Determining whether a reader might be resistant to your message, and why, helps you prepare a more persuasive message

For the law of one price to hold, all of the following are necessary EXCEPT:

A) transportation costs must be negligible. B) exchange rates must be fixed. C) tariffs must not be levied by any country. D) all goods and services must be tradable. E) traded goods must be homogeneous.

Dolph and Evan started the DE Restaurant in 20X3. They rented a building, bought equipment, and hired two employees to work full time at a fixed monthly salary. Utilities and other operating charges remain fairly constant during each month

During the past two years, the business has grown with average sales increasing 1% a month. This situation pleases both Dolph and Evan, but they do not understand how sales can grow by 1% a month while profits are increasing at an even faster pace. They are afraid that one day they will wake up to increasing sales but decreasing profits. Required: Explain why the profits have increased at a faster rate than sales. Use the terms variable costs and fixed costs in your response.