Answer:
Transaction demand rises as income or GDp rises and falls as income or DP falls. Also high interest rate causes more to be left as asset, thereby reducing money demand
Explanation:
1. Asset demand for money is money that is kept aside for a person holding it to earn interest on. A high interest rate on money asset reduces the demand for money. This increased rate of interest is the opportunity cost of having money as assets. It has a negative relationship with interest rate of an economy.
2. Transaction money is that which is used for the day to day expenditure. This has a positive relationship with GDP. It increases as income or GDP increases and falls as it falls.
Answer:
The workers will only produce oranges.
Explanation:
'Opportunity cost' is an important concept which shows the relationship between choice and scarcity. For example: One can spend money and time on one thing at a time but loses the opportunity do perform the other things, which would be his opportunity cost. Like you take a vacation for the money you have but the opportunity cost is not having a new car.
Relative price is the price of one commodity in terms of another. In the given situation, opportunity cost of an apple is 3 oranges and relative price of apple is 3, so the workers will produce only oranges, as it will be more profitable.
It is False
Book value is the net worth of a company's resources found on its monetary record, and it is generally equivalent to the aggregate sum all investors would get in the event that they sold the organization. Market value is the organization's worth in view of the all out worth of its exceptional offers on the lookout, which is its market capitalization.
<h3>What's the Difference Book value and Market value?</h3>
Despite the fact that financial backers have numerous measurements for deciding the valuation of an organization's stock, two of the most usually utilized are book worth and market esteem. The two valuations can be useful in working out whether a stock is genuinely esteemed, exaggerated, or underestimated. In this article, we'll dive into the distinctions between the two and how they are utilized by financial backers and examiners.
- An organization's book esteem is how much cash investors would get in the event that resources were exchanged and liabilities paid off.
- The market esteem is the worth of an organization as indicated by the business sectors in view of the ongoing stock cost and the quantity of exceptional offers.
- At the point when the market esteem is not as much as book esteem, the market doesn't completely accept that the organization merits the worth on its books.
- A higher market esteem than book esteem implies the market is relegating a high worth to the organization because of expected income increments.
- While utilizing book worth and market worth to think about organizations in contrast to one another, looking at organizations inside a similar industry is significant.
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Answer: will lie above the marginal product curve for the firm with less capital.
Explanation:
Capital is needed to produce goods and services and ideally speaking, when more capital is invested, more goods and services will be able to be produced because more should bring in more.
It is the same case here, if the companies are similar in everything except capital invested, the company with more capital will be able to produce more goods and services which will lead to their marginal product curve lying above the marginal product curve of the company with less capital.
Answer:
The correct word for the blank space is: competitive.
Explanation:
Pricing strategies are methods companies use at the moment of setting the prices of their products. The most common pricing strategies are:
- Cost-plus pricing.<em> Involves recognizing the production costs and adding a percentage of those costs which represents the profit of the firm.
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- <u>Competitive pricing</u>.<em> Implies establishing the price of a product similar to what competitors in the market have set.
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- Value-based pricing.<em> It requires setting the price of goods and services based on what consumers think the price should be.
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- Price skimming.<em> Involves pricing a product high at first and changing the price according to market fluctuations.
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- Penetration pricing.<em> Implies setting the price of a product low to wipe out competitors and raising it after they completely disappeared.</em>