Answer:
1. How do customers judge the quality of a supermarket?
They judge the quality of a supermarket depending on their values and most urgent needs.
Customers who value quality, and even luxury, will say that a good supermarket is one that offers high quality products.
Customers who value price, will prefer a low-cost supermarket.
2. Indicate how and why each of these factors is important to the successful operation of a supermarket:
a. Customer satisfaction - a very important factor because it determines how well the supermarket is serving its customers.
b. Forecasting - the supermarket needs to forecast all sorts of things, from, sales forecasts, to profit forescasts, to costs forecasts.
c. Capacity planning - the supermarket needs to know what it is actually able to do, and what projects it can embark on, for this, it needs to do a lot of capacity planning.
d. Location - Location is extremely important for a supermarket. It determines a large part of the customer demand because customers prefer supermarkets to be close to where they live.
e. Inventory management - Supermarkets need to manage inventories carefully, specially because a lot of the goods that a supermarket sells, are perishables.
f. Layout of the store - The Supermakert needs to be careful when determining the layout of the store. Customers want a layout that is easy to navigate, and where goods are placed according to a coherent classification.
g. Scheduling - The supermarket needs to establish a convenient schedule for its customer base.
What are some of the ways Wegmans uses technology to gain an edge over its competition?
Wegmans is characterized for its early adoption of ground-breaking technologies. For example, recently Wegmans developed a mobile application to assist blind shoppers.
The two main sources for the supply of capital in the u.s. economy are:__________
Answer and Explanation:
The two significant sources for the capital supply in the u.s economy are as follows
1. Savings done by the individual and the firms that known as S
2. Financial capital inflow arise from the investors in foreign countries i.e. equivalent to the trade deficit M-X
Or Imports minus exports
These two are to be considered
What are the three tools the Fed uses to keep the economy stable?
Explanation:
The main function of Fed or Federal Reserve (established in 1913), is to manage the growth of bank reserves and money supply (for the stable expansion of the economy). The tools used by the Fed are as follows :
Opening the marketing operations.The changes in discount rate can be done.Changing the reserve ratio (ratio of percentage of reserves a bank is required to hold against deposits)Data concerning Pellegren Corporation's single product appear below: Fixed expenses are $531,000 per month. The company is currently selling 4,000 units per month. The marketing manager would like to cut the selling price by $14 and increase the advertising budget by $35,000 per month. The marketing manager predicts that these two changes would increase monthly sales by 500 units. What should be the overall effect on the company's monthly net operating income of this change? Select one: a. decrease of $18,000 b. increase of $38,000 c. decrease of $38,000 d. increase of $58,000
Answer:
a. decrease of $18,000
Explanation:
The calculation of overall effect on the company's monthly net operating income is shown below:-
Particulars Current Proposed
Sales $800,000 $837,000
($200 × 4,000) (200 - 14) × (4,000 + 500)
Variable
expenses $160,000 $180,000
(40 × 4,000) (40 × (4,000 + 500))
Contribution
margin $640,000 $657,000
Fixed
expenses $531,000 $566,000
($531,000 + 350,00)
Net operating
income $109,000 $91,000
Decrease in net operating income is
= $109,000 - $91000
= $18,000
Lorenzo Company applies overhead to jobs on the basis of direct materials cost. At year-end, the Work in Process Inventory account shows the following. Work in Process Inventory Date ExplanationDebit Credit Balance Dec.31 Direct materials cost1,900,000 1,900,000 31 Direct labor cost210,000 2,110,000 31 Overhead applied684,000 2,794,000 31 To finished goods 2,723,000 71,000 1. Determine the predetermined overhead rate used (based on direct materials cost). 2. Only one job remained in work in process inventory at December 31. Its direct materials cost is $22,000. How much direct labor cost and overhead cost are assigned to this job
Answer:
1. Overhead rate = Overhead costs / Direct material costs
Overhead rate = $684,000 / $1,900,000
Overhead rate = 0.36
Overhead rate = 36%
2. How much direct labor cost and overhead cost are assigned to this job?
Total cost of job in process $71,000
Less: Overhead applied $7,920
($22,000 * 36%)
Less: Material cost of job in process $22,000
Direct labor cost $41,080
Hence, direct labor cost is $41,080 and Overhead cost is $7,920
Antonio owns a small computer repair firm. Suppose the economy has been in a recession for the past five months. When preparing the company's quarterly earnings report, Antonio realizes profits are down by over 50 percent compared to last quarter. As a result, he is forced to downsize his labor force. This is an example of a(n) _____ change.
Answer:
labor force
Explanation:
Remember, the labor force refers to a ratio of the number of employed and unemployed persons in a given economy or organization. In Antonio's case, his small computer firm had been affected by the economic recession; causing a decline in his labor force.
The balance sheet of Cattleman's Steakhouse shows assets of $86,800 and liabilities of $15,300. The fair value of the assets is $89,200 and the fair value of its liabilities is $15,300. Longhorn paid Cattleman's $83,420 to acquire all of its assets and liabilities. Longhorn should record goodwill on this purchase of:____________
$9,520
Explanation:
Calculation for to record goodwill on this purchase
Using this formula
Goodwill =Amount paid to acquire assets and liabilities-(Fair value of the assets-Fair value of its liabilities)
Let plug in the formula
Goodwill =$83,420-($89,200-$15,300)
Goodwill=$83,420-$73,900
Goodwill=$9,520
Therefore Longhorn should record goodwill on this purchase of:$9,520
A study examining the performance of numerous assets from the United States and around the world confirms that a. U.S. equities are highly correlated with world government bonds and with the commodities index. b. most assets (including common stocks) have positive correlations with inflation. c. riskier assets with lower standard deviations experienced higher returns. d. beta did a better job of explaining the returns than standard deviation. e. riskier assets with higher standard deviations experienced lower returns.
Answer:
d. beta did a better job of explaining the returns than standard deviation
Explanation:
Beta measures the systemic risk associated with the particular investment, it do not compute the total risk associated, which is more logical.
Standard deviation computes the total risk associated.
Some risk is natural, like the risk of floods, natural calamities, earthquake, etc:
That risk shall not counted as for comparison as that is associated universally. Further, the risk associated with particular factors like bankruptcy of a company, or some legal case issue of a company are precisely described by beta coefficient.
Thus, beta provides better details about explaining the returns.
What do you think of the decision made by Adelaide Ladywell?
Answer:
Incomplete question. Here's likely the complete question;
In this, the first case, Lee High, the newly hired cost accountant, computes the variable cost and the fixed cost per unit at a volume of 500 units of Great Heath per week. He uses this information to develop some guidelines for pricing. His boss, Charlton Blackheath, endorses the guidelines and adds a feature: a higher commission on sales at a higher price.
When both High and Blackheath are away, the file clerk, Adelaide Ladywell, accepts an order below the guidelines and is fired...Evaluate the decision made by Adelaide.
Explanation:
Although Adelaide Ladywell acted presumptuously (without permission), her decision was still profitable. By looking at the costs per unit presented, the product's selling price wasn't lower than the fixed costs, therefore her actions were not a totally bad one.
What is Neeley Grocery's operating leverage factor at the target level of operating income?
A. 1.60.
B. 0.63.
C. 2.67.
D. 0.40.
Answer:
A. 1.60
Explanation:
For computation of operating leverage factor first we need to determine the required contribution which is shown below:-
Required Contribution = Target Profit + Fixed Cost
= $25,000 + $15,000
= $40,000
Operating Leverage Factor = Contribution ÷ Operating Income
= $40,000 ÷ $25,000
= $1.60
Therefore for computing the operating leverage factor we simply applied the above formula.
Which is not an example of an intangible products? 1) Music downloads 2) t-shirt 3) online video game 4) software
Answer:
The second option, a t-shirt.
Explanation:
Tangible means something that is "perceptible by touch."
If you can touch something and feel it, it's tangible.
Answer:
[tex]\boxed {\tt 2. \ T-shirt}[/tex]
Explanation:
This question asks us which is not an example of an intangible product. We need to find the object that is tangible. Let's define the words and examine our answer choices.
A tangible product is a physical object that can be touched, while an intangible product is a product that cannot be touched.
Music downloads, online video games, and software are all intangible. They cannot be touched, as they are all virtual.
A t-shirt is a tangible product that can be touched.
Therefore, the correct answer is 2. T-shirt
Prepare summary journal entries to record the following transactions for a company in its first month of operations. a. Raw materials purchased on account, $102,000. b. Direct materials used in production, $42,500. Indirect materials used in production, $15,000. c. Paid cash for factory payroll, $55,000. Of this total, $37,000 is for direct labor and $18,000 is for indirect labor. d. Paid cash for other actual overhead costs, $8,375. e. Applied overhead at the rate of 125% of direct labor cost. f. Transferred cost of jobs completed to finished goods, $72,600. g1. Jobs that had a cost of $72,600 were sold. g2. Sold jobs on account for $104,000.
Answer and Explanation:
The journal entries are given below:
a. Raw materials inventory A/c Dr $102,000
To Accounts payable A/c $102,000
(To record raw material purchased on credit)
b. Work in progress inventory A/c Dr $42,500
To Raw materials inventory A/c $42,500
(To record used in production)
Factory overhead A/c Dr $15,000
To Raw materials inventory A/c $15,000
(To record indirect material used
c. Work in progress inventory A/c Dr $37,000
Factory overhead A/c Dr $18,000
To cash A/c $55,000
(To record factory payroll is paid in cash)
d. Factory overhead A/c Dr $8,375
To Cash A/c $8,375
(To record other actual overhead is paid for cash)
e. Work in progress inventory A/c Dr $46,250 ($37,000 × 125%)
To Factory overhead A/c $46,250
(To record applied overhead)
f. Finished goods inventory A/c Dr $72,600
To Work in progress inventory A/c $72,600
(To record transferred goods)
g1. Cost of goods sold A/c Dr $72,600
To Finished goods inventory A/c $72,600
(To record the job cost)
g2. Accounts receivable A/c Dr $104,000
To Sales A/c $104,000
(To record jobs are sold on account)
Why does insurance often provide "peace of mind"? O People know their insurance coverage will help prevent accidents and damage O People trust that they will make a profit if they pay insurance premiums. O People are not concerned about their health if they can pay for doctor's visits. 0 People are less worried when they know they have protection from risk.
Answer: D.) People are less worried when they know they have protection from risk.
Explanation:
The reason why insurance provided peace of mind is because people are less worried when they know they have protection from risk.
What is insurance?Insurance is when a third-party (the insurer) promises to idenmify another party (the insured) for losses they might suffer in the future in exchange for agreed upon payments.
For example, a person might insure his car against theif. Thi makes the inusred less worried about her car getting stolen.
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Levin Furniture buys a living room set with a $4,000 list price and a 55% trade discount. Freight (FOB shipping point) of $50 is not part of the list price. What is the delivered price (including freight) of the living room set, assuming a cash discount of 2/10, n/30, ROG? The invoice had an April 8 date. Levin received the goods on April 19 and paid the invoice on April 25.
Answer:Delivered price=$1,814
Explanation:
List Price = $4,000
Trade discount = 55%
Price after discount = $4,000 - 55% x $4000
$4000- $2,200 = $1,800
if Levin pays within 10 days he will have a discount of 2 %, which he did
Therefore 2% x $1800 = $36
Delivered price = $1800 -$36+ freight charges ( shipping)
$1800 -$36 + $50=$1814
Medicare and Social Security are paid through which type of federal tax?
A sales tax
B. excise tax
C. payroll tax
D. corporate income tax
Answer: C. payroll tax
Explanation: got it correct on ed2020
Which of the following statements is true about the audit opinion formulation process presented in this chapter?
a. The audit opinion formulation process is significantly different for the financial statement only audit and the integrated audit.
b. The audit opinion formulation process is based on the premise that management has responsibility to prepare the financial statements and maintain internal control over financial reporting.
c. The audit opinion formulation process is comprised of seven phases.
d. All of the above are true statements regarding the audit opinion formulation process.
Answer:
b. The audit opinion formulation process is based on the premise that management has responsibility to prepare the financial statements and maintain internal control over financial reporting.
Explanation:
The audit opinion formulation generally, is based on the premise that management has responsibility to prepare the financial statements and maintain internal control over financial reporting.
This entails that if there has not been sufficient internal controls to to enable fair presentation of Financial Statements, the entity gets a qualified audit opinion (negative report) otherwise if in place, the company gets a unqualified audit opinion (positive report).
The A. J. Croft Company (AJC) currently has $200,000 market value (and book value) of perpetual debt outstanding carrying a coupon rate of 6 percent. Its earnings before interest and taxes (EBIT) are $100,000, and it is a zero-growth company. AJC's current cost of equity is 8.8 percent, and its tax rate is 40 percent. The firm has 10,000 shares of common stock outstanding selling at a price per share of $60.00.
1. What is AJC's current total market value and weighted average cost of capital?
2. The firm is considering moving to a capital structure that is comprised of 40 percent debt and 60 percent equity, based on market values. The new funds would be used to replace the old debt and to repurchase stock. It is estimated that the increase in riskiness resulting from the leverage increase would cause the required rate of return on debt to rise to 7 percent, while the required rate of return on equity would increase to 9.5 percent. If this plan were carried out, what would be AJC's new WACC and total value?
3. Now assume that AJC is considering changing from its original capital structure to a new capital structure with 50 percent debt and 50 percent equity. If it makes this change, its resulting market value would be $820,000. What would be its new stock price per share?
4. Now assume that AJC is considering changing from its original capital structure to a new capital structure that results in a stock price of $64 per share. The resulting capital structure would have a $336,000 total market value of equity and $504,000 market value of debt. How many shares would AJC repurchase in the recapitalization?
Answer:
current market value = $800000, WACC = 7.5%new WACC = 7.38%, Total value of firm = $ 813,008.13stock price per share = $62.004750 sharesExplanation:
1) Calculate AJC's current total market value and weighted average cost of capital
current market value = value of equity + value of debt
= ( 10000 * $60 ) + $200000
= $800000
Weighted average cost of capital = ( weight of equity * cost of equity ) + ( weight of debt * cost of debt * ( 1 - tax rate )
= (75% * 8.8% ) + (25% * 6% * 0.6 ) = 7.5%
2) what would be AJC's new WACC and total value
WACC = ( weight of equity * cost of equity ) + ( weight of debt * cost of debt * ( 1 - tax rate )
= ( 60% * 9.5% ) + ( 40% * 7% * 0.6 ) = 7.38%
Total value of the firm =
= ( Cash flow after tax / WACC )
= (( 100000 * ( 1-40%)) / 7.38%
= 100000 * 0.6 / 7.38% = $ 813,008.13
3) Calculate the new stock price per share
new stock price = ( value of equity + change in debt ) / original number of outstanding shares
value of equity = weight of equity * firm value
change in debt =( weight of debt * firm value ) - initial debt value
Hence new stock price =
( 50% *$820000) + (( 50% * $820000)- $200000)) / 10000
= $62.00
4) calculate how many shares AJC would repurchase in the recapitalization
= original shares - Remaining shares
= 10000 - 5250 = 4750 shares
while ;
Remaining shares = value of equity / stock price = $336000 / $64 = 5250
original shares = 10000
1.Identify three jobs and three careers. What do they have in common? How do they differ?
2.Discuss the cost and benefits of choosing a career instead of a job.
3.Explain different ways for people to build their human capital.
Which of the following is an example of a criminal offense?
A. Check forging
B. Hitting a parked car
C. Evicting a tenant without due process
D. Being late on credit payment
Helpppppp
Answer:
B
Explanation:
it said to answer it has to have at least 20 letters so im just typing stuff now
Answer:
Evicting a tenant without due process
Explanation:
At the beginning of the year, Gilles Company had total assets of $800,000 and total liabilities of $300,000. Answer the following questions. (a) If total assets increased $150,000 during the year and total liabilities decreased $60,000, what is the amount of owner's equity at the end of the year? (b) During the year, total liabilities increased $100,000 and owner's equity decreased $70,000. What is the amount of total assets at the end of the year? (c) If total assets decreased $80,000 and owner's equity increased $120,000 during the year, what is the amount of total liabilities at the end of the year? g
Answer and Explanation:
Accounting equation is
Total assets = Total liabilities + Shareholder equity
The equity would be
= $800,000 - $300,000
= $500,000
a. The equity would be
Total assets = $800,000 + $150,000 = $950,000
Total liabilities = $300,000 -$60,000 = $240,000
So, the equity is
= $950,000 - $240,000
= $710,000
b. Total assets
Total liabilities = $300,000 + $100,000 = $400,000
Owner equity = $500,000 - $70,000 = $430,000
So, the total assets is
= $400,000 + $430,000
= $830,000
c. Total liabilities equal to
Total assets = $800,000 - $80,000 = $720,000
Total equity = $500,000 + $120,000 = $620,000
So, the total liabilities
= $720,000 - $620,000
= $100,000
Department E had 4,000 units in Work in Process that were 40% completed at the beginning of the period at a cost of $12,500. 14,000 units of direct materials were added during the period at a cost of $28,700. 15,000 units were completed during the period, and 3,000 units were 75% completed at the end of the period. All materials are added at the beginning of the process. Direct labor was $32,450 and factory overhead was $18,710. The number of equivalent units of production for the period for conversion if the first-in, first-out method is used to cost inventories was:
Answer:
Total equivalent unit = 19,650
Explanation:
To apportion cost between work in progress and completed units in a particular period, we use equivalent units. Equivalents units are notional whole units which represent incomplete work and are used to apportion cost between completed units and work in progress
Equivalent Units = Degree of Completion × Units of inventory
Under the first in first out(FIFO) method, to account for the units of work completed the opening inventory are separated and distinguished from the units newly introduced in the period.
Another principle under this method is that only the percentage of work yet to be completed on the units of opening are done in the current period
Fully worked = 14,000- 3,000 = 11,000
The fully worked represents units of inventory started this current period and completed in the same period
Item Units Working Equivalent unit
Opening inventory 4,000 60%× 4,000 2,400
Fully worked 15,000 100% × 15,000 15,000
Closing inventory 3,000 75% × 3,000 2250
Total equivalent unit 19,650
Total equivalent unit = 19,650
The Mifflin Cable store in Buffalo is currently offering a fabulous marketing strategy for potential new cable and Internet customers. Mifflin Cable offers new customers who purchase a cable and Internet package a DVR, modem, and all other necessary equipment with a two year contract. In terms of Porter's Five Forces what is Mifflin Cable attempting to achieve with this marketing strategy
Answer:
C. Decrease buyer power
Explanation:
Since in the question it is mentioned that the Mifflin Cable store offers a great marketing strategy that the combos of all the things would be based on the two year contract
So this given situation represents the decrease in buyer power as if there is less bargaining power so the company is able to rise the profit that is actually motive of every organization
Therefore the option C is correct
The journal entry to record the receipt of a payment within the discount period on a sale of $900 with terms of 2/10, n/30 will include a
Answer and Explanation:
Given that
The Sale is made for $900
Terms 2/10, n/30 that means if the payment is made within 10 days than 2% discount is eligible and the total credit period allowed is 30 days
Now the journal entry to record the receipts of a payment within discount period is
Cash Dr $882
Sales discount $18
To Account receivable $900
(Being the cash received)
The founders of "Black Lives Matter" would be consider
according to your textbook.
1)Social activists
2)justice Warriors
3)Social warriors
4)Social entreprenures
Answer:
4)Social entreprenurers
All of the following are functions of packaging except:____________.
A) consumer convenience.
B) product protection.
C) entertainment.
D) promotion.
E) added benefits.
Answer:
C. Entertainment
Explanation:
When goods are produced or manufactured, they are usually sealed or placed in containers/boxes, depending on the nature or how big those goods are. Ideally, packaging serves a means of protecting goods from damage. However, packaging also help to facilitate product storage and convenience.
Furthermore, packaging a product could also serve as a means of promoting it by branding the cover either through the producer's logo or any item that will be identified with the producer. There is also the aspect of packaging that facilitate recycling and also help to reduce damage to the environment.
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Other Information Check no. 1462 was outstanding from February. A credit memo for collection of accounts receivable was included in the bank statement. All checks were paid at the correct amount. The bank statement included a debit memo for service charges. The February 28 bank reconciliation showed a deposit in transit of $1,150. Check no. 1468 was for the purchase of equipment. The unadjusted Cash account balance at March 31 was $13,060. Required: Prepare the bank reconciliation for Pyle Garage at the end of March. Explain how the adjustments described above affect the cash account.
Answer:
Reconciliation of bank account:
Bank account balance $14,125
+ deposits in transit $3,593
- outstanding checks ($1,546) and ($793)
reconciled bank account $15,379
Reconciliation of cash account:
Cash account balance $13,060
+ Note collected by bank $3,098
- Bank fees ($69)
- Error in processing check # 1468 ($710)
reconciled cash account $15,379
Since all checks were paid at the correct amount, that means that the company's accountant made a mistake when he/she registered check #1468 and that mistake must be corrected in the cash account reconciliation.
Credit memos collected by the bank increase the company's cash account.
Debit memos (bank fees) decrease the company's cash account.
The previous month's reconciliation doesn't affect this month's reconciliation.
Explanation:
the information is incomplete, so I looked for it:
BANK STATEMENT HAZARD STATE BANK 215 MAIN STREET HAZARD, GA 30321 - Account number 62-00062 - March 31, 2018
Beginning balance 3/1/2018 $9,083
Total deposits and other credits 30,155
Total checks and other debits 25,110
Ending balance 3/31/2018 14,125
Checks and Debits
Check No. Amount
1462 $3,805
1463 1,693
1464 8,050
1465 2,951
1466 1,455
1467 6,230
DM 69
1468 860
Deposits and Credits
Date Amount
March 1 $1,150
March 2 6,554
March 6 4,987
March 12 6,219
March 17 6,013
March 22 2,134
CM 3,098
The following is a list of checks and deposits recorded on the books of Pyle Garage for March 2018:
Date Check No. Amount of Check Date Amount of Deposit
March 1 1463 $1,693 March 1 $6,554
March 5 1464 8,050 March 5 4,987
March 6 1465 2,951
March 9 1466 1,455 March 10 6,219
March 10 1467 6,230
March 14 1468 150 March 16 6,013
March 19 1469 1,546 March 19 2,134
March 28 1470 793 March 29 3,593
What costs does Shun Electronics consider to be direct costs?
Answer:
Shun Electronics direct costs - their set up establishment cost, associated technicians cost - are direct costs.
Explanation:
Direct Costs are the costs associated with production/manufacturing, not selling & distribution.
Generally, factory costs - factory power, factory wages etc are considered to be direct costs.
In case of Shun Electronics, their set up establishment cost, associated technicians cost - are direct costs.
A deposit of $1000 at 4% interest compounded continuously will grow to v(t) = 1000 e^0.04 dollars after t year. Find the average value during the first 40 years (that is, from time 0 to time 40.)
Answer: 20,816.215
Explanation:
Given that:
A deposit of $1000 at 4% interest compounding is defined by the growth function:
v(t) = 1000e^0.04t
Where t = number of years.
Find the average value during the first 40 years (that is, from time 0 to time 40.)
(That is t = 0,...,40)
For ease, we can use a python list comprehension to get our values.
v = [1000*2.7182818**0.04*t for t in range(41)]
V gives a list of the value of the deposit from year 0 till 40 years after the deposit.
Average = sum of compounding deposits / number of years
Sum of compounding deposits = sum(v) = $853464.8344
Number of years = len(v) = 41
Hence, average = $853464.8344 / 41
Average = $20,816.215
Who should a visionary creator work with?
Answer:
In simple words, Visionaries refers to the individuals who put many diverse ways of thought together. People have the potential to allow their minds to freely move, unburdened by controlled pathways of thinking. But a visionary also has the potential to pull it around and effortlessly incorporate it into the actual world.
Thus, a visionary should work with someone who too have a creative mind with practical knowledge of the processes. As someone should be their to make such visionaries realize about possible and impossible.
The planning session had been long but productive. Sean had been quiet throughout the meeting. He spent his time texting messages to his son on his cell phone instead. The director finished by summarizing the plan to reschedule stock offerings. Everyone was preparing to leave when Sean raised his hand. "I don’t know if we covered this," he said, "but have we talked about rescheduling the stock offerings yet? I don’t think we should wait until the fall."
Explanation:
In this case, Sean committed an unprofessional attitude towards the meeting.
Work meetings are essential for the employees of an organization to develop a positive interpersonal relationship through communication and the possibility of integration and contribution to the goals of the company through ideas and points of view.
Therefore, it is essential that each employee has a professional position, avoid using the phone during sessions and see meetings as an opportunity to improve their communication and integration skills with other employees.
It is also important that the employee is involved and engaged to actively participate in the meeting.
In a market economy, decisions about which goods are produced are based on: A. what the local community has made for generations. B. what the government decides is important for society. C. what health care organizations suggest will be best for citizens. D. what businesses believe will generate the most profits.
Answer:
D.
Explanation:
Business run the economy not the government
D. What businesses believe will generate the most profits.
What is market economy?In a market economy, the producer gets to decide what to produce, how much to produce, what to charge customers for those goods, and what to pay employees. These decisions in a free-market economy are influenced by the pressures of competition, supply, and demand.
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