Answer:
The correct answer is option A.
Explanation:
The demand for cantaloupes is unitary elastic at price level $2.50. The demand curve here is linear and downward sloping. The elasticity of demand is 1.
In this linear demand curve the lower portion will represent inelastic demand.
When the price level is reduced to $2 the demand will move to the lower portion of the curve, with fall in price and increase in demand.
So, at $2 price the demand will be inelastic, which means it will be between 0 and 1.
Answer:
False
The diamond-water paradox is illustrated by stating that the marginal benefit of the services provided by doctors and nurses is relatively lower than the marginal benefit of the services provided by major film stars. This implies that the supply of doctors and nurses is larger than the demand while the demand for major film stars is larger than the supply.
Explanation:
The marginal utility derived by film consumers from major film stars is higher than the marginal utility derived by patients from doctors and nurses. This is because consumers of the services of major film stars are willing to pay more for the services than consumers of the services of doctors and nurses. Though health is more crucial to life than films, but consumers place more utility value on films than they do on their health, especially after attaining the basic sound health. This actually explains the diamond water paradox, where consumers value diamond and are willing to pay more for diamond than they are willing to pay for life-sustaining water. In a layman's language, people are more willing to value the satisfaction they derive from one more additional film than they are to value the satisfaction they derive from additional healthcare. That means that people only care for the basic in healthcare. But, they can stake more to acquire more diamond.
Lucia’s analysis is subject to assumptions because(c) The analysis lacks validity if the total fixed costs required for the calculated break-even point generates too low of capacity.
Explanation:
Cost-volume-profit analysis is used to make short-term decisions.
Cost-volume-profit (CVP) analysis is used to study the changes in cost and volume and how its impact on the company's operating income and net income.
While performing <u>Cost-volume-profit (CVP) analysis</u> several assumptions are made like assuming the Sales price per unit to be constant. Variable costs per unit to be constant.
The five basic component of CVP analysis includes
- volume or level of activity
- unit selling price
- variable cost per unit
- total fixed cost
- sales mix.
Answer: True
Explanation:
The Marketing Control Statement is quite beneficial to marketers as it avoids fixed costs and shows them the variable and programmed costs both of which can be controlled. This enables them to know what they need to and can change in a way that they can come up with an optimal marketing mix to ensure profitability.
It is also a very uncomplicated statement to prepare which further ingratiates it to marketers who would like to avoid all the jargon of income statements.
The large number of the population in childbearing age
