Answer:
No, property rights will not help in the economic growth
Explanation:
Property rights is the ownership of resources legally and how the resources can be used. The resources can be of tangible as well as intangible in nature and can be owned by the businesses, governments and individuals.
Economic growth is increase in the manufacturing of the goods and services in the economy.
So, owning the rights of the property would not help in increasing the economic growth as the ownership is taken by individual or business for their own benefit not for economic growth.
Therefore, the property rights will not help in economic growth as it allow people to own the expensive items.
Answer:
b. Firm A engaged in predatory pricing.
Explanation:
Since Firm A and B are the only two companies that sell mail-order DVD rental subscriptions.
Firm A decided to price its subscriptions below average variable cost thereby causing Firm B to also sell subscriptions below average variable cost, but they went bankrupt and exited the market. Firm A then raised prices by 40% and is currently earning large, positive economic profits.
Based on this information only, an argument can be made that Firm A engaged in predatory pricing.
Predatory pricing is a marketing or pricing strategy that involves lowering the cost of goods and services for a short-term, in order to lure competing firms to lower their price, thus causing them to go bankrupt and exiting from the market.
Answer and Explanation:
The placing of each item would be shown below:
Stockholder's Equity
Paid-in Capital
Capital Stock
8% Preferred stock, $100 par value
Common Stock, $10 stated value
Additional Paid-in Capital
In excess of par value- Preferred stock
In excess of stated Value - Common stock
Total Additional Paid-in Capital
Total Paid-in Capital
Retained Earnings
Total paid-in Capital and Retained Earnings
Less: Treasury Stock- common
Total Stockholder's Equity
If this growth rate continues, what would be the stock price in four years if the P/E ratio remained unchanged? What would the price be if the P/E ratio increased
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