Answer:
The answer is D.
Explanation:
Inventory turnover is a measure of the number of times inventory is being sold or used during a given period of time.
A high inventory turnover means a company is selling goods very quickly and that demand for their product exists. Low inventory turnover means weaker sales and ing demand for a company's products.
Inventory turnover = Cost of goods sold/Average inventory
Average inventory is:
($110,000 + $90,000)/2
=$100,000
Therefore, inventory turnover ratio:
$270,00//$100,000
2.7
Answer:
The correct answer is option B, C, and E.
Explanation:
Transaction cost refers to the cost incurred on resources and time necessary for facilitating exchange of goods and services.
Among the given options, the examples of transaction cost is cost of monitoring an agreement, the cost of drafting a contract or agreement, and the time required to negotiate an agreement.
All these costs are incurred in order to facilitate exchange of goods and services.
The problem of externalities can have efficient private solution if these transaction costs are low otherwise the governement has to intervene to efficiently allocate resources.
Answer:
E. both a and b
Explanation:
Strategic entry deterrence refers to any act that prevents potential market participants from competing in a particular market. Such actions or barriers to entry may include rival capture, product differentiation for extensive product development, capacity building to lower unit costs, and predatory pricing. While many entry barriers can be created, time can also be a barrier to entry because potential marketers are less likely to enter the market if it takes longer to complete the task. they spend and lose their profits over time. Entrance barriers are sometimes considered anti-competitive and may be subject to different competition laws.
One way to block access to the new entrants is to produce products at a lower price than the monopoly level. This not only reduces profitability, but also makes them less attractive to participants, but also means that the current person is more likely to meet market demand and to leave any potential bidder in the market.
The current company has the advantage of being the first carrier, so it can act in a way that it knows will affect the decision of the participant. Assuming incomplete data (ie, the costs of the current firm are known only) can only make assumptions about the cost structure of the participant with price and output levels. Therefore, duty people can use them as a signal to any potential bidder.
An officer trying to strategically hinder access may do so by trying to minimize market entry. Expected revenues depend heavily on the number of customers waiting for the participant - so one way to prevent access is the "shutting-down" consumer.
