Factors of Production
1. Is gross profit or net profit more important to consider when you're deciding how successful and profitable a company is? Why? Explain. (1-3 sentences. 2.0 points)
Gross profit is the profit you make before taxes. Net profit is more important, because it is what you have after paying taxes, or the money you actually get to keep.
2. Choose a well-known company that you know of, and describe its direct and indirect competitors. Describe at least 2 direct competitors and 2 indirect competitors. (2-4 sentences. 3.0 points)
Mcdonald’s is a well-known company. It’s direct competitors are Burger King and Wendy’s. It’s indirect competitors are Taco Bell and Pizza Hut, because while they’re both fast food restaurants, they have completely different menus.
3. Describe at least 3 nonprice competition strategies a company could use to convince customers that its product is better than other similar products. Why would those strategies matter to customers? (3-6 sentences. 3.0 points) nonprice competition strategies are desirable qualities in a product other than a low price. The company offers things like quality, good customer service, and safety.
4. Describe a nonprice competition strategy that you have seen a company use. Do you think this strategy was effective? Why or why not? (3-6 sentences. 3.0 points)
Wendy’s insures the quality of their food by stating that they’re meat is always fresh and never frozen. I think it was effective because a lot of people prefer Wendy’s over other fast food restaurants for that reason.
5. If all other factors are equal, what is likely to happen to the supply of a product if the price goes up? Why? Explain. (3-6 sentences. 3.0 points)
Supply is how much of something is available. Demand is how much of that thing that people want. If the price of a product goes up, its supply is going to go up and the demand will go down. People always want the best price.
6. If all other factors are equal, what is likely to happen
Gross profit is the profit you make before taxes. Net profit is more important, because it is what you have after paying taxes, or the money you actually get to keep.
2. Choose a well-known company that you know of, and describe its direct and indirect competitors. Describe at least 2 direct competitors and 2 indirect competitors. (2-4 sentences. 3.0 points)
Mcdonald’s is a well-known company. It’s direct competitors are Burger King and Wendy’s. It’s indirect competitors are Taco Bell and Pizza Hut, because while they’re both fast food restaurants, they have completely different menus.
3. Describe at least 3 nonprice competition strategies a company could use to convince customers that its product is better than other similar products. Why would those strategies matter to customers? (3-6 sentences. 3.0 points) nonprice competition strategies are desirable qualities in a product other than a low price. The company offers things like quality, good customer service, and safety.
4. Describe a nonprice competition strategy that you have seen a company use. Do you think this strategy was effective? Why or why not? (3-6 sentences. 3.0 points)
Wendy’s insures the quality of their food by stating that they’re meat is always fresh and never frozen. I think it was effective because a lot of people prefer Wendy’s over other fast food restaurants for that reason.
5. If all other factors are equal, what is likely to happen to the supply of a product if the price goes up? Why? Explain. (3-6 sentences. 3.0 points)
Supply is how much of something is available. Demand is how much of that thing that people want. If the price of a product goes up, its supply is going to go up and the demand will go down. People always want the best price.
6. If all other factors are equal, what is likely to happen