Answer:
C) the firms ability to differentiate its product
Explanation:
Porter five forces of the model comprise rivalry among competitors, bargaining power of suppliers, bargaining power of buyers, the threat of new entrants, the threat of substitution.
The rivalry among competitors deals with the strength and weaknesses of the competitors so that the business does the planning accordingly.
The bargaining power of suppliers stated the change in the price of the product made by the supplier's offer plus the customer are attracted towards the product as the product is unique which impact the overall profit
The bargaining power of buyers deals with the number of buyers and how much orders are given by a single buyer.
The threat of new entrants impacts the overall position of the business if the competitor enters the market.
The threat of substitution is an alternative way to produce the goods and services which can also drop your position and also it directly impact profitability.
Answer:
9%
Explanation:
According to the given situation, the solution of return on investment is shown below:-
Return on investment = (Net operating income ÷ Average operating assets) × 100
now, we will put the values into the above formula
= ($45,360 ÷ $504,000) × 100
= 0.09 × 100
= 9%
Therefore for computing the return on investment we simply applied the above formula.
Answer:
The answer to both a and b is in the explanation below
Explanation:
a) The increase in wage can either decrease or increase the hours worked. This is became an increase in wage has both substitution effect and income effect that work in different directions. Substitution effect An increase in wage increases the opportunity cost of leisure, thereby making the worker increase number of hours worked. Income effect The increase in wage also makers the worker richer, thereby making the worker decrease number of hours worked.
Since no information about worker's preferences is given, we do not Imow which effect will dominate the other effect and, therefore, we do not know what the net impact of the increase in wage will be.
b) The bonus will only have income effect. The bonus will make the workers richer, thereby making the worker decrease number of hours worked.
If in part a), the substitution effect and income effect are equal in magnitude, then there will be no change in the number of hours worked. The number of hours worked will remain the same at 2000 hours. Since the employer would be paying $5 extra on each hour worked, the cost to the employer of increase in wage would be $10,000 (=2000 x $5), which is the same as the bonus in part b).
