Economics, Accounting & Business: Post your doubts here!

[zainabkhann]

guys can someone please explain me the three limitations of PED (price elastic demand)

I will really appreciate

Thanks

 

[Waleed007]

Business Studies:
Why it is significant for a manufacturing business to manage stock effectively? (12)

 

[SalmanPakRocks]

guys can someone please explain me the three limitations of PED (price elastic demand)

I will really appreciate

Thanks

Limitations?
Well in practical situation, it's impossible to classify the good whether they're elastic, in-elastic, unitary, perfectly elastic or perfectly in-elastic in nature.

 

[zainabkhann]

Limitations?
Well in practical situation, it's impossible to classify the good whether they're elastic, in-elastic, unitary, perfectly elastic or perfectly in-elastic in nature.

Yes in the business book there are 3 limitations, i read them again and understood them, please tell me what this means, explain it to me

Cost based pricing:
The basic idea is that firms will assess their costs of producing or supplying each unit, and then add an amount on top of the calculated cost.

What does this mean?

this is from the chapter: marketing mix: product and price.

Page: 302 business book cambridge alevel by peter stimspon and alaistar

 

[zainabkhann]

can anyone please explain to me what target pricing is?

thanks

 

[zainabkhann]

I was just wondering, if i need to study this topic for the exam: Pricing decisions - some additional issues On page; 306

book: Cambridge International As and Alevel Business Studies Second Edition by Peter Stimpson and Alastair Farquharson

 

[abcde]

http://papers.xtremepapers.com/CIE/...d AS Level/Economics (9708)/9708_s08_qp_3.pdf
Can anyone explain Q26 above?

 

[student92]

http://papers.xtremepapers.com/CIE/Cambridge International A and AS Level/Economics (9708)/9708_s08_qp_3.pdf
Can anyone explain Q26 above?

as salam alikum
the answer is a
this is because economic growth is achived when more of the countries resources are diverted towards the production of capital goods, and not consumption. if you produce capital goods now, in the future these capital goods will produce more consumer goods, and that is economic growth.
now they have given us the figures for consumption and capital formation and depreciation,
deduct depreciation from capital formation to get the net capital formation, and compare that with consumption
consumption : net capital formation
100 10
500 0
1000 -200
20000 1000
now you take aratio of net capital formation to consumption
you get
0.1
0
-0.2
-0.05

this means the first one is more likely to achive economic growth as a more percentage of its resources are spent on capital formation

i am not sure this is the correct way, but it is giving the correct answer and there is nothing written in the er, so it should be straight forward.
hope this helps

 

[abcde]

Thank you.
This question needs a bit of elaboration, too.

Q. In a closed economy with no government, consumption is 3/4 of income at all levels of income. The present equilibrium level of income is $220 million. The full employment level of income is $240 million. By how much would investment have to increase to reach full employment?

A. $5 million B. $15 million C. $20 million D. $30 million.

 

[abcde]

Here is a similar question to the one above. Does anyone know of a method that could help solve both?

- A closed economy with no government has an equilibrium level of national income of $10 000 million. Consumption expenditure is $8000 million. Assuming that MPC = APC, what will be the change in national income following an increase in investment of $100 million?

A. $100 m
B. $ $120 m
C. $ 400 m
D. $ 500 m.

 

[zainabkhann]

Guys can someone please explain me this.

Its from the chapter 17: marketing mix: promotion and place

Factors that determine firms choosing advertising medias: the message to be communicated

Written forms of communication are likely to be ost effective for giving detailed information about a product that needs to be referred to more than once by the potential consumers. however, if an image-creating advert is planned, perhaps for a new range of clothes or sports equipment than a dynamic and colourful TV advert is possibly more effective

I seriously dont get whats written here, and i dont get the main idea that the author is trying to establish.

Please explain thoroughly in simple words. Thankyou.

This can be found on page: 317 of the As and Alevel cambridge business studies book by peter stimpson and alasitar.

 

[zainabkhann]

Should i consider making notes for the heading: Advertising Expenditure and the trade cycle
Page: 317
Book: As and Alevel cambridge international business studies book by peter stimpson and alaistar

 

[jaideep]

In Question 3-b, how do we calculate the fixed costs?
I would really appreciate some help guys.

 

[zainabkhann]

guys, can someone please explain me the advantages of this point for capital-intensive (Page: 387)

- Advantages:
The substantial opportunities for scale economies and unit-cost reductions offered by large-scale capital utilisation make this the first choice for many business managers.

I dont get this at all. Explain please.

 

[zainabkhann]

guys do i need to make notes of mass customisation for production methods for the As syllabus?

 

[zainabkhann]

Guys whats the purpose of business activity?

Is it to add value to resources such as raw materials thus making them more desirable to the final purchaser? Wouldnt this be the meaning of business activity as oppose to the purpose ?Let me know thanks

 

[zainabkhann]

Can someone explain me what, profit estimates, investment apprasial and break-even analysis are? and what are the limiations of using them. I know they are written down on page : 400 of the business book. But i dont get a single clue what they mean. If someone can please explain in a simple way then it will be really appreciated. Thanks

 

[Waleed007]

guys do i need to make notes of mass customisation for production methods for the As syllabus?

Yes, It's important I think its in the syllabus as well!

 

[Asheerah angel]

economics A level help
1. why are the wages and salaries of some workers higher than others(15)
2. Discuss whether a govt should attempt to set a minimum wage(10)

 

[zainabkhann]

Ye

Yes, It's important I think its in the syllabus as well!

Yeah i checked that thanks!