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Neutron Inc, is one of the leading electric car manufacturers in Northbay, a developing economy. Neutron's sales increased by more than 20% this year compared to the previous year, which started a debate within the company about whether the firm should increase prices. Among those in favor of a price hike is Eric Johnson, the operations head at Neutron. Eric is of the opinion that given the high demand for Neutron's car, the firm should increase price to improve profits. Mike Wilson, the CEO of the firm, however, feels that a price increase would adversely affect teh demand for Neutron's products because he thinks consumers in this industry are more price conscious than brand loyal. Which of the following, if true, will weaken the case for a price increase? A.Workers at Neutron's manufacturing units demanding wage hikes. B. The recent increase in fuel prices was very steep. C. some of Neutron's competitors have recently announced price cuts. D. Many people have emigrated to Northbay from neighboring countries in the recent past. E.Neutron's physical capital depreciates at a rate of 3% every year.
Machine A costs $20,000, lasts 3 years and has a salvage value S of $3,000. Machine B costs $12,000, lasts 2 years and has a salvage value of $2,000. The machines can be purchased at the same price with the same salvage value in the future, and are n..
Explain your answer what would happen to the value of gold if public discovered that it could simply be made at home from inexpensive materials.
If one compares the contemporary U.S. economy with those of Germany and France, it is reasonable to conclude that
The price paid by buyers increases by $2 and the after-tax price received by sellers falls by $3. The government is able to raise $750 per month in revenue from the tax. Elucidate deadweight loss from the tax.
An individual is considering the purchase of a used automobile. The total price is $6200 with $1240 as a down payment and the balance paid in 48 equal monthly payments with interest at 1% per month. The payments are due at the end of each month. Comp..
The function for the net exports is NX=200-100e, where e, is the exchange rate, and the exchange rate is initially 1.0.
An individual consumes only two commodities X and Y. She prefers a bundle B1 with 6 units of X and 2 units of Y to a bundle B2 with 4 units of X and 7 units of Y. Also, she prefers a bundle B3 with 2 units of X and 8 units of Y to B1. Are these prefe..
According to new growth theory, per capita growth is:
The effectiveness of different kinds of incentive systems: moral, material, and coercive.
An important law in economics is the “Law of Diminishing Marginal Utility”. Discuss what this law is and provide an example of diminishing marginal utility you’ve encountered recently.
Since the cash flows compose a gradient series followed by a uniform series, solve the problem using those factors. Determine the FW of the cash flows.
What is a software application designed to help an enterprise select employees more efficiently?
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