Of course, in order for the product to be competitive in the market, it should have the same price or lower to the products with same utility, so the verdict of the consumers, depends on how varied the product is compared to its competitors. Thus, it is true that companies often try to gain more control over pricing by attempting to differentiate their products.
Answer:
B)
Explanation:
Makes the most sense considering the scenario.
Using simple interest, she will have $410 at the end of six months.
Principle = $400
Rate = 5%
Time equals 6 months, or 0.5 years.
Simple interest is equal to PRT/100.
S.I. = 400*5*(1/2)/100
S.I. = 10
Consequently, $400 plus $10 equals $410.
<h3>What is simple interest?</h3>
To calculate the amount of interest that will be charged on a loan, use the quick and easy formula known as simple interest. For the purpose of calculating simple interest, the daily interest rate, the principal, and the number of days between payments are multiplied.
A loan's principal or the first deposit into a savings account serves as the basis for simple interest. Because simple interest doesn't compound, a creditor would only pay interest on the principal sum, and a borrower will never have to pay interest on the interest that has already accrued.
Learn more about simple interests, from:
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Answer:
The nominal federal funds rate be changed to 3%
Explanation:
Hi, in order to find the new nominal federal fund rate, we have to use the following equation.
Where:
I = Nominal fed funds rate (what we are looking for)
R*=Real federal funds rate (changed from 1% to 3%, we use 3%)
PI= Rate of inflation (current inflation, in our case, 1%)
PI*=Target inflation (expected inflation, 3%)
Everything should look like this.
I = 3% + 1% + 0.5(1% - 3%)
I = 4% - 0.5(-2%)
I = 4% - 1%
I = 3%
So the nominal federal funds rate should be 3% under this problem´s conditions.
Best of luck.
Answer:
d. risk resulting from an expected automobile industry shock g
Explanation:
Non systemic risk are risks that can be diversified away. they are also called company specific risk or industry specific risk . Examples of this type of risk is a manager engaging in fraudulent activities and risk resulting from an expected automobile industry shock
Systemic risk are risk that are inherent in the economy. They cannot be diversified away. They are also known as market risk. examples of this risk include recession, inflation, and high interest rates. Investors should seek compensation for systemic risk. Systemic risk is measured by beta. The higher beta is, the higher the systemic risk and the higher the compensation demanded for by investors
