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Afina-wow [57]
2 years ago
7

Dumphy and Funke are rival tattoo artists in the small town of Feline. There are no other tattoo artists in town. It costs $30 t

o produce a Tweety Bird tattoo. Assume for simplicity that fixed costs are zero and that Dumphy and Funke perform identical work. For a while, there was too much demand for Funke and Dumphy to handle and they both charged $200 for a tattoo. But recently, demand has dropped significantly and there is not enough work for both to fill their days at any price. However, there is some demand at all prices. What type of competition would Funke and Dumphy likely engage in after the decrease in demand
Business
1 answer:
Soloha48 [4]2 years ago
8 0

Answer: price competition

Explanation:

The type of competition would Funke and Dumphy likely engage in after the decrease in demand is price competition.

Price competition simply means when the companies in a particular industry lower their prices afsubst the prices of identical products in order to boost demand and sales.

Since there's a reduction in demand, Dumphy and Funke will engage in price competition to boost sales.

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3 0
2 years ago
We would expect the total utility of diamonds to be __________ than the total utility of water and the marginal utility of diamo
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We would expect the total utility of diamonds to be <u>lower</u> than the total utility of water and the marginal utility of diamonds to be <u>higher</u> than the marginal utility of water.

<u>Explanation:</u>

The diamond-water paradox presents the puzzling predictions: while water is definitely essential to human existence because without water life can not function, the water price is relatively low. Alternatively, diamonds are actually far less essential to human life, but diamond prices are considerably higher. Thus the effectiveness obtained from water is evidently very high while the utility extracted from diamonds is considerably less.

Here total utility is the aggregate satisfaction of desires and needs gathered from the consumption of a good while marginal utility is the additional satisfaction of desires and needs received from the consumption of one additional unit of good.

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If a gourmet cooking store encourages customers to sample fresh baked apple pie in order to encourage purchases of pie pans and
IceJOKER [234]

Answer:

Sensory retailing.

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If a gourmet cooking store encourages customers to sample fresh baked apple pie in order to encourage purchases of pie pans and rolling pins they are engaging in sensory retailing.

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5. Industrialization

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The wealthy folks on the other hand, demand more goods and services leading to exploitation of natural resources.

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