The greatest risk of a low-cost provider strategy is getting lost with overly high price reduction and ending up with lower profit.
<h3>Low-cost / low-price advantage </h3>
It results in high profit only if;
- (1) prices are reduced by less than the size of the cost advantage or
- (2) the added volume is large enough to bring in a bigger total profit despite lower margins per unit sold.
Therefore, the greatest risk is a low profit.
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The combination of product lines offered by a manufacturer is called the firm's product mix.
<h3>What is a product mix strategy?</h3>
The total number of product lines and distinct goods or services that a business offers is its product mix. Alternatively known as product portfolio or product assortment. Product combinations differ amongst businesses.
Four main product mix strategies are as follows:
- Expansion: A business adds more product lines or product depth (i.e., varieties) inside lines.
- Contraction: A business reduces the variety of its products to get rid of underperforming ones or to streamline the remaining ones.
- Change an Existing Product: A business makes improvements to an existing product rather than developing a brand-new one.
- Product differentiation: A corporation advertises a product as being a better option than a rival product without changing it in any manner.
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Answer:
Value of the bond = $767.70
Explanation:
<em>The</em><em> value of the bond </em><em>is the present value of the future cash receipts expected from the bond. The value is equal to present values of interest payment and the redemption value (RV).</em>
Value of Bond = PV of interest + PV of RV
The value of bond for Potter Industries can be worked out as follows:
Step 1
<em>Calculate the PV of Interest payment</em>
Present value of the interest payment
<em>PV = Interest payment × (1- (1+r)^(-n))/r</em>
<em>Interest payment </em>= 6% × $1,000 = $60
PV = 60 × (1 - (1.0.086)^(-10)/0.086)
= 60 × 5.4912
= 329.47
Step 2
<em>PV of redemption Value</em>
PV of RV = RV × (1+r)^(-n)
= 1000 × (1.086)^(-10)
= 438.229
Step 3
<em>Calculate Value of the bond </em>
=329.47 + 438.229
=767.7066285
Value of the bond = $767.70
Answer:
Open market operations
Fractional reserve banking
Discount rate
Money multiplier
Federal funds rate
Explanation:
Open market operations is the buying and selling of government securities like treasury note by the Fed.
Fractional reserve banking is a system in which banks keep only a percentage of their deposits on reserve as vault cash and deposits at the Fed.
Discount rate is the interest rate the Fed charges on loans of reserves to banks.
Money multiplier is the maximum change in the money supply due to an initial change in the excess reserves banks hold
Federal funds rate is the interest rate banks charge for overnight loans of reserves to other banks.
Answer:
These policies would not contribute at all to the preservation of threatened species. Species in danger of extinction, due to their small number, must be preserved from all human acts that limit their expansion, which is why in this sense any hunting authorization of these species is unfeasible.
Even if it is regulated so that the hunting of these species is carried out in a minimal and progressive way, any threat to an animal species in danger of extinction will be a setback in the measures aimed at its conservation.