Answer:
a. Profit; $520
b. Firms will enter; Left
c. Zero profits or normal profits
Explanation:
A restaurant is operating in a monopolistic competitive market.
The restaurant is producing 260 meals per day.
This is the profit maximizing level of output where the marginal cost is equal to marginal revenue.
The average total cost at this point is $10.
The price level is $12.
The profit or loss to the restaurant will be equal to the difference between total revenue and total cost.
a. Profit
= Total Revenue - Total cost
= $12
260 - $10 260
= $3,120 - $2,600
= $520
b. This supernormal profit will attract other firms to enter the market, as a result the market share of existing firms will decline. The demand curve of the restaurant will move to the left.
c. In the long run, the firms in a perfectly competitive market earn only zero economic profits as positive profits attract new firms and negative profits cause the firms to leave.
So the restaurant will have zero or normal profits in the long run.
Explanation:
Income Elasticity of Demand(IED)= Percentage change in quantity demanded/ Percentage change in income
-Percentage change in Q:
%Change in quantity demanded= (q2-q1/q1) = (10-8)/8= 0.25
-Percentage change in Income:
%Change in income= (i2-i1/i1) = (4,500-4,000)/4,000= 0.125
IED= 0.25/0.125= 2
This indicates that the Shaffers are very sensitive to changes in income when it comes to eating out. Which means that changes in income will change significantly the number of times they eat out.
2. Restaurant meals are normal goods, in this case, because when income rises, they ate more in restaurants, then the units consumed for this good increase too.
Answer:
A.Leadership styles and behaviours
Explanation:
-Leadership styles and behaviours refer to the approach and actions a leader take to direct, motivate and guide people.
-Team processes refer to how the team works to accomplish goals.
-Team characteristics refer to the qualities that a group of people that work together possess.
-Leader power and influence refer to the ability a leader has to convince people to do certain things and achieve a goal.
According to this, the option that captures the specific actions that leaders take to influence others at work is leadership styles and behaviours.
Answer:
Theory Y views
Explanation:
According to McGregor, managers who subscribe to the theory Y assumptions have an optimistic view of their employees. They regard employees as intelligent and innovative people who can provide solutions to the organization's problems. Theory Y managers appreciate employee differences, encourage them to improve their skills and work rate.
<u>Assumptions of Theory Y include</u>
- Employees are happy to work on their initiative.
- Workers like to be involved in decision making.
- Workers are self-motivated and like to complete their tasks.
- Employees willingly seek and accept responsibility
- View work as fulfilling and challenging.
- Have the ability to solve the organization's problems creatively and innovatively.
Answer:
The answer is b) describe how to create intense and active loyalty relationships with customers.
Explanation:
The resonance model refers to the nature of the consumer's relationship with the brand, and the degree of synchronization that the consumer has with the brand. It is about answering questions that serve to define as a brand/company, questions that deepen issues of how the company is perceived by the target audience and will be the differential point that will generate the correlation of mutual interests with the brand and the consumer.
