. Information Asymmetry: Renault may not have complete knowledge or control over Qualcomm's actions and decisions, creating information asymmetry. Qualcomm, as the agent, may have access to information that Renault is not fully aware of, which can impact decision-making and lead to conflicts if the interests of both parties diverge.
2. Goal Divergence: Renault and Qualcomm may have different objectives and priorities. Renault's goal may be to enhance its vehicles' technology and performance, while Qualcomm may focus on maximizing its own profits or market share. These differing goals can create conflicts if the agent prioritizes its own interests over those of the principal.
3. Monitoring and Control: The principal-agent problem arises when the principal has limited control and monitoring capabilities over the agent's actions. Renault may face challenges in effectively overseeing Qualcomm's activities and ensuring that they align with Renault's expectations and objectives.
To mitigate the principal-agent problem, Renault can implement various strategies. These may include clearly defining roles and responsibilities, establishing performance metrics and incentives, maintaining open communication channels, and implementing mechanisms for monitoring and accountability. By actively managing the principal-agent relationship, Renault can strive to align the interests of both parties and minimize conflicts that may arise.
Learn more about the principal-agent problem and its implications in business partnerships here:
brainly.com/question/9103020
#SPJ11
The questions to answer are as follows: 1. What steps are included in the training design model? 2. What step do you think is the most important? Why? 3. What other elements in training are important and what are the job projections for this profession? 4. Provide an example of a business that uses training and explain how it has helped them
The training design model includes the following steps: a. Needs Assessment - This step includes identifying the skills and knowledge required to perform the job effectively.
It is important to know what kind of training is required before designing it. b. Design - This step includes determining the instructional objectives and deciding on the method of delivery of training. c. Development - In this step, the course materials are developed. The course material includes course syllabus, course content, and course outline. d. Implementation - This is the step where training is actually delivered. This includes training delivery, trainers, and trainees. e. Evaluation - This step includes evaluating the effectiveness of training. 2. In my opinion, the needs assessment step is the most important step in the training design model.
The method of delivery should be such that it is easily understood by trainees. 4. According to the US Bureau of Labor Statistics, the job projections for the training profession are positive. Employment of training and development specialists is projected to grow 9 percent from 2019 to 2029, much faster than the average for all occupations. This growth is due to the increasing importance of training in organizations. A business that uses training is Walmart.
Training has helped Walmart to improve the productivity of its employees. With proper training, employees are able to perform the job effectively, which helps to improve the overall performance of the organization.
To know more about Implementation visit
https://brainly.com/question/32181414
#SPJ11
Over the last decades, group lending has had a significant
impact on poor communities’ access to sources of finance in many
developing countries. (a) Describe the main characteristics of
group lendi
A financial mechanism called group lending has formed as a response to the difficulties that people in underdeveloped areas have in obtaining loans. Instead of lending to a single borrower, it includes lending to a group of borrowers.
The three fundamental elements of group lending are social collateral, peer supervision, and joint liability. Joint liability places everyone in the organisation on equal footing with regard to loan repayment, fostering a sense of reciprocal accountability. Peer monitoring makes sure that participants keep an eye on one another's actions to ensure proper loan use and payback.
learn more about financial mechanism here :
https://brainly.com/question/32559749
#SPJ11
The trade deficit and the __ (GDP; capital; reserve; saving;) surplus essentially balance out and offset each other
The trade deficit and the savings surplus essentially balance out and offset each other.
The trade deficit refers to a situation where a country's imports exceed its exports, resulting in a negative balance of trade. On the other hand, the savings surplus refers to a situation where a country's savings exceed its investments. These two economic phenomena are interconnected and can have an impact on each other.
When a country runs a trade deficit, it means it is importing more goods and services than it is exporting. This leads to an outflow of money from the country to pay for these imports, resulting in a decrease in the country's reserves or accumulation of external debt. However, the trade deficit also implies that the country is consuming more than it is producing, which can lead to an increase in savings.
Learn more about balance of trade here:
https://brainly.com/question/30552848
#SPJ11
What is the environment under which externalities exist? a. Social cost is equal to private cost for a given good or service. b. When private benefits are different from social benefits.
Externalities exist in the environment where private costs and social costs are not the same. Therefore, option B: When private benefits are different from social benefits is the correct option that relates to the environment under which externalities exist.
What are externalities? Externalities are the economic effects of one individual's actions on another person who did not consent to it. A pecuniary externality, also known as a financial externality, is a type of externality in economics. When the production or consumption of a good or service generates costs or benefits to third parties outside the market transaction, this is known as an externality. To put it another way, externalities occur when there is a divergence between private costs and social costs. The outcome is inefficient if a market transaction results in external costs and no market transaction exists that can shift the costs to the polluter. In other words, externalities can create economic issues when external costs aren't recognized by those who create them.
What is a private cost? A private cost is the cost of a good or service paid by the consumer or producer. It includes the producer's fixed and variable costs, as well as the consumer's out-of-pocket expenses. In other words, a private cost is any expense that a producer or consumer incurs while creating or purchasing a good or service. When externalities exist, the private cost of an item differs from the social cost of the item. Social cost includes both the private cost incurred by the producer or consumer and any external costs imposed on society as a whole, resulting in a disparity between private and social costs.
Hence, option B is the right answer.
Learn more about Externalities at https://brainly.com/question/32478192
#SPJ11
State the potential effects of AIS on the Net Income of the company and suggest any 4-fraud preventive method / Internal Controls to the company in orderto increase the net income. kindly Mention all references used in this question Answer.
The potential effects of an Accounting Information System (AIS) on the Net Income of a company can be significant. AIS plays a crucial role in capturing, processing, and reporting financial data, which directly impacts the determination of net income. The effects of AIS on net income can include improved accuracy, timeliness, and reliability of financial information, enhanced decision-making, and increased operational efficiency.
Accuracy and Timeliness of Financial Information:An effective AIS ensures accurate and timely recording of transactions, which directly affects the determination of net income. By capturing and processing data accurately and in a timely manner, the financial statements reflect the true financial position of the company, leading to a more accurate calculation of net income.Enhanced Decision-Making: AIS provides management with access to real-time financial information, enabling informed decision-making. Timely and reliable financial data can help identify areas of improvement, cost-saving opportunities, and revenue enhancement strategies, which can positively impact net income.Improved Operational Efficiency: Efficient AIS streamlines business processes, automates repetitive tasks, and reduces the risk of errors and fraud. By optimizing operational efficiency, companies can reduce costs, increase productivity, and ultimately impact net income positively.Fraud Preventive Methods/Internal Controls to Increase Net Income:
Implementing robust internal controls within the AIS can help prevent fraud and improve net income. Some recommended internal controls to consider include:
a. Segregation of Duties: Assign different individuals to authorize, record, and review transactions to reduce the risk of fraud or errors.
b. Regular Reconciliation: Conduct regular reconciliations of financial records with supporting documentation to identify discrepancies and ensure accuracy.
c. Limited Access and User Permissions: Restrict access to sensitive financial information and assign appropriate user permissions to prevent unauthorized changes or manipulations.
d. Audit Trail and Monitoring: Implement an audit trail system to track and monitor changes made to financial data, facilitating detection and prevention of fraudulent activities.
The implementation of an effective AIS can have significant effects on the net income of a company, including improved accuracy, timeliness, and reliability of financial information, enhanced decision-making, and increased operational efficiency. By incorporating fraud preventive methods and internal controls, such as segregation of duties, regular reconciliation, limited access, and audit trail systems, companies can further safeguard their financial data and increase net income.
To know more about Accounting Information System (AIS), visit :
brainly.com/question/28259878
#SPJ11
In its first month of operations, Bramble Company made three purchases of merchandise in the following sequence: (1) 350 units at $7.(2) 430 units at $8 and (3) 220 units at $9. (a) Calculate the average unit cost.
Total cost of goods purchased is $7,870. The average unit cost of the merchandise purchased by Bramble Company is $7.87.
To calculate the average unit cost of the merchandise, we need to use the formula given below:
Average unit cost = Total cost of goods purchased ÷ Total number of units purchased
To calculate the total cost of goods purchased, we need to multiply the units purchased by their respective costs.
Therefore,Total cost of goods purchased = (350 units × $7 per unit) + (430 units × $8 per unit) + (220 units × $9 per unit)= $2,450 + $3,440 + $1,980= $7,870
Now, let's find the total number of units purchased:Total number of units purchased = 350 + 430 + 220= 1,000
Now, let's substitute the values in the formula:
Average unit cost = Total cost of goods purchased ÷ Total number of units purchased= $7,870 ÷ 1,000= $7.87
Therefore, the average unit cost of the merchandise purchased by Bramble Company is $7.87.
Learn more about merchandise here:-
https://brainly.com/question/32382864
#SPJ11
A recent study determined the following elasticities for Honda Civics:
Price elasticity of demand = 2
Income elasticity of demand = 1 . 5
The supply of Civics is elastic. Based on this information, are the following statements true or false? Explain your reasoning. A 10% increase in the price of a Civic will reduce the quantity demanded by 20%. An increase in consumer income will increase the price and quantity of Civics sold.
The statement "A 10% increase in the price of a Civic will reduce the quantity demanded by 20%" is false. The price elasticity of demand for Honda Civics is given as 2, which indicates that the demand is elastic. In this case, a 10% increase in price would result in a proportionately smaller decrease in the quantity demanded. Specifically, the quantity demanded would decrease by 10% (half the percentage change in price) based on the given elasticity of 2.
The statement "An increase in consumer income will increase the price and quantity of Civics sold" is false. The income elasticity of demand for Honda Civics is given as 1.5, which indicates a positive but less than the proportional relationship between income and quantity demanded. A positive income elasticity means that as consumer income increases, the quantity demanded of Civics will also increase, but not at a rate greater than the increase in income. The statement does not suggest a direct relationship between income and price, so it is incorrect to assume that an increase in income would directly lead to an increase in the price and quantity of Civics sold.
In summary, a 10% increase in price would lead to a smaller decrease in quantity demanded, and an increase in consumer income would positively impact the quantity demanded of Civics but does not imply a direct relationship with price.
Learn more about elasticities here:
brainly.com/question/30999432
#SPJ11
Purpose HR planning strategy that can be used to address employee shortage during the Covid-19 change globally. Further more, describe the advantages and disadvantages for each of the strategies identified.
Kindly share around 5 strategies and describe the advantages and disadvantages for each of the strategies identified.
HR planning strategies to address employee shortages during the Covid-19 pandemic include recruitment, internal promotions, flexible work arrangements, training, and collaborations. Advantages include filling vacancies, retaining talent, work-life balance, skill development, and accessing additional resources.
Here are five HR planning strategies that can be used to address employee shortages during the global Covid-19 pandemic:
1. **Recruitment and hiring**:
- Advantages: By actively recruiting new employees, organizations can quickly fill vacant positions and address the shortage. Fresh talent can bring new skills and perspectives, enhancing organizational capabilities.
- Disadvantages: Recruitment and hiring processes can be time-consuming and costly. Onboarding and training new employees also require resources and may take time for them to become fully productive.
2. **Internal promotions and transfers**:
- Advantages: Promoting or transferring existing employees to fill vacant positions can boost morale and motivation within the organization. It also allows for the development and retention of talented individuals.
- Disadvantages: Internal promotions and transfers may create gaps in other areas within the organization if backfilling is not adequately planned. It could also lead to resentment or conflicts if some employees feel overlooked.
3. **Flexible work arrangements**:
- Advantages: Implementing flexible work options, such as remote work or flexible schedules, can help attract and retain employees by providing work-life balance. It can also enable access to a wider talent pool, including individuals who prefer remote or flexible work arrangements.
- Disadvantages: Managing remote teams and ensuring effective communication and collaboration can be challenging. Certain roles or industries may not be suitable for remote work, limiting the applicability of this strategy.
4. **Training and upskilling**:
- Advantages: Investing in training and upskilling existing employees allows organizations to build a skilled workforce that can fill multiple roles. It demonstrates commitment to employee development and can improve employee engagement and loyalty.
- Disadvantages: Training programs require time and financial resources. There may also be a lag between the training and employees' full proficiency in their new roles, which could impact productivity in the short term.
5. **Partnerships and collaborations**:
- Advantages: Establishing partnerships or collaborations with other organizations or educational institutions can create opportunities for knowledge-sharing, talent exchange, and joint recruitment efforts. This can help address employee shortages by accessing a broader pool of resources.
- Disadvantages: Building and maintaining partnerships require effective communication, coordination, and negotiation. There may also be challenges related to aligning organizational cultures and managing shared resources. It's important to note that the effectiveness of these strategies can vary depending on the organization's specific context and the nature of the employee shortage. Therefore, a tailored and comprehensive approach may be necessary to address the unique challenges posed by the Covid-19 pandemic.
learn more about HR planning strategies here:
https://brainly.com/question/30065818
#SPJ11
5. Raj Chemical a leading Chemical Manufacturing company based in Coimbatore, Tamil Nadu had reasonable sales territory is southern and western Indian Markets. They suffered a lot During the last coup
Raj Chemical, a popular chemical manufacturing firm based in Coimbatore, Tamil Nadu, experienced a significant loss in business during the latest coup due to limited market expansion. The company's main sales territories were southern and western Indian markets.
Raj Chemicals' limited market expansion and dependence on two major Indian markets were the main reasons for their business loss. Furthermore, the company did not invest in infrastructure development, such as storage facilities, which contributed to their lack of reach. As a result, the organization needed to restructure its business plan to focus on expanding into new markets and investing in infrastructure development. Developing business partnerships and expanding into untapped foreign markets could also help Raj Chemicals increase revenue and recover from past losses. Moreover, the implementation of proper inventory management systems and consistent product innovation, in addition to improving their supply chain processes, could also play a significant role in improving their market penetration and boosting profitability. In conclusion, Raj Chemicals can recover from its loss and grow its business by investing in market expansion, infrastructure development, innovation, and effective inventory management.
Learn more about implementation here:
https://brainly.com/question/28187605
#SPJ11
diseconomies of scale often arise because higher production levels allow specialization among workers.
t
f
False diseconomies of scale often arise because higher production levels allow specialization among workers.
Diseconomies of scale refer to the situation where the cost per unit increases as the scale of production increases beyond a certain point. This can occur due to various factors, such as increased complexity in managing larger operations, difficulty in coordinating different departments or processes, and diminishing returns to scale. While specialization among workers can initially lead to economies of scale by increasing productivity, it can also contribute to diseconomies of scale if the specialization becomes too narrow and leads to inefficiencies or bottlenecks in the production process.
The concept of economies of scale suggests that as production levels increase, the cost per unit of output decreases due to various factors such as better utilization of resources, increased bargaining power with suppliers, and spreading fixed costs over a larger volume of production. However, beyond a certain point, the cost per unit may start to increase due to various factors that are collectively referred to as diseconomies of scale. One of the reasons why diseconomies of scale may arise is due to the complexity and difficulty in managing larger operations. As production levels increase, so does the number of employees, departments, processes, and systems involved in the production process. This can lead to increased coordination costs, communication breakdowns, and delays in decision-making, which can all contribute to higher costs.
To know more about diseconomies visit:
https://brainly.com/question/28403442
#SPJ11
analyse the intertemporal burden of public debt (6 marks) and the internal versus external debt burden on future generations (8 marks). According to media reports, South Africa’s public debt has been rising to very high levels. Minister Enoch Godongwa has just been informed that you have learnt about public debt and debt management and has therefore consulted you to advise the government as to whether the government should tax or borrow to finance spending and ultimately grow the economy
Intertemporal Burden of Public Debt (6 marks): The intertemporal burden of public debt refers to the impact that current government borrowing has on future generations.
When a government accumulates debt, it essentially transfers the burden of repayment to future taxpayers and citizens. This is because the government will need to allocate a portion of future revenues towards debt servicing and repayment, which can limit the resources available for other public investments or increase the tax burden on future generations. The intertemporal burden of public debt depends on factors such as the size of the debt, interest rates, economic growth, and the government's ability to manage and repay the debt effectively. It is crucial for governments to consider the intergenerational equity implications of their borrowing decisions and ensure that the debt burden does not impose excessive constraints on future generations. Internal versus External Debt Burden on Future Generations (8 marks); The internal versus external debt burden refers to the distinction between debt owed to domestic creditors (internal debt) and debt owed to foreign creditors (external debt). Both types of debt can have implications for future generations, albeit in different ways.
Learn more about Intertemporal Burden of Public Debt here;
https://brainly.com/question/32287732
#SPJ11
The goal of this assignment is to research a job ad and match your skills to the qualifications indicated in the ad. In doing so, you will have an opportunity to demonstrate your research and persuasive writing skills. You may find it helpful to complete the Resume at the same time or prior to this assignment, even though it is due two weeks after this assignment.
Requirements
There are two parts to this assignment:
Job Advertisement/Skills Identification
Find an ad for a job in your area of study/field of work/area of interest. Copy/Save the ad into a Word or pdf document. You can get the ad from any source. Highlight or underline the specific skills or requirements that you will target in your cover letter and include this document with your letter;
In a separate section, create a list or table in which you classify the highlighted skills into task (hard) or performance (soft).
Try to find an ad that includes detailed information. For example, an ad that says "accountant wanted" or "manager required" will be hard to use as a basis for this assignment.
Cover Letter
Prepare a block style, targeted, persuasive cover letter requesting an interview for this job. Make sure that your cover letter includes yours and the employer’s address, presents the "you" view (what you bring to the position and not what the position can do for you), and corresponds to the ad by using qualified, quantified sentences with specific example(s) that focus on results, to demonstrate your skills.
Notes:
It is essential that your cover letter be targeted to the job for which you are applying. Remember – a cover letter describes how you will use your skills to meet the job requirements versus a resume that documents what you have done
Spelling errors and major grammatical errors on your cover letter mean you don’t get the interview. They also mean you may not pass this assignment
Please email your instructor if you would prefer to write this letter for an unsolicited job or have another option you would like to pursue
Qualified, quantified examples and a block style exemplar are available in Content>Additional Resources>Cover Letter and Resume Resources
Examples: Soft skill = problem solving; hard skill = report writing
The goal of this assignment is to research a job ad and match your skills to the qualifications indicated in the ad.
For this assignment, you are required to find a job ad in your area of study/field of work/area of interest and analyze it. Copy or save the ad into a Word or PDF document, highlighting or underlining the specific skills or requirements mentioned in the ad that you will target in your cover letter. Additionally, create a separate section where you classify the highlighted skills into task (hard) or performance (soft).
It is important to choose an ad that provides detailed information rather than a generic one. A generic ad like "accountant wanted" or "manager required" will not provide enough information for this assignment. Look for ads that specify the desired skills, qualifications, and responsibilities.
The second part of the assignment involves preparing a targeted and persuasive cover letter requesting an interview for the job you have chosen. Make sure your cover letter follows a block style format and includes both your address and the employer's address. Focus on presenting the "you" view, emphasizing what you can bring to the position rather than what the position can do for you.
Use qualified and quantified sentences with specific examples that demonstrate your skills and achievements. Your cover letter should align with the requirements and qualifications mentioned in the job ad. Be sure to proofread your letter carefully, as spelling errors and major grammatical mistakes can negatively impact your chances of getting an interview and may also affect your assignment grade.
If you have any questions about writing the cover letter for an unsolicited job or if you have any alternative options you would like to pursue, feel free to email your instructor for guidance. Remember, the cover letter showcases how you will utilize your skills to meet the job requirements, while the resume documents your past experiences and accomplishments.
Learn more about assignment here
https://brainly.com/question/29326174
#SPJ11
In a hypothetical economy the level of the percentage of reserved available (rr) and the percentage of free available er is 8% and 5% correspondingly. The percentage of fiat money in circulation that the individuals (c) hold is 10%. Calculate the money multiplier and choose one of the following: a. 0.43, b. 7.33 c. 4.78 d. 5
Money multiplier is a measure of the amount by which the money supply is increased by each unit increase in the monetary base.
Given data is: Reserve Ratio (rr) = 8% Excess reserve ratio (er) = 5%Currency reserve ratio(c) = 10%Formula for Money Multiplier is: Money Multiplier = 1 / Reserve Ratio Money Multiplier = 1 / rr = 1 / 8% = 12.5Assuming an initial deposit of $1,000, the money supply would be calculated as: Money Supply = Initial Deposit * Money Multiplier Money Supply = $1,000 * 12.5Money Supply = $12,500Therefore, the money multiplier is 12.5 and the answer closest to it is option d. 5.
To know more about supply visit:-
https://brainly.com/question/32629034
#SPJ11
Fiscal policy will not be expansionary unless the government? A. runs a full employment deficit B. maintains a balanced full employment budget C. runs a full employment surplus D. maintains a balanc
Correct option is C. runs a full employment surplus. Fiscal policy will not be expansionary unless the government runs a full employment surplus,
How does a full employment surplus impact fiscal policy?Fiscal policy refers to the government's use of taxation and spending measures to influence the economy. An expansionary fiscal policy aims to stimulate economic growth and increase aggregate demand. In the context of the given statement, fiscal policy will not be expansionary unless the government runs a full employment surplus.
A full employment surplus occurs when the government's tax revenues exceed its spending, resulting in a budget surplus. This implies that the government is collecting more in taxes than it is spending on goods, services, and programs.
In such a scenario, the government has the option to reduce taxes or increase spending, which would inject additional funds into the economy and potentially stimulate economic activity. By doing so, aggregate demand can be boosted, leading to increased production, employment, and economic growth.
If the government maintains a balanced budget or runs a deficit (spending exceeds tax revenues) at full employment, it means there is no surplus to be used for expansionary measures. In these situations, the government would need to resort to other policy tools or adjustments to stimulate the economy.
Therefore,Correct option is C. runs a full employment surplus to have an expansionary fiscal policy, providing the financial capacity to implement measures that can stimulate economic growth.
Lern more about Fiscal policy
brainly.com/question/13982103
#SPJ11
Universal Studios sold the Mamma Mia! DVD around the world. Universal charged $21.40 in Canada and $32 in Japan-more than the $20 it charged in the United States. Assume Universal's marginal cost of production (m) is $1.50. Determine what the elasticities of demand must be in Canada and in Japan if Universal is proft maximizing. The elasticity of demand in Canada must be (Enter a numeric response using a real number rounded to three decimal places. Include a negative sign i# necessary) The elasticity of demand in Japan must be e,-? Entera numeric response using a real number rounded to three decir al places include a negative s necessary.
To determine the elasticities of demand in Canada and Japan, we need to consider the pricing strategy of Universal Studios for the Mamma Mia! DVD.
For Canada:
Let's assume the price elasticity of demand in Canada is denoted as εc. To find this value, we can use the formula: εc = (% Change in Quantity Demanded in Canada) / (% Change in Price in Canada)
Since Universal Studios charged $21.40 in Canada and $20 in the United States, we can calculate the percentage change in price: (% Change in Price in Canada) = [(21.40 - 20) / 20] * 100
To determine the percentage change in quantity demanded, we need information on the relationship between price and quantity demanded in Canada. Unfortunately, this information is not provided, so we cannot calculate the exact value of εc.
For Japan:
Similarly, let's assume the price elasticity of demand in Japan is denoted as εj. Using the same formula, we can calculate: εj = (% Change in Quantity Demanded in Japan) / (% Change in Price in Japan)
Given that Universal charged $32 in Japan, we can calculate the percentage change in price: (% Change in Price in Japan) = [(32 - 20) / 20] * 100
Learn more about demand here:
https://brainly.com/question/30402955
#SPJ11
A recent meeting of the Council of Logistics Management Professionals featured an executive from HP, which is known for its ability to customize computers to customers' needs as well as its ability to provide quality products at economical prices through their retail channel. The executive discussed the firm's capabilities regarding the ability to produce products that are "built-to-order" and noted that recent customer insight showed customers were less willing to wait 7 to 10 days to receive their computer even though it was built to their specifications. As a result of this customer trend, HP began forging relationships with retailers such as Best Buy to provide a limited number of computer models in the retailers' stores. In order to fulfill the orders to Best Buy, HP was required to make changes in its production and manufacturing such as holding more products in inventory and utilizing different modes of transportation. For example, HP was able to shift from a focus on air transportation to over-the-road trucking, which enabled it to cut costs in some areas. As HP shifted from a "build-to-order" manufacturer to a "make-to-stock" manufacturer, it also had to make investments in customer analytics to identify customer needs as well as collect insight regarding pricing. This customer insight was especially important to the retail partners like Best Buy, which requires its vendors to justify product stock decisions and provide proof that retail inventory will sell at the projected price points. HP's ability to modify its business model by forging relationships with retailers such as Best Buy as well as customer insights has helped the company achieve its revenue and profitability goals.
Which environmental factor is exemplified by the customer trend that no longer being willing to wait 7 to 10 days for a "build-to-order" computer and which led HP to modify its business model to become a "make-to-stock" manufacturer?
a)
Sociocultural
b)
Legal and regulatory
c)
Regulatory
d)
Economic
e)
Competitive
The environmental factor that is exemplified by the customer trend that no longer being willing to wait 7 to 10 days for a "build-to-order" computer and which led HP to modify its business model to become a "make-to-stock" manufacturer is "Sociocultural."Sociocultural is one of the six environmental factors that have an impact on organizations and their activities. The correct answer is A.
It refers to the social and cultural factors that affect organizations such as the demographics of customers, social values, and beliefs, lifestyle, and cultural norms that shape customer needs and wants. Sociocultural trends are one of the most critical drivers of business change.
The customer trend that is mentioned in the given case is a sociocultural factor because it is driven by changes in customer behavior, preferences, and values. Customers are no longer willing to wait 7 to 10 days for a "build-to-order" computer.
To know more about Sociocultural visit:-
https://brainly.com/question/31840663
#SPJ11
Your task is to draft a legally binding agreement based on:
class discussions,
exercises, and
the samples you were provided.(20 marks)
A.Required contract headings are listed below. Ensure your contract sections are organized in a logical manner.
*Compensation
*Benefits
*Vacation
*Responsibilities
*Hours of Work
*Probation
*Conflict of Interest
*Confidentiality and Company Policies
*No Solicitation
*Resignation from Employment
*Company Property
*Legal and Credit Check
*Use of Personal Information
*Other headings you deem important for the contract
*Include a cover page and reference page
B.Add pertinent information, such as job responsibilities based on your own research and sections should be legally enforceable.
Cover Page:
[Company Logo]
Employment Agreement
[Company Name]
[Company Address]
[City, State, ZIP]
[Phone Number]
[Email Address]
[Website]
[Date]
[Employee Name]
[Employee Address]
[City, State, ZIP]
This Employment Agreement (the "Agreement") is entered into between [Company Name] (the "Company") and [Employee Name] (the "Employee") on this [Date] (the "Effective Date"). This Agreement outlines the terms and conditions of employment between the Company and the Employee.
Reference Page:
[List any additional documents or policies referenced in the Agreement]
Compensation:
The Company shall provide the Employee with a salary of [Salary Amount] per [Time Period], payable [Payment Frequency]. The salary shall be subject to applicable deductions and withholdings.
Benefits:
The Employee shall be entitled to the benefits offered by the Company, including but not limited to health insurance, retirement plans, and any other benefits as outlined in the Company's policies.
Vacation:
The Employee shall be entitled to [Number] weeks of paid vacation annually, subject to the Company's vacation policy. Vacation requests shall be made in advance and approved by the Employee's supervisor.
Responsibilities:
The Employee shall perform the following job responsibilities: [List specific job responsibilities and duties]. The Employee shall adhere to the Company's policies, procedures, and standards.
Hours of Work:
The Employee's regular working hours shall be [Start Time] to [End Time], [Days of the Week]. Additional hours or overtime may be required as determined by the Company.
Probation:
The Employee's employment shall be subject to a probationary period of [Number of Days/Months]. During this period, the Company may terminate the employment with or without cause.
Conflict of Interest:
The Employee shall disclose any actual or potential conflicts of interest that may arise during the course of employment. The Employee shall avoid engaging in any activities that may interfere with their duties or harm the Company's interests.
Confidentiality and Company Policies:
The Employee shall maintain strict confidentiality of all confidential information, trade secrets, and proprietary information of the Company. The Employee shall adhere to all Company policies and procedures, including but not limited to those related to confidentiality, computer and internet use, and workplace conduct.
No Solicitation:
During the course of employment and for a period of [Number of Months/Years] following the termination of employment, the Employee shall not solicit or attempt to solicit any customers, clients, or employees of the Company for personal or competitive purposes.
Resignation from Employment:
If the Employee wishes to resign from their employment, they shall provide written notice to the Company in advance, in accordance with the notice period outlined in the Company's policies.
Company Property:
The Employee shall be responsible for the proper use and maintenance of all Company property, equipment, and resources assigned to them during the course of employment. Upon termination of employment, the Employee shall return all Company property in their possession.
Legal and Credit Check:
The Employee authorizes the Company to conduct a legal and credit check, if required, as a condition of employment. The Employee agrees to provide necessary information and consent to the Company for conducting such checks.
Use of Personal Information:
The Employee acknowledges that the Company may collect, use, and disclose personal information for purposes related to employment and as required by law. The Employee's personal information shall be handled in accordance with applicable privacy laws.
[Include any other headings relevant to the specific agreement]
This Employment Agreement represents the entire agreement between the parties and supersedes any prior understandings or agreements, whether written or verbal. Any modifications to this Agreement must be made in writing and signed by both parties.
By signing below, the Company and the Employee acknowledge that they have read, understood.
To know more about Employment ,visit:
https://brainly.com/question/17459074
#SPJ11
Southland Corporation's decision to produce a new line of recreational products resulted in the need to construct either a small plant or a large plant. The best selection of plant size depends on how the marketplace reacts to the new product line. To conduct an analysis, marketing management has decided to view the possible long run-demand as low, medium or high. The following table shows the projected profit in millions of dollars:
The Southland Corporation, in order to produce a new line of recreational products, needs to construct either a small plant or a large plant. The decision on the plant size would depend on how the marketplace reacts to the new product line.
The Southland Corporation, in order to produce a new line of recreational products, needs to construct either a small plant or a large plant. The decision on the plant size would depend on how the marketplace reacts to the new product line. The marketing management has decided to conduct an analysis by viewing the possible long-run demand as low, medium, or high. The projected profit in millions of dollars is shown in the table below: Sizes of Plants Possible Demands Low Medium High Small plant0.5-0.51.0-1.21.5-1.8Large plant0.8-1.32.2-3.23.2-4.8It can be seen from the above table that the highest projected profit is achieved by the large plant when the demand is high. For instance, when the demand is high, the profit would be $4.8 million for the large plant, as compared to $1.8 million for the small plant. The Southland Corporation must, therefore, build a large plant if they are sure that the demand for the recreational products would be high. It would lead to higher profits. Moreover, the Southland Corporation must have conducted a cost-benefit analysis before making the decision. It should have looked at the costs involved in building a large plant as compared to a small plant. It should have also looked at the costs involved in storing the excess inventory that the large plant would produce if the demand for the recreational products is low or medium. It should be noted that the success of the new product line would depend not only on the demand but also on the quality of the products and the pricing strategy used.
To know more about products visit:
https://brainly.com/question/31815585
#SPJ11
Expected return of a portfolio using beta. The beta of four stocks-P, Q, R, and S-are 0.48, 0.88, 1.16, and 1.53, respectively and the beta of portfolio 1 is 1.01, the beta of portfolio 2 is 0.88, and the beta of portfolio 3 is 1.15. What are the expected returns of each of the four individual assets and the three portfolios if the current SML is plotted with an intercept of 3.5% (risk-free rate) and a market premium of 12.0% (slope of the line)?
To calculate the expected returns of the individual assets and portfolios, we can use the Capital Asset Pricing Model (CAPM) formula:
Expected Return = Risk-Free Rate + Beta * Market Premium
Let's calculate the expected returns for each asset and portfolio:
For stock P:
Expected Return P = 3.5% + 0.48 * 12.0% = 9.56%
For stock Q:
Expected Return Q = 3.5% + 0.88 * 12.0% = 14.56%
For stock R:
Expected Return R = 3.5% + 1.16 * 12.0% = 17.92%
For stock S:
Expected Return S = 3.5% + 1.53 * 12.0% = 21.56%
For portfolio 1:
Expected Return Portfolio 1 = 3.5% + 1.01 * 12.0% = 15.12%
For portfolio 2:
Expected Return Portfolio 2 = 3.5% + 0.88 * 12.0% = 14.56%
For portfolio 3:
Expected Return Portfolio 3 = 3.5% + 1.15 * 12.0% = 16.8%
Therefore, the expected returns for each asset and portfolio are as follows:
Stock P: 9.56%
Stock Q: 14.56%
Stock R: 17.92%
Stock S: 21.56%
Portfolio 1: 15.12%
Portfolio 2: 14.56%
Portfolio 3: 16.8%
Learn more about Capital Asset Pricing Model (CAPM) here:
brainly.com/question/15353704
#SPJ11
Zietlow Corporation has 2.11 million shares of common stock outstanding with a book value per share of 45$ with a recent divided of 6 $. The firm's capital also includes 29000 shares of 4% preferred
stock outstanding with a par value of 100 and the firms debt include 2520 5.5 percent quarterly bonds outstanding with 25 years maturity issued five years ago. The current trading price of the preferred
stock and bonds are 106% of its par value and common stock trades for 155 with a constant growth rate of 6%. The beta of the stock is 1.13 and the market risk premium is 7%. Calculate the after tax
Weighted Avergae Cost of Capital of the firm assuming a tax rate of 30% (Must show the steps of calculation)
To calculate the after-tax weighted average cost of capital (WACC) for Zietlow Corporation,the after-tax Weighted Average Cost of Capital (WACC) for Zietlow Corporation, assuming a tax rate of 30%, is 15.19%.
WACC = (E/V) * Re + (P/V) * Rp + (D/V) * Rd * (1 - Tax Rate)
Where:
E = Market value of equity
V = Total market value of the firm (E + P + D)
Re = Cost of equity
P = Market value of preferred stock
Rp = Cost of preferred stock
D = Market value of debt
Rd = Cost of debt
Tax Rate = Corporate tax rate
Let's calculate each component:
Cost of Equity (Re):
The cost of equity can be calculated using the Capital Asset Pricing Model (CAPM):
Re = Rf + Beta * Market Risk Premium
Assuming the risk-free rate (Rf) is 3% and the market risk premium is 7%:
Re = 3% + 1.13 * 7% = 10.91%
Market value of equity (E):
E = Number of common shares outstanding * Market price per share
E = 2.11 million * $155 = $327.05 million.
To know more about tax click the link below:
brainly.com/question/19528277
#SPJ11
You are a sales representative int raining. Your manager has asked you to prepare and present a sales pitch on a product or service of your choice. Your presentation should be between 1.45 – 2 minutes in length. Your sales manager will be looking at your ability to outline features, benefits and demonstrate the usefulness of your product/service to clients. You should be articulate, clever and able to craftily sell a product by focussing on unique features and highlighting its benefits to a potential client. Requirements: This presentation is an opportunity to demonstrate your selling skills You are required to incorporate relevant sales techniques and tips You are required to use two (2) proof devices
Use a simple language, as jargon can put off a potential client.Highlight the unique features of the product/service that makes it stand out from its competitors and how it can benefit the client.Add two (2) proof devices such as testimonials, statistics, or case studies to add credibility to your claims.Keep the tone friendly, conversational, and persuasive, as this helps to establish a connection with the client.Most importantly, be confident, enthusiastic, and passionate about the product/service you are selling, as this helps to inspire confidence and trust in the client.
As a sales representative, you are expected to be persuasive and convincing, and your manager has asked you to prepare and present a sales pitch on a product or service of your choice. The purpose of your presentation is to demonstrate your selling skills and to showcase your ability to outline features, benefits, and the usefulness of your product/service to clients. In your presentation, you should be articulate, clever, and able to craftily sell a product by focusing on unique features and highlighting its benefits to a potential client. To make a successful sales pitch, you are required to incorporate relevant sales techniques and tips. Here are the guidelines to follow while making a sales pitch of 100 words:Guidelines:Keep your presentation brief and to the point, between 1.45 – 2 minutes, and a maximum of 100 words only.Use a simple language, as jargon can put off a potential client.Highlight the unique features of the product/service that makes it stand out from its competitors and how it can benefit the client.Add two (2) proof devices such as testimonials, statistics, or case studies to add credibility to your claims.Keep the tone friendly, conversational, and persuasive, as this helps to establish a connection with the client.Most importantly, be confident, enthusiastic, and passionate about the product/service you are selling, as this helps to inspire confidence and trust in the client.
To know more about testimonials visit:
https://brainly.com/question/508593
#SPJ11
A certain foundation, a voluntary health and welfare organization, received the following contributions in 2020:
1. P5,000 from donors who stipulated that the money not be spent until 2022.
2. P10.000 from donors who stipulated that the contribution be used for the acquisition of equipment, none of which was acquired in 2020.
A trading securities was acquired during the year with a fair value of P5,000,000 to provide income for the maintenance of the foundation. The restricted securities was intended for endowment funds.
QUESTIONS:
1. Under Accounting Standard Update No. 2016-14, how would the above affect the following at year-end December 31, 2020?
Choice A:
Restricted net assets 5,010,000
Revenues 10,000
Choice B
Restricted net assets 5,015,000
Revenues 15,000
Choice C
Restricted net assets 5,015,000
Revenues 5,015,000
Choice D
Restricted net assets 5,005,000
Revenues 5,000
A. Choice A
B. Choice B
C. Choice C
D. Choice D
2. Under the Statement of Financial Accounting Standards No. 117, how would the above affect the unrestricted net assets, temporarily restricted assets and permanently restricted net assets, respectively?
Choice A:
Unrestricted net assets (5,000,000)
Temporarily restricted assets 0
Permanently restricted net assets 5,015,000
Choice B:
Unrestricted net assets (5,000,000)
Temporarily restricted assets 5,015,000
Permanently restricted net assets 0
Choice C:
Unrestricted net assets (5,000,000)
Temporarily restricted assets 15,000
Permanently restricted net assets 5,000,000
Choice D:
Unrestricted net assets (5,000,000)
Temporarily restricted assets 5,000
Permanently restricted net assets 5,010,000
A. Choice A
B. Choice B
C. Choice C
D. Choice D
1. Under Accounting Standard Update No. 2016-14, the correct answer is Choice B: Restricted net assets would be P5,015,000, and revenues would be P15,000.
2. Under Statement of Financial Accounting Standards No. 117, the correct answer is Choice B: Unrestricted net assets would be (P5,000,000), temporarily restricted assets would be P5,015,000, and permanently restricted net assets would be 0.
Under Accounting Standard Update No. 2016-14, contributions with donor restrictions are classified into temporarily restricted net assets and temporarily restricted revenues. In this case, the P5,000 contribution from donors who stipulated the money not to be spent until 2022 would be classified as temporarily restricted net assets. The P10,000 contribution from donors for the acquisition of equipment, none of which was acquired in 2020, would be classified as temporarily restricted revenues. Therefore, the correct answer is Choice B: Restricted net assets would be P5,015,000, and revenues would be P15,000. Under Statement of Financial Accounting Standards No. 117, contributions are classified into three categories: unrestricted net assets, temporarily restricted assets, and permanently restricted net assets. In this case, the P5,000,000 trading securities acquired for income generation would be classified as unrestricted net assets. The P10,000 contribution for the acquisition of equipment, none of which was acquired in 2020, would be temporarily restricted assets. There is no mention of any contribution specifically for permanently restricted net assets. Therefore, the correct answer is Choice B: Unrestricted net assets would be (P5,000,000), temporarily restricted assets would be P5,015,000, and permanently restricted net assets would be 0.
Learn more about Financial Accounting Standards here:
https://brainly.com/question/3521569
#SPJ11
using labor supply and demand graph to explain why college football coaches could be paid more than really good economics instructors, even when demand for really good economics instructors is higher
In the labor market, the demand and supply curves for labor determine the price of labor. The price of labor refers to wages or salaries, and it is determined by the demand for and supply of labor.
In this case, college football coaches may be paid more than really good economics instructors even when the demand for really good economics instructors is higher. This is due to differences in the supply of labor and the characteristics of the two professions. There are many highly skilled and experienced economics instructors available, which drives down the price of their labor. In contrast, there are very few highly skilled and experienced college football coaches available, which drives up the price of their labor. The demand for economics instructors may be higher, but the supply of qualified instructors is also higher, so their wages are lower. Additionally, economics instructors have a higher supply than demand, so their wages are lower. As a result, colleges may choose to allocate more funds to pay coaches than to instructors, as a means of attracting and retaining top-quality coaching staff.
To learn more about demand, visit:
https://brainly.com/question/18550230
#SPJ11
If your credit card calculates interest based on 18% APR, compounded monthly, what is your annual effective interest rate? a. 0.1047 b. 0.1274 C. 0.0832 d. 0.2193 e. 0.1956 f. 0.0969
The annual effective interest rate for a credit card with 18% APR, compounded monthly, is option e. 0.1956.
APR stands for Annual Percentage Rate, which represents the annualized interest rate charged on a loan or credit card. To calculate the annual effective interest rate, we need to take into account the compounding frequency. In this case, the interest is compounded monthly. To convert the APR to an effective interest rate, we can use the formula:
Effective Interest Rate = (1 + ([tex]APR / n))^n - 1[/tex]
where "n" represents the number of compounding periods in a year. Since the interest is compounded monthly, n = 12. Plugging in the values, we get:
Effective Interest Rate = (1 + ([tex]0.18 / 12))^12 - 1[/tex] ≈ 0.1956
Learn more about APR here:
https://brainly.com/question/10062119
#SPJ11
In deciding to pursue your current college degree
program, did you do a positive economic cost-benefit analysis of
that human capital investment in yourself?
In deciding to pursue my current college degree program, I did conduct a positive economic cost-benefit analysis of the human capital investment in myself.
When considering the decision to pursue a college degree, I weighed the costs associated with tuition, books, and other educational expenses against the potential benefits and returns I could expect from obtaining a higher education. I considered factors such as future job prospects, earning potential, and personal growth opportunities. By conducting this cost-benefit analysis, I aimed to ensure that the investment in my education would yield positive outcomes and provide a solid foundation for my future career. The economic cost-benefit analysis involved evaluating the financial costs of obtaining a college degree and comparing them to the potential economic benefits. This analysis also considered the intangible benefits of personal and professional development that come with higher education. By assessing the potential returns on investment, I aimed to make an informed decision about pursuing a college degree, taking into account both short-term sacrifices and long-term gains.
To learn more about human capital click here; brainly.com/question/536783
#SPJ11
1. What is the relationship of Nominal GDP, Real GDP, and GDP
Deflator? 2. Explain How to Compute Real GDP from Nominal GDP by
Using GDP Deflator? (Hint: Ch 6.2 shaded box) 3. Are there other
ways in
Answer: Nominal GDP: It refers to the total value of goods and services produced in an economy during a specific period, calculated using current market prices. Nominal GDP does not account for changes in price levels over time.
Real GDP: It represents the inflation-adjusted value of goods and services produced in an economy during a specific period. Real GDP takes into account changes in price levels, providing a more accurate measure of economic output over time.
GDP Deflator: It is a price index that measures the average change in prices of all goods and services included in GDP over a specific period. The GDP deflator is used to convert nominal GDP into real GDP by adjusting for inflation.
Explanation:
To compute Real GDP from Nominal GDP using the GDP Deflator, you can follow these steps:
Step 1: Obtain the Nominal GDP for the desired period.
Step 2: Obtain the GDP Deflator for the same period. The GDP Deflator is typically provided as an index number.
Step 3: Divide the Nominal GDP by the GDP Deflator and multiply by 100 to get Real GDP.
Mathematically, the formula can be expressed as:
Real GDP = (Nominal GDP / GDP Deflator) * 100
For example, let's assume the Nominal GDP is $10,000 and the GDP Deflator is 120. Using the formula, we can compute the Real GDP as:
Real GDP = ($10,000 / 120) * 100 = $8,333.33
Therefore, the Real GDP would be $8,333.33 in this example.
Yes, there are alternative methods to compute Real GDP apart from using the GDP Deflator. Two commonly used methods are the "Expenditure Approach" and the "Income Approach":
Expenditure Approach: This method calculates Real GDP by summing up the expenditures on different categories of goods and services within an economy. It considers components such as consumption, investment, government spending, and net exports. By adjusting the quantities of goods and services produced using constant base-year prices, Real GDP can be derived.
Income Approach: This method computes Real GDP by summing up the incomes earned by individuals and businesses within an economy. It considers factors such as wages, salaries, profits, rents, and taxes. Similar to the expenditure approach, the income approach adjusts the income figures using constant base-year prices to account for changes in price levels over time.
Both the expenditure and income approaches aim to measure the total value of goods and services produced in an economy, adjusting for inflation, to obtain an accurate estimate of Real GDP. These approaches provide alternative perspectives on the economy's performance and are often used in conjunction with the GDP Deflator method.
Learn more about GDP here
brainly.com/question/30737857
#SPJ11
"If the Federal Reserve is looking to stimulate the economy,
which of the following are the correct sequence of events?
If the Federal Reserve is looking to stimulate the economy, the following are the correct sequence of events: Firstly, it reduces the federal funds rate. Then, it lowers the reserve requirements for banks. Lastly, it conducts open market operations to purchase government securities.
The Federal Reserve uses three main tools to stimulate the economy: open market operations, reserve requirements, and the federal funds rate. They work together to control the money supply in the economy.Open Market Operations:When the Federal Reserve wants to stimulate the economy, it purchases government securities through open market operations. This increases the amount of money in circulation in the economy. As a result, it increases the amount of money available for banks to lend out. This encourages spending and investment.
Reserve Requirements:When the Federal Reserve lowers reserve requirements for banks, it allows banks to lend out more money.Reserve requirements are the amount of money that banks must hold in reserve. When they are lowered, banks have more money available to lend. This can encourage more spending and investment.Federal Funds Rate:When the Federal Reserve lowers the federal funds rate, it makes it cheaper for banks to borrow money. This encourages banks to lend more money, which can stimulate spending and investment. It also reduces the cost of borrowing for consumers and businesses, which can increase spending and investment in the economy. Federal Reserve can stimulate the economy by reducing the federal funds rate, lowering reserve requirements for banks, and conducting open market operations to purchase government securities.
To know more about Federal Reserve visit:-
https://brainly.com/question/20564664
#SPJ11
Suppose that economists observe than an increase in government spending of $6 billion raises total demand for goods and services by $16 billion.
(a) If these economists ignore the possibility of crowding out, what would they estimate the marginal propensity to consume (MPC) to be?
(b) Now suppose the economists allow for crowding out. Would their new estimate of the MPC be larger or smaller than the initial level? Explain your answer.
MPS equals to 1/1.67 – 1 = 0.4. Hence the economists' new estimate of the MPC is 0.6 because they allowed for crowding out.
MPC by using the formula, MPC = Change in consumption/change in income. The increase in total demand for goods and services is $16 billion, and government spending is $6 billion. Hence the increase in consumption should be $16 billion – $6 billion = $10 billion. MPC = Change in consumption / Change in income = $10 billion / $6 billion = 1.67
Alternatively, MPC can be calculated by the formula MPC = 1 / (1-MPS)where MPS is the marginal propensity to save. MPC is 1.67. Therefore, MPS = 1/1.67 – 1 = 0.4. Hence the economists' new estimate of the MPC is 0.6 because they allowed for crowding out.
To know more about MPC visit:-
https://brainly.com/question/29035456
#SPJ11
please use orginal words, and explain briefly. no plagiarism please. dont waste my question if you're going to copy from someone else. thankyou
Discuss the reasons for negative future oil price (in April 2020). Please limit your report to no more than 300 words in total.
In April 2020, the oil market experienced a significant drop in prices, reaching negative values for the first time in history. This sharp decline can be attributed to several key factors.
One of the main reasons for the negative future oil prices was the unprecedented demand shock caused by the COVID-19 pandemic. The pandemic led to global lockdowns, travel restrictions, and a significant decrease in economic activity. As a result, there was a substantial reduction in the demand for oil as industries and transportation came to a halt, leading to an oversupply of oil in the market.
Another contributing factor was the oil price war between major oil-producing countries, namely Saudi Arabia and Russia. In early March 2020, negotiations between OPEC (Organization of the Petroleum Exporting Countries) and its allies, including Russia (collectively known as OPEC+), failed to reach an agreement on production cuts. This failure led to a significant increase in oil supply as these countries ramped up production, exacerbating the oversupply situation and further depressing oil prices.
Additionally, storage capacity became a critical concern. With the decline in demand and excess supply, storage facilities quickly reached their limits. This created a situation where traders holding oil futures contracts had limited options for physical delivery and were forced to sell contracts at any price to avoid taking delivery and incurring storage costs. This unprecedented scenario led to a temporary anomaly in the futures market, resulting in negative oil prices.
In conclusion, the negative future oil prices in April 2020 were primarily driven by the demand shock caused by the COVID-19 pandemic, the oil price war between major producers, and the challenges in storage capacity. These factors created an imbalance between supply and demand, leading to an oversupply of oil and putting downward pressure on prices.
Learn more about COVID-19 pandemic here: brainly.com/question/30627329
#SPJ11
Please answer all of the blanks.
4. Consider the demand equation given by: Qd = 120-20P. Total revenue by $ (increases/decreases) This total effect can be decomposed into a price effect which caused total revenue to (increase/decreas
Consider the demand equation given by: Qd = 120 - 20P. Total revenue (increases) as the price decreases. This total effect can be decomposed into a price effect which caused total revenue to increase.
When the price decreases, the quantity demanded increases according to the demand equation. As a result, the total revenue (price multiplied by quantity) increases. This is because the increase in quantity demanded more than compensates for the decrease in price, leading to a net increase in total revenue.
The total effect of the decrease in price on total revenue can be decomposed into two effects: the price effect and the quantity effect. The price effect refers to the change in total revenue due to the change in price alone, assuming quantity demanded remains constant. In this case, as the price decreases, the price effect contributes to an increase in total revenue.
Therefore, the total revenue increases when the price decreases, and this increase is primarily driven by the price effect.
To know more about demand equation visit:
https://brainly.com/question/13057521
#SPJ11