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olga_2 [115]
3 years ago
14

A monopolistically competitive market has characteristics that are similar to:a. a monopoly only.b. a competitive firm only.c. b

oth a monopoly and a competitive firm.d. neither a monopoly nor a competitive firm.
Business
1 answer:
Ber [7]3 years ago
4 0

Answer:

c. both a monopoly and a competitive firm

Explanation:

A monpolistically competitive firm is a firm that has the features of both a monopoly and a competitive firm

Characteristics of a monopoly in a monpolistically competitive firm:

1. Products are differentiated in a monpolistically competitive firm.

2. Firms are price setters.

Characteristics of perfect competition in a monpolistically competitive firm:

1. There is free entry and exist into the industry.

2. There are many sellers

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B.F. Goodrich has been manufacturing and marketing automotive tires for over one hundred years. It spends much of its marketing
hjlf

Answer:

maturity

Explanation:

Based on the information provided within the question it can be said that the tires are in the maturity stage of their product life cycle. This is the longest stage in the product life cycle in which the introduction and growth stages has already passed and the product advertisements have minimal impact on sales since people have already seen the product. This seems to be the case since Goodrich has sold it's tires for more than a hundred years and only focuses on short term marketing.

8 0
3 years ago
Emmanuel would like to start a business with a popular fast food company. He agrees to pay a fee and royalties. This is an examp
adoni [48]
A franchise, option A.
4 0
3 years ago
Target profit a.are when sales and costs are exactly equal. b.can be calculated by modifying the break-even equation. c.equals d
Irina-Kira [14]

Answer:

b. can be calculated by modifying the break-even equation.

Explanation:

As the name implies, target profit can be explained to be the certain amount a business enterprise or a business organisation targets to hit at the end of its sales or at the end of her business dealings.

It can be easily seen in a cash flow planning as it is once modified to approximate cash flow, and also used for revealing expected results to investors and lenders. In all that it is been used for, in the scenario above, it also can be calculated by modifying the break-even equation, and deriving more conservative budgeting packages in business development too.

Adjust the contribution margin per unit and units sold based on an expected sales promotion.

Alter the fixed cost total and the contribution margin per unit for the effects of outsourcing production.

Alter the contribution margin for the effects of changing to a just-in-time production system.

If there is continually a large unfavorable variance between the target and actual profit, it may be necessary to examine the system used to derive the target profit,

7 0
3 years ago
1.Here are data on two companies. The T-bill rate is 4% and the market risk premium is 6%.
kenny6666 [7]

Answer:

Explanation:

1.

According to the CAPM model

Fair return = Risk-free rate of return + (Beta × Market Premium)

For $1 discount store:

Expected return = 4% +(1.5 × 6%)

Expected return = 0.04 + (1.5 × 0.06)

Expected return = 0.04 + 0.09

Expected return = 0.13

Expected return = 13%

For everything $5

Expected Return = 4% + (1 × 6%)

Expected return =  0.04 + (1 × 0.06)

Expected return = 0.04 + 0.06

Expected return = 0.10

Expected return = 10%

2.

From the above calculation;

For $1 discount store:

Since the expected return is greater than the forecasted return at 12%.

Thus, it is overpriced.

For everything $5

Here, it is obvious from the above calculation that the expected return is lesser than the forecasted return at 11%.

Therefore, it is underpriced.

3) Beta can be defined as the security change that takes place due to market functuations. Thus, Beta manages the systematic risk associated with firms. From the information given, Kaskin Inc. has a more systematic risk(beta) than Quinn Inc. Thus, option A is the most accurate.

4)

To first find the growth rate by using CAPM model.

Required return = Risk free return + \beta (market return - risk free return)

Required return = 0.08 + 1(0.18 - 0.08)

Required return = 18%

Using the formula:

Required return = (next year dividend/current price) + growth rate

18% = (9/100) + g

0.18 = 0.09 g

g = 0.09

Growth rate g = 9%

To determine the price at year 1; we have:

= year \ 1 \  dividend \times \dfrac{1+g}{ke-g}

= 9 \times \dfrac{1+0.09}{0.18 - 0.09}

= $109.00

Therefore, the investor can earn a profit of $9 after selling the stock for $109 at the end of the year 1.

5.

According to beta

For portfolio A.

Risk premium per unit = (21 - 8)%/1.3

Risk premium per unit = (0.21 - 0.08)/1.3

Risk premium per unit = 0.1

Risk premium per unit = 10%

For portfolio B.

Risk premium per unit = (17 - 8)%/0.7

Risk premium per unit = (0.17 - 0.08)/0.7

Risk premium per unit = 0.1286

Risk premium per unit = 12.86%

From above, it is clear that the risk associated with portfolio B is lesser compared to portfolio A.

Thus; the correct option is b. A; B

4 0
2 years ago
Which function of the management process requires a manager to establish goals and standards and to develop rules and procedures
Mama L [17]

Answer:

The planning function of management includes establishing goals and standards, developing rules and procedures, and developing plans and forecasting

Explanation:

Planning is the function of management that involves setting objectives and determining a course of action for achieving those objectives.

7 0
3 years ago
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