T<span>he advertisement is using the scientific approach. In this approach, the product is introduced to the consumers as either effective or reliable through the provision of scientific evidence. It would be using quantitative data to persuade the consumers of the effectivity of the product. Just like in this example, the company were able to test their product proving that 80% of the stains would be erased without adding any additional additives. In </span>these advertisements<span>, the product is claimed to be effective through several successful experiments. Another example of this advertisement is a commercial where the company will be conducting a live experiment. They will be comparing two products and test which of the two is effective.</span>
Price increase because the supply is low but the demand is more
Answer:
The theory of efficiency wages why might some firms voluntarily pay workers a wage above the market equilibrium, even in the presence of surplus labor is due to these reasons:
Paying higher wages enhances workers to adopt healthier lifestyles, enhancing their productivity.
Paying higher wages can reduce a firm's training costs.
Paying higher wages encourages workers to be more productive.
Explanation:
Payment of higher wages increases the efficiency and productivity of the workers.
Also, payment of higher wages gives room for self-motivation among workers. Therefore, much training is not required leading to a reduction in training cost.
<span>This is a price cap regulation. Because the firm cannot go over a certain price, the price is said to be capped. Regulations like this prevent firms from overcharging their customers, and promote good business ethics. It may slow the growth of the firm, but the cost comes at the benefit of the customer.</span>
Answer:
The WACC can be calculated as below;
Explanation:
WACC=E*rs+D*rd+D2*rps/(E+D+D2)
Where E=$250 million
rs=14%
D=$300 million
rd=7%
D2=$50 million
rps=5.8%
Now putting above values in the given formula we get;
WACC=250*14%+300*7%+50*5.8%/(250+300+50)
WACC=$58.9 million/$ 600 million
WACC=9.82%
