sellers will tend to be most concerned with customer satisfaction when a. it is difficult for the customer to evaluate product quality. b. they depend on repeat customers for most of their business. c. they sell primarily to tourists. d. they are a monopoly protected from competition by government licensing.

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Answer 1

b. They depend on repeat customers for most of their business. Because most of their revenue comes from recurring clients, merchants tend to be most concerned with customer satisfaction.

Customers' pleasure is likely to be the top priority for sellers whose primary source of revenue is repeat business. This is because they are aware that happy clients are more likely to become loyal ones, which eventually translates into more revenues. Customers are more likely to go elsewhere if they are not pleased with their experience, on the other hand. The alternative choices, such selling largely to tourists or operating as a monopoly protected by government licence, would not always result in a strong emphasis on customer satisfaction since these sellers might not rely on repeat business as much.

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Related Questions

Assume two goods are substitutes. Ceteris paribus, a decrease in the price of one good will cause the equilibrium price of the other good to...a. decrease and the equilibrium quantity of the other good to decrease.b. increase and the equilibrium quantity of the other good to decrease.c. decrease and the equilibrium quantity of the other good to increase.d. increase and the equilibrium quantity of the other good to increase.

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When two goods are substitutes, a decrease in the price of one good will cause the equilibrium price of the other good to decrease and the equilibrium quantity of the other good to decrease.

This is because when the price of one good decreases, consumers will switch to the cheaper good, decreasing the demand for the more expensive good and causing its price to decrease. Since the demand for the more expensive good has decreased, the quantity demanded decreases as well, leading to a decrease in the equilibrium quantity of the other good.

Therefore, when two goods are substitutes, a decrease in the price of one good will lead to a decrease in the equilibrium price and quantity of the other good.

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teenagers have more frequent unemployment spells and spend more time searching for jobs. other thing the same, this means that teenagers have a

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Yes, Teenagers have more frequent unemployment spells and spend more time searching for jobs. This is due to the fact that teenagers often lack the experience and qualifications needed for more competitive jobs.

Additionally, employers are often reluctant to hire teenagers due to lack of reliability or potential for a lack of commitment to a job.

As a result, teenagers often spend more time searching for jobs and experience longer unemployment spells than adults with more experience and qualifications.

In conclusion, other things being equal, teenagers have a higher risk of unemployment and longer spells of unemployment than adults due to lack of experience and qualifications, as well as employers' reluctance to hire them.

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connor owns a pottery and craft store. pottery division sales are $120,000 with variable costs of $90,000, and craft division sales are $80,000 with variable costs of $52,000. if connor were to calculate the weighted-average contribution margin ratio for the store, what would he find? select answer from the options below the weighted-average contribution margin ratio for the store is 15%. the weighted-average contribution margin ratio for the store is 29%. the weighted-average contribution margin ratio for the store is 19%. the weighted-average contribution margin ratio for the store is 60%.

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Conner would discover that the store's weighted-average contribution margin ratio is 15% if he calculated the weighted-average contribution margin ratio for the business.

What is the median contribution margin ratio in the formula?

Subtracting the total variable costs from the total sales revenue yields the contribution margin. Contribution Margin is calculated as Total Sales Revenue - Total Variable Expenses.

How is weighted average contribution per unit determined?

A weighted average of the share price paid for the shares can be calculated by the investor. To do this, multiply the total number of shares purchased by each price, add those numbers, and then divide the total by the number of shares purchased.

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what forces are driving change in this market for streamed entertainment? are the combined impacts of these driving forces likely to be favorable or unfavorable in terms of their effects on competitive intensity and future industry profitability?

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The market for streaming entertainment is being driven by changes in consumer preferences, technological advancements, and content creation.

Given that market businesses must invest in innovation and differentiation to meet shifting consumer demands and stay relevant, the combined effects are likely to increase competitive intensity and decrease profitability. The streaming entertainment business is continually expanding owing to numerous driving reasons, including technology improvements that enable new distribution channels and better user experiences. Shifting consumer preferences also play a big influence, as viewers seek even more customised and engaging content. Also, the increased focus on original content development by streaming services creates greater competition and a demand for distinction. Due to corporations' efforts to remain relevant and draw viewers, these dynamics are likely to result in a rise in the level of competition. Yet, this also involves more expenditure in innovation and content generation, which might affect profitability.

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the failure by an applicant to disclose material facts that an insurer does not know but has a right to know is called:

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The failure by an applicant to disclose material facts that an insurer does not know but has a right to know is called "non-disclosure".

Non-disclosure is a common issue in insurance applications, where the applicant may intentionally or unintentionally withhold information that would have affected the insurer's decision to underwrite the policy or the premium rate.

Non-disclosure is considered a breach of the applicant's duty of utmost good faith to the insurer. When an insurer discovers non-disclosure, they may void the policy from its inception or adjust the policy terms and premium rate retrospectively to reflect the material facts.

Therefore, it's essential for applicants to provide complete and accurate information in their insurance application to avoid potential disputes and ensure that their policy covers their intended risks.

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the sales tax rate is 7%. if jim bought a new buick and paid a sales tax of $1,820, what was the cost of the buick before the tax?

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The cost of the Buick before the sales tax is $25,971.14. This can be calculated by taking the sales tax of $1,820 and dividing it by the sales tax rate of 7%, which is 0.07. Once you have the decimal form of the sales tax rate, you can multiply it by the amount paid in sales tax.

The result of this calculation is $25,971.14, which is the cost of the Buick before the sales tax was applied.


To understand this better, let's break it down:

Step 1: Take the sales tax rate and convert it to a decimal by dividing it by 100. In this example, 7% would be 0.07.

Step 2: Multiply the decimal form of the sales tax rate by the amount paid in sales tax. In this example, 0.07 multiplied by $1,820 is $127.40.

Step 3: Subtract the amount from Step 2 from the total amount paid for the Buick. In this example, $1,820 minus $127.40 is $1,692.60.

Step 4: Divide the amount from Step 3 by the decimal form of the sales tax rate from Step 1. In this example, $1,692.60 divided by 0.07 is $24,171.14.

This is the cost of the Buick before the sales tax was applied.

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equity is the: group of answer choices money value of property and the ownership right in property. none of these are correct. money value of property. ownership right in property.

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Equity is the ownership right in property. It means the market value of a property minus the outstanding mortgage balance.

The difference between the property's value and what is owed on it is known as equity. Equities are a type of security that represents ownership in a corporation. It is determined by the difference between the current market value of the property and the outstanding mortgage balance.

Thus, we can say that equity is the ownership right in property. Hence, option b is correct.  Option a is incorrect as the monetary value of the property is not the correct definition of equity. Similarly, option c is incorrect as none of these are correct.

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according to a cnn article discussed in class, ireland is one country in the european union that has a 0% luxury tax. group of answer choices true false

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According to a CNN article discussed in class, Ireland is one country in the European Union that has a 0% luxury tax: this statement is: True.

This means that luxury goods in Ireland do not incur an extra tax.

What is luxury tax?

A luxury tax is a tax levied on the purchase of luxurious items. It is also known as a sin tax, a vice tax, or a demerit tax. This is a tax on goods that are considered non-essential or exclusive for a few. The tax on luxury goods is a method of generating additional government revenue while also discouraging people from purchasing these goods.

Luxury goods are defined as items that are not necessary for daily living but are considered desirable for individuals with a high-income bracket.

In conclusion, according to a CNN article discussed in class, Ireland is one country in the European Union that has a 0% luxury tax.

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you are a team leader in charge of six employees. when would you be wise to make fun of a negative situation?

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Employee effort and productivity increase as a result of receiving greater attention from management, coworkers, and customers.

Which actions are typical of group members in the fourth stage of their development?

The fourth stage is characterized by dependency in interpersonal interactions and problem-solving in the context of task-related activities. The team should be working at its peak efficiency by this point. The need for collective approval is no longer necessary because each member is now self-assured.

What exactly is the Hawthorne experiment's primary goal?

The most well-known experiment examined whether altering the quantity of light that workers got would affect how productive they were when working shifts.

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what should the body of a cover letter include? contain a greeting followed by a colon, express your interest in the company, express your appreciation for being considered for the position, or supply your address?

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The body of a cover letter should include a greeting followed by a colon, expressing your interest in the company, expressing your appreciation for being considered for the position, and supplying your address.

A cover letter should begin with a greeting followed by a colon, such as "Dear [Name]," or "To [Name]." The greeting should be specific to the person receiving the letter. This is usually the hiring manager or other member of the organization.

Next, express your interest in the company. Include any research you have done into the company and why you believe you would be a good fit. Demonstrate your understanding of the role and the organization’s needs.

Next, express your appreciation for being considered for the position. This section should briefly mention why you feel you are a qualified candidate for the job. Show enthusiasm for the opportunity and why you think it is an ideal fit for you.

Finally, supply your address. This should include your street address, city, state, and zip code. It is also recommended to provide a phone number and/or email address in the event that the employer wants to contact you for an interview.

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trumbrella corp. is a pharmaceuticals company. one of its employees reports that he had an on-the-job injury caused by slippery factory floor that broke his back. when trumbrella initiates its claims processing, it should first:

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When Trumbrella Corp. initiates its claims processing for the reported on-the-job injury caused by a slippery factory floor that broke the employee's back, it should first provide the employee with immediate medical assistance to ensure their health and well-being.

Once the employee's immediate medical needs have been taken care of, Trumbrella should document the incident thoroughly, including the time, date, location, and circumstances of the injury. Trumbrella should then follow the appropriate legal and regulatory requirements for reporting the incident to the relevant authorities and notifying its insurance provider. Finally, Trumbrella should investigate the root cause of the incident and take measures to prevent similar accidents from happening in the future.

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why is the balance in the depreciation expense account generally different from the balance in the accumulated depreciation account?

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The balance in the depreciation expense account is generally different from the balance in the accumulated depreciation account because depreciation is an accounting concept used to recognize the wearing away of an asset's value over time.

When an asset is initially acquired, the cost is spread out over its useful life and is recorded as a depreciation expense each accounting period. This expense is recorded in the depreciation expense account. The accumulated depreciation account is a contra-asset account that tracks the total amount of depreciation that has been applied to the asset since it was acquired. The balance in the accumulated depreciation account is the total of all prior depreciation expenses that have been applied to the asset.

The balance in the depreciation expense account is the current accounting period's depreciation expense, while the balance in the accumulated depreciation account is the total amount of all prior depreciation expenses. This is why the balance in the depreciation expense account is generally different from the balance in the accumulated depreciation account.

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true or false: during the candidate selection process, human resource managers should try to predict how long a candidate will stay in the job.

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During the candidate selection process, human resource managers should try to predict how long a candidate will stay in the job. This statement is true.

Mortal resource operation( HRM) is the practice of recruiting, hiring, planting and managing an association's workers. HRM is frequently appertained to simply as mortal coffers( HR). A company or association's HR department is generally responsible for creating, putting into effect and overseeing programs governing workers and the relationship of the association with its workers. The term mortal coffers was first used in the early 1900s, and also more extensively in the 1960s, to describe the people who work for the association, in total.

HRM is hand operation with an emphasis on those workers as means of the business. In this environment, workers are occasionally appertained to as mortal capital. As with other business means, the thing is to make effective use of workers, reducing threat and maximizing return on investment( ROI).

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power patch products has launched a ginseng-and-caffeine-based invisible energy patch that can be worn on the skin without being noticed. it is easier to use, cheaper, and more effective than other energy products. it works well with the active lifestyle of most energy product customers, and free one-week sample packs are available. this product has all of the factors that increase product adoption rate except . multiple choice question. trialability compatibility competitive advantage complexity observability

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According to the scenario provided, this product has all of the factors that increase product adoption rate except complexity. The correct option is D: Complexity.

What is Power Patch Products?Power Patch Products is a company that has launched an invisible energy patch based on ginseng and caffeine that can be worn on the skin without being noticed. This product is easier to use, cheaper, and more effective than other energy products.

Compatibility Trialability Observability Complexity Competitive Advantage. The factor that is missing in the product launched by Power Patch Products is Complexity. Complexity refers to the level of difficulty in using or understanding the product. The invisible energy patch is easier to use, and there is no complexity involved in using it.

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priam designs inc. is recruiting fashion designers through linkedin. this recruiting approach typically provides direct access to the .

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Priam Designs Inc. is recruiting fashion designers through LinkedIn, which typically provides direct access to potential candidates.

This approach can be beneficial for the company, as it allows them to search for highly qualified professionals in the fashion industry.

Additionally, LinkedIn offers various tools to help companies better manage their recruitment process, such as viewing profiles, searching for qualified individuals, and tracking applications.

Additionally, LinkedIn can be used to post job openings, send messages to candidates, and screen applications. By utilizing LinkedIn for their recruiting needs, Priam Designs Inc. can ensure they are connecting with the best talent in the fashion industry.

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every time we choose to do one thing, we give up doing something else. this best describes the economic principle of:

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This best describes the economic principle of opportunity cost. Opportunity cost is the cost of an alternative that must be foregone in order to carry out a certain action. When we choose to do one thing, we are giving up doing another, so we have an associated opportunity cost.

Therefore, it is important to carefully consider the cost of sacrificing opportunity before making a decision. This helps us make more informed decisions and get the best return for our resources.

In conclusion, the opportunity principle is a fundamental concept in economics because it helps us evaluate the costs and benefits of doing one thing instead of another. This evaluation allows us to make decisions based on costs and benefits, which helps us maximize the use of our resources.

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What tasks will a small business professional perform during the post award phase

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A small business professional will be responsible for tasks related to the management and execution of the contract. These tasks may include: Contract management, Financial management, Quality control, Communication

Contract management: This involves ensuring that the terms and conditions of the contract are being met, and that all parties are fulfilling their obligations.

Financial management: This involves managing the budget for the project, ensuring that costs are kept within budget, and monitoring expenses. Quality control: The small business professional may be responsible for ensuring that the work being performed under the contract meets the required quality standards.

Communication: The small business professional will need to maintain regular communication with the client to keep them informed of progress and any issues that arise.

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what three things do businesses typically do when faced with increased risk from cross-border investments?

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Businesses typically take the following three steps when faced with increased risk from cross-border investments: diversification, hedging, and insurance.

Diversification means investing in a variety of assets, as it reduces the risks of a single investment. Hedging is the use of financial instruments to reduce the potential losses of a particular investment.

Lastly, insurance can be purchased to protect against any losses due to unexpected changes in the market.

By diversifying, hedging, and insuring investments, businesses are able to reduce their risk from cross-border investments.

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keller metals common stock is selling for $36 a share and has a dividend yield of 3.2 percent. what is the dividend amount?

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The dividend amount for Keller Metals common stock is calculated by multiplying the share price ($36) by the dividend yield (3.2%). This gives us a dividend amount of $1.15 per share.

To calculate the dividend amount, the formula used is:

Dividend Amount = Share Price * Dividend Yield

Therefore, in this case, the Dividend Amount = 36 * 0.032 = 1.15

To explain further, a dividend is a payment made by a company to its shareholders, usually on an annual basis.

It is a way for a company to share its profits with its shareholders. Dividend yields represent the percentage of a company’s stock price that is paid out as a dividend to shareholders.

In the example given, Keller Metals common stock is selling for $36 a share and has a dividend yield of 3.2%. This means that 3.2% of the stock price, or $1.15, is paid out as a dividend.

It is important to remember that dividend yields are based on the current stock price, and can change over time.

Overall, the dividend amount for Keller Metals common stock is $1.15 per share.

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true or false? economies of scale occur when the production of goods increases and the average cost of production decreases.

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True. The statement "economies of scale" occur when the production of goods increases and the average cost of production decreases" is true.

Economies of scale are a concept in economics that explains how increasing the size of a business or production leads to lower costs of production and greater efficiency.

This is mainly due to the fact that companies can take advantage of certain cost-saving benefits that come with larger production volumes. The economies of scale are also the benefits a company derives from expanding the size of its operations. The cost per unit decreases as output increases when a company grows in size.

As a result, economies of scale enable a business to improve efficiency and reduce the cost of production, which increases its profitability. Economies of scale may occur when there is a decrease in average costs as production output grows. There are two types of economies of scale, internal and external economies of scale, as shown below:

Internal economies of scale: It happens within the firm as a result of an increase in scale. When a firm expands, internal economies of scale can arise. Internal economies of scale can occur in different areas of a firm such as production, financial management, marketing, etc.

External economies of scale: It happens outside the firm, typically in the industry, region, or location where the company is located. For instance, if the government provides the roads, then all businesses will benefit from it equally.

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a law involving the sale of property and the ownership of property would have originated in statutory law. group of answer choices true false

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True. Statutory law is a body of laws enacted by a legislature and is the primary source of law in the United States.

Statutory law involves the sale and ownership of property, as this is an issue that most legislatures must address in order to maintain order in their jurisdictions. This law would most likely be located within the civil code of the state, which is a collection of statutes that address different aspects of civil law.

Property law is a very broad field of law that governs the rights of individuals in relation to their possession and use of personal property. It sets forth rights and obligations with regards to buying, selling, and owning real property. Statutory law governs the terms and conditions of any sale, as well as the legal obligations of both the buyer and the seller.

This law also determines how the title to the property is transferred, as well as any rights that the owner has to use or manage the property. It also outlines what constitutes a valid contract for the sale or purchase of real property, and the necessary procedures for concluding such a contract.

Statutory law also governs ownership of property, and includes provisions related to the division of real property when a couple divorces, inheritance rights, zoning laws, and other regulations. Finally, it also contains provisions related to the enforcement of property rights, such as eviction and foreclosure proceedings.

In summary, statutory law involving the sale and ownership of property is an important part of the law of the United States. It sets forth the rights and obligations of individuals and businesses in relation to their property, and helps to ensure that property rights are respected and enforced.

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suppose gives the value of an investment account after years. the integral to find the average value of the account between year 3 to year 5 would look like

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The integral to find the average value of an investment account between year 3 and year 5 would look like:
[tex]\int_{3}^{5} Investment \; dt[/tex]
Where 'Investment' is the value of the investment account after each year.

The integral between year 3 and year 5 represents the average value of an investment account over that time period. By integrating the value of the investment account at each year, it is possible to calculate the average value of the account over the three-year time period. This is helpful for determining the overall performance of the investment, as well as for making predictions about future returns.

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Consider the long run effects of an increase in the money supply. The classical theory of inflation predicts that an increase in the money supply will (Click to select) increase decrease have no effect on aggregate demand, (Click to select) decrease increase have no effect on short-run aggregate supply, and (Click to select) have no effect on increase decrease long-run aggregate supply.

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According to the classical theory of inflation, an increase in the money supply will increase aggregate demand, decrease short-run aggregate supply, and have no effect on long-run aggregate supply.

This is because the classical theory assumes that prices are flexible and will adjust in the long run to restore equilibrium in the economy. An increase in the money supply increases aggregate demand because people and businesses have more money to spend, leading to an increase in the demand for goods and services. However, this increase in demand will eventually lead to higher prices, which will decrease short-run aggregate supply.

In the long run, the increase in prices will cause wages and other production costs to increase, leading to a decrease in short-run aggregate supply, but no change in long-run aggregate supply.

In summary, the classical theory predicts that an increase in the money supply will have short-run effects on the economy but will eventually lead to an increase in prices and a decrease in short-run aggregate supply. However, in the long run, prices will adjust to restore equilibrium, leading to no effect on long-run aggregate supply.

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the terms economies of scope, synergies, and 1 1>2 all refer to ways the diversified firm creates and captures value. group of answer choices true false

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The given statement "the terms economies of scope, synergies, and 1 1>2 all refer to ways the diversified firm creates and captures value." is true because companies can combine different business units or operations to achieve greater efficiency and effectiveness, leading to cost savings, increased revenue, and other benefits.

Synergies, on the other hand, refer to the benefits that can be gained by combining different business units or operations.

The 1+1>2 effect refers to the idea that the value of two companies combined may be greater than the sum of their individual values. This can occur when the combined company is able to leverage synergies to create new products or services, enter new markets, or otherwise achieve greater success than either company could have achieved on its own.

In summary, economies of scope, synergies, and the 1+1>2 effect are all ways in which a diversified firm can create and capture value.

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spots, inc. produces ink and sells it to write on target, which makes pens. the ink produced by spots, inc. is called

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The ink produced by Spots, Inc. and sold to Write on Target is "an intermediate good", meaning it is a product used in the production of another good rather than sold directly to consumers. Option B is correct.

An intermediate good is a product that is used in the production of another good rather than sold directly to consumers.

In this case, the ink produced by Spots, Inc. is not sold directly to consumers but is instead sold to Write on Target for use in the production of pens. Intermediate goods are not included in the calculation of GDP since they are not sold directly to consumers, but they are important in the production process and contribute to the overall economy.

This question should be provided as:

Spots, Inc. produces ink and sells it to Write on Target, which makes pens. The ink produced by Spots, Inc. is called

a. a final good.b. an intermediate good.c. an inventory r good.d. a transitory good.

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the constitution of the united states expressly forbids group of answer choices import tariffs export tariffs import quotas export quotas

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The constitution of the United States expressly forbids import tariffs, export tariffs, import quotas, and export quotas.

It has been one of the fundamental guiding principles of the United States trade policy to protect its citizens and the nation from unfair foreign trade practice's.


What is the constitution of the United States?

The Constitution of the United States of America is the supreme law of the land, and it was adopted on September 17, 1787, by the Constitutional Convention in Philadelphia, Pennsylvania.

The Constitution establishes the framework of the Federal government, which is divided into three branches, namely the legislative branch, the executive branch, and the judicial branch.

Why does the Constitution of the United States expressly forbids import tariffs, export tariffs, import quotas, and export quotas?The Constitution of the United States expressly forbids import tariffs, export tariffs, import quotas, and export quotas to protect the US citizens from unfair foreign trade practices.

These are used by countries to protect their domestic industries by imposing trade barriers, which limit imports and exports.

The US Constitution is a foundation of the American system of government, which provides a framework for the rights of the people and the limits of the power of the government.

The US government recognizes the importance of trade, and it has a long history of working to promote free trade, both domestically and internationally.

Free trade promotes economic growth, job creation, and increased standards of living for people in the United States and around the world.

The US Constitution does not prohibit international trade or restrict the government from implementing trade policies. Instead, the Constitution establishes the framework for the government to regulate foreign commerce to promote the general welfare of the country.

It is important to note that the US Constitution does not expressly prohibit the use of tariffs or quotas, but it does require that they are implemented in a manner that is consistent with the principles of free trade and fair competition.

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which of the following are functions of money? multiple select question. hedge against inflation store of value unit of account medium of exchange

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Answer:unit of account Median of exchange Store of value

Explanation:

The following are functions of money:

Hedge against inflation.Store of value.Unit of account.Medium of exchange.

Money is defined as something that is accepted as a method of payment for goods, services, or debts, as well as a means of calculating the relative worth of things. In other words, money is used as a medium of exchange, a store of value, a unit of account, and a hedge against inflation. The characteristics of money are distinct, although they may overlap.

Hedge against inflation

When a country experiences inflation, the prices of goods and services increase, and the value of money decreases. Money is a useful hedge against inflation since it can maintain its value in the long run when inflation rates rise.Store of value:Money serves as a store of value since it can be saved for future purchases.

If an individual saves their money, it can be utilized in the future to purchase something of worth, and it will not lose its value. Money can be held in a variety of forms, including bank deposits, currency, and bonds.Unit of account:Money is employed as a unit of account to determine the worth of goods and services.It enables individuals to determine the cost of a good or service and allows for a common language for pricing.

Medium of exchange:One of the most critical functions of money is to act as a medium of exchange. Money can be used to buy goods and services. Rather than bartering or trading one good for another, cash can be exchanged for a good or service.

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Match each example to the market structure it is most likely to belong to. Perfect (pure) competition Monopolistic competition Oligopoly Monopoly Answer Bank Ruby Shoesday, a shoe store in Albuquerque, NM U.S. Steel Verizon competing in the American cell phone market Carl's Taco Truck, one of many food carts on Food Trailer Lane Florida Power and Light, the exclusive supplier of electricity in Orlando, FL Dodge Som schola, a newly patented drug that gives students the ability to absorb lectures even while sleeping during class Dolly Mac's Corn Farm Wheat Farms, Inc.

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Monopolistic competition is followed by sentences 1 and 4; Oligopoly is followed by sentences 2 and 3; Monopoly is followed by sentences 5 and 6; Perfect (pure) competition is followed by sentences 7 and 8.

1. Ruby Shoesday, a shoe store in Albuquerque, NM: Monopolistic competition
2. U.S. Steel: Oligopoly
3. Verizon competing in the American cell phone market: Oligopoly
4. Carl's Taco Truck, one of many food carts on Food Trailer Lane: Monopolistic competition
5. Florida Power and Light, the exclusive supplier of electricity in Orlando, FL: Monopoly
6. Dodge Som schola, a newly patented drug that gives students the ability to absorb lectures even while sleeping during class: Monopoly
7. Dolly Mac's Corn Farm: Perfect (pure) competition
8. Wheat Farms, Inc.: Perfect (pure) competition

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a commercial development has stabilized and is performing with revenues of $800,000 per year, and expenses of $450,000, providing income of $350,000 per year. the loan provided 75% the project's total cost of $4,000,000 (or $3,000,000 in loan principal) and the balance of funds were raised in cash equity. the loan interest rate of 5% requires annual payments of $150,000, that leaves $200,000 in net cash flow after loan payments are made. what return on equity does the $200,000 ncf yield?

Answers

The return on equity can be calculated as the net cash flow o 200,000 divided by the total cash equity of 1,000,000, which yields a return of 20.

What is net cash flow?

Net cash flow refers to the amount of cash generated or consumed by a business during a specific period. It is calculated by subtracting the total cash outflows from the total cash inflows.

Cash inflows can include revenues from sales, investments, and financing activities, while cash outflows can include expenses, investments, and financing activities such as paying bills or taking out loans.

The net cash flow of 200,000 is derived from the total revenue of 800,000 and total expenses of 450,000, providing an income of 350,000.Of this 350,000, 150,000 is paid in loan payments, leaving 200,000 in net cash flow after loan payments are made.

The loan provided 75 of the project's total cost of 4,000,000, or 3,000,000 in loan principal.

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T applies for a life insurance policy and is told by the producer that the insurer is bound to the coverage as the date of the application or medical examination, whichever is later. Assuming that T is an acceptable risk, what item is given to T?

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If T applies for a life insurance policy and is told by the producer that the insurer is bound to the coverage as the date of the application or medical examination, whichever is later, and if T is an acceptable risk, the policy is given to T.

The item given to T is a life insurance policy. A life insurance policy is a contract between an insurer and a policyholder in which the insurer promises to pay a designated beneficiary a sum of money (the "benefits") upon the policyholder's death. Life insurance is a method of managing the risk of death that provides financial protection for the insured's family or estate in the event of the insured's death.

The date of the application or medical examination is used to establish when the policy's coverage begins. A life insurance policy may be bought from a licensed insurance broker, an insurance company, or a financial planner who specializes in insurance policies.

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