Answer:
The correct answer is (A)
Explanation:
The three most effective and recognised consumer problem-solving methods are extended problem solving, limited problem solving, and routine response behaviour. Extended problem and limited problem-solving methods help to identify the best products and provide information to the customer regarding a product and a brand. Meanwhile, routine problem response behaviour helps to choose products and services which are common and require little decision-making effort.
Answer:
Sell totally new products or services.
Explanation:
When you visit a Kentucky Fried Chicken restaurant in China, you will find on its menu not only KFC's regular items, but also congee, a rice porridge that can feature pork, pickles, mushrooms, and preserved egg. This is an example of a global product strategy where brands sell totally new products or services. They want to cater the needs and demands of its host country in a more effective way. They want to cater the local taste buds as well. For example, the same mechanism has always been used by Pizza Hut as well. They twisted their global flavors in a more local and customized way. In Asian countries, India and Pakistan, Pizza Hut sells, Behari Pizza, Tikka Pizza, Chicken Achari Pizza, which is not being sold and available fro the European countries.
There is a budget surplus (A)
Answer:
$363,375.20
Explanation:
initial outlay = X
useful life = 4 years
salvage value = 0.1X
NCF years 1 - 4 = $120,000
discount rate = 15%
NPV = 0
X = $120,000/1.15 + $120,000/1.15² + $120,000/1.15³ + ($120,000 + 0.1X)/1.15⁴ =
X = $104,347.83 + $90,737.24 + $78,901.95 + $68,610.39 + 0.05718X
X = $342,597.41 + 0.05718X
0.94282X = $342,597.41
X = $342,597.41 / 0.94282 = $363,375.20
Answer:
private costs of an action are less
Explanation:
A good has negative externality if the costs to third parties not involved in production is greater than the benefits. A good has negative externality when private costs of an action are less the costs imposed on society as a whole.
An example of an activity that generates negative externality is pollution. Pollution can be generated at little or no cost, so they are usually overproduced.
Government can discourage the production of activities that generate negative externality by taxation. Taxation increases the cost of production and therefore discourages overproduction. Tax levied on externality is known as Pigouvian tax.
Government can regulate the amount of externality produced by placing an upper limit on the amount of negative externality permissible
Coase theorem has been proposed as a solution to externality. According to this theory, when there are conflicting property rights, bargaining between parties involved can lead to an efficient outcome only if the bargaining cost is low
Another solution to negative externality is through the activities of charities. Charities can raise donations to limit or regulate the activities of firms that constitutes a negative externality.
