All categories

2 years ago

In the presence of producer producer rivalry the price will tend to be ___.

Business

1 answer:

vodomira [7]2 years ago

6 0

Answer:

The correct answer is letter "A": be driven to a lower price.

Explanation:

Typically, when there is a producer to producer competition, the competing companies tend to <em>lower </em>their product prices. This happens because of the belief consumers are mainly price driven at the moment of discriminating in choosing to buy one good over another. Though, it allows consumers to at least have a couple of sources from where to choose at a fair price.

You might be interested in

The reason fast food restaurants often are found in close proximity to each other is a. they enjoy competition b. location clust

olganol [36]

Answer:

b. location clustering near high traffic flows

Explanation:

Proximity to customers is a major consideration when deciding on a business location. A business situated in areas with many potential customers has a high probability of succeeding. Restaurants are usually strategically situated in places with heavy customer flow.

Restaurants may be established near offices, in market places, near public transport terminus, or other location convenient to customers. With time, customers tend to associate that particular building, area, or street with restaurants. As the area becomes synonymous with restaurants, more customers will visit it, leading to more restaurants to open in that locality.

3 0

2 years ago

2. Sorry, you didn't win the lottery, but here's a way you can still be a millionaire! Starting at age 22, every night you take

Colt1911 [192]

Answer: At the age of 65 the money will be $90337.5

Explanation: There are 365 days in a year take $5 multiply it by 365 to get the money after one year then multiply it by 10 % to get an interest per year. Add the interest to the amount then multiply by 43 years.

Note 65years-22 years = 43 years

$5×365= $1825

$1825×10%=$182.5

=$182.5+$1825=$2007.5/year

$2007.5×43= $90337.5

8 0

3 years ago

Which statement about demand is true?

NISA [10]

Answer:

B. the demand for a product and its price has a direct relationship

Explanation:

demand comes from the price which ultimately effects the proportions with the consumers purchasing the product. if the product is good enough with a fair price to come with it, the demand will increase, or if a product becomes more scarce the demand for it will increase along with the price raising.

3 0

2 years ago

A business owned and run by a single individual who has rights to all profits is known as

tankabanditka [31]

The correct answer is choice A.

A business with only one owner is called a sole proprietorship. This owner has rights to all of the profits and does not have to share them with anyone.

7 0

3 years ago

Airborne Airlines Inc. has a $1,000 par value bond outstanding with 10 years to maturity. The bond carries an annual interest pa

yanalaym [24]

Answer:Yield to maturity is 9.59%; After tax cost of debt =7.672%

Explanation:

A) Yield to maturity ={ C + (FV-PV)/t} / {(FV +PV)/2}

Where C – Interest payment = $90

FV – Face value of the security

= $1000

PV – Present value/curent market value = $960

t – years it takes the security to reach maturity= 10 years

imputing the values and calculating,

yield to maturity ={ C + (FV-PV)/t} / {(FV +PV)/2}

= $90 + (1000-960)/10} / 1000 + 960 /2

$90 + 4= $94 /980= 0.0959

therefore Yield to maturity is 9.59%

B) After tax cost of debt = Yield To Maturity x (1 - tax rate)

=9.59% x (1-20%)= 9.59% x (1-0.2 )= 9.59% x 0.8 =

9.59 % x 80%=7.672%

4 0

2 years ago