The first sushi restaurant opens in town. Initially people are very cautious about eating tiny portions of raw fish, as this is a town where large portions of grilled meat have always been popular. Soon, however, an influential health report warns consumers against grilled meat and suggests that they increase their consumption of fish, especially raw fish. The sushi restaurant becomes very popular and its profit increases.
a. What will happen to the short-run profit of the sushi restaurant? What will happen to the number of sushi restaurants in town in the long run? Will the first sushi restaurant be able to sustain its short-run profit over the long run? Explain your answers. b. Local steakhouses suffer from the popularity of sushi and start incurring losses. What will happen to the number of steakhouses in town in the long run? Explain your answer. c. Does the market for sushi restaurants fit the characteristics of perfect competition? Explain.
Answers
The number of sushi restaurants will increase in the town causing the equilibrium price to increase.
a)Warning against grilled meat will shift the consumers of meat to eat fish which will result in an increase in the demand for sushi and fish. This increase in demand will increase short-run profit and the price of fish.
In the long run, high prices of sushi restaurants can lead consumers to shift back to meat because some people will ignore the warning about meat. This will increase the price and demand for meat. As fish is now a substitute high prices of meat will shift the consumers back to sushi restaurants so their profits and demand will increase in the long run as well.
And the number of sushi restaurants will increase in the long run. This is called general equilibrium analysis.
b)The local steakhouse will be affected by the popularity of sushi restaurants and the number of steakhouses will decrease in the town due to less demand or their sales profit will decrease due to which they might shut down.
c)Sushi markets is an example of perfect competition because there are many buyer and sellers of single types of product.
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Related Questions
What project scheduling term is used to describe the completion of significant portions of the project or a transition from one phase to another?.
Answers
A Gantt chart is the most common type of project schedule. A Gantt chart can be used to create a detailed project schedule as well as a milestone schedule.
In project management, what exactly is a project schedule?
What needs to be done, which resources need to be used, and when the project is due are all listed in a project schedule. It is a schedule with start and end dates and milestones that must be met to finish the project on time.
What are the methods for scheduling?
The four most widely used scheduling methods by project managers are as follows: Gantt charts, the Critical Path Method, the Program Evaluation and Review Technique, and fast-tracking and crashing.
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the process of seeking employees who are currently within the firm to fill open positions is known as .
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Internal recruitment is the process of looking for current employees to fill open positions within the company.
What is employees?
Employment is the process by which a business hires a person to carry out a task. In exchange for compensation, the employee consents to complete the tasks assigned by the employer. Employment essentially serves as the foundation for how employees are compensated for the duties they perform within a company.
Employment is a tool that businesses use to run their operations. Employers are required for businesses to run and expand. For instance, if a company wants to enter a new industry, it will have to hire more skilled employees there. As a result, they will be using employment as a tool for business expansion.
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when sam increases smoothie production from 4 gallons to 5 gallons, his total cost of production increases from $32.50 to $36.85. calculate sam's marginal cost of producing smoothies.
Answers
Sam's marginal cost of producing smoothies is $4.35.
What is marginal cost?
The difference in total production costs caused by creating or producing one extra unit is known as the marginal cost in economics. To calculate marginal cost, divide this same variation in production costs even by variation in quantity. Finding the point at which an organisation can achieve scale economies to improve production as well as overall operations is the goal of marginal cost analysis. The producer may make money if the cost of producing one extra unit is less than the price per unit. The total costs involved in producing an additional good are what is referred to as the marginal cost. Therefore, it can be evaluated by changes in the costs associated with each additional unit.
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If accounting profits equal $10 million for a firm and the owners could likely earn $7 million in a similar business, the firm’s economic profit is ________.
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If accounting profits equal $10 million for firm and the owners could likely earn $7 million in similar business, the firm’s economic profit is increasing.
What is profit?The revenue from an economic entity's outputs less the opportunity costs of its inputs is what is known as a profit. Total revenue less total expenses, which includes both direct and indirect expenses, is what this term refers to. Unlike accounting profit, it solely pertains to the costs that are explicitly stated in a company's financial statements. The total revenue of the company less solely its explicit costs is how an accountant calculates the accounting profit of the company. When examining a corporation, an economist considers all opportunity costs, both explicit and implicit. Economic profit therefore falls short of accounting profit. The overall revenue must exceed the opportunity cost for a business to be profitable from an economics perspective. The two terms "normal profit" and "economic profit" are frequently used interchangeably.
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when working with a developer who's purchasing undeveloped land for a new subdivision, abc realty stipulates in the contract that in order to purchase the undeveloped land, the developer must purchase grading services from bulldozers-r-us. which antitrust violation is this?
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Control happens once competitor brokers comply with a typical worth for sales commissions, fees, or management rates. The Sherman just Act forbids any style of control in any business.
Tie-in agreements are called fastening agreements. For instance, a developer United Nations agency is additionally a true estate broker agrees to sell one among the developer's properties to a purchaser providing the customer agrees to list the buyer's house with the broker.
The just prohibition on fixing commission rates means that 2 or additional realty companies might not agree on the commission rate that everyone can charge. As noted earlier, control may be a violation of just laws.
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eduardo is an advertiser at a major consumer packaged goods company. he is looking to run a cross-promotional campaign to promote products that are frequently purchased together. which part of amazon brand analytics would be most useful for him to review to best understand these trends for his brand?
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Eduardo is an advertiser at a major consumer packaged goods company. Item comparison part of amazon brand analytics would be most useful for him.
What's brand analytics on Amazon?Amazon's Brand Analytics tool provides insight into your product's performance, client hunt geste , and your challengers. Amazon workers started stealing and dealing numerous analogous reports that are now available in Brand Analytics.
How is brand analysis done?
A traditional brand analysis includes a deep dive into three main areas client analysis, contender analysis, and an inspection of the current brand. still, brand analyses can also include a request analysis, brand armature analysis, brand threat analysis, or brand operation analysis.
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Which of the following indicates the management uses of marketing research?
a. It creates a mismatch between the researcher's unique problem and the purpose for which the research were originally gathered.
b. It improves the quality of decision-making.
c. It can aid in formulating the problem statement.
d. It provides already existing data that pinpoints the kinds of people to approach and their locations.
Answers
It improves the quality of decision-making.
What is decision-making?
Making decisions may be seen as a problem-solving process that results in an ideal, or at least acceptable, answer. Consequently, it is a process that might be more or less reasonable or irrational and that can be founded on overt or covert facts and ideas quality. Complex decision-making procedures frequently rely on tacit knowledge to fill in the blanks. Both tacit and explicit information are typically employed in tandem during the decision-making process.
Active study has been conducted on human performance from a variety of quality:
psychological: analyzing a person's choices in light of the needs, interests, and quality that person has or aspires to.
Cognitive: The process of creating decisions is seen as a constant activity interwoven with interactions with the environment.
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sannella corporation produces and sells a single product. data concerning that product appear below: per unit percent of sales selling price $ 220 100 % variable expenses 66 30 % contribution margin $ 154 70 % fixed expenses are $991,000 per month. the company is currently selling 8,000 units per month. the marketing manager would like to introduce sales commissions as an incentive for the sales staff. the marketing manager has proposed a commission of $11 per unit. in exchange, the sales staff would accept a decrease in their salaries of $74,000 per month. (this is the company's savings for the entire sales staff.) the marketing manager predicts that introducing this sales incentive would increase monthly sales by 200 units. what should be the overall effect on the company's monthly net operating income of this change? multiple choice
Answers
There is an increase of $14,600 as a difference between $241,000 and $255,600 which are the Net Operating income.
What is Net Operating income?Net operating income (NOI) is a calculation used to analyze the profitability of income-generating real estate investments. NOI equals all revenue from the property, minus all reasonably necessary operating expenses.NOI is a before-tax figure, appearing on a property’s income and cash flow statement, that excludes principal and interest payments on loans, capital expenditures, depreciation, and amortization. When this metric is used in other industries, it is referred to as “EBIT,” which stands for “earnings before interest and taxes.”Real estate experts use net operating income as a method of valuation to establish the exact value of their properties that generate income. The operating costs of a property must be deducted from the income it generates in order to determine NOI.According to our question-
Our Fixed expenses are
i. $991,000
ii. $917,000
Therefore Net operating income = Contribution margin - Fixed expenses
i. 1,232,000 - 991,000
=$241,000
ii. 1,172,600 - 917,000
=$255,600
Hence, There is an increase of $14,600 as a difference between $241,000 and $255,600 which are the Net Operating income.
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guided by a strong moral compass and a sense of duty, focus on the process of change and inspire through vision, trust, respect, and consideration.
a. true
b. false
Answers
Answer:
true
Explanation
i am a ginus!
Consider a situation in which a coffee chain opens across the street from a locally owned cafe. Theoretically, the prices at both stores should be similar because the costs and customer demand will be similar. However, because the coffee chain can rely on corporate backing for support, it makes the decision to radically lower prices, attracting more customers to its facility and eventually driving the competition out of business. This scenario illustrates which ethical issue in pricing?.
Answers
Penetration pricing is a tactic used to eliminate competition by lowering prices.
What does the phrase "penetration price" mean?Companies use penetration pricing as a marketing strategy to entice customers to try out new products or services by first offering them at a cheaper price. With a lower price, a new product or service can more readily join the market and entice customers away from competitors.
What are some illustrations of penetration pricing?When you enter a grocery shop, you regularly see advertisements offering introductory bargains on particular fresh items, which are excellent examples of penetration pricing.
Costco and Kroger utilize penetration pricing to their organic products to increase demand.
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how does the christian worldview describe ethics
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Christian worldview describe ethics as a virtue ethic that places a strong emphasis on the development of moral character, starting with adherence to a system of laws and regulations that are seen as divine instructions that reflect actions that are morally obligatory, disallowed, or authorized.
What are the ethical values of Christianity?The imitation of Jesus' love and the double commandment of love (agape, in Greek) are at the heart of Christian ethics, although other virtues, concepts, and standards are equally pertinent Melé (2016). Being compassionate and selfless, especially with our money and time, is the central Christian principle of generosity. Boldness and assurance are qualities that define courage. It is the antithesis of fear. Being filled with love is a vital aspect of who God is, and His children should share this value.
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If labor is the only variable input a firm owner uses and the wage rate is $200 per week, what is the firm owner’s variable cost per week if she hires 12 workers?.
Answers
the firm owner’s variable cost per week is $2400.
variable cost per week = $200 x 12
= $2400
Costs that vary according to how much of a good or service a company produces is known as variable costs. The total marginal costs across all units produced represent variable costs. They may also be regarded as typical expenses. The two elements of the total cost are fixed costs and variable costs.
A corporation must pay close attention to variable costs because they can significantly affect how they spend its money. Variable costs can range from relatively high (in the event of a business experiencing significant change) to fairly minimal (depending on the strategic aims of a business).
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why do firms continue introducing new products and services?
Answers
Businesses develop new goods or services to combat market saturation because they want to stand out from the competition, boost sales, and get a larger market share.
A company is a specific kind of business where various goods or services are produced. A company may be involved in a number of different sectors, such as those food, clothing, vehicles, and fashion.
Businesses are often run by a single individual or team of partners who split profits from sales.
To combat market saturation, businesses keep releasing new goods and services. When there are numerous providers and little demand for a given sector, good, or service, the market becomes saturated. This is when businesses launch brand-new goods or services to differentiate themselves from the competition, boost demand for their goods or services, and boost sales.
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Where would your client navigate to view the status of a bill payment that was paid using bill pay powered by melio?.
Answers
The client navigates the Bill and Applied Payment option to view the status of a bill payment that was paid using bill pay powered by Melio.
Melio is an online payment platform used by business platforms including bank transfer, debit, and credit card payments. It is beneficial for cash flow between small businesses in the United States.
Bill and Applied Payment could be found in the report menu. Click on the option View Online Payment. Further, customize button is present on the top. Scroll at rows/columns and create a report by clicking on Run Report. Further, the report can be saved by clicking on save customization.
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at what point described below will producer surplus most likely drop to zero for a firm? a.) when the firm is taking a significant loss b.) when revenue equals opportunity and variable costs c.) when producer and consumer surplus are both the same quantity d.) when the firm is making a significant profit
Answers
(B) When revenue equals opportunity and variable cost, then the producer surplus most likely drops to zero for a firm.
What is revenue?The total income derived from the sale of products or services pertaining to a business's core operations is referred to as revenue. Because it appears at the top of the income statement, revenue, which is also known as gross sales, is frequently referred to as the "top line." A company's overall earnings or profit are referred to as income or net income. Although both revenue and profit are positive indicators for your company, they are not the same thing.The producer surplus for a firm will probably reach zero when revenue equals opportunity costs and variable costs.Therefore, (B) when revenue equals opportunity and variable cost, then the producer surplus most likely drops to zero for a firm.
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how do smart factories differ from other manufacturing technologies? how might the transformation to a smart factory change how a manufacturing organization hires and trains employees?
Answers
Many businesses are quickly adopting lean manufacturing and smart factories. The organisational design is where this differs fundamentally from conventional manufacturing technologies.
What is manufacturing technologies?
The industrial world of today features a number of manufacturing technology advancements that were science fiction even 15 or 20 years ago. The most potent technology ever seen in the manufacturing industry is being created by improvements in communication speeds, data analysis, and automation.
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Consider a company that manufactures picture frames. Which of the following costs would be considered direct costs? (Check all that apply.)
A. Wages of assembly line worker
B. Glass used in the frame
C. Salary of production supervisor
D. Oak wood used for frame
Answers
The following costs would be considered direct costs.
A. Wages of an assembly line worker
B. Glass used in the frame
D. Oak wood is used for the frame.
Fixed costs have a tendency to be fees that can be primarily based totally on time in place of the amount produced or bought through your enterprise. Examples of constant fees are lease and hire fees, salaries, application bills, insurance, and mortgage repayments. Some varieties of taxes, like enterprise licenses, also are constant fees.
“Cost” in its singular shape refers back to the sum of a complete group; “fees” refers to all the portions inside that group. For example, “the price of a provider consists of fabric fees and exertions fees.” From felony contracts to discussions of budgets, the distinction between “price” and “fees” regularly befuddles people.
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In the united states for the year 2020, the federal government had a ________ so the national debt was ________.
Answers
In the united states for the year 2020, the federal government had a budget surplus so the national debt was increasing .
Why is there a budget surplus?
When revenue outpaces spending, there is a budget surplus. When a government has a surplus, it has extra funds that can be invested or applied to debt repayment. The opposite of a surplus is a deficit. The government must borrow money to finance spending when receipts are higher than expenditures.Is a budget surplus beneficial?
Economic conditions determine whether something is good or terrible. When there is inflation, we need surpluses; when there is a recession, we need deficits. There is, regrettably, a little more to it. When a government has a budget deficit, it means that it is spending more money than it is bringing in through taxes.Learn more about budget surplus
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georgia, a widow, has take-home pay of $1,100 a week. her disability insurance coverage replaces 55 percent of her earnings after a four-week waiting period. what amount would she receive in disability benefits if an illness kept georgia from work for 20 weeks?
Answers
The term "weekly benefit amount" refers to the amount of benefits to which a person would be entitled for each full week of unemployment.
How to Calculating Benefit Payment Amounts?Your annual income affects your weekly benefit amount (WBA). It is projected to be between 60 and 70 percent of the wages you made between five and eighteen months prior to the start of your claim, up to the maximum WBA.The beginning of your impairment is the date your claim starts.Your WBA will be determined using a base period. You must have contributed to State Disability Insurance during your base period in order to be eligible for these benefits. On your paystub, this will appear as "CASDI."Given1100 x 55% = 1050 a week
20wk - 4wk wait =16 x 1050 = 16,800
= $16,800
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true or false: if nick's fire engines were a competitive firm instead and $80,000 were the market price for an engine, decreasing its price from $80,000 to $40,000 would result in the same change in the production quantity and, thus, total revenue.
Answers
The above mentioned statement is False as if nick's fire engines were a competitive firm instead and $80,000 were the market price for an engine, decreasing its price from $80,000 to $40,000.
What is Market Price?The price at which a good or service can currently be bought or sold is known as the market price. The forces of supply and demand determine the market price of a good or service; the price at which the quantity supplied and demanded are equal is the market price. Let's use a market pricing example where the ask price is $25.01 or more and the bid price is up to $24.99. A market order to buy placed by an investor will be filled at $25.01. To execute the next trade, bids must increase since this becomes the market price.
Hence, the statement is False.
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Profits rise rapidly in the growth stage of product lifecycle, reach their peak, and begin declining as competition intensifies.
a. True
b. False
Answers
Profits rise rapidly in the growth stage of product lifecycle, reach their peak, and begin declining as competition intensifies.
b. False
Income, in accounting, is an profits allotted to the owner in a worthwhile marketplace manufacturing system. earnings is a measure of profitability that is the proprietor's primary interest within the profits-formation procedure of marketplace production. There are several earnings measures in commonplace use.
Profit is the cash you've got left after buying commercial enterprise expenses. There are three important sorts of profit: gross profit, working and net earnings. Gross profit is largest. It shows what cash was left after deciding to buy the goods and offerings sold.
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if replacement was involved in the sale of a life insurance policy, an agent must provide a replacement notice no laterr than
Answers
An agent must provide a replacement notice no later than providing the applicant with a Notice Regarding the Replacement of Life Insurance.
Life insurance covers most causes of death, such as herbal and accidental reasons. But, a few caveats may also save your beneficiaries from receiving their payout.
Reasons ought to encompass a software error, a lapse in premium bills, wrong clinical history information, or errors whilst naming a beneficiary. Here, we will give an explanation for extra about what disqualifies an existence coverage policy from being paid out and the way to keep away from oversights that might purpose a denied existence coverage claim.
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How does the federal reserve affect the supply of money using open market operations?.
Answers
The Fed buys bonds to increase the number of reserves that banks have on hand.
Quantitative easing (QE) is an economic policy motion wherein a central financial institution purchases government bonds or other financial property for you to inject monetary reserves into the financial system to stimulate financial interest. Quantitative easing is a unique shape of financial policy that got here into wide software after the economic crisis of 2007-2008. it is supposed to stabilize a monetary contraction when inflation may be very low or bad and when trendy financial coverage contraptions have grown to be useless.
Quantitative tightening (QT) does the other, in which for economic coverage reasons, a critical financial institution sells off a few portions of its own held or formerly purchased government bonds or different monetary belongings, to a combination of business banks and other monetary establishments, usually after durations of their very own, in advance, quantitative easing purchases.
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Think about the process of zero-based budgeting. What might one drawback of this method be?.
Answers
Zero-based budgeting can help you create repeatable processes, but it will probably take longer than traditional budgeting.
What is Zero-Based Budgeting?
An accounting technique called zero-based budgeting requires managers to consider every dollar spent throughout each planning cycle. It may have advantages as well as disadvantages.
In traditional budgeting, businesses use the budget from the previous period as a starting point and add to it. Companies only need to justify new spending because typically each budget increases slowly in comparison to the budget for the prior month.
Zero-based budgeting differs from standard budgeting in that the budget is built from "zero base" for each new quarter. Before including any item in the new budget, whether ongoing or past expenses, they must provide justification.
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bill buyer does inspections on property he is buying and finds all to be in order. the inspection objection deadline passes. two days later bill gets cold feet and sends sam seller a notice that bill wants to terminate the contract. what is the result?
Answers
Prior to closing, Bill is free to withdraw, but doing so will result in the loss of his earnest money deposit.
When is the advance payment deposit typically applied on a settlements statement at closing?Earnest money is often delivered at the time when the sales contract or purchase agreement is signed, although it can also be included with the offer. After being received, the money is normally kept in an escrow account until closing, when it is used to cover the buyer's down payment and closing expenses.
How can a buyer determine how much cash to bring to the closing?The main technique for determining your cash to close is quite straightforward. The majority of what you need to close on a mortgage is your down payment plus your closing expenses, less any seller credits or earnest money you've already paid.
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you can calculate the yield curve, given inflation and maturity-related risks. looking at the yield curve, you can use the information embedded in it to estimate the market's expectations regarding future inflation, risk, and short-term interest rates. the -select- theory states that the shape of the yield curve depends on investors' expectations about future interest rates. the theory assumes that bond traders establish bond prices and interest rates strictly on the basis of expectations for future interest rates and that they are indifferent to maturity because they don't view long-term bonds as being riskier than short-term bonds. for example, assume that you had a 1-year t-bond that yields 1.4% and a 2-year t-bond that yields 2.6%. from this information you could determine what the yield on a 1-year t-bond one year from now would be. investors with a 2-year horizon could invest in the 2-year t-bond or they could invest in a 1-year t-bond today and a 1-year t-bond one year from today. both options should yield the same result if the market is in equilibrium; otherwise, investors would buy and sell securities until the market was in equilibrium. quantitative problem: today, interest rates on 1-year t-bonds yield 1.4%, interest rates on 2-year t-bonds yield 2.6%, and interest rates on 3-year t-bonds yield 3.8%.
Answers
Pure expectations theory states that the shape of the yield curve depends on the investor's expectations about future interest rates.
The 1-year interest rate on T-bond yields 1.5%
The 2-year interest rate on T-bond yields 2.5%
The 3-year interest rate on T-bond yield 3.2%
a. Yield on 1 year T bond one year from now
(1+0.032)3 = (1+x) (1+0.025)2
1+x = (1+0.032)3 / (1+0.025)2
X= 4.61%
b. Yield on 2-year T bond one year from now
(1+0.032)3 = (1+0.05) (1+X)2
(1.032)3 / 1.05 = (1+x)2
X = 4.06%
c. Yield on 1 year bond two years from now
(1+0.032)3 = (1+X) (1.025)2
X= 4.61%
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if net exports are positive, group of answer choices the equilibrium gdp must be greater than the full-employment gdp. imports must exceed exports. aggregate expenditures are greater at each level of gdp than when net exports are zero or negative. some other component of aggregate expenditures must be negative.
Answers
Aggregate spending is higher at each GDP level when net exports are positive than when they are zero or negative.
What impact do net exports have on GDP at equilibrium?Shows the effect of net exports on equilibrium GDP. Positive net exports have an expansionary effect by driving up total spending above what it would be in a closed economy.
What connection exists between the GDP at equilibrium and the GDP at full employment?GDP in equilibrium is to the right of GDP in full employment. When there is an inflationary gap, equilibrium GDP is higher than full employment GDP. GDP at equilibrium is too high. Raising taxes or cutting G expenditure are the only ways to close the deficit; both actions will lower GDP and cut spending.
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when the fed reacts to a positive aggregate demand shock, which is likely to make the period of disinflation (reducing the inflation rate) shorter?
Answers
Credibility on the part of the Fed is likely to make the period of disinflation.
How fed can affect aggregate demand?
Although the Federal Reserve has a minimal direct impact on aggregate demand, by lowering interest rates, the Fed can indirectly boost demand. Asset prices increase when interest rates are reduced. Consumer confidence is boosted by higher asset values for assets like homes and equities, which leads to larger purchases and higher total spending levels. Companies are frequently able to obtain more capital at lower costs as a result of higher stock prices.
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which of these is a function that a portfolio manager should be able to perform? a) maintain diversification across asset classes b) achieve risk-adjusted returns equal to an appropriate benchmark c) guarantee positive returns d) eliminate systematic risk
Answers
The correct option b) achieve risk-adjusted returns equal to an appropriate benchmark, is the function of the portfolio manager.
Define the function of portfolio manager?Investment decisions are made by portfolio managers.
They create and manage portfolios, decide what and when to acquire and sell investments, and develop and implement invest procedures and strategies to suit client goals and restrictions.Private client investment allocations are typically created and managed by portfolio managers. While some portfolio managers specialize in serving the needs of institutions or corporations, others work exclusively individuals and families.One of the most crucial things to take into account when considering at fund investing is a portfolio manager.Thus, a portfolio manager is a single individual or group of persons who are in charge of managing daily portfolio trading, implementing an investment strategy, and investing the assets of a mutual, exchange-traded, or closed-end fund.
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Question 7 a restaurant wants to gather data about a new dish by giving out free samples and asking for feedback. Who should the restaurant give samples to?.
Answers
As the restaurant wants to gather data about a new dish by giving out free samples and asking for feedback, the people that the restaurant should give the samples to are the customers.
What are samples?In research. a sample means the group of people, objects, or items that are taken from a larger population for measurement. The sample are expected to be the representative of the population to ensure that we can generalize the findings from the research sample to the population as a whole.
The samples collected from the customers, will allow the restaurant to gather data about the new dish.
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