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pickupchik [31]
3 years ago
15

A company believes that its product will exhibit network effects if enough consumers begin to use it. How might this company dec

ide to price its product? Offer the product for free early on, and increase the price later.
Business
1 answer:
stiv31 [10]3 years ago
5 0

Answer: a. Offer the product for free early on, and increase the price later

Explanation:

When a product is said to have a network effect, what it means is that the product gets more value as more people use it. For example Whtsapp which is only such an effective means of communication because more and more people are getting it. If people did not get it, it would not be such a good medium and would be valued less.  

If a company wants to price such a product, they should charge at lower rates first which would entice more people to use the product thereby giving the product more value. As the product value increases, the price can then increase to reflect this increased value.

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Suppose you know that a company’s stock currently sells for $56 per share and the required return on the stock is 10 percent. Yo
Elenna [48]

Answer:

$2.8 divdends per share

Explanation:

$56 market price

Rate of return 10%

The gain for an investment in stocks is:

\frac{DividendsYield+SharePriceVariation}{Investment} = $Return on Investemnt

In this case we are told that this is distribute evenly, this means:

dividends paid = market price gain

So dividends yield 5% and market price yields another 5% to achieve the 10%

So currently $56 market price x 0.05% = $2.8 divdends per share

5 0
3 years ago
On September 1, Joe's Painting Service borrows $150,000 from National Bank on a 4-month, $150,000, 6% note. What entry must Joe'
Agata [3.3K]

Answer:

Loan Account

DR  loan Note Account  with $150,000

DR Loan Interest Expenses with $3,000

CR   Cash/Bank Account with $153,000

Explanation:

the interest payable  on the loan as at Dec 31  =  $150,000 *6% *4/12 = $3,000

6 0
3 years ago
Which option is an example of a debt-funding source?
NISA [10]
The correct option is CREDIT UNION.
A debt funding source refers to a loan provided by an external lender such as banks, building society or credit unions. These establishments allow business men to borrow money to finance their businesses. Each loan usually has its own terms and conditions under which the contract is made. <span />
8 0
3 years ago
Chapman Machine Shop is considering a 4-year project to improve its production efficiency.Buying a new machine press for $576,00
kirill [66]

Answer:

Explanation:

find attach the solution

4 0
3 years ago
No question at all just checking sum
daser333 [38]

ok so why did you add this is there is no question lol

6 0
3 years ago
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