Purchasing power parity (PPP) represents the universality of exchange rate systems.
Purchasing power parity is a measure of prices in different countries that uses the price of a particular commodity to compare the absolute purchasing power of each country's currency with the standard of living of a given population.
A simple example is a liter of Coca-Cola. At €2.3 in France and $2.00 in the US, Coca-Cola's PPP between France and the US is 2.3/2.00 or 1.15.
Purchasing Power Parity (PPP) is a popular indicator used by macroeconomic analysts to compare currencies of different countries through a "shopping basket" approach. Purchasing power parity (PPP) allows economists to compare the economic productivity and living standards of countries.
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the tucker family has health insurance coverage that pays 80 percent of out-of-hospital expenses after a deductible of $1,160 per person. if one family member has doctor and prescription medication expenses of $3,000, what amount would the insurance company pay?
If the insurance provider covers 80% of out-of-hospital costs after an $1160 per person deductible, the amount they would pay is $1472.
The amount that the insurance provider would cover can be calculated by first deducting the individual deductible from the doctor and prescription drug costs, and then multiplying that sum by the percentage that the health insurance covers.
Given that each person's deductible is $1,160and that a visit to the doctor and prescription drugs will cost $3000,
$3000- $1160 = $1840
80% of the costs are covered by health insurance, therefore;
80% of the $1840was paid by the insurance company.
Insurance company payment: (80/100) 1840
Insurance company payment: 0.80 x 1840
The insurance provider made a payment of $1472.
Thus the amount paid by the insurance company will be $1472
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Black Friday What do you think of shopping days like?
Shopping days like Black Friday are an easy way to buy products on a budget.
Black Friday is a day, mostly a Friday in the month of November, during which huge discounts are given on products by companies.
The Black Friday sales cover clothing, electronic appliances, food items, and almost everything.
Black Friday can be of huge help when you are trying to buy things at a discount. One should save up the money for this day and buy interested products on each day as they will be offered on a discount.
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question content area top part 1 all of the following business organizations provide limited liability to their owners except question content area bottom part 1 a. general partnership. b. stype corporation. c. corporation. d. limited liability company.
All of the given business organizations provide limited liability to their owners except 'general partnership'. Therefore, the option is A 'general partnership' is the correct answer.
Limited liability refers to a type of liability that does not exceed the investment amount in a partnership or limited liability company. While, a general partnership refers to a business arrangement whereby two or more individuals agree to share in all profits, assets, and financial and legal liabilities of a business owned jointly. In a general partnership, all partners agree to unlimited liability; it means liabilities are not capped and can be paid by the seizure of an owner's assets. Further, any partner may be sued for the debts of the business.
Thus, it is stated that general partnership organizations do not provide limited liability to their owners.
"
The correct question is as follows:
all of the following business organizations provide limited liability to their owners except a. general partnership. b. stype corporation. c. corporation. d. limited liability company.
"
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as a manager, you will want to use the for your product to forecast the likely consequences of . please choose the correct answer from the following choices, and then select the submit answer button. answer choices income elasticity of demand; a change in supply percent change in price; the price elasticity of supply percent change in price; the price elasticity of demand price elasticity of demand; a change in price
As a manager, you will want to use the"price elasticity of demand" for your product to forecast the likely consequences of "a change in price".
What is the meaning of the term price elasticity of demand?The ratio of the percentage variation in the amount demanded to the change in its price is known as the price elasticity of demand.
The demand's price elasticity is often negative since the quantity demanded has a downward slope. However, the adverse indicator is frequently overlooked. The degree to that which substitute products are available is one factor that affects the price elasticity of demand cross price elasticity of demand. Demand is typically inelastic when there are very few alternatives. Firms therefore have some control over pricing. Demand is typically elastic when there are lots of replacements, and businesses have little power over pricing.The company has some influence over its price when the demand curve is negative.
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a health insurance policy pays 80 percent of physical therapy costs after a deductible of $500. in contrast, an hmo charges $30 per visit for physical therapy. how much would a person save with the hmo if he or she had 12 physical therapy sessions costing $125 each?
With the HMO, a person would save $340 for his or her 12 physical therapy sessions.
HMO stands for Health Maintenance Organization and that is a type of health insurance plan that usually limits coverage to care from doctors who work for or contract with the HMO.
Now, let's try to calculate how much would a person save with the HMO.
Health insurance policy =
Coinsurance expenses = Total expenses - Deductible
= (12*125) - $500 = $1000
Insured's cost = Deductible + ((1 - Coinsurance percent) * Coinsurance expenses)
= $500 + ((1-0.80) * 1000) = $700
HMO :
Insured's cost = Number of visits * cost per visit
= 30 * $12 = $360
Insured's savings with HMO = Health insurance policy cost - HMO cost
= $700 - $360 = $340
Therefore, the person will save $340 with the HMO.
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Bruno wants to communicate to the CEO of his company about a new idea he has. What is the BEST way for Bruno to approach the CEO about this idea?
send a lengthy email spelling out the details
talk to the CEO on their way into the office
focus on the process rather than the outcomes
be concise and straight to the point
The best way for Bruno to approach the CEO and communicate about the idea that he has is to be concise and straight to the point.
How to communicate to your boss?When you need to communicate to your boss, you need to take into account a number of things. One of them is the chain of command to see how to approach the boss without steeping on the toes of your other supervisors. But perhaps the most important thing to remember is that your boss is involved in many more activities than you and so can be quite busy.
This is especially true in the case of a Chief Executive Officer (CEO). Because a CEO is very busy, talking to them requires that you take advantage of your time as much as possible. Bruno in this instance, needs to be as concise and straight to the point as possible so as to get the CEO to listen, with the little time that Bruno has with them.
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att and meg comer are married and file a joint tax return. they do not have any children. matt works as a history professor at a local university and earns a salary of $67,400. meg works part time at the same university. she earns $35,800 a year. the couple does not itemize deductions. other than salary, the comers' only other source of income is from the disposition of various capital assets (mostly stocks). (.
You need to itemize deductions if your allowable itemized deductions are larger than your trendy deduction or if you ought to itemize deductions because you can't use the fashionable deduction.
You may also be capable to reduce your tax through itemizing deductions on Schedule A (Form 1040), Itemized Deductions.
What are the 5 sorts of itemized deductions?Itemized deductions encompass quantities you paid for state and local income or income taxes, actual estate taxes, personal property taxes, mortgage interest, and disaster losses. You may additionally additionally encompass items to charity and part of the amount you paid for scientific and dental expenses.
If you choose the wellknown deduction, you will no longer be able to declare itemized deductions. These cover many key areas, such as clinical costs, charitable donations, nation taxes, and a number expenses associated to owning a home.
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https://brainly.com/question/13757943#SPJ4judicial activism has become an important political issue because:
Judicial activism has become an important political issue because conservatives have argued that judges are acting as legislators on issues such as same-sex marriage.
Proponents of judicial activism guide the use of the judiciary's energy of review. They consider that judicial interpretation of laws is the suitable vehicle for developing prison requirements and must be used each time justified by the desires of society or public sentiment.
Detractors of judicial activism price that it usurps the energy of the elected branches of government and of legislatively created businesses, unfavorable to the guideline of law and democracy.
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What conflict management style brings freedom from entanglement in trivial issues and preserves the status quo?.
The accommodating style of conflict management brings freedom from the entanglement in trivial issues and preserves status quo.
What is conflict management?Limiting conflict's bad elements while enhancing its favorable ones is the method of managing conflict. Enhancing group outcomes for learning, such as performance in an organizational setting, is the goal of conflict management. Conflict that is handled well might lead to better results for the organisation. Conflict can be approached from one of three perspectives: win-lose, lose-win, or lose-lose. One form of disagreement that frequently has a negative outcome for all parties is one with a lose-lose orientation. A win-lose mindset favours one party over the other, usually at their expense. One of the key principles of conflict resolution is the win-win approach.
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on july 1, hanson corporation issued 10 shares of $100 par value preferred stock for cash of $1,000 per share. complete the necessary journal entry by selecting the account names from the drop-down menus and entering the dollar amounts in the debit or credit columns.
Paid-In Capital in excess of par value, preferred stock = $9,000
Moreover, We have Debit = $10,000
And we have Cash = $1,000
Preferred Stock, 100 par value
So, Paid-In Capital in excess of par value, preferred stock = $9,000.
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an agreement that establishes a price with the intent to purchase the assets of a business should one of the parties to the agreement predeceases the other is called a .
An agreement establishing a price with an intent to purchase the assets of a business should one of the parties to the agreement predecease the other is called a buy-sell agreement.
A buy-sell agreement is an agreement between co-owners of the business. It is applicable in situations like the death of a co-owner, a co-owner leaving the business, or the co-owner being asked to leave the business.
It is also known as a buy-out agreement. In most buy-sell agreements, the shares in the business are sold to the remaining business partners. Some of the common buy-sell agreements are entity-purchase and cross-purchase.
The cross-purchase agreement allows the remaining co-owner to buy the shares of the deceased co-owner. In an entity-purchase, the remaining co-owner buys the shares from the co-owner leaving the business.
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What features should you present when demonstrating 2023 armada’s powerful acceleration?.
Variable Valve Event and Lift -5.6-liter V8 engine are the features you present when demonstrating 2023 armada’s powerful acceleration.
Acceleration is the price of exchange of the speed of an object with respect to time. Accelerations are vector quantities. The orientation of an object's acceleration is given through the orientation of the internet force acting on that item.
Acceleration, fee at which speed modifications with time, in phrases of both speed and route. A point or an object shifting in a directly line is elevated if it speeds up or slows down.
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as of 2016, how well had axel springer turned disruptive technological change into sustainable change within its core german market?
Owing to the thrill and foresight of business executive Matthias Dopfner, German business and content large Axel Springer and its dynamic move to digital were entrenched within the firm's strategy and angle by 2016.
Change new leaders usually create efforts because the board chooses them to try and do, therefore. These leaders usually have less trust in the workforce compared to the folks they were already operating with over the years.
Change efforts produce associate degree surroundings of uncertainty within the organization that impacts not solely the productivity within the organization but additionally the amount of trust within the organization.
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If a __________ strategy is effective, consumers will go to a store and ask for products that they have seen advertised.
If a Pull strategy is effective, consumers will go to a store and ask for products that they have seen advertised.
To get the customer to come to you, use a pull strategy. Pull strategy, or the communication of information to draw the customer, involves using pull tactics rather than pushing your business on them. Frequently, these clients will start to promote your company on your behalf. For instance, if you made the decision to start a neighborhood restaurant, you might use some particular strategies to attract customers.
First, you might employ advertising and mass media promotion techniques like running radio or television commercials, handing out flyers, supporting athletic teams, or using social media to reach out to as many customers as you can. By creating a social media page and hanging flyers, your restaurant might want to start out modestly.
As the company expands, you might invest money in a few more promotions. A large portion of a marketing budget is frequently required for this strategy. By creating a social media page and hanging flyers, your restaurant might want to start out modestly. As the company expands, you might invest money in a few more promotions.
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how much will net operating income increase (decrease) per month if the monthly advertising budget increases by $5000
The net operating income increase (decrease) per month is $2,300 if the monthly advertising budget increases by $5,000 and monthly sales increase by $9,000.
the formula is:
Increase ( Decrease ) in net operating income = Increase in advertising - ( Increase in sales * Contribution margin ratio )
given data,
Increase in advertising = $5,000
Increase in sales = $9,000
Contribution margin ratio = 30%
by substituting the above values in formula,
Increase ( Decrease ) in net operating income = $5,000 - ( $9,000* 30% )
= $5,000 -$2,700
= $2,300
the complete question is:
Data for Hermann Corporation are shown below
Per Unit Percent of Sales
Selling Price $90 100%
Variable Expenses 63 70
Contribution margin $27 30%
Fixed expenses are $30,000 per month and the company is selling 2,000 units per month.
1. How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $5,000 and monthly sales increase by $9,000?
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if the nominal money supply rises by 6 percent, the price level rises by 4 percent, and output rises by 3 percent, then, according to the quantity equation, income velocity rises by: a. 13 percent. b. 7 percent. c. 3 percent. d. 1 percent.
The correct option d. 1 percent; is the income velocity rises.
Define the Quantity Theory of Money?This quantity theory of money in monetary economics describes how the national income relates to the money supply and velocity. In a nutshell, it refers to how money and things flow in a market economy. Economic growth follows the occurrence of monetary growth.The quantity theory of money states that: where M is the money supply, the formula determining velocity of money is:
MV = PQ
V = PQ/M
V is the speed of money.
Price level is P.
output level Q
Assume that at level 100, both nominal money supply, its price level, and the production are all in equilibrium. Money velocity will also become 100 with this.
Let's say that the increase in the aforementioned factors coincides with economic expansion.
The nominal money supply would be 106 at that point, along with the price level and production both being 104.
V = PQ/M
V = (104 x 103)/ 106
V = 101.05
Thus, the velocity of money is shown to have increased by 1% when these values are substituted in the formula.
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how did industrial production change the manner in which mass produced goods were marketed and sold?
In order to enhance availability and facilitate more sales, mass manufacturing allowed firms to produce things more quickly and distribute them more broadly.
Sales are actions associated with selling or the number of items sold during a specified time frame. Sales could include the provision of services in exchange for payment.
When a purchase, appropriation, requisition, or direct engagement with the customer occurs at the point of sale, the seller or provider of the goods or services completes the sale. There is a transfer of title (property or ownership) of the object and a price settlement, in which a price is agreed upon for which the transfer of ownership of the item will take place. The sale is normally executed by the seller, not the buyer, and it is possible for it to be done before the buyer is obligated to pay. Whenever there is an indirect interaction.
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what is the marginal cost of the 2nd gigaplot at jimmy's gigaplot factory?
$15 is the marginal cost of the 2nd gigaplot at jimmy's gigaplot factory.
The marginal fee refers to the growth in manufacturing expenses generated through the production of extra product devices. it's also referred to as the marginal fee of production. Calculating the marginal value permits companies to peer how volume output influences cost and therefore, in the long run, income.
The marginal value of production is used to degree the trade inside the fee of a product resulting from the production of an extra unit of output. when the business enterprise reaches the top-rated manufacturing level, producing additional units will increase the cost of production in keeping with the unit. Marginal cost is the brought price to provide a further properly.
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which of the following is not a factory overhead cost? multiple choice indirect labor costs. selling expenses. factory rent. indirect materials costs. maintenance costs.
The correct option is selling expenses is not a factory overhead cost.
Define the term overhead cost?The expenditures involved in running a firm that aren't related to developing or manufacturing a good or service are known as overhead costs, often known as overhead as well as operating expenses.
They are the costs a business must pay to remain open, regardless of how successful it is.The type of business a corporation operates in determines its overhead expenses. The expenses of a retailer will be distinct from those of a crafter or a repair shop.Typical illustrations include:
Rent\sUtilities.Insurancepay that is not related to a particular work or product.office supplies including computers and phones.office equipment.There are three categories of overhead expenses:
Rent is an example of a fixed expense because it is the same each month.Variable: Depending about how busy the company is, variable costs rise or fall.Thus, factory overhead costs such as labor costs, facility rent, indirect material costs, and maintenance costs are all included, but selling expenditures are not.
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inditex, the parent company of international fashion retailer zara, owns the manufacturing plants, warehouse facilities, retail outlets, and design studios, which is an example of a
The parent company of international fashion retailer zara, owns the manufacturing plants, warehouse facilities, retail outlets, and design studios, which is an example of a corporate vertical marketing system
What is a corporate vertical marketing system?A system of channel organization for distribution where the ownership of the various levels of the system is shared to ensure the smooth flow of goods from producer to end-user.
Concentrate on a single industry. Specifically target their market's needs with a niche offering. deliver specialized and distinctive products. with other businesses are fiercely competitive.
A certain group of consumers is targeted in the development and marketing of products and services that are similar to each other or that are compatible with one another. Insurance, real estate, finance, heavy industry, retail, the transportation industry, healthcare, and the government are a few examples of bigger vertical markets.
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At 6.8 percent interest, how long does it take to double your money? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Length of time years At 6.8 percent interest, how long does it take to quadruple it? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Length of time years
21.08 years it will take to quadruple it.
What are interest rate?Interest rates tell you the cost of borrowing and the return on your savings. So if you are a borrower, the interest rate is the amount charged to borrow money, expressed as a percentage of the total loan amount. The higher the percentage, the more money you have to pay back for a given amount of credit. If you are a saver, the savings rate shows the amount credited to your account as a percentage of your savings. The higher the savings rate, the more money will be credited to your account for a given amount of deposit. Even small changes in interest rates can have a large impact. It is important to track whether they are rising, falling or staying the same.
Calculation:The doubling time by either using simple interest rate annually or compounded interest rate annually.
First, if we use simple interest rate annually than according to the formula it can be derived simply by dividing the periodic rate by 1.
Doubling Time without compounding = 1/rate.
= 1/6.8
= 14.71 years when simple interest used annually.
In case of compounded interest rate annually.
Doubling time through Rule of 72 is by dividing 72 by the interest rate.
= 72/6.8
10.59 years when compounded annually.
However, if we use normal excel calculations then
For simple interest time required to double the money let say $100.
A = PRT+P
200=100*6.8%*T+100
100=6.8T
T=14.71 years
For compounded interest
A= P(1+r)^n
200 = 100(1+6.8%)^n
2=1.068^n
n= 10.54 years (through calculator)
b) To calculate the time required to quadruple with simple interest formula, then
A= P + PRT, where A = 4P and P=$100
400=100+100*6.8%*T
300=6.8T
T= 44.12 years
Now to calculate how long it takes to quadruple the amount at 6.8% compounded annually, then according to the Rule of 144, divide 144 by the rate to calculate the number of years.
= 144/6.8
= 21.18 years to quadruple the money
Similarly, for normal calculation when the principal is $100 and Amount is $400
A= P(1+r)^n
400=100(1+6.8%)^n
4=1.068^n
n= 21.08 years
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transatlantic air travel in business class has an estimated elasticity of demand of 0.40 less than transatlantic air travel in economy class, with an estimated price elasticity of 0.62. why do you think this is the case?
The economic class is more elastic than the business class, which is why the elasticity of demand for business is 0.62 and for economy is 0.12.
They wouldn't be significantly impacted if the price of a business class flight increased because they are wealthy and can afford it. The price increase does not particularly concern them.
An increase in ticket cost would have an impact on the typical traveler who takes an economy trip, and he might end up reducing demand.
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An advantage of synthesizing block copolymers is the ability to tune the properties of the material by varying the length of each block. Of the following block copolymers, which composition would have the highest degree of crystallinity?.
The composition that would have the highest degree of crystallinity is 50% PLA, 50% poly(6-decalactone). The correct option is A.
What are block copolymers?Block copolymers are a long chain of alternate copolymers. By using a dual functional initiator that can polymerize two types of monomers by two different methods, or by applying a site transformation reaction from one polymerization technique to another, copolymers can be created.
An example of a copolymer is acrylonitrile butadiene styrene, commonly used as rubber SBS.
Therefore, the correct option is A, 50% PLA, 50% poly(6-decalactone).
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The question is incomplete. Your most probably complete question is given below:
O 50% PLA, 50% poly(6-decalactone)
O 45% PLA, 55% poly(8-decalactone)
O 25% PLA, 75% poly(8-decalactone)
O 10% PLA, 90% poly(ö-decalactone)
O 75% PLA, 25% poly(5-decalactone)
in order for a service provider to use activity-based costing, they must have demand for reliable cost information and existence of
They must have demand for reliable cost information and existence of cost.
What is demand?Demand is an economic principle that describes a consumer's desire to buy a product or service. Demand is considered to be the price that consumers are willing to pay for a product or service. If we hold all other factors constant, demand should increase when prices fall and demand should fall when prices rise.
This simple principle keeps the market in balance. Markets and aggregate demand are used to understand demand for goods and services.
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Computer inventory systems are often programmed to produce a cycle count notice in which of the following case? A) When the record shows a near maximum balance on hand B) When the record shows positive balance but a backorder was written C) When quality problems have been discovered with the item D) When the item has become obsolete E) When the item has been misplaced in the stockroom
Based on the computer programming concept, and the available options, the computer inventory systems are often programmed to produce a cycle "When the record shows a positive balance but a backorder was written."
What is Computer Inventory System?Computer Inventory System is a term that is used to describe the process or techniques used in ensuring a company controls inventory levels in real-time throughout the day.
In some cases, a computer inventory system is otherwise known as inventory management software, where businesses can be easily updated with inventory orders, counts, and sales.
Other areas in which the computer can be programmed to produce a cycle count are the following:When the record indicates a low or zero balance on hand; it is easier to count fewer items.After the record shows a positive balance but a backorder was written.When some specified level of activity has been achieved.To signal a review based on the importance of the item, as in the ABC system.Hence, in this case, it is concluded that the correct answer is option B "When the record shows positive balance but a backorder was written."
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question content areaconsider derek's budget information: materials to be used, $64,750; direct labor, $198,400; factory overhead, $394,800; work in process inventory on january 1, $189,100; and work in progress inventory on december 31, $197,600. what is the budgeted cost of goods manufactured for the year?
Materials to be used, $64,750; direct labour, $198,400; factory overhead, $394,800; work in process inventory on january 1, $189,100; and work in progress inventory on December 31, $197,600.
Cost of goods manufactured = Direct materials + Direct labour + manufacturing overhead + Opening WIP - closing WIP
$64750 +$198400+$394800 + $189100-$197600
$649450.
Therefore, the budgeted cost of goods manufactured for the year is $649450.
How to calculate cost of goods manufactured?
To calculate the manufacturing cost, the direct material, direct labor, and manufacturing overhead costs must be added together to get the company's total manufacturing cost. Next, add the initial work in process from the total manufacturing cost and subtract the final work in process to get the manufacturing cost.
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She sells seashells on a seashore But the value of these shells will fall Due to the laws of supply and demand No one wants to buy shells 'cause there's loads on the sand
Step 1: you must create a sense of scarcity Shells will sell much better if the people think they’re rare, you see Bare with me, take as many shells as you can find and hide 'em on an island stockpile 'em high until they’re rarer than a diamond
Step 2: you gotta make the people think that they want 'em Really want 'em, really freakin want 'em Hit 'em like Bronson Influencers, product placement, featured prime time entertainment If you haven’t got a shell then you're just a freaking wasteman
Three: it's monopoly, invest inside some property, start a corporation, make a logo, do it properly "Shells must sell", that will be your new philosophy Swallow all your morals they're a poor man's quality
Four: expand, expand, expand, clear forest, make land, fresh blood on hand
Five: why just shells? Why limit your self? She sells seashells, sell oil as well!
Six: guns, sell stocks, sell diamonds, sell rocks, sell water to a fish, sell the time to a clock
Seven: press on the gas, take your foot off the brakes Run to be the president of the United States
Eight: big smile mate, big wave that's great Now the truth is overrated, tell lies out the gate
Nine: Polarise the people, controversy is the game It don't matter if they hate you if they all say your name
Ten: the world is yours, step out on a stage to a round of applause You're a liar, a cheat, a devil, on the floor And you sell seashells on the seashore
Answer:
Amazing story 10/10
Explanation:
This text is a fun and musical piece of writing that makes fun of different subjects like money, selling things, having an impact on others, and how power works.
What is the seashells about?This text talks about using the idea of selling seashells on a seashore to explain a bigger idea about how people can be manipulated and controlled by big companies and society.
This passage is written in a way that shows different aspects of a story. It covers things like creating a feeling of not having enough, changing how people think about things, and gaining more power.
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A company needs construction equipment to complete a project over the next 20 months. The equipment costs $10,000. Instead of purchasing the equipment with a 12% note, the company leases the equipment with payments of $300 due at the end of each month. For what amount would the company record the lease liability at the beginning of the lease?.
$5,414 amount would the company record the lease liability at the beginning of the lease.
The correct answer is $5414
Explanation and Format
Lease liability = monthly lease payment * Present value annuity (1%,20)
= 300 * ((1-(1.01)^-20)/.01)
= 300*18.04555
= $ 5414
Thus the correct answer is $ 5414
A lease liability is the present value-discounted financial obligation for the lease's required payments. The present value of the remaining lease payments over the lease term is used to determine the lease liability under ASC 842, IFRS 16, and GASB 87. On the balance sheet, the lessor lists the lease as an asset and the individual lease payments as income on the income and cash flow statements. They also have to take into account the asset's deterioration over time. The right-of-use (ROU) asset and lease liability associated with a lease will be listed on the balance sheet. The ROU asset denotes ownership of the asset under the lease contract, whereas the lease liability is the obligation to make payments over the lease's term.
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because it directly impacts the financial viability of both organizations and individuals, activities related to which marketing mix element are watched and regulated most closely?
Without a competitive pricing, a great product in the right place with great advertising cannot possibly result in a sale.
What does marketing management's pricing strategy entail?Pricing strategy is a tool used to determine the price of a specific good or service by taking into account a number of variables, including resource consumption, market conditions, customer ability, demand and supply, necessity for the product (such as frequent use or occasional use), etc.
What are some examples of elements that make up the external marketing environment?The external marketing environment is made up of all variables that are out of your company's control, such as governmental changes, social, economic, and competitive influences.
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a company operates 18 oil wells in a designated area. each pump, on average, extracts 270 barrels of oil daily. the company can add more wells, but every added well reduces the average daily output of each of the wells by 9 barrels. how many wells should the company add in order to maximize daily production?
A company should add 6 wells in order to maximize daily production.
Explanation of the answer
We need a function P(w) that gives the daily oil production, P as a function of the number of wells w.
Let w = the number of wells.
Each well will produce 270 − 9 (w − 18) barrels of oil per day. Here, the w − 18 gives the number of wells
over 18 and 9 (w − 18) gives the reduction in daily barrels produced, where w ≥ 18. Since there are w wells,
we get the production function
P(w) = w (270 − 9 (w − 18))
= w (432 − 9w)
so
P(w) = 432w − 9w
2
We compute P
′
(w) and solve P
′
(w) = 0 to find any critical numbers.
P(w) = 432w − 9w
2
so
P(w) = 432 − 9w
and we solve
432 − 18w = 0
w = 24
Note that P
′′(w) = −18 < 0, so by SDT the critical number 24 gives a local maximum.
Thus, daily production is maximized when the company adds 24− 18 = 6 wells
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