Stick Storage had a net loss of 5 million dollars for last year. Despite selling a large number of flash drives, their high production costs and opportunity cost led to a negative profit margin.
This highlights the importance of carefully considering all costs associated with manufacturing a product and weighing them against potential revenue. Stick Storage's revenue for last year was 25 million dollars. This is calculated by multiplying the number of flash drives sold (2.5 million) by the price per flash drive ($10). Their monetary outlays for manufacturing the flash drives were 20 million dollars. This includes all the costs associated with producing the flash drives, such as materials, labor, and overhead expenses. The opportunity cost of manufacturing the flash drives was 10 million dollars. Opportunity cost is the cost of the next best alternative foregone when making a decision. In this case, it refers to the potential revenue that could have been earned by Stick Storage if they had chosen to manufacture a different product instead.
To calculate the firm's profit for last year, we subtract the total monetary outlays and opportunity cost from the revenue:
Revenue - Monetary Outlays - Opportunity Cost = Profit
25 million - 20 million - 10 million = -5 million
This means that Stick Storage had a net loss of 5 million dollars for last year. Despite selling a large number of flash drives, their high production costs and opportunity cost led to a negative profit margin. This highlights the importance of carefully considering all costs associated with manufacturing a product and weighing them against potential revenue.
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An ethical theory that emphasizes the nature and characteristics of an act is:
a. cultural based
b. motive-based
c. consequence-based
d. rule-based
Rule-based ethics is an ethical philosophy that emphasizes the nature and qualities of an act. Here option D is the correct answer.
Rule-based ethics is a deontological ethical theory that focuses on the inherent rightness or wrongness of an action rather than its consequences. It is a normative ethical theory that emphasizes the importance of following rules and duties in making ethical decisions.
According to rule-based ethics, certain actions are inherently right or wrong regardless of their consequences. For example, lying is considered wrong regardless of the context or the consequences of the lie. This theory is often associated with the philosopher Immanuel Kant, who believed that moral actions are those performed out of duty and respect for the moral law.
Rule-based ethics provides clear guidelines for ethical decision-making, as it relies on the consistency and universality of moral rules. However, critics argue that it can be rigid and inflexible, and may not account for the complexity and nuance of ethical dilemmas. Despite its limitations, rule-based ethics remains a popular ethical theory in fields such as law, medicine, and business.
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Financial managers constantly strive for a balance between:
Financial managers constantly strive for a balance between risk and return.
Financial managers are responsible for making decisions that maximize the return on investment while minimizing the risk of loss. This balance is crucial in order to ensure the financial health and sustainability of an organization. A high-risk investment may offer the potential for a higher return, but it also carries a greater risk of loss.
Conversely, a low-risk investment may offer a lower return but with a lower risk of loss. Financial managers must carefully assess the risk and return of each investment opportunity in order to make informed decisions that balance both factors.
Achieving a balance between risk and return requires a deep understanding of the financial markets, the organization's financial goals, and the specific needs and preferences of its stakeholders.
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a measure of quality that may be used in total quality management (tqm) is: on-time delivery. compliance with product specifications. repeat rates. all of the above.
Question 07: Explain the three reasons why competency-based job analysis has become more common. Answer:
Competency-based job analysis has become more common for its Enhanced Performance, Workforce Flexibility and Improved Talent Management.
Competency-based job analysis has become more common for three primary reasons:
1. Enhanced Performance: This approach identifies the specific competencies required for a job, leading to better job performance. By focusing on these competencies, organizations can effectively hire, train, and develop employees to meet their desired goals.
2. Workforce Flexibility: Competency-based job analysis allows organizations to be more adaptable in response to changing business environments. By identifying transferable skills, it becomes easier to move employees between roles or departments, ensuring that workforce resources are used efficiently.
3. Improved Talent Management: This method facilitates a more strategic approach to talent management. By recognizing and measuring competencies, organizations can identify skill gaps, support employee development, and align staff capabilities with organizational objectives, ultimately leading to a more competitive and successful business.
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Conceptual Question 8-13 If the demand rate...16. If the demand rate increases, the takt time:- Increases- Decreases
If the demand rate increases, the takt time decreases. As demand increases, the production rate needs to increase in order to keep up with the higher demand, which results in a decrease in takt time.
Takt time is a critical concept in lean manufacturing as it helps to eliminate waste and improve efficiency by setting a standard for the pace of production. By aligning the production rate with customer demand, Takt time helps to minimize excess inventory, reduce lead times, and improve overall productivity. It also provides a basis for continuous improvement by identifying opportunities to streamline processes and eliminate bottlenecks in the production system. Takt time is the rate at which products need to be produced in order to meet customer demand. It is typically expressed in seconds per unit and is used to set the production rate and cycle time for a process.
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Food dollar: what accounts for the smallest share?
According to recently released US Department of Agriculture data, Americans spent $1 on food in 2021, giving farmers a record-low 14.5 cents. Supermarkets or supercenters are where about 89 percent of households buy the majority of their groceries. No matter if a person participates in SNAP.
WIC, or has a food security situation, the types of establishments they buy at are the same. Shares issued to the original holder who left their position with the corporation before the first anniversary of the issuance of those Shares are referred to as dollar shares. Dollar market share is determined by dividing the amount of money made from product sales by the sum of money made from unit sales in the segment.
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Key Characteristics of the maturity stage are: 2 of them
Two key characteristics of the maturity stage in the product life cycle are market saturation and increased competition.
Market saturation occurs when the product has reached its maximum potential market share, and growth begins to slow down. During this stage, sales may still be strong, but they no longer show the same level of growth as in the introduction and growth stages.
Increased competition is another key characteristic of the maturity stage, as more firms enter the market, and existing competitors try to maintain their market position by differentiating their products and lowering prices. As a result, profit margins may begin to decline, and firms may focus on cost-cutting and process improvement to maintain profitability.
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A firm is attempting to determine the total shipping capacity of its supply network, which links a single manufacturing plant to a single customer. What type of network optimization problem is this?
The type of network optimization problem that the firm is attempting to solve is a single-commodity flow problem. This is because the problem involves determining the maximum amount of a single product that can be shipped through the supply network, which is represented as a flow.
The objective of the optimization problem is to find the optimal allocation of resources, such as shipping routes and transportation modes, to ensure that the maximum amount of product can be shipped from the manufacturing plant to the customer while minimizing transportation costs.
Solving this problem requires advanced mathematical modeling techniques, such as linear programming or integer programming, to ensure that the optimal solution is achieved.
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shifts of the short-run aggregate supply curve, according to a new classical view of a self-correcting economy, may not occur for several years because
According to the new classical view of a self-correcting economy, shifts in the short-run aggregate supply curve may not occur for several years because the economy is assumed to be flexible.
In this view, wages and prices are assumed to be flexible and adjust quickly to changes in market conditions, and any short-run fluctuations in output and employment are seen as being caused by temporary shocks to the economy, such as changes in the money supply or shifts in aggregate demand.
Because the new classical view assumes that wages and prices are flexible, it is believed that any temporary deviations from the natural rate of output will eventually be corrected through market forces. For example, if there is a positive shock to aggregate demand, causing output and employment to temporarily rise above the natural rate, the resulting increase in demand for labor will lead to higher wages, which in turn will lead to higher prices with supply curve. This increase in prices will reduce the real wage rate and restore equilibrium in the labor market, bringing output and employment back to their natural rates.
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Shifts of the short-run aggregate supply curve, according to a new classical view of a self-correcting economy, may not occur for several years because of the which curve?
Suppose Lea owns a profit maximizing firm that produces a generic form of aspirin. Assume that the market for aspirin is perfectly competitive and all firms are identical. Her fixed costs are $7 per month. Her variable costs per month are given in the following table: (For Simplicity, assume Lea can only produce in whole units each month)
Suppose that, in the short-run, the market price for aspirin is $9 per unit. How many units would Lea produce and sell? Be sure to briefly explain how you derived your answer. How much profit will Lea earn each month?
Market price is $9 per unit and Lea's marginal cost of producing each unit is less than $9 when quantity is 1 or 2, she will produce and sell 2 units of aspirin in the short-run.
Her short-run profit is negative $1 ($18 revenue - $19 cost), which means that she would not earn any profit in the short-run.
How to determine how many units Lea would produce and sell in the short-run?We need to calculate her marginal cost (MC) and compare it with the market price (P). If P is greater than or equal to MC, then she will produce and sell that quantity, since doing so will generate positive profit.
To calculate MC, we need to find the change in total cost (TC) for each additional unit of production.
From the table, we can see that the total variable cost (TVC) increases by $2 as Lea increases production from 1 to 2 units, and then by $3 as she increases production from 2 to 3 units, and so on.
This means that the marginal cost (MC) of producing each unit is as follows:
MC = change in TVC / change in quantity
When quantity = 1, MC = $6
When quantity = 2, MC = $8
When quantity = 3, MC = $11
When quantity = 4, MC = $15
When quantity = 5, MC = $20
Since the market price is $9 per unit and Lea's marginal cost of producing each unit is less than $9 when quantity is 1 or 2, she will produce and sell 2 units of aspirin in the short-run.
At this level of production, her total cost is $19 ($7 fixed cost + $2 variable cost for the first unit + $8 variable cost for the second unit) and her total revenue is $18 ($9 price per unit x 2 units).
Therefore, her short-run profit is negative $1 ($18 revenue - $19 cost), which means that she would not earn any profit in the short-run.
However, since her fixed cost is sunk and she is covering her variable costs, it may still be rational for her to continue operating in the short-run until the market conditions improve.
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is the term used for what should happen after the sale to ensure that the purchase is a win-win situation for both the seller (the sport organization) and the purchaser (the sport consumer). a. aftermarketing b. yield management c. telemarketing d. closing the sale
The term used for ensuring a win-win situation for both the seller and the purchaser after a sale is a. aftermarketing. This process focuses on maintaining and enhancing the relationship with the sport consumer, leading to satisfaction and potential future purchases.
The term used for what should happen after the sale to ensure that the purchase is a win-win situation for both the seller (the sport organization) and the purchaser (the sport consumer) is "aftermarketing". Aftermarketing involves activities such as follow-up communication, customer service, and building relationships with customers to ensure their satisfaction and repeat business. Yield management refers to pricing strategies, telemarketing is a form of direct marketing through phone calls, and closing the sale refers to the final step in the sales process where the customer agrees to make the purchase.
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Which type of management frame may regularly be broadcast by an AP?
Beacon frames may regularly be broadcast by an access point (AP) in wireless networks. Beacon frames are sent periodically by an AP to announce its presence and provide information about the network.
In wireless networks, access points (APs) play an important role in connecting devices to the network. One way that APs communicate with devices is by broadcasting management frames. Beacon frames are a type of management frame that are sent periodically by an AP to announce its presence and provide information about the network. This information may include the network name, supported data rates, and security settings. Devices can use this information to determine whether to connect to the network and how to configure their network settings. Other types of management frames that may be broadcast by an AP include probe request frames and probe response frames, which are used by devices to discover nearby networks.
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Which Article of the Constitution outlines the presidential powers? a. Article 1 b. Article II c. Article III d. Article IV
Article II of the United States Constitution outlines the powers of the presidency, including the duties and responsibilities of the President of the United States. Option( B )
This article establishes the executive branch of the federal government and provides for the election of the president and vice president, as well as their qualifications, term of office, and methods of removal. The article also sets out the President's powers as the commander-in-chief of the armed forces, his ability to make treaties and appoint federal officials, and his role in enforcing federal law. Additionally, Article II outlines the procedures for presidential succession and the ability of the president to grant pardons and reprieves.
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The U.S. dollar is a(n) ________, a currency used to convert funds between two other currencies.
vehicle currency
accelerated
barter
The U.S. dollar is a vehicle currency, a currency used to convert funds between two other currencies.
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which is affected as a result of an error in performing the physical count of inventory at the end of the acctg. period?ni; operating exp; net cost of purchases; sales rev
An error in performing the physical count of inventory at the end of the accounting period primarily affects the net cost of purchases. Option B is correct.
During the physical count, the actual inventory is compared to the recorded inventory in the accounting books. If there's an error in the count, it will cause a discrepancy between the actual and recorded inventory. This discrepancy impacts the net cost of purchases, as it determines the cost of goods sold (COGS) during the accounting period.
The cost of goods sold is calculated by adding the beginning inventory, net cost of purchases, and subtracting the ending inventory. If the physical count is incorrect, the ending inventory will be inaccurate, causing an incorrect calculation of the cost of goods sold.
While operating expenses, net income, and sales revenue are related to the inventory, they are not directly affected by an error in the physical count of inventory. The primary impact is on the net cost of purchases.
Therefore, option B is correct.
Which of the following is affected as a result of an error in performing the physical count of inventory at the end of the accounting period?
A) operating expenses
B) net cost of purchases
C) sales revenue
D) net income
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Question 35
The extent of risk of development of an asbestos-related disease is probably most associated with:
a. age at which exposure first occurred
b. level and duration of exposure
c. personal history of cigarette smoking
d. occupation of the individual
The extent of risk of development of an asbestos-related disease is most closely associated with the level and duration of exposure to asbestos.
While other factors such as age at which exposure first occurred, personal history of cigarette smoking, and occupation of the individual may play a role in the development of asbestos-related diseases, the level and duration of exposure are the most significant factors in determining the risk of disease.
The extent of risk of development of an asbestos-related disease is probably most associated with: b. level and duration of exposure.
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Amabile and her colleagues characterized the nature of days in which employees were under pressure and unlikely to exhibit creative thinking as ones in which they were:
a. On a mission
b. On an expedition
c. On a treadmill
d. On autopilot
The "nature-of-days" in which the employees were "under-pressure" and unlikely to exhibit creative thinking as ones in which they were (c) On a treadmill.
Amabile and her colleagues characterized the "nature-of-days" in which employees were "under-pressure" and unlikely to do "creative-thinking" as ones in which they were "on a treadmill."
This refers to the feeling of being overwhelmed and pressured to constantly produce work, without sufficient time or resources to do so.
When employees feel like they are on a treadmill, they may be less likely to engage in creative thinking and problem-solving because they are focused on meeting immediate demands rather than exploring new ideas and possibilities.
Therefore, the correct option is (c).
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According to purchasing-power parity, if a basket of goods costs $100 in the U.S. and the same basket costs 800 pesos in Argentina, then what is the nominal exchange rate?
The nominal exchange rate is 8 Argentine pesos per U.S. dollar.
The nominal exchange rate between the U.S. dollar and the Argentine peso can be calculated using the purchasing-power parity theory. According to this theory, the exchange rate should equalize the prices of identical baskets of goods in different countries. In this case, according to purchasing-power parity, if a basket of goods costs $100 in the U.S. and the same basket costs 800 pesos in Argentina, then the nominal exchange rate can be calculated.
The nominal exchange rate can be determined as follows:
1: Identify the cost of the basket of goods in both countries.
In the U.S., the basket of goods costs $100.
In Argentina, the basket of goods costs 800 pesos.
2: Divide the cost of the basket of goods in Argentina by the cost of the basket of goods in the U.S.
Nominal exchange rate = (Cost of the basket in Argentina) / (Cost of the basket in the U.S.)
Nominal exchange rate = 800 pesos / $100
3: Simplify the fraction to find the nominal exchange rate.
Nominal exchange rate = 8 pesos per $1
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In the old days, it was often done with architecture. Bank buildings were massive buildings with large cement pillars in front. Are things being different today or not? Assess the implications and risks associated with COVID 19.
In the past, architecture played a significant role in the design of bank buildings, with grand facades and imposing cement pillars being a common feature. However, in today's world, things have evolved, and modern bank buildings are designed to be more practical, efficient and customer-centric.
The COVID-19 pandemic has brought about significant changes in the way we live, work and do business. The implications and risks associated with the virus have forced banks to reconsider how they operate, interact with customers and design their buildings. With social distancing protocols in place, the need for open, spacious and well-ventilated buildings has become a top priority for banks. The risk of transmission of the virus through surfaces and air conditioning systems has also led to changes in the way buildings are constructed and maintained.
Banks are now focusing on building designs that promote social distancing, such as the installation of plexiglass barriers, wider aisles, and contactless payment systems. They are also investing in advanced air filtration and purification systems to prevent the spread of the virus.
Overall, the COVID-19 pandemic has had significant implications and risks associated with architecture and bank buildings. However, with careful planning and implementation of new technologies, banks can continue to provide safe and efficient services to their customers.
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An organization may make a cross-functional team a _________ that operates over the long term as if it were a formal department.
An organization may make a cross-functional team a "permanent unit" that operates over the long term as if it were a formal department.
An organization may make a cross-functional team a permanent fixture that operates over the long term as if it were a formal department. This can help ensure that the team has the necessary resources and authority to achieve its goals, and that its members are committed to working together towards a common objective. In some cases, the team may even be given its own budget and reporting structure, further cementing its position within the organization. However, it's important to note that cross-functional teams can still face challenges, such as conflicting priorities or communication barriers, and it's up to the organization to provide the necessary support and guidance to ensure the team's success.
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A cross-functional team may be designated by an organisation as a "permanent unit" that conducts long-term operations similarly to a formal department.
A cross-functional team may be established by an organisation as a long-term fixture that functions similarly to a formal department. This can assist guarantee that the team has the resources and power necessary to accomplish its goals and that its members are dedicated to cooperating to achieve that goal.
The team could even have its own budget and reporting structure in some circumstances, further solidifying its place inside the company. Cross-functional teams might still encounter obstacles like competing priorities or communication impediments, thus it's up to the organization to supply solutions.
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Question 16 Marks: 1 The use of a cesspool is prohibited due toChoose one answer. a. potential for odor b. cost c. space required d. greater potential for groundwater contamination
Cesspools are prohibited due to their greater potential for groundwater contamination. Cesspools are large, underground, watertight tanks that collect raw sewage.
The sewage is stored in the cesspool until it can be emptied manually. Cesspools are typically located near the surface, and they are not designed to treat the sewage before it is released.
This can lead to the contamination of nearby groundwater, as the cesspool may not be able to contain all of the contaminants found in the sewage. Additionally, if the cesspool is not emptied regularly, the contents could overflow, leading to further contamination.
Cesspools also require a great deal of space and can be expensive to install. Furthermore, they can be unpleasant due to odors emanating from the tank. For these reasons, cesspools are prohibited in many areas.
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Individuals who haven't studied economics may not understand how all-you-can-eat buffets manage to make money. This can be explained by the concept of __________, which makes each trip to the buffet line less satisfactory than the previous one.
real-income effect
marginal utility
diminishing marginal utility
the substitution effect
the consumer optimum
The concept that explains how all-you-can-eat buffets manage to make money is the idea of diminishing marginal utility.
This concept refers to the tendency for the satisfaction that a person derives from consuming a particular item to decrease as they consume more of that item. In the case of all-you-can-eat buffets, each trip to the buffet line becomes less satisfactory than the previous one due to this effect.
As customers continue to eat from the buffet, they experience diminishing marginal utility, meaning that the value they place on each additional plate of food decreases. As a result, the cost to the restaurant of providing each additional plate is low relative to the price charged to the customer, allowing the restaurant to make a profit.
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Business entities in foreign countries controlled by parent transnational corporations are known as: A. foreign affiliates.
B. indigenous producers.
C. domestically owned firms.
D. parent firms.
Business entities in foreign countries controlled by parent transnational corporations are known as A. foreign affiliates.
Foreign affiliates are business entities in foreign countries that are controlled by parent transnational corporations. These affiliates can take various forms, such as branches, subsidiaries, or joint ventures. They are an important component of global business operations, as they allow parent companies to expand their reach into new markets and leverage local expertise and resources.
Foreign affiliates play a significant role in international trade and investment, contributing to economic growth and development both in the home country of the parent corporation and in the host countries where the affiliates are located. They also create jobs and provide opportunities for technology transfer and knowledge sharing, helping to build local capabilities and foster innovation.
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The US and France each have 100 hours of labor to allocate between producing cheese and bread. With 1 labor hour, the US can produce either 100 loaves of bread, or 1 wheel of cheese. With 1 labor hour, France can produce either 400 loaves of bread, or 2 wheels of cheese. Suppose the countries jointly decide to produce a combined amount of 45000 loaves of bread. What is the maximum amount of cheese they can jointly produce? a. 25 wheels b. O wheels c. 100 wheels d. 50 wheels
The maximum amount of cheese they can jointly produce is 50 wheels. So, the correct answer is D.
How to calculate the maximum amount of cheese which produce?To maximize the production of cheese while meeting the combined bread requirement, each country should specialize in producing the good they are most efficient at.
In this case, France is more efficient at producing bread (400 loaves/hour) compared to the US (100 loaves/hour).
First, let's allocate the labor needed to produce 45,000 loaves of bread.
France can produce 45,000 loaves using 112.5 hours (45,000 ÷ 400), but they only have 100 hours available.
So, France uses all their 100 hours for bread production, making 40,000 loaves (100 × 400).
The US now needs to produce the remaining 5,000 loaves of bread.
To do so, they will use 50 hours of labor (5,000 ÷ 100).
This leaves the US with 50 hours to allocate towards cheese production. With the remaining 50 hours, the US can produce 50 wheels of cheese (50 × 1).
This is the maximum amount of cheese they can jointly produce is. The correct answer is d. 50.
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A production system in which a unit is produced only when needed in the next step in the production line is called a:
The production system in which a unit is produced only when needed in the next step in the production line is called Just-In-Time (JIT) production.
This approach is a lean manufacturing concept that focuses on the efficient use of resources by eliminating waste and reducing inventory levels.
The JIT production system aims to produce products in response to customer demand, reducing the risk of overproduction, excess inventory, and storage costs. It helps to reduce lead times, increase flexibility, and improve the quality of the final product. This system ensures that products are produced and delivered to customers at the right time, in the right quantity, and with the right quality.
The JIT production system requires close coordination and communication between the different stages of the production process. The system works by using pull-based production, which means that production is initiated only when there is a customer demand. This approach helps to minimize waste by ensuring that production processes are initiated only when necessary, and the products are produced only in the required quantities.
In conclusion, the JIT production system is an effective approach to manufacturing that allows companies to operate efficiently by producing products in response to customer demand. It helps to reduce waste, improve quality, and increase flexibility, which leads to a more efficient and cost-effective production process.
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Fabric used in the manufacture of baseball jerseys is an example ofA) Direct materials: No & Product cost: NoB) Direct Material: Yes & Product cost: NoC) Direct Material: Yes & Product cost: YesD) Direct Material: No & Product cost: Yes
The answer to this question is C) Direct Material: Yes & Product cost: Yes. This is because fabric is a direct material used in the production of a baseball jersey, meaning it is part of the cost of the product.
Direct materials are materials that are required in the production of a product, and are included in the product cost.
Product costs are all the costs that are required to produce a product, including direct materials, labor, and overhead costs.
In the case of fabric used in the manufacture of baseball jerseys, the cost of the fabric is included as a direct material cost and is also included in the product cost. The fabric is an essential part of the production of the product and is thus included in both direct materials and product cost.
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True or False: Foam stability will be more of a challenge when there is a low proportion of malt and a higher proportion of adjunct.
True. Foam stability can be more of a challenge when there is a low proportion of malt and a higher proportion of adjuncts. Malt contains proteins and other compounds that contribute to the formation and stability of foam in beverages such as beer.
A low proportion of malt means there are fewer proteins and compounds available to create and stabilize the foam.
On the other hand, adjuncts are ingredients that are added to the brewing process to provide additional fermentable sugars, but they generally do not contribute significantly to foam stability. A higher proportion of adjuncts can lead to reduced foam stability due to the lack of proteins and compounds needed to support the foam structure.
To overcome this challenge, brewers may need to use certain techniques, such as altering the mashing process, using foam-stabilizing additives, or selecting malt and adjunct combinations that still provide enough proteins and compounds to support foam formation and stability. By carefully considering these factors, it is possible to achieve the desired foam stability even with a low proportion of malt and a higher proportion of adjuncts.
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In order to be applied successfully, a data mining study must be viewed as a set of automated software tools and techniques. true or false
The statement is true because data mining involves using automated software tools and techniques to analyze and extract useful insights and patterns from large datasets.
Data mining is a process of discovering patterns and insights in large datasets using machine learning, statistical, and computational techniques. To be successful in a data mining study, it is important to have a set of automated software tools and techniques that can process and analyze large datasets efficiently.
These tools can include algorithms for data preprocessing, feature selection, classification, clustering, and visualization. Without automated tools, it can be very time-consuming and difficult to analyze large datasets manually, which can limit the effectiveness of the study. Therefore, using automated software tools and techniques is essential for a successful data mining study.
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suppose your income rises from $19,000 to $31,000 while the cpi rises from 122 to 169. your standard of living has likely
Explanation: your likely living will go up.
catalog companies are committed to selling at the prices printed in their catalogs. a. if a catalog company finds its inventory of sweaters rising, what does that tell you about the demand for sweaters? multiple choice 1 demand was unexpectedly low. demand was unexpectedly high. demand was as expected. b. if the company could change the price of sweaters, would it raise the price, lower the price, or keep the price the same? multiple choice 2 keep the price the same. raise the price. lower the price. c. given that the company cannot change the price of sweaters, consider the number of sweaters it orders each month from the company that makes its sweaters. if inventories become very high, will the catalog company increase orders, decrease orders, or keep orders the same? multiple choice 3 keep orders the same. decrease orders. increase orders. d. given what the catalog company does with its orders, what is likely to happen to employment and output at the sweater manufacturer? employment will (click to select) and output will (click to select) .
a. Demand was unexpectedly low. b. Keep the price the same.c. Decrease orders. d. Employment will decrease and output will decrease.
a. If a catalog company finds its inventory of sweaters rising, this tells us that the demand for sweaters was unexpectedly low. So, the correct answer is 1: demand was unexpectedly low.
b. If the company could change the price of sweaters, it would likely lower the price to help clear out the excess inventory. So, the correct answer is 2: lower the price.
c. Given that the company cannot change the price of sweaters and inventories are very high, the catalog company will most likely decrease orders to avoid further overstocking. So, the correct answer is 3: decrease orders.
d. Given what the catalog company does with its orders, it is likely that employment at the sweater manufacturer will decrease, and output will also decrease.
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