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3 years ago

Suppose you are trying to understand the effect that an increase in the price of grapes will have on the market for wine.

Business

1 answer:

NemiM [27]3 years ago

4 0

Answer:

The correct answer is option d.

Explanation:

The most effective model to understand the effect of change of a variable on other variable is by assuming other factors to be constant. This simplifies the model and helps in easily understanding the relationship between the two variables.

Though the assumption of other things being constant does not apply in the real world, it is still used as otherwise change in other factors would complicate the model. If several factors change it would be difficult to understand the relationship between variables.

Here, to study the effect of change in the price of grapes on the market for wine, it is necessary to assume other factors such as income, consumer preferences, etc to be constant.

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UkoKoshka [18]

Answer:

Canon’s managers believe in Diversity growth.

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3 years ago

LaTisha contracted with Marco, who operates a farm in Guatemala, for the importation of some great coffee beans for her coffee s

bearhunter [10]

Since the coffee beans arrived on September 2 instead of on September 1, LaTisha's best defense would be breach of a legally binding contract by Marco. Marco failed without, any legal excuse, to deliver the products as promised. Marco violated the legal agreement between the two parties since he did not perform his obligation.

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3 years ago

Assume that you are a member of the hershey trust board. to whom (or what) do you owe your fiduciary responsibility? how does th

saw5 [17]

The member of the trust board would owe his/her fiduciary responsibility to the community of Hershey.

Milton S. Hershey was the creator of the company, hence the very reason you would be in this position right now. As such, the legacy of Mr. Hershey would affect your thinking such that you act in the best interests of the company to allow it to grow further and larger, as this is what its founder would have wanted.

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3 years ago

Read 2 more answers

If output is increased in the long run, average production costs in the presence of internal economies of scale will ________, a

skelet666 [1.2K]

If the output is increased in the long run, average production costs in the presence of internal economies of scale will decrease, and in the presence of external economies of scale, will decrease.

Internal economies of scale arise from factors that measure a firm's production efficiency and are controlled by management. Major changes within the industry create external economies of scale. Therefore, as the industry grows, the average cost of doing business will drop.

Internal economies of scale refer to benefits that arise within a company. For example, a larger company may be able to obtain a higher level of credit. In contrast, external savings occur within the industry rather than outside the organization, making them more efficient.

Learn more about economies here: brainly.com/question/17996535

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2 years ago

Grateful Eight Co. is expected to maintain a constant 3.7 percent growth rate in its dividends indefinitely. If the company has

Marat540 [252]

Answer:

Required rate of return = 9.3%

Explanation:

Dividend yield is the rate of dividend based on the price of the share.

The formula for dividend yield is,

Dividend yield = Dividend / Price

Thus, D1 / P0 = 0.056

For a constanat growth stock, the price of share is calculated using the following formula,

P = D1 / r-g

Rearranging the formula for r, we get,

r = (D1 / P0) + g

Thus, r = 0.056 + 0.037 = 0.093 or 9.3%

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4 years ago

Read 2 more answers