In a market economy, prices are established by C. the interaction of supply and demand.
According to how much people buy a product, and how much of that product there is, prices are going to be established accordingly.
<span>When they promotes their product in this way it is an example of "market segmentation." Market segmentation means to divide potential customers into groups (or segments) based on certain specific characteristics that these consumers share - especially characteristics that indicate these consumers might respond similarly to the same marketing choice (for example, exhibiting an extreme sport lifestyle).</span>
Answer:
No, these two rules are not inconsistent.
Explanation:
A profit-maximizing firm will hire the number of workers such that the wage is equal to the value of the marginal product of labor.
But, a profit-maximizing firm will also produce the quantity of output at the level where price equals marginal cost.
But this does not mean that these two rules contradict or are not consistent. Hiring workers at the level where their wage is equal to the marginal product of labor helps the firm in reaching the point where the price of the product is equal to the marginal cost of production.
Answer:
$1,306,986
Explanation:
Calculation to determine What is the levered value of the equity
First step is to calculate the VL
VL = {[$338,000 × (1 - .34)] / .142} + (.34 × $400,000)
VL= $1,706,986
Now let calculate the levered value of the equity (VE)
VE = $1,706,986 - $400,000
VE = $1,306,986
Therefore the levered value of the equity is $1,306,986
