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2 years ago

Any action, other than lowering its price, that a firm undertakes to increase the demand for its output is called?

1 answer:

5 0

Any action that a firm takes to increase the demand for its product or output other than lowering its prices is called non-price competition.

A firm usually makes a non-price competition strategy that distinguishes its output from its competing output on the basis of attributes like workmanship and design etc.

The non-price competition strategy involves advertising, product differentiation, promotion, and supply distribution. This non-price competition strategy allows a firm to distinguish its product and increase its demand against its competing product without lowering the price.

Despite the benefits of a non-price competition strategy, it requires a lot of research to make distinguish the product from its competing product. Usually, buyers are not aware of the quality of the product and they don’t know which firms provide greater quality products. It requires a lot of advertising and promotion etc.

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You might be interested in

Emblazon a shield of your own based on your values and lifestyle:

tatiyna

Emblazon a shield of your own based on your values and lifestyle:

This varies from different people to do cultures. Your Emblazon encompasses everything that makes you, you. It holds all of your values and your lifestyle characteristics. Each group of people who relate to this with you are depicted by the symbol of your characteristics.

4 0

3 years ago

At December 31, 2018, the financial statements of Hollingsworth Industries included the following: Net income for 2018 $ 590 mil

m_a_m_a [10]

Answer:

Basic EPS = $1.359 million

Diluted EPS = $1.195 million

Explanation:

For Basic EPS we need to calculate the number of shares outstanding

Shares as on Jan 1 = 450 million

Treasury shares on Sep 1 = 48 million × (4 months ÷ 12 months)

= 16 million

Number of shares o/s = Shares as on Jan 1 - Treasury shares on Sep 1

= 450 million - 16 million

= 434 million

Basic EPS = Net Income ÷ Number of shares o/s

= $590 million ÷ 434 million

= $1.359 million

For Diluted EPS,

Interest savings = 10% × $ 250 million

= $25 million

Adjusted Net Income = Net Income + After tax interest savings

= $590 million + [25 millions - 40(25million)]

= $590 million - $15 million

= $575 million

and weighted number of shares will include the bonds, that are convertible

Outstanding shares as computed = 434 million

Bond conversion Shares = 47 million

Total shares outstanding = Outstanding shares as computed + Bond conversion Shares

= 434 million + 47 million

= 481 million

Diluted EPS = Adjusted Net income ÷ Total shares outstanding

= $575 million ÷ 481 million

= $1.195 million

8 0

3 years ago

Your company has spent $290,000 on research to develop a new computer game. The firm is planning to spend $49,000 on a machine t

Maslowich

Answer:

$132,745.82

Explanation:

required investment = $290,000 + $49,000 + $5,900 + $59,000 = $403,900

depreciable amount = $49,000 + $5,900 = $54,900

Research and development costs are expensed, they cannot be capitalized. Increase in net working capital cannot be capitalized either.

MACRS depreciation expense for year 1 under 8 year class life = 14.29%

depreciation expense year 1 = $54,900 x 14.29% = $7,845.21

net cash flow year 1 = [($390,000 - $190,000 - $7,845.21) x (1 - 35%)] + $7,845.21 = ($192,154.79 x 0.65) + $7,845.21 = $124,900.61 + $7,845.21 = $132,745.82

5 0

3 years ago

Suppose you know a company's stock currently sells for $90 per share and the required return on the stock is 8 percent. You also

maks197457 [2]

Answer: $3.46

Explanation:

Given the following :

Current share price (P0) = $90 per share

Required return on stock= 8%

total return on the stock is evenly divided between a capital gains yield and a dividend yield ;

Therefore, Required return on stock= 8% ;

4% capital gain yield + 4% Dividend yield = 8%

Growth rate = 4% = 4/ 100 = 0.04

D1 = D0(1 + g)

D1 = value of next year's Dividend

D0 = current Dividend yield

g = Constant growth rate

D1 = current stock price * g

D1 = 90 * 0.04 = 3.6

D1 = D0(1 + g)

D0 = D1 / (1+g)

D0 = 3.6 / (1+ 0.04)

D0 = 3.6 / 1.04

D0 = $3.46

8 0

3 years ago

If the federal reserve banks mailed everyone in the United States a new $1000.00 bill, what would happen to prices, output, and

Artemon [7]

If the Fed mailed everyone a $1,000, the effect would be a <u>rise in prices, </u>output, and income.

<h3 /><h3>What happens when money is injected into the economy?</h3>

The Equation of exchange is:

<em>Money supply x Velocity of money = Price level x Quantity of goods and services produced </em>

If the Money supply increases like it will when $1,000 is sent by the Fed to people, the velocity will also rise as people purchase more goods and services.

The Price level and the Quantity produced on the right side of the equation would also have to rise to match the left side. So prices would rise, and so would output.

Find out more on the equation of exchange at brainly.com/question/10110078.

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4 0

2 years ago