1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Vaselesa [24]
4 years ago
8

Suppose Orange Inc. sells MP3 players and initially has monopoly power because there are only a few close substitutes available

to consumers.
As more types of MP3 players are introduced into the market, the demand facing Orange becomes ________ elastic and the Lerner index achieved by the firm in this market ________.

A) less, declines
B) less, increases
C) more, increases
D) more, declines
Business
1 answer:
blsea [12.9K]4 years ago
5 0

Answer:

More Elastic ; Lerner Index Decline

Explanation:

Elasticity denotes the responsive change in a product's demand, due to change in its price. Higher the elasticity, the more quantity change due to price change, vice versa.

Lerner Index depicts the market power a firm has. Higher elasticity means consumers have many close alternatives & L is small, signify less market power. And, Vice versa case for low L.

Orange Inc players has monopoly i.e sole seller privileges in the MP3 players market, with few close substitutes. As, more types of players are introduced in the market :

  • Orange Inc has more competitors & close substitute goods providers, now in the market. So, increase in substitute availability will increase the Elasticity of Orange' demand
  • Increase in Elasticity means implies that consumers have many options, market power of Orange & its representative L index falls.
You might be interested in
If a car company collaborated with a sheet metal supplier, the car company would be the supplier's ______. Multiple choice quest
kotykmax [81]

A car company would be called a <u>supplier's corporate partner</u> if its collaborated with a sheet metal supplier.

<h2>What is corporate partner?</h2>

A corporate partnership means a beneficial relationship between two separate company for specific purpose.

Here, the car company and sheet metal supplier are corporate partners because they have a specific purpose they serve there selves.

In conclusion, the car company would be called a <u>supplier's corporate partner</u> if its collaborated with a sheet metal supplier.

Read more about corporate partnership

<em>brainly.com/question/14034519</em>

8 0
2 years ago
Calculate the present value of the after tax net returns to land in the 7th year if thereal pre-tax net returns to land today ar
Tatiana [17]

Answer:

PV(after-tax net return in 7th year) = 70.55 (Approx)

Explanation:

Given:

Number of year = 7

Pre-tax net returns (Fn) = $100

Growth rate = 4% = 0.04

Inflation = 3% = 0.03

Marginal tax rate = 30% = 0.3

Discount rate = 10% = 0.1

Computation:

Fn = Fo(1+g)ⁿ = 100(1.04)⁷

Fn = 131.6

Nominal net returns = 131.6(1.03)⁷

Nominal net returns = 161.85

After tax return = 161.85  (1 - 0.3)

After tax return = 113.30

After-tax, risk adjusted discount rate = 0.1(1-0.3) = 7%

PV(after-tax net return in 7th year) = 113.30 (1+0.07)⁻⁷

PV(after-tax net return in 7th year) = 70.55 (Approx)

8 0
3 years ago
Marketing Docs prepares marketing plans for growing businesses. For 2017, budgeted revenues are $1,500,000 based on 500 marketin
pishuonlain [190]

Answer:

Option (a) is correct.

Explanation:

Contribution margin per marketing plan = Sales - Variable cost

                                                                   =  $3,000 - $2,000

                                                                   = $1,000

A.

(1) Break-even\ in\ rooms=\frac{Fixed\ cost}{contribution\ margin\ per\ marketing\ plan}

Break-even\ in\ rooms=\frac{400,000}{1,000}

Break even in marketing plan = 400

(2) Break-even in dollars:

= Break-even in marketing plan × Average rate per plan

= 400 × 3,000

= 1,200,000

(3) Margin of safety = Actual sales - Break-even sales in dollars

                                = 1,500,000 - 1,200,000

                                = 300,000

Margin\ of\ safety\ ratio=\frac{Margin\ of\ safety}{Actual\ sales}

Margin\ of\ safety\ ratio=\frac{300,000}{1,500,000}

                                             = 20%

B.

(1) Contribution margin per marketing plan = Sales - Variable cost

                                                                   =  $4,000 - $2,000

                                                                   = $2,000

Break-even\ in\ rooms=\frac{Fixed\ cost}{contribution\ margin\ per\ marketing\ plan}

Break-even\ in\ rooms=\frac{400,000}{2,000}

Break even in marketing plan = 200

(2) Break-even in dollars:

= Break-even in marketing plan × Average rate per plan

= 200 × 4,000

= 800,000

(3) Margin of safety = Actual sales - Break-even sales in dollars

                                = 1,500,000 - 800,000

                                = 700,000

Margin\ of\ safety\ ratio=\frac{Margin\ of\ safety}{Actual\ sales}

Margin\ of\ safety\ ratio=\frac{700,000}{1,500,000}

                                             = 47%

Therefore, option (a) would achieve the margin of safety ratio more than 45%.

7 0
3 years ago
A lack of trust between two parties engaged in international trade is exacerbated by the narrowing distance between the two part
jasenka [17]
<span>A lack of trust between two parties engaged in international trade is exacerbated by the </span><span>problems of using an underdeveloped international legal system to enforce contractual obligations. When a strong internal legal system is put place, there is a better chance for trust to be held in trading. When doing international trade both parties need to understand their roles and responsibilities and hold up to the end of the deal. Without trust it's likely the two countries will stop trading with one </span>another. 
6 0
3 years ago
At the beginning of its fiscal year, Lakeside Inc. leased office space to LTT Corporation under a ten-year operating lease agree
iVinArrow [24]

Answer: $20,000

Explanation:

The effect of the lease on Lakeside's earnings will be the difference between the earnings from the lease and the cost of the building which will be depreciation.

Depreciation = 2,300,000/25

= $92,000 per year

Earnings per year;

= 28,000 * 4

= $112,000

Increase in earnings = 112,000 - 92,000

= $20,000

6 0
3 years ago
Other questions:
  • Susan is a new management trainee at Barney's Bats, Inc. She has just graduated with her bachelor's degree in management and is
    14·1 answer
  • Giant Company has three products, A, B, and C. The following information is available:
    8·1 answer
  • ordinary annuity payments are made: a) at the end of the period b)yearly c)monthly d)at the beginning of the period e)none of th
    8·2 answers
  • On August 31, 2019, Montana Corporation signed a 4-year contract to provide services for Minefield Company at $30,000 per year.
    10·1 answer
  • The Wayside Hotel uses the direct write-off method of accounting for bad debts. If the general manager of the hotel determines t
    14·1 answer
  • President Ronald Reagan
    8·1 answer
  • The Kaizen approach to change: Select one: a. favors the use of a large number of small local projects b. has to be led by a tea
    13·1 answer
  • When a business is worth more if its assets are sold than if it continues to operate, then the business is liquidated, and the p
    9·1 answer
  • A firm produces truffles by using labor and capital. The price of labor is $10 per unit, and the price of capital is $20 per uni
    7·1 answer
  • Jerrod owes $2000 on a credit card that charges him an annual percentage rate of 18%. If jerrod stopped making payments, how lon
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!