« previous next »

Author Question: Refer to the Article Summary. What happens to the profit a car company makes on each car sold if it ... (Read 111 times)

RYAN BANYAN

  • Hero Member
  • *****
  • Posts: 563
on: Jun 29, 2018
Refer to the Article Summary. What happens to the profit a car company makes on each car sold if it offers incentives such as discounts, cash rebates, or lease incentives to customers? How might a car company decide which of these strategies to use
 
  What will be an ideal response?

Question 2

An efficiency wage
 
  A) is lower than the market wage and tends to decrease productivity.
  B) is higher than the market wage and tends to decrease productivity.
  C) is lower than the market wage and tends to increase productivity.
  D) is higher than the market wage and tends to increase productivity.


ttt030911

  • Sr. Member
  • ****
  • Posts: 315
Reply #1 on: Jun 29, 2018
Answer to Question 1

Offering cash rebates, discounts, or lease incentives will each decrease profits. Offering any of these incentives will, effectively, increase the average total cost for the company. In deciding which of these strategies to use, the firms will probably assess consumer demand to see which approach consumers prefer.

Answer to Question 2

D


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Cancer has been around as long as humankind, but only in the second half of the twentieth century did the number of cancer cases explode.

Did you know?

Automated pill dispensing systems have alarms to alert patients when the correct dosing time has arrived. Most systems work with many varieties of medications, so patients who are taking a variety of drugs can still be in control of their dose regimen.

Did you know?

The first successful kidney transplant was performed in 1954 and occurred in Boston. A kidney from an identical twin was transplanted into his dying brother's body and was not rejected because it did not appear foreign to his body.

Did you know?

Disorders that may affect pharmacodynamics include genetic mutations, malnutrition, thyrotoxicosis, myasthenia gravis, Parkinson's disease, and certain forms of insulin-resistant diabetes mellitus.

Did you know?

Parkinson's disease is both chronic and progressive. This means that it persists over a long period of time and that its symptoms grow worse over time.

Helpful AA summary Helpful AA summary
Summary of Antidiabetic Drug Classes Summary of Antidiabetic Drug Classes
Summary of the Elements of a Swedish Massage Session Cont. Summary of the Elements of a Swedish Massage Session Cont.
Summary of the formation, circulation, and absorption of cerebrospinal fluid (CSF) Summary of the formation, circulation, and absorption of cerebrospinal fluid (CSF)
The profit, p(t), made at a fair depends on the price of the ticket, t. The profit is modelled ... The profit, p(t), made at a fair depends on the price of the ticket, t. The profit is modelled ...
Summary of the Hershey–Chase experiment demonstrating that DNA, and not protein Summary of the Hershey–Chase experiment demonstrating that DNA, and not protein
Video: Structures that affect circulation - venous return

For a complete list of videos, visit our video library