1) What is a quantity standard? What is a price standard?
2) Why are separate price and quantity variances computed?
3) Who is generally responsible for the materials price variance? The materials quantity variance? The labor efficiency?
5) If the materials price variance is favorable but the materials quantity variance is unfavorable, what might this indicate?
7) "Our workers are all under labor contracts; therefore, our labor rate variance is bound to be zero." Discuss.
8) What effect, if any, would you expect poor-quality materials to have on direct labor variances?
In: Accounting
Show the effect on price (increase, decrease, no effect): Show the effect on price (increase, decrease, no effect) for each of the following situations under three form of market efficiency Situations
| Situations | Weak | Semi-Strong | Strong |
| The WSJ publishes that Landmark Inc. declared a dividend of $1 per share | |||
| Landmark Inc. board members decide in a closed door meeting to open a new factory in Taiwan | |||
| Your broker in NYSE tells you that Landmark Inc. CEO is going to declare retirement |
In: Finance
1. How would the price elasticity equation apply to the purchase price of (a) gasoline, (b) an airline ticket, and (c) a checking account?
Give examples of situations that would affect this equation.
2. What would be your response to the statement, "profit maximization is the only legitimate pricing objective for the firm."?
3. A marketing manager reduced the price on a brand of cereal by 10 percent and observed a 25 percent increase in quantity sold. The manager then thought that if the price were reduced by another 20 percent, a 50 percent increase in quantity sold would occur. What would be your response to the marketing manager's reasoning?
In: Operations Management
Suppose the Consumer Price Index (CPI) is computed as a Laspeyres price index. Explain the concept of “substitution bias” in using the CPI to measure the change in the cost of living. Be sure to explain what is meant by the “change in the cost of living.”
In: Economics
A monopolist is a:
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Price taker |
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Price maker |
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Efficient firm |
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Firm with high consumer welfare |
In: Economics
1.State the distinction between the consumer price index (CPI) and the GDP price index
In: Economics
For the US target price program: Assuming the target price is set above the expected market price, other things equal, we would expect that
a) expected price received by farmers would: Increase, Decrease, It Depends
b) expected quantity produced by farmers would: Increase, Decrease, It Depends
c) expected price paid by consumers would: Increase, Decrease, It Depends
d) expected quantity bought by consumers would: Increase, Decrease, It Depends
e) the target price program is “market oriented”: Yes, No, It Depends
f) Explain your rationale for your answer to (e) above.
In: Economics
Assume that an effective government-imposed price on a particular good. The price is set below equilibrium. Now, let the imposed price be removed. True, False, or Uncertain: Consumer spending on the good will increase only if demand is inelastic.
Explain your answer. TRUE FALSE Uncertain Explanation:
In: Economics
Compare the output and price efficiency between a Highly Competitive firm and a single price monopoly. In your explanation use a graph to compare price and output.
In: Economics
a) What other elasticities of demand are there besides
price, income, and cross price? (1mk)
(b) What is the usefulness to the firm of the elasticity of demand
over which the firm has control? (2.5 marks)
(C) Why is it essential for the firm to use the elasticity of all
the variables included in the demand function? (2.5 marks)
In: Economics