State whether each of the following statement is true or false and explain your answer. 1. The total value created by a firm is the difference between its product's price and costs.
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State whether each of the following statement is true or false and explain your answer.
1. The total value created by a firm is the difference between its product's price and costs.
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- What is economic surplus defined as? A) The total revenue earned by a firm B) The difference between total revenue and total costs C) The total amount of money available for investment D) The value of goods produced in excess of demand Correct Answer: B) The difference between total revenue and total costs1. How much is the revenue to be earned throughout the product life cycle?2. How much is the cost to be incurred throughout the product life cycle?3. What is the profit margin for the product?Which of the following is the indicator of the rate at which company is earning profit? Select one: a. Margin of safety b. All options are correct c. Contribution margin d. Profit volume ratio
- What is meant by a products contribution margin ratio and how is this ratio useful in planning business operations?Which of the following statement is correct about cost-benefit analysis? O A. Costs and benefits must be put into common units (such as dollars) if they are to be compared. O B. In general, if an action increases a firm's value by providing benefits with a value greater than any costs involved, then that action is not good for the firm's investors. C. In order for costs and benefits to be compared, they must typically be converted to common units but not converted to the same point in time. O D. A financial manager's decisions should provide benefits to the firm without incurring any costs. Click to select your answer.Which of the following statements accurately describes the "relevant range?" a. The operation range in which fixed costs are expected to remain the same. b. The operation range in which the firm can earn a profit. c. The operation range which can satisfy unusual product demand. d. The operation range in which variable costs rise proportionately.
- Is there a point in a cost-volume-profit analysis when the company is expected to profit?Which of the following option shows the rate at which company is earning profit? Select one: a. All options are correct b. Margin of safety c. Contribution margin d. Profit volume ratio2) What is measured along the horizontal axis in a graph of the production possibility frontier? the amount of labor input the amount of capital input the quantity of one good produced the quantity of one good exported
- 1. how would a cost volume profit analysis would be performed for a company that sells more than one product when the sales mix is known?Why would a firm want to measure profits by segment and how would common costs be allocated to each segment?The difference between the average customer’s willingness to pay and the total costs of a product is known as ______. When a company makes a profit, the difference between the price of the product and the cost of production is known as what? Value creation and value capture are key concepts for which parts of business? If a company innovates in a way that reduces its production costs without affecting any features of the product, would that create value? Suppose a price war was to erupt in the airline market, which causes prices for flights to decline, but affected nothing else about the industry. Would this change the value created by airlines? Suppose a price war was to erupt in the airline market, which causes prices for flights to decline, but affected nothing else about the industry. Would this change the value captured by airlines? Please solve all part and do not give solution in image format thanku