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Elden [556K]
3 years ago
10

TrueDisk Inc. manufactures external hard disks for $32 per unit, and the maximum price customers are willing to pay is $47 per u

nit. SW Storage Inc. is a competitor of TrueDisk Inc. that produces external hard disks for $37 per unit, and customers are willing to pay a maximum price of $50 per unit. What does this imply
Business
1 answer:
Strike441 [17]3 years ago
3 0

Answer:

The multiple choices are missing:

A. TrueDisk and SW Storage share differentiation parity.

B. SW Storage has a competitive advantage over TrueDisk in terms of perceived value.

C. TrueDisk creates a greater economic value than SW Storage.

D. SW Storage is a cost leader when compared to TrueDisk.

Option C is correct ,TrueDisk creates a greater economic value than SW Storage.

Explanation:

Option A is wrong because differentiation parity is when a company is able to successfully defend the position that its company is of high value and charges a high price accordingly.This can be partially said of SW storage but it does not apply to TrueDisk.

Competitive advantage is when a country or company has a lower opportunity  cost in the production of a particular item,which is not applicable here,hence option B is wrong as well.

Option C is correct because for the same product TrueDisk is charging a lower price ,which implies higher economic benefit.

A cost leader is company that sells a product at a loss so as to be able to entice consumers to buy other products that are highly priced.

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slega [8]
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Students not looking for work - 1,000

To calculate Boone's unemployment rate you'll use the formula: 
Unemployment rate = number of people unemployed / labor force

Those that fall into the unemployment category are those that are not working but are actively looking/wanting to work. Students, stay-at-home moms etc that are not wanting to work, though unemployed, to not fall into this category.

The labor force is made up of everyone willing and able to work.

First, let's subtract the students who are not looking for work from the population so get the labor force. 50,000 - 1,000 = 49,000 (labor force)

Next, to get the number of people unemployed let us subtract the labor force of 49,000 by those already employed of 45,000. 49,000 - 45,000 = 4,000

Finally, we are able to calculate the unemployment rate of Boone. 
Unemployment rate = number of people unemployed / labor force
Unemployment rate = 4,000/49,000= .081 multiply by 100 to get the percentage. 8.1%
Unemployment rate of Boone is 8.1%
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