Answer:
<em>Cross-price elasticity of demand = 0.1</em>
Explanation:
We have the formula to calculate the cross-price elasticity of demand as below:
<em>Cross-price elasticity of demand = % change in quantity demanded for product X/ % change in price of product Y</em>
<em />
Starbucks raises its price by 5 percent, so that <em>percentage changes in price of Starbucks' products</em> are 5
McDonald's experiences a 0.5 percent increase in demand for its coffee, so that <em>percentage changes in quantity demanded for McDonald's coffee </em>is 0.5
=> <em>Cross-price elasticity of demand = % changes in quantity demanded for McDonald's coffee/ %changes in price of Starbucks' products</em>
<em>= 0.5/5= 0.1</em>
Answer:
These statements are correct:
In a command economy, state-owned enterprises have little incentive to control costs and be efficient.
In a command economy, the absence of competition means that state-owned enterprises do not have incentive to be efficient. This is because In command economies, these companies are most of the time monopolies who have a safer market to sell their products, because consumers lack choice.
Mixed economies were once uncommon throughout much of the world, although they are becoming more popular now.
Most economies now are mixed: in part free market economies, in part command economies. For example, in most developed countries, most sectors are left for private companies to compete, but a few areas are still directly controlled by the government, either fully or partially (for example: the healthcare sector, and education).
Answer:
$6,000
Explanation:
When a company makes sales on account, debit accounts receivable and credit sales. Based on assessment, some or all of the receivables may be uncollectible.
To account for this, debit bad debit expense and credit allowance for doubtful debt. Should the debt become uncollectible (i.e go bad), debit allowance for doubtful debt and credit accounts receivable.
Since the Allowance for Doubtful Accounts has a credit balance of $1,200 before adjustment at December 31, 2016, the additional amount to be allowed
= $7200 - $1200
= $6000
This will be posted as
Debit Bad debt expense $6000
Credit Allowance for doubtful debt $6000
Answer:
Chester Company
Explanation:
Niche Cost Leader Strategy is to set the price for the products as lower than all the competitor's products and still be in profit. Thus by having set the lower prices than competitor's products in the market and achieving profit for the organization.
Chester Company is the strong competitor for the Niche Cost Leader Strategy company based on the given information, and the data as explained below.
- There is very low change in the stock market price ($0.45) and very low variation in closing stock price for the Chester Company. This indicates that the company has stable market stock price.
- Chester has lowest margins (35.8%) and lowest profits $3,144,115, as compared to other companies where as sales is high ($158,062,285), which is close to other companies of high sale value (Andrew - $211,593,184)
- Profit of Chester is lowest as compared to other companies, though sale is good. This indicates that the product price is lower than others. Thus it is strong competitor for niche cost leader Strategy Company.
- Production for the Chester Company is very high against the capacity of the company.
Answer: edge computing
Explanation:
Edge computing refers to an open and distributed IT architecture which possesses features such as decentralized processing power, and Internet of Things (IoT) technologies.
Data is not transmitted to a day center but rather being processed by the device itself or the server. It helps in bringing data storage and computation closer to the data sources and this helps in saving bandwidth and improving response times.
Since the company wants to improve its operations by using data from devices at individual locations to make real-time adjustments to service delivery, then the technology that would be combine with its current Cloud operations to make this possible is the edge computing.
