Answer:
c. Universities offer fewer online classes when they generate more revenue than traditional classes.
Explanation:
In this case, the fact that online classes generate more revenue than traditional classes should be an incentive for Universities to offer more online classes instead of fewer online classes. This example clearly does not represent a group responding to an incentive. All of the other examples have a clear cause and consequence relationship and therefore represent groups responding to an incentive.
Answer:
Explanation:
Goods are tangible items that that can be bought at a price while services is defined as intangible benefits that is provided . However , they both provide value and satisfaction to the buying party
A shirt in the scenario is an example of a good as it was a tangible product that did not perish immediately.
The restaurant experience is a service as she chose to go there in order to sit and relax , in addition to buying the food stuff which could have been bought in a grocery store. The sitting and relaxing was an intangible product that expired (perish) as soon as she left the restaurant which qualifies it as a service
Answer:
Option B,
The higher the degree of financial leverage employed by a firm, THE HIGHER THE PROBABILITY THAT THE FIRM WILL ENCOUNTER FINANCIAL DISTRESS.
Explanation:
The degree of financial leverage (DFL) is a leverage ratio that measures the sensitivity of a company's earnings per share to fluctuations in it's operating income, as a result of changes in its capital structure.
This ratio indicates that the higher the degree of financial leverage, the more volatile earnings will be.
The use of financial leverage varies greatly by industry and by the business sector. There are many industry sectors in which companies operate with a high degree of financial leverage (examples are retail stores, grocery store, banking institutions, airlines...). Unfortunately, the excessive use of financial leverage by many companies in this sector has played a major role in forcing a lot of them to file for bankruptcy.
Therefore, if the degree of financial leverage employed by a firm is high, then the probability that the firm will encounter financial distress will also be high.
Suppose the price of barley increases by 16.53%. If breweries buy 3.28% less barley after the price increase, the total revenue for barley producers will increase because the price effect is greater than the quantity effect.
Explanation:
Every company must sooner or later come to the point that an rise in the price is right.
Inflation has two primary causes: demand tug and expense drive.
Both have a general raise in costs in an economy. However, they work otherwise. Conditions of market pull arise as customer demand raises costs.
Consumers are now increasing the demand on the good for some quantity, and suppliers would need to offer a better price in order to deliver the good.
Answer:
1. 86.7%
2. 2244.4
Explanation:
The computation is shown below:
1. The new 4 firm concentration ratio after entry is
= Total mix share of 4 largest firms
= 30% + 30% + 13.33% + 13.33%
= 86.7%
2. Now HHI index is
= sum of squared shares
= 30^2 + 30^2 + 13.33^2 + 13.33^2 + 6.67^2 + 6.67^2
= 2244.4
Hence, we applied the above values so that each part could be determined
