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Lelechka [254]
1 year ago
10

Assume the manager is located at point B in the diagram above, and he is charging a price of P0. What does the demand for the fi

rm's goods look like if the management anticipates that rivals would not match price reductions but will match price rises instead of price decreases?

Business
1 answer:
Elena-2011 [213]1 year ago
8 0

The demand for the firm's goods based on the diagram given and the current price is elastic.

<h3>Why is the price elastic?</h3>

Demand is said to be elastic when quantity demanded decreases when prices increase, and vice versa.

Looking at the graph, if there is a price increase by management, the demand will decrease as shown by the space on the blue line above quantity B.

If prices reduce however, the demand increases as shown by curve D₂.

In conclusion, the demand is elastic.

Find out more on elastic demand at brainly.com/question/7966430.

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Tom finds out that his coworker is sharing confidential information with a competitor. What should Tom do to handle the situatio
omeli [17]

i just asked my brother , and he goes to business school at bentley university in massachusetts, he said he was in a similar situation he said that reporting it to your supervisors is the best idea.



your welcome!!

5 0
3 years ago
Frank, a marketing manager, has often noticed that his team members do not communicate with each other and are rarely present fo
Kipish [7]

Answer:

Cohesiveness

Explanation:

The measure of the level of unity in a group or team is called cohesiveness. It is a measure of how communicative the members of a team are. It describes the linking bond among them that makes them act as a team.

Cohesiveness is important because it also affect the extent to which members of a team are committed to working with centrally defined strategies and decisions. A cohesive team is a team that with increased morale and it also helps to boost productivity.

The feeling of being part of something big helps highly cohesive teams to achieve great job performance.

The lack of cohesiveness in Frank's team is evident in the low level of communication as well as the low level of productivity.

6 0
3 years ago
Suppose that a firm has a price-earnings ratio which is higher than a value deemed to be normal. Investors tend to infer from th
Dmitrij [34]

Answer:

(C) The Firm's stock is overvalued and one should consider selling the stock

Explanation:

Price Earnings Ratio is a measure of market price of stock in relation to it's earnings. It shows how well a company's stock is valued in the market.

Price Earnings Ratio = \frac{Market\ Price\ Per\ Share}{Earnings\ Per\ Share}

A high price earnings ratio would lead investors to believe that the firm's stock prices are higher than it's earnings which means the stock prices are overvalued.

This further means, the market price of those stocks is greater than their fair value and it would be beneficial to investors to sell such stocks as it would result into a gain.

Thus, a higher price earnings ratio will lead investors to infer that the firm's stock is overvalued and one should consider selling the stock.

8 0
3 years ago
A company had 6,950,000 net income for the year. Is net sales were 14,700,000 for the same period. Calculate its profit margin.
kobusy [5.1K]
0.46 or 46% hope this helps
5 0
3 years ago
Ganado and Equity Risk Premiums. Maria​ Gonzalez, Ganado's Chief Financial​ Officer, estimates the​ risk-free rate to be 3.50 %​
Elza [17]

Answer:

WACC (CAPM) 5.2%

WACC (ICAPM) 5.03%

Explanation:

The weighted average cost of capital is

Ke * E/ E+D + Kd * (1 -t) D / E+D

Ke = Rf + (Rm - Rf) * \beta

Ke (CAPM) = 3.50% + (8% - 3.50%) * 1.12

Ke (CAPM) = 7.532%

Kd (CAPM) = Kd (1-t)

Kd (CAPM) = 7.60 (1-39%)

Kd (CAPM) = 4.636%

WACC (ICAPM) : 7.532 * 20% + 4.636 * 80%

WACC (CAPM) = 5.2164%

Ke (ICAPM) = 3.50% + (8% - 3.50%) * 0.86

Ke (ICAPM) = 6.596%

Kd (ICAPM) = Kd (1-t)

Kd (ICAPM) = 7.60 (1-39%)

Kd (ICAPM) = 4.636%

WACC (ICAPM) : 6.596 * 20% + 4.636 * 80%

WACC (CAPM) = 5.03%

7 0
3 years ago
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