Answer:
The demand that Le Jouet faces for toy trains in France is less elastic than in Russia.
Explanation:
This is the statement that best describes the panorama that Le Jouet faces in France. When comparing the markets of France and Russia, we learn that the demand for toy trains in France is less elastic than the demand in Russia. Price elasticity refers to a measure of responsiveness of consumers. This measures how responsive consumers are to a price change.
One of the difficulties associated with value-based pricing is that the producer may end up running at loss because the price does cover the cost incurred during production.
The value-based pricing entails fixing of prices based on customer's perceived value of the product.
The companies who practiced the value-based pricing do so to make sure the product price and expectation of the customers match.
However, one of the difficulties associated with value-based pricing is that the producer may end up running at loss because the price does cover the cost incurred during production.
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Answer:
16.80% and 39.43%
Explanation:
The formula to compute the net profit margin is shown below:
Net profit margin = Net income ÷ Total revenues × 100
For Travel lite, the net profit margin is
= $1,080 ÷ $6,430 × 100
= 16.80%
And, for fare line, the net profit margin is
= $3,020 ÷ $7,660 × 100
= 39.43%
By dividing the net income or net profit by the total revenues we can get the net profit margin or we can say it is profit percentage that is earned by the company
It is always expressed in percentage
Explanation:
The journal entries are shown below:
1. Building A/c Dr $176
Equipment A/c Dr $270
To Cash A/c $408
To Note payable A/c $38
(Being the building and the equipment is purchased for cash and note payable)
2. Cash A/c Dr $345
To Common stock $240 (120 shares × $2)
To Additional paid in capital A/c - Common stock A/c $105
(Being the common stock is issued for cash)
3. Retained earnings A/c Dr $145
To Dividend payable A/c $145
(Being the dividend is declared)
4. Short - term investment A/c Dr $7,616
To Cash A/c $7,616
(Being the short term investment is purchased for cash)
5. No journal entry is required
6. Cash A/c Dr $4,413
To Short - term investment A/c $4,413
(Being the short-term investment is purchased)
Answer:
Deadweight loss
Explanation:
Deadweight loss can be defined as the lost economic surplus when a market is not allowed to adjust to its competitive equilibrium. The deadweight loss includes losses in both supplier and consumer surplus.
A deadweight loss happens when the equilibrium price for a good or a service cannot achieved usually due to external factors, e.g. price ceilings like rent control, specific taxes, etc.