If a firm's fixed cost is zero in the short run, which of the following must be true as its output increases? O Average fixed cost decreases Average total cost equals average variable cost Average tot
Answers
If a firm's fixed cost is zero in the short run, as its output increases, the average fixed cost decreases and the average total cost equals the average variable cost.
If a firm's fixed cost is zero in the short run, it means that the firm does not have any costs that are fixed and do not vary with the level of output. In this scenario, as the firm's output increases, the following must be true:
1. Average fixed cost decreases: Since fixed costs are zero, the average fixed cost will also be zero. As output increases, the fixed costs are spread over a larger quantity of output, resulting in a decrease in average fixed cost. The firm's average fixed cost will approach zero as output increases.
2. Average total cost equals average variable cost: In the short run, the firm's total cost consists only of variable costs since fixed costs are zero. Therefore, average total cost (ATC) is equal to average variable cost (AVC). Since there are no fixed costs to consider, the firm's average total cost and average variable cost will be the same.
3. Average variable cost decreases: As output increases, the firm benefits from economies of scale and better utilization of variable inputs such as labor and materials. This leads to a decrease in average variable cost. The firm can spread its variable costs over a larger quantity of output, resulting in a more efficient production process and lower average variable cost.
It's important to note that even though fixed costs are zero in the short run, the firm still incurs variable costs, and those costs will impact the firm's average variable cost and average total cost as output increases.
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Related Questions
To encourage the formation of small businesses, the government could provide subsidies; these subsidies would:A. be included in GDP because they are part of government purchases.B. be included in GDP because they are part of investment expenditures.C. not be included in GDP because they are transfer payments.D. not be included in GDP because the government raises taxes to pay for them.
Answers
Option B - subsidies would be included in GDP because they are part of investment expenditures.
Subsidies provided by the government to encourage the formation of small businesses would be included in GDP (Gross Domestic Product) as part of investment expenditures. Investment expenditures refer to spending on capital goods, such as equipment or machinery, and other expenditures aimed at expanding production or improving efficiency. The subsidies are considered part of investment because they provide financial support to businesses, allowing them to invest in their operations and expand their production capabilities. However, it is important to note that the impact of subsidies on GDP can vary depending on factors such as the size and nature of the businesses receiving the subsidies and the effectiveness of the program in promoting economic growth. While subsidies may help to stimulate economic activity in the short term, their long-term impact on economic growth and sustainability is subject to debate among economists and policymakers.
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Suppose the accompanying table contains data on how many veggie delite sandwiches subway is willing to sell each day at two different prices. Calculate the daily price elasticity of supply when the price increases from $5. 00 to $7. 50. Please round to the nearest hundredth.
Answers
Annual elasticity is more elastic (since firms can switch to other production methods or lower-cost inputs quicker in the long run, compared to in the short run), and the annual supply curve is flatter.
A supply curve constitutes a graph that depicts how the quantity that a vendor supplies is impacted by changes in the selling price of an item or service. The horizontal x-axis shows the quantity supplied, and the vertical y-axis shows the price.
The supply curve changes to the right when the alteration in supply is higher and to the left when the increase in supply is lower.
Using the midpoint method,
Elasticity (Es) = [(Q1 - Q0) / (Q1 + Q0)] / [(P1 - P0) / (P1 + P0)]
= \([(210,000 - 200,000) / (210,000 + 200,000)] / [(7.5 - 5) / (7.5 + 5)]\)
= \((10,000 / 410,000) / (2.5 / 12.5)\)
= \(0.12\)
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Jun.
1
2
4
Jun 1
5.
8.
Received cash from owner as an investment, $10,000.00.
Paid cash for insurance, $4,000.00
Bought supplies on account from All Star Company, $6,000.00.
Paid cash for supplies, $1,000.00.
Paid cash on account to All Star Company, $4,000.00
Helfrey Marketing Services uses the listed accounts. Prepare two T accounts for each transaction. On each T account, select the account title of one of
the accounts affected by the transaction. Enter the debit or credit amount in each T account to show the transaction's effect.
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A T-account is an informal term for a set of financial records using double-entry bookkeeping.
What is T Account?A T-account is an informal term for a set of financial records using double-entry bookkeeping. It is called a T-account because the accounts are arranged in a T-shape. The account title appears just above the T.A T-account is a graphical representation of the general ledger that records a company's transactions. It consists of:Account title on the top horizontal line of Tleft debit sidecredit side on the rightThe following items will be represented in the T account:
Description Debit Credit
Received cash
from the owner
as an investment $10,000.00
Paid cash
for
insurance $4,000.00
Bought supplies
on account from
All-Star Company $6,000.00
Paid cash for supplies $1,000.00
Paid cash on
account to
All-Star Company $4,000.00
TOTAL $16,000.00 $9,000.00
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A T-account is a colloquial term for a collection of financial records that use double-entry bookkeeping.
What is a T account?A T-Account is a graphical representation of the journal entries that have been recorded in a general ledger account. The debits are shown on the left side of the T, and the credits are shown on the right. Accountants and bookkeepers can use this system to easily track account balances and identify errors in journal entries. A T-account is slang for a collection of financial records that use double-entry bookkeeping. A T-account exists so called because the bookkeeping entrances are arranged in the form of a T. Just above the T is the account title. The T account is a fundamental principle of financial accounting.The ensuing items will be described in the T account:
Description Debit Credit
Received cash
from the owner
as an investment $10,000.00
Paid cash
for
insurance $4,000.00
Bought supplies
on account from
All-Star Company $6,000.00
Paid cash for supplies $1,000.00
Paid cash on
account to
All-Star Company $4,000.00
TOTAL $16,000.00 $9,000.00
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Question 4
Not-for-profit organizations are?
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Not-for-profit is a broad term for organizations that do not generate profit for their owners. All money generated by the not-for-profit business must be reinvested back into running it. Unlike nonprofits, not-for-profits are not required to operate specifically for the benefit of the public or the advancement of a social cause. A not-for-profit can simply operate to serve the goals or special interests of its members. For example, recreational sports clubs can operate as a not-for-profit.
What economic system emerged during the industrial revolution.
Answers
Answer:
Capitalism
Explanation:
Which social networking service did people from around the world use to participate in the Social Good Summit?
Answers
Answer:
Mashable
Explanation:
Mashable is a global, multi-platform media and entertainment company. It is a go-to source for tech, digital culture and entertainment content for its dedicated and influential audience around the globe.
According to U.S. law, a company has an illegal monopoly when it dominates an industry and ___. *
2 points
A. collects information on its customers
B. takes actions that prevent competition
C. has more than 75 percent of the market share
D. sets prices that are more than 10 percent higher than industry average
Answers
Answer: a
Explanation:
When a company dominates an industry and takes actions that prevent competition, its is called an illegal monopoly
Let understand that "Monopoly" refers to having an exclusive ownership and control of supply of goods or a service.
Illegal monopoly are labelled illegal because its involves an act of improper conduct.
Illegal monopoly can also be called anti-competitive monopolization.Example of is when a Company employs certain tactics to ensure consumer buys its product along and thus making him the major supplier of the product in the location.
In conclusion, when actions taken by a company is preventing competition among firms producing similar goods and dominates the industry, such company is said to be practicing illegal monopoly.
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When positive externalities are present in a market a. private benefits will be greater than social benefits. b. social benefits will be greater than private benefits. c. only government regulation will solve the problem. d. the market will not be able to generate an equilibrium.
Answers
Answer:
b. social benefits will be greater than private benefits
Explanation:
Positive externalities can be defined as those that produce positive effects for society in relation to the consumption of a good or service.
This is because the social benefit is the sum of the private benefit plus the sum of the external benefit.
An example of positive externality pertinent to the present is the fact that vaccinating people generates greater positive effects on society, because when vaccinating an individual there is less chance of having more people infected with some disease.
So it is correct to say that the social benefits will be greater than the private ones. Letter b.
Bascomb Company purchased $420,000 in merchandise on account during the month of April, and merchandise costing $350,000 was sold on account for $425,000 Required: 1. Prepare journal entries to record the purchases and sales assuming Bascomb uses a perpetual inventory system. 2. Prepare journal entries to record the purchases and sales assuming Bascomb uses a periodic inventory system. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare journal entries to record the purchases and sales assuming Bascomb uses a perpetual Inventory system. (if no entry for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 2 Record the purchases and sales assuming Bascomb uses a perpetual Inventory system Notet Enter debits before credits Tanca வொலான வேனை nahit Journal entry worksheet 1 2 > Record the purchases and sales assuming Bascomb uses a periodic inventory system Note: Enter debits before credits. Transaction General Journal 1 Debit Credit Record entry Clear entry View general journal Prev 1 of 7 Next >
Answers
Required 1: Prepare journal entries to record the purchases and sales assuming Bascomb uses a perpetual inventory system.
1. Journal entry for merchandise purchase on account:
Debit: Inventory ($420,000)
Credit: Accounts Payable ($420,000)
2. Journal entry for merchandise sold on account:
Debit: Accounts Receivable ($425,000)
Credit: Sales Revenue ($425,000)
3. Journal entry for the cost of goods sold:
Debit: Cost of Goods Sold ($350,000)
Credit: Inventory ($350,000)
Required 2: Prepare journal entries to record the purchases and sales assuming Bascomb uses a periodic inventory system.
1. Journal entry for merchandise purchase on account:
Debit: Purchases ($420,000)
Credit: Accounts Payable ($420,000)
2. Journal entry for merchandise sold on account:
Debit: Accounts Receivable ($425,000)
Credit: Sales Revenue ($425,000)
Note: In a periodic inventory system, the cost of goods sold and inventory update are recorded at the end of the accounting period, not with each transaction.
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Franco wants to start a business in his home city of Madrid, Spain. He does not have an existing firm or a product, and he doesn't have a lot of capital, but since he loves Five Guys food, he decides to
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Franco wants to start a business in his home city of Madrid, Spain. He does not have an existing firm or a product, and he doesn't have a lot of capital, but since he loves Five Guys food, he decides to start a burger restaurant based on the Five Guys model.
The first thing Franco needs to do before starting a business is to conduct market research. Market research helps an entrepreneur to understand the business environment, target customers, competition and the product's potential in the market. Franco should consider the following aspects of market research:
Target customers: Knowing target customers help to design a product that meets their needs and desires.
Competition: Product potential: The second thing that Franco should consider is the business structure and registration requirements. He should consult with a lawyer or a business consultant to choose the most appropriate business structure that meets his needs. He will need to register the business with the authorities and obtain any necessary permits and licenses. The lawyer can also provide advice on legal and tax obligations, intellectual property protection, and insurance.
Finally, Franco should develop a business plan that outlines the business's objectives, target market, marketing strategies, sales forecasts, operational plan, financial plan, and management structure. The business plan is a blueprint for the business's success and helps to secure funding from investors or lenders.
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Thus, the total interest earned on the float for six days would be $115,068 ($19178 x 6 days). 1. Would you recommend Ahi complete this transaction?
Answers
Thus, the total interest earned on the float for six days would be $115,068 ($19178 x 6 days). it is essential to assess the legitimacy and legality of the transaction. If the transaction is legal and complies with the relevant regulations and policies, then Ahi may consider proceeding with it.
To determine whether Ahi should complete this transaction, we need to consider the potential benefits and risks involved. The transaction involves earning interest on a float amount of $19,178 over a period of six days, resulting in a total interest earned of $115,068. On the surface, this seems like a lucrative opportunity to earn a significant amount of money in a short period of time. However, it is essential to assess the legitimacy and legality of the transaction. If the transaction is legal and complies with the relevant regulations and policies, then Ahi may consider proceeding with it. Ahi should consult with financial and legal experts to ensure compliance and mitigate any potential risks. It is also important to evaluate the potential risks associated with the transaction. These risks could include fraudulent activities, legal repercussions, or reputational damage. Ahi should thoroughly investigate the transaction, including the source and legitimacy of the funds, to ensure that it does not involve any illicit activities. Ultimately, the decision to proceed with the transaction should be based on a careful assessment of the legality, potential risks, and rewards. Ahi should seek professional advice and conduct due diligence to make an informed decision that aligns with their ethical and legal obligations.
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3. (Rate with LGD, risk-averse lender) Assume a bank can invest in a government bonds at a risk-free rate of 6%. Alternatively, it can invest in a corporate bond with a default probability of 5.2%. If the issuer defaults, the bank expects to recover 71.8% of the investment. A risk-averse bank that requires an additional premium of 2.2% as a result of risk aversion would be indifferent between investing in the government bond and the corporate bond if the corporate bond offers a rate or
Answers
A risk-averse bank would be indifferent between investing in the government bond and the corporate bond if the corporate bond offers a rate of 11.31%.
The formula used to calculate the rate of corporate bond is
Rate with LGD = Risk-free rate + Default risk premium * (1 – LGD)
Rate with LGD = Risk-free rate + Default risk premium * (1 – LGD)
Where Risk-free rate = 6%, Default risk premium = 5.2% + 2.2% = 7.4% (as bank is risk-averse)
LGD = 1 – 71.8% = 28.2%
Putting the given values in the above formula,
Rate with LGD = 6% + 7.4% * (1 – 28.2%)= 6% + 7.4% * 71.8%
Rate with LGD = 6% + 5.31212%
Rate with LGD = 11.31212%
Thus, the rate of corporate bond at which a risk-averse bank would be indifferent between investing in the government bond and the corporate bond is approximately 11.31%.
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You are a salesperson in a vitamin store. What steps can you take to move up the company?
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Answer:
these are some six steps to move up the company ☝
hope it helps
Received this response on a cash confirmation, "Information is furnished as a matter of courtesy without a duty to do so and without responsibility, liability, or warrant, expressed or implied". The bank balance was correct and matched. Would this confirmation still be persuasive and reliable? why or why not?
Answers
The cash confirmation may still be persuasive and reliable despite the disclaimer because the bank balance was correct and matched. However, the disclaimer indicates that the information provided is done so as a courtesy and without any legal responsibility or liability.
In this context, a cash confirmation is a process where a third party, such as a bank, confirms the amount of cash or cash equivalents held by an entity. This confirmation is often used as evidence in audits or financial statement reviews to provide assurance about the accuracy of financial information.
The disclaimer in the response means that the bank provided the information voluntarily and without any legal obligation to do so. It also states that the bank is not responsible for any errors or omissions in the information provided.
While the disclaimer may reduce the weight given to the confirmation, the fact that the bank balance was correct and matched indicates that the information is likely reliable. However, it is important to consider the context and the purpose of the confirmation when assessing its reliability and persuasiveness.
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Pat and his friend rent an apartment together. Their total cost to move in included first month's rent, last month's rent and a security deposit of $600. If Pat paid a total of $1,050 to move in, how much is his share of the rent each month?.
Answers
Pat and his friend rent an apartment together. Their total cost to move in included the first month's rent, last month's rent, and a security deposit of $600. If Pat paid a total of $1,050 to move in,
Explanation: We know that he and his friend rent an apartment together. Their total cost to move in included the first month's rent, last month's rent, and a security deposit of $600.Pat paid a total of $1,050 to move in. We have to find Pat's share of the rent each month. We will begin by calculating the total amount of rent they paid to move in. It is calculated by subtracting the security deposit from the total amount paid to move in. So, Total rent paid = Total amount paid - Security deposit= $1,050 - $600= $450Now, we know that the total rent for the apartment is split between Pat and his friend. Therefore, we can divide the total rent by two to find each of their shares:$450 ÷ 2 = $225Therefore, Pat's share of the rent each month is $225.
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One of the most important decision principles is the necessity to optimize ______, or the usefulness of decisions.
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The given blank in the statement "One of the most important decision principles is the necessity to optimize or the usefulness of decisions" can be filled with the term "utility".
The concept of utility refers to the amount of satisfaction derived from consuming a particular commodity or service. It is an important decision principle because decisions should always aim to maximize the utility obtained from the resources invested. Utility is a multi-dimensional concept because it encompasses several aspects of consumer satisfaction, such as monetary benefits, social status, and emotional well-being.Therefore, in order to optimize the usefulness of decisions, individuals and organizations must focus on maximizing the overall utility that they receive from the decisions that they make. In practice, this may involve using various tools and techniques such as cost-benefit analysis, decision trees, and simulation models, which are designed to help decision-makers make informed and rational decisions.
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What type of economy does the United States have?
A. Command
B. Market
C. Mixed
Answers
Answer:
The United States has a mixed economy
Answer:
Mixed
Explanation:
Created by the United States Constitution, the U.S. has a mixed economy, meaning that it combines elements of the command and market economic models.
two ratios that provide insight on the relationship between credit sales and receivables are: multiple choice accounts receivable turnover and current ratio. average days to collect receivables and asset turnover. accounts receivable turnover and average days to collect receivables. current ratio and inventory turnover ratio.
Answers
The two ratios that provide insight on the relationship between credit sales and receivables are accounts receivable turnover and average days to collect receivables.
The accounts receivable turnover ratio measures the efficiency of a company's credit sales and collection process. It is calculated by dividing net credit sales by the average accounts receivable balance. A higher turnover ratio indicates that the company collects its receivables more quickly, while a lower ratio suggests a slower collection process. The average days to collect receivables ratio provides additional insight into the time it takes for a company to collect its receivables. It is calculated by dividing the average accounts receivable balance by the average daily credit sales. This ratio gives an estimate of the number of days it takes, on average, to collect outstanding receivables. A lower number of days indicates a faster collection process and better cash flow management.
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A type of entry mode that is common in the chemical, pharmaceutical, and petroleum-refining industries in which a contractor agrees to handle every detail of a project for a foreign client is called ______.
Answers
The turnkey project enables the contractor tp agrees to handle every detail of a project to the foreign client.
A Turnkey project refers to a project designed and constructed in a way to allows sales to potential buyer as a completed product.\
A large numbers of government-owned public housing projects are turnkey projects
So, in turnkey project, the contractor will agrees to handle every detail of a project to the foreign client because it has been sold by the owner.
Therefore, the correct answer is Turnkey project.
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insurance, credit, and technology adoption: field experimental evidence from malawi. journal of development economics
Answers
In the study titled "Insurance, Credit, and Technology Adoption: Field Experimental Evidence from Malawi," the researchers investigate the relationship between insurance, credit, and technology adoption in the context of rural Malawi.
The study employs field experiments to gather empirical evidence and shed light on how these factors influence farmers' decision-making and agricultural practices.
The researchers examine the impact of providing insurance and credit services on farmers' willingness to adopt new technologies in their agricultural activities. Overall, the study emphasizes the importance of insurance and credit in facilitating technology adoption among farmers in rural Malawi. By addressing the financial constraints and risks associated with adopting new technologies, these interventions have the potential to improve agricultural productivity, enhance farmers' resilience, and contribute to poverty reduction in the region.
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according to the behavioral approaches to leadership, how should companies create effective managers?
Answers
For companies to create effective managers, companies should: Train managers on task and relationship management.
An effective manager is someone who has the best interest of the company on mind and who has the skills to get things done.
For a manger to be effective it means such manager is task oriented and such person is more concerned on how he or she will more productive and efficient so as to accomplish their task.
Manager should have relationship management skill to build rapport with people or to relate with people regardless of their ethnics, sex, religion.
Inconclusion effective managers should be train managers on task and relationship management.
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Fixed costs are $3,000,000 and the unit contribution margin is $150. What is the break-even point? A) $7,500,000 B) $20,000,000 C) 750 units D) 20,000 units
Answers
The break-even point is 20,000 units. It is the point at which the company is neither making a profit nor incurring a loss
Break-even point is the point where a company's total revenue equals its total expenses. . To calculate the break-even point, you need to know the fixed costs, the unit contribution margin, and the unit sales price.
Fixed costs are expenses that remain constant regardless of the level of production or sales volume. Unit contribution margin is the amount by which the unit selling price exceeds the variable cost per unit.
The formula for calculating the break-even point in units is:
Break-even point (units) = Fixed costs ÷ Unit contribution margin
In this case, the fixed costs are $3,000,000 and the unit contribution margin is $150.
Break-even point (units) = $3,000,000 ÷ $150 = 20,000 units
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which is not a factor that a insurance company would consider before setting the cost of an auto insurance policy
a)the drivers health b)the drivers age c)crime reports in the area d)the make and model
Answers
The factor which is not considered while computing the cost of an auto insurance policy is the driver's health.
Option A is the correct answer.
What is an auto insurance policy?
Auto insurance is a kind of policy concerning the vehicles owned by the policyholder in a contract with the respective auto insurance companies.
When the auto insurance company derives the cost of auto insurance, then the factors that are needed to be considered are the driver's age, the model of the vehicle held, the past history of claims taken by the driver, and the geographic location of the driver.
Therefore, the health of the driver has no concern when determining the cost of auto insurance.
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What types of loans are available to consumers?
Answers
Explanation:
Credit Cards: That used fund daily transactions by customers.
Car Loans: That used fund the purchasing of a car by customers.
Private loans: Used mostly by borrowers for school funding.
Personal Loans: Being used personal usage by customers.
Which of the following symptoms is NOT associated with an allergic reaction?
Trouble breathing
Anxiety
OOO
Fainting
Screaming
Answers
When one is having an allergic reaction to something, one symptom that is not expected is Screaming.
An allergic reaction usually leads to the following:
Person has trouble breathing Person develops anxiety Person might faintIt is not a usual thing that a person will scream as a result of an allergic reaction.
We can therefore conclude that screaming is not associated with allergic reactions.
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four reasons why Corona virus could be harmful to economic growth??
Answers
Answer:
Employees have to be let go because social distancing is a thing
Businesses are not getting enough customers because of quarantine, which leads to them shutting down
Factories that supply stores are shut down to prevent spread in factory lines
For those with computer jobs, working from home does not give an employee as much freedom with printing or scanning as it does at work, which slows down the completion of assignments and lowering the business`s dependability
Sticking to a list will help you save money.
True
False
Answers
Hope this helped :)
Have a blessed day!!
A contract where all the parties have yet to perform their contractual duties is best described asAn unenforceable contractAn executory contractImplied contractExecuted contract
Answers
The best description for a contract where all the parties have yet to perform their contractual duties is an "executory contract."
An executory contract is a type of agreement in which the parties involved have not yet fulfilled their obligations or performed the promised actions. The performance of these obligations is expected to occur at a future date, as specified in the contract. In contrast, an unenforceable contract refers to an agreement that cannot be enforced by law due to certain legal issues, such as the absence of necessary elements or a violation of public policy. An implied contract, on the other hand, is a contract that is inferred from the parties' conduct or actions rather than a written or verbal agreement. Finally, an executed contract is one in which all the parties involved have already completed their contractual duties. To recap, if all parties have yet to perform their contractual duties, the correct term to describe the contract is an "executory contract."
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______ If an employer enforces an English-only policy in all areas of the workplace and at all times, including break times and other free time, the:A) employer’s policy is presumptively discriminatory according to the Equal Employment Opportunity Commission (EEOC).B) employer is much safer from a charge of national origin discrimination than an employer who only enforces the policy in certain areas and at certain times.C) employer impermissibly violates Title VII of the Civil Rights Act, which protects the ability of workers to express their cultural heritage at the workplace.D) employer’s policy is not unlawful because all individuals, irrespective of their national origin, are required to speak English in the United States.
Answers
Answer:
A) employer’s policy is presumptively discriminatory according to the Equal Employment Opportunity Commission (EEOC).
Explanation:
The Equal Employment Opportunity Commission (EEOC) is a federal agency that was established by US Congress on the 2nd of July, 1965 based on the Civil Rights Act of 1964 so as to uphold and enforce all civil rights law against workplace discrimination by the employers or employees in the United States of America.
Equal Employment Opportunity Commission (EEOC) guidelines asserts that employers of labor wouldn't be held liable for national origin discrimination after implementing an "English-only" rule, if the employer can show that it is necessary for the following;
I. To communicate with customers who can speak English only.
II. To efficiently promote cooperative work assignments among teams (employees).
III. To enhance or facilitate safety during an emergency.
Hence, if an employer enforces an English-only policy in all areas of the workplace and at all times, including break times and other free time, the employer’s policy is presumptively discriminatory according to the Equal Employment Opportunity Commission (EEOC).
Which of the following are true of price bundling? (Choose every correct answer.) Multiple select question. Price bundling helps customers stock up on a product. Each item within the bundle must have about the same value as others within that bundle. Different prices are charged to different people for the same bundle of products or services. Several popular items are frequently sold together for a lower combined price. A less popular item is sometimes bundled with a more desirable item.
Answers
Answer:
Price bundling helps customers stock up on a product.
A less popular item is sometimes bundled with a more desirable item.
Several popular items are frequently sold together for a lower combined price.
Explanation:
As the name suggest Price bundling is to combined the various products and convert into a package so that if the consumer calculate its individual price so it would be high as compared to the package. Here the profits could be increased due to promotion of more than one item
So according to the given options, the following statements should be considered true
It would help the customer to stock up the product
An item i.e. less popular can be bundled with the desriable item
Also the various kind of items would be sold at very less price