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2 years ago

When firms compete by offering unique product features rather than competing on price, ______ occurs.

1 answer:

6 0

When firms compete by offering unique product features rather than competing on price, <u>non-price competition</u> occurs; it is when businesses employ tactics to boost sales and market shares without lowering prices.

What is non-price competition?

In non-price competition, a company "seeks to distinguish its product or service from competing items on the basis of features like design and workmanship," according to a marketing strategy. Because it exists between two or more producers who sell goods and services at the same prices but seek to expand their respective market shares by non-price factors like marketing strategies and higher quality, it frequently happens in imperfectly competitive markets.

Types of Non-Price Competition:

Marketing involves a range of approaches (based round the 4Ps), including product differentiation, advertising, promotion and distribution

Learn more about non-price competition here:

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Rita Gonzales won the $53 million lottery. She is to receive $2.2 million a year for the next 20 years plus an additional lump s

guajiro [1.7K]

Answer:

PV= $17,365,776.86

Explanation:

Giving the following information:

Cf= 2,200,000

Number of years= 20

Discount rate= 12%

Additional lump sum= 9,000,000

First, we need to calculate the future value using the following formula:

FV= {A*[(1+i)^n-1]}/i

A= annual cash flow

FV= {2,200,000*[(1.12^20) - 1]} / 0.12 + 9,000,000

FV= $167,515,373.4

Now, the present value:

PV= FV/(1+i)^n

PV= 167,515,373.4/1.12^20

PV= $17,365,776.86

7 0

4 years ago

Which one of the following is a working capital decision?

CaHeK987 [17]

Answer:

E. How much cash should the firm keep in reserve?

Explanation:

The working capital is the capital decision that is a decision that the firms take to combine the policies and the techniques for the management. And also state how the form should keep and use its resources or reserves and also is a measure of the liquidity of the firm and gives the inventors more information to the analysis.

6 0

3 years ago

The law of supply indicates that other things equal:.

Temka [501]

Answer:

The law of supply is the microeconomic law that states that, all other factors being equal, as the price of a good or service increases, the quantity of goods or services that suppliers offer will increase, and vice versa.

5 0

2 years ago

An increase in the real wage would result in a:________. a. shift of the labor demand curve, causing an increase in the number o

barxatty [35]

Option C

An increase in the real wage would result in a: movement along the labor demand curve, causing a decrease in the number of workers hired by the firm.

<u>Explanation:</u>

The wage rate is circumscribed by the crossing of supply and demand for labor. The demand curve depends on the marginal product of labor and the cost of the good labor originates.

A variation in the wage or payroll will end in a shift in the amount necessitated of labor. If the wage rate increases, organizations will require to hire fewer employees. The quantity of labor demanded will decline, and there will be a movement skyward on the demand curve.

5 0

3 years ago

What is the duration of a two-year bond that pays an annual coupon of 10 percent and whose current yield to maturity is 11 perce

mojhsa [17]

Answer:

(a) 1.91 years

(b). $987.96

Explanation:

According to the scenario, computation of the given data are as follow:-

a).

Year Cash flow PVF 11% PVF 11% discount time P.V. cashflow×time

1 $100 0.901 $90.1 1 $90.1

2 $1,100 0.812 $893.2 2 $1,786.4

Total 983.3 $1,879.5

Bond price = $983.3

Bond duration = 1,879.5 ÷ 983.3 = 1.91 year

b).

1st year cash flow = $1,000 × 10÷100 = $100

2nd year cash flow = $1000 + $100 = $1,100

If interest rate are decreased by 0.3%

11% - 0.3% = 10.7%

PVF = cash flow ÷ (1+rate)

Year Cash flow($) divide PVF 10.7% PVF 11% discount ($)

1 100 ÷ 1.107(1+.107) 90.33

2 1,100 ÷ 1.225449(1+.107)^2 897.630

Total 987.96

Price of bond will be $987.96 at 10.7%.

7 0

3 years ago