Answer:
Price would increase, quantity would decrease.
Explanation:
Externalities are extra benefits or harm to other un-involved parties, without any monetary exchange for the same. Extra beneficial are positive externalities (eg - education) , extra harmful effects are negative externalities (eg pollution).
Positive Externalities have extra social benefit apart from private benefit, Negative Externalities have extra social cost apart from private cost.
Private Markets work on private benefit & cost equalisation (ignoring extra social costs/ benefits). Involving extra social cost in the negative externalities accomodates the extra social harmful effect from that commodity, increases its price & decreases its quantity. This caters to discouraging its consumption, owing to the harmful effects. Eg Alcohol.
Similarly in case of positive externality : it would include extra social benefit (beneficial impacts), reduce price & increase quantity - to encourage the positive externality good consumption
The high customer equity associated with Apple is a measure of the customer loyalty the brand enjoys. Hence, the high customer equity is most likely due to the creation of customer centric solution, allowing customers to derive <em>high level of satisfaction from using their product</em>.
- Customer equity values the level of attachment of customers to a certain brand. Hence, a brand which enjoys high customer equity would have customers who are very loyal to it's brand. Hence, making it difficult for competitors to swoop.
- Customer loyalty is earned through years of good quality service delivery and good feedback system.
- Good feedback system allows companies to heed the need of their customers and deliver customer centric products.
Therefore, Apple's high customer equity value is due to through the <em>delivery of satisfactory product and services over time. </em>
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Answer:
D. internal rate of return.
Explanation:
The internal rate of return (IRR) is defined as the discount rate of future cash flows that makes the Net Present Value (NPV) of a project equal to zero.
This means that initial cash flow of the project is equal to future expected values of cash flow.
This implies that the reinvestment in a project is discounted by the IRR itself.
The IRR is used to determine how viable a project is. If the project eventually has an IRR greater than the amount used to discount the cash flows, the project is making profit.
Answer:
Tourists flock to visit the major theme park's in Orlando, Florida.
Determinant of AD: Consumer confidence is the best determinant in this case. Tourists flock the theme parks because households not only have enough money to spend on recreation, but also feel that they will continue to have enough money to make ends meet in the near future, otherwise they would not go to the parks, and instead would save the money.
Direction of the shift: the AD curve shifts to the right, because AD is increasing, and the AD curve increases when it shifts to the right.
Impact on output and price level: Output increases because consumer confidence, and as a result, consumer demand, is boosting aggregate demand.
Price level also increases, because demand is pushing the price of a good that has a relatively inelastic supply (the theme parks). In other words, demand is rising more than supply, and this increases the price.
Answer:
B) No, because everyone knows that glass doors can be run into, and therefore the manufacturer does not have to provide such a warning.
Explanation:
Gunter needs to sue himself for not having any common sense. I really doubt that anyone that installs a glass doesn't know that they are transparent and that people must be careful when they approach them because accidents may happen. For instance, you can hurt yourself and/or you can break the glass door.
This is similar to buying a car and after crashing it, the owner sues the car manufacturer for not preventing him from driving. Almost every product that you buy or everything that you find at home can potentially harm you. E.g. you can poke an eye with a fork, knife, pencil, even a spoon, and probably many more items, but is anyone going to do so just because the item is at their house?