Answer: A. When the number of interested parties is large and bargaining costs are high.
Explanation:
The Coase Theorem is a legal and economical theory used to describe competitive markets. When the competitive markets are high, bargaining costs are high because each company is is fighting for use of the production and distribution channels. There are efficient input and output levels in a competitive market.
Answer:
$40,500
Explanation:
A Companies Contribution Margin is a product's price minus all associated variable costs, this final value gives the products incremental profit earned for each unit sold. Therefore in this scenario, the Contribution Margin for the company is as follows
(4,500 * $20) - (4,500 * $11)
$90,000 - $49,500
$40,500
Therefore the final Contribution Margin for the company is $40,500 dollars.
Answer:
Correct Answer:
b. There is no time limit on when the policy may be reinstated.
Explanation:
In life insurance, which is an insurance against event in the life of the individual in question, it is expected that, the person will be paying his premium fee regularly.
<em>In a situation, there was a lapses, in-order to reinstate the life insurance policy, it must be reinstated within 1 year in-order to be valid.</em>
The information in this question represents a downward type of communication in an organization.
<u>Examples</u><u> of this type of </u><u>communication </u><u>from the question are:</u>
- The CEO of Nokia, Stephen Elop, meets with 2,000 employees to tell them why he is recommending that they abandon Nokia software to use less popular software from Microsoft.
- Hewlett-Packard CEO Meg Whitman announces to employees that HP will cut its workforce by up to 30,000 people.
This is a downward type of communication given the fact that information flows from the head of the organization to the employees that are at the lower level.
The red arrow in the diagram shows us that information is being passed down from the CEO to the employees in the organization.
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