Answer:
d. The skill level of workers is identical in both countries.
Explanation:
The Law of One Price is an economic theory which explains that the price of identical or similar goods in different markets must be the same after taking the currency exchange into consideration. In law of one price, there is perfect competition and It ensures that buyers have the same purchasing power across global markets.
Answer:
a) the correct answer is "B"
b) the correct answer is "C"
Explanation:
a) the correct answer is "B"
relies on nominal GDP which might have increased because of price increases and not output increases. As nominal GDP accounts for the price and it is calculated at the current price level. The answer is "B".
b) the correct answer is "C"
We can ask for growth rate of real GDP which excludes price change.
A business plan is a formal document that states the goals of the business as well as the intended process for reaching those goals. This provides a market analysis. This basically provides the investors an idea of how the company will make use of its money and conduct business.
Answer:
The size of the dividend per share of stock depends on: The corporation's profit
Dividend per share is calculated by: Total dividend / Total shares outstanding,
Which means that dividend per share will increase if the total dividend increases.
Meanwhile, the total dividend will be increased if the company gains more profit
Solution :
It is given that Fizzo and Pop Hop sells orange soda. Fizzo advertises about his drinks while Pop Hop does not advertises.
According to the matrix provided we can conclude that :
-- If Fizzo wishes to advertise about his soda drinks, he will earn a profit of 8 million dollar and if Pop Hop do advertises and a 15 million dollar if Pop Hop does not advertises.
-- If Fizzo does not advertise, it will earn profit of about 2 million dollar if Pop Hop advertises and 9 million dollar if Pop Hop does not advertises.
-- When Pop Hop wished to advertise , Fizzo will make a higher profit if he chooses to advertise.
-- When Pop Hop do not advertise, Fizzo will make a higher profit when it chooses to advertise.
And if both the firms acts independently and they start off not advertising, then --- both firms will advertise as both of them will earn highest profits each.
If both the firms collude and both firms start off not advertising, the strategies they will end up is that both the firms will not advertise as the joint profit will be maximized.
