Answer:
Option (B) is correct.
Explanation:
The utility maximization point for a consumer is as follows:
It is given that,
price of Pepsi(x) = $1 per can
price of a hamburger(y) = $2
Marginal utility from Pepsi = 4
Marginal utility from hamburgers = 6
Hence,
4 > 3
Therefore, it can be seen that the consumer's utility is not maximized at this point.
Law of diminishing marginal utility states that as the consumer consumes more and more quantity of goods then as a result the utility obtained from the consumption goes on diminishing.
So, there is a need to increase the quantity of Pepsi consumed and reducing the quantity of hamburgers consumed.
Answer:
B) 16.0%
Explanation:
The return on investment (ROI) measures the profits earned by an investor divided by the total amount invested.
cost of old trucks = $13,000 x 2 = $26,000
cost of new truck = $52,000 - $26,000 = $26,000
Cooper's controllable margin = $97,000
Assets = $580,000
assets after purchasing new truck = $580,000 + $26,000 = $606,000
ROI = $97,000 / $606,000 = 16%
Answer: Focused cost leadership
Explanation:
Focused cost leadership could be described as targeting your market to a category of people only and not necessarily everyone. Some businesses do have a target market in mind when carrying out their production or sales. Their product isn't for everyone but this particular persons. They could design it from a normal general product but they will make it look perculiar and specific for this targeted market.
<span>Location decisions are strategic decisions because they can have a significant impact on the success or failure of a business.</span><span>
Both manufacturing and non manufacturing location decision take costs and profits into consideration. </span>
Manufacturing firms are concerned with transportation costs, location of raw materials, energy and water availability .
Non manufacturing companies on the other hand are concerned with <span>convenience, access to markets and traffic flow.</span>
