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Answer:
Sry, I can't understand anything at all!
Based on the information given the real rate of interest is:2%.
<h3>Real rate of interest</h3>
Using this formula
Real rate of interest=Nominal interest rate-Inflation rate-
Where:
Inflation rate=5%
Nominal interest rate=7%
Let plug in the formula
Real rate of interest=7%-5%
Real rate of interest=2%
Inconclusion the real rate of interest is:2%.
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The opportunity cost of shifting from point C to D is 40 tons of oranges.
<h3>What is the formula for calculating opportunity cost?</h3>
Opportunity cost is the help you forego in choosing one duration of action over another. You can determine the opportunity cost of picking one investment option over another by using the following method: Opportunity Cost = Return on Most Profitable Investment Choice - Return on Investment Chosen to Pursue. The law of increasing opportunity cost: As you increase the production of one good, the opportunity expense to produce the more goods will increase.
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Answer:
False
Explanation:
EDLP is an abbreviation that stands for "every day low pricing". Under such a pricing strategy, the retailer opts to sell products on the day's lowest prices instead of formally fixing sales periods or announcing discounts.
It means setting fair prices and maintaining such prices over a long period of time. This is beneficial to the retailers in the sense that instead of focusing their marketing strategy on prices and discounts, they can effectively focus upon the product quality.
With respect to the customers, the benefit being, they do not have to keep track of products going on sales or wait for availability of discounts before making a purchase decision.
Walmart represents the best example of a company who has successfully employed this pricing strategy over a long period of time.
