When a company earns income, it becomes larger because net assets have increased. Even if a portion of the profits is later distributed to shareholders as a dividend, the company has grown in size as a result of its own operations.
free trade is trade that governments do not interfere with. Governments can impose trade restrictions and tariffs on trade that might inhibit two parties from being able to trade freely.
It is A. Provide public goods
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Answer:
Income effect
Explanation:
Own price increases are associated with decreases in quantity demanded, ceteris paribus. These decreases in quantity demanded are composed of two effects, the substitution effect and the<u> Income effect.</u>
We know as per the law of demand, price increases lead to decrease in the quantity demanded if factor remain constant.
Quantity demanded has effect of two other major factors:
- Subtitution effect.
- Income effect.
Subtitution effect: It is the price of subtitution goods & services also lead to increase and decrease of demand for any particular goods.
Example: Price of tea and coffee.
Income effect: It is the income of consumer that effect the demand of any goods & sevices, as with the increase in income of consumer, their demand for inferior goods decreases and demand for branded goods increases.
Example: Non branded clothes and branded clothes.
Answer: Introduction phase.
Explanation:
Campbell's company is going through the introduction phase of it's development cycle. In the introduction phase, a business; builds it's customer base, makes very little or no profit, observes slow growth rate and the running cost is usually high, but the business tends to stabilize as it enters the growth phase.