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3 years ago

The lower the user's switching costs:

Business

2 answers:

JulijaS [17]3 years ago

8 0

Answer:

more intense the competitive pressures posed by substitute products.

Explanation:

The lower the user's switching costs: the more intense the competitive pressures posed by substitute products.

Switching costs can be defined as the cost of a consumer switching from a product to a substitute good.

Therefore when such switching costs are low, it will be easier to switch from one product to another, implying that the competitive pressure from substitute goods are higher.

dalvyx [7]3 years ago

6 0

Answer:

More intense the competitive pressures posed by substitute products

Explanation:

A user's switching cost is the cost incurred by a user/consumer when he/she changes brands of products and services he/she usually purchases for a substitute good or service usually of equal standard with the first brand.

Switching cost can be monetary, psychological and time-based as well. the higher the switching cost the less likely a user will switch brands but the lower the switching cost the more likely a user will switch brands, and also the more intense the competitive pressures posed by the substitute products.

therefore switching cost is a market determinant for products with several substitutes in the open market.

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White Lion Homebuilders is considering investing in a one-year project that requires an initial investment of $500, 000. To do s

MissTica

Answer:

Explanation:

a) Required around for investment is $500,000

Flotation cost is 2%

Total amount require to issue =

$500,000/ (1-2%)

= $510,204,08

After one year value of investment will be $595,000

Rate of return =

550000/(450000x(1+2%)-1 =19.8%

b) 2.03/(33.35x(1-3.75%) + 9.4 = 15.72%

c) 745000/60% = 1241666.67

That is C. $124,1666,67

4 0

3 years ago

How people choose among the alternatives available to them is:?

Over [174]

Propone dondthe demos dkkdndi

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3 years ago

You have $35,900 on deposit with no outstanding checks or uncleared deposits. One day you write a check for $4,200 and then depo

maw [93]

Answer:

Explanation: from the question above, disbursement for the period is check for $4,200.

Collection for the period is a check for $6,800.

Net float is $35,900 + $6,800 - $4,200. = $38,500

5 0

3 years ago

Katie Kwasi’s utility function is U(x1, x2) = 2(ln x1) + x2. Given her current income and the current relative prices, she consu

aniked [119]

Answer:

Katie Kwasi's Utility Function

The units of x1 that she will consume after the change in income is:

= 40 units of x1

Explanation:

a) Data and Calculations:

Katie Kwasi’s utility function, U(x1, x2) = 2(ln x1) + x2

Current consumption = 10 units of x1 and 15 units of x2

When her income doubles, with prices staying constant, Katie will consume:

= 2(2 * 10 of x1) + 15 of x2

= 40 units of x1 + 15 units of x2

Therefore, she will consume 40 units of x1 and 15 units of x2

b) The above function expresses mathematically Katie's utility to be a function of the units of x1 and x2 that she can consume, given her income constraint. If her income doubles, Katie will consume double units of x1 and the same units of x2 as she was consuming before the change in income.

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3 years ago

When calculating the afterminustax weighted average cost of capital (WACC), which of the following costs is adjusted for taxes

sergey [27]

Answer:

The before-tax cost of debt is adjusted for tax in the computation of weighted average cost of capital.

The correct answer is D

Explanation:

In the calculation of weighted average cost of capital, the before tax cost of debt is adjusted for tax so as to obtain the after-tax cost of debt. Cost of equity and cost of preferred stocks will not be adjusted for tax.

6 0

3 years ago