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3 years ago

What is the difference between direct and indirect competition?

Business

1 answer:

elena55 [62]3 years ago

8 0

Answer:

Direct competitors offer similar producst, Indirect competitors offer substitutes

Explanation:

Direct competition is when a business and its rivals provides similar goods or services and target the same clients. Since direct competitors offer the same products and services, they compete on other aspects such as price, quality, and service. Examples, two bakeries that produce bread and pastries are direct competitors. Gas stations adjacent to each other are direct competitors as they both sell the same products. The same can be said of two companies providing internet services in the same town.

Indirect competition involves competing for the same customers in the same market but with slightly different products. The goods and services offered by indirect competitors are similar or substitutes. Indirect competitors offer solutions to customers with similar needs. A fast-food shop and a restaurant are indirect competition. A customer who needs to eat may choose between having a snack or a meal from only one of two. A bus company and taxi providers are indirect competitors.

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if someone has a home valued at $100,000 and they currently owe $60,000. what is the biggest home equity line of credit they can

Akimi4 [234]

Value of the house = $100,000

Amount owed = $60,000

Bank requirement is 90%

Therefore, the biggest home equity line of credit they can get is

= ($100,000 - $60,000) * 90%

= $40,000 * 90/100

=$36000

Home Equity Line Of Credit or HELOC is a variable-rate loan which allows to borrow a part of the pre-approved amount offered by the bank. This loan works similar to how a credit card works.

Similar to a home loan, the houses serve as collateral and repayment will include principal and interest. The repaid amount can be re-borrowed like a credit card.

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2 years ago

Suppose you could quantify the amount of satisfaction you receive from consuming ice cream in money terms. You might say, "I exp

galben [10]

Answer:

No, since the marginal cost of consuming the ice cream cone is greater than the marginal benefit.

Explanation:

Marginal utility is the benefit that a consumer derives from consuming an extra unit of a product. To maximise satisfaction consumers tend to go for products that will give them high satisfaction at a low cost.

In the given scenario the cost of a unit of ice cream cone is $3.05, and the satisfaction or benefit is $3. The cost is higher than satisfaction gained. A consumer will not buy the ice cream under these conditions. They will rather look for an alternative that will give high satisfaction at low cost.

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3 years ago

Parwin Corporation plans to sell 42,000 units during August. If the company has 17,500 units on hand at the start of the month,

Allisa [31]

Answer:

43,000 units

Explanation:

The computation of the produced units is shown below:

= Units sold + Ending Inventory units - Beginning Inventory units

= 42,000 units + 18,500 units - 17,500 units

= 43,000 units

We simply added the ending inventory units and deduct the beginning inventory units to the units sold so that accurate units can come

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3 years ago

Suppose that the nominal interest rate in Japan is only 5.0 percent, while the comparable rate in the United States is 7.0 perce

Eduardwww [97]

Answer: Japan has the higher real interest rate.

Explanation:

Japan:

Nominal interest rate = 5%

Inflation rate = 2%

Real interest rate = Nominal interest rate - Inflation rate

= 5 - 2

= 3%

United States:

Nominal interest rate = 7%

Inflation rate = 6%

Real interest rate = Nominal interest rate - Inflation rate

= 7 - 6

= 1%

∴ Japan has the higher real interest rate.

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natta225 [31]

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