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2 years ago

Do consumers benefit in any way from monopolistic competition relative to perfect competition?

1 answer:

4 0

Compared to perfect competition, when a consumer purchases a product from a monopolistically competitive firm, the consumer benefits from purchasing a product that is more closely suited to their tastesis more closely suited to their tastes.

In the monetary concept, best competition happens when all agencies promote identical products, marketplace proportion does now not affect the rate, groups are able to input or exit without barrier, consumers have the best or complete records, and companies can not determine fees.

In economics, specifically trendy equilibrium idea, a great marketplace, additionally called an atomistic marketplace, is described by several idealizing situations, collectively referred to as ideal opposition, or atomistic competition.

Perfect competition is a monetary term that refers to a theoretical marketplace shape in which all providers are identical and usual supply and demand are in equilibrium. For instance, if there are numerous firms producing a commodity and no person firm has a aggressive gain, there is ideal opposition.

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3 years ago

Discuss the effectiveness of Red Bull sponsorships, advertisements, personal selling strategies, promotion, events, and public r

Molodets [167]

Answer:

Explanation:

Red bull engaging in sponsorship shows they are utilizing the well packaged Red bull's marketing budget. But there should be some level of caution in either co- sponsoring or being the sole sponsor for certain sports, especially sports with high risk or danger. While sponsoring stunts like Bull stratos is a good way to make high publicity for their brand (Red bull) but if something bad happens in the course of the stunts, the brand could be connected to the tragedy which would be an everlasting bad label on the company. The company might be seen as insensitive for sponsoring such a sport that involves high risk.

Red bull sponsors X-treme sports and as a results of this sponsorship their brand have enjoyed having more time of product exposure and placement because the sponsorship will give the brand more attention with the consumers.

While it is good they go on with their various sponsorships, they must also be careful on some sports or events that involves high risk.

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4 years ago

Bailey, Inc., is considering buying a new gang punch that would allow them to produce circuit boards more efficiently. The punch

KengaRu [80]

Answer:

initial investment $100,000

useful life 15 years

cash flow per year = -$2,000 + $12,000 = $10,000

discount rate 5%

discounted cash flow:

1 $10,000/1.05 = $9,524

2 $10,000/1.05² = $9,070

3 $10,000/1.05³ = $8,638

4 $10,000/1.05⁴ = $8,227

5 $10,000/1.05⁵ = $7,835

6 $10,000/1.05⁶ = $7,462

7 $10,000/1.05⁷ = $7,101

8 $10,000/1.05⁸ = $6,768

9 $10,000/1.05⁹ = $6,446

10 $10,000/1.05¹⁰ = $6,139

11 $10,000/1.05¹¹ = $5,847

12 $10,000/1.05¹² = $5,568

13 $10,000/1.05¹³ = $5,303

14 $10,000/1.05¹⁴ = $5,051

15 $10,000/1.05¹⁵ = $4,810

A) discounted pay back period = 14.2 years

B) if the decision rule is a discounted payback period of 3 years, then the project should be rejected

C) the decision rule should be the NPV, which is actually positive since the DPBP is less than 15 years. Only companies that fear premature obsolescence should base their decision on the pay back period. Since this is an electronics company, it is sound to use the pay back period as a decision parameter besides the NPV.

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3 years ago

The yield on a one-year Treasury security is 4.9200%, and the two-year Treasury security has a 7.3800% yield. Assuming that the

gayaneshka [121]

Answer:

Option (b) is correct.

Explanation:

1. Pure Expectation Theory :

Each option must provide the same amount of cash at the end of 2 years, which implies that,

CF at the end of year 2 = CF at the end of year 1

[tex](1+0.0738)^{2} = (1+0.0492) (1+x) [tex\]

Hence, x = 9.90

so the market's estimate of the one year Treasury rate one year from now it will be 9.90%

2. In case of maturity risk premium, the cash flow of two year treasury security will reduce, it will be:

= 7.38 - 0.40

= 6.98.

Hence, Treasury Rate will be as follows:

CF at the end of year 2 = CF at the end of year 1

[tex](1+0.0698)^{2} = (1 + 0.0492) (1 + x)[tex\]

x = 9.080%

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4 years ago

Social capital is the cost of socializing with business colleagues. goodwill stemming from your social relationships. network of

expeople1 [14]

Social capital is goodwill (positive feelings/friendly or helpful attitudes you develop over time) stemming from your relationships.

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3 years ago