Answer: e. To drive up market share
Explanation:
Differentiation strategies involve adding features to a good to make it stand out from the Competition. Since these features are usually beneficial, the value of the good goes up and the company selling them can charge more. This is the main way things are done in Monopolistic markets.
However, sometimes it is best to charge the same price the Competition is charging even though you have a better product. This way the company is able to capture Market Share because the consumers will believe they are getting a better value for their money. For instance, if a company was selling Toyotas at $2,000 and it's competitor was selling the same Toyota but with 2 extra tires for the same $2,000 who would you use? The Competitor most likely.
This is why a firm might want to keep prices in line with competitors.
Answer:
d. Percentage change in welfare resulting from a 1% change in the crop’s price.
Explanation:
(Net benefit ratio is the ratio of benefits to costs. So, it can be interpreted as percentage change in welfare resulting from 1% change in crop's price)
Answer:
The Answer is 12.100
Explanation:
Firstly get the variable margin = (revenue – variable cost) since we don’t have the revenue but we know that there was just one fixed expense we can get the variable margin in this way
Total Variable Margin = Net income + Fixed cost = $94.800+$570.700= 665.500
Then get the variable margin per unit = Price of sale per unit – cost per unit = 152-97 = $55
The units sold can be calculated in this way = Total Variable Margin / Variable Margin per unit= 665.500/55 = 12.100
Units price Total
Revenue 12,100.00 152.00 1,839,200.00
Variable Cost 12,100.00 97.00 (1,173,700.00)
Fixed Cost (570,700.00)
Net income 94,800.00
Answer:
The correct answers are letter "A" and "C": The real rate of interest is determined by the supply and demand for funds; The real rate of interest can be affected by actions of the Fed.
Explanation:
An interest rate is the cost of borrowing money, expressed as a percentage of the loan amount. Because of inflation, the purchasing power of every dollar lent out to an individual or a business tends to decrease over time. There is when the real interest rate comes into play. The real interest rate is affected but different factors such as the <em>demand and supply of money in the economy, international major problems, </em>and <em>regulations of the Federal Government</em>.
Answer:
c. $8,062.31 in nominal terms.
Explanation:
The portfolio value required which is at the end of 20 years is the future value of the amount invested initially($1000) , compounded at the nominal rate of return 11% per year as shown below:
FV=PV*(1+nominal interest rate)^n
PV=present value=initial invested=$1000
nominal interest rate=11%
n=time horizon of the investment=20 years
FV=$1000*(1+11%)^20= 8,062.31