Answer:
$36,602.5
Explanation:
Your profit each year of saving $7,300 at 8.5% return each year is $620.5
In that case you earn $7,920.5 each. Multiply by 5 years which is the fifth year you made the last deposit, and you will arrive at $36,602.5
Answer:
2.77
the bus company should decrease price to increase revenues.
Explanation:
Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.
Price elasticity of demand = percentage change in quantity demanded / percentage change in price
If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.
Demand is inelastic if a small change in price has little or no effect on quantity demanded. The absolute value of elasticity would be less than one
Demand is unit elastic if a small change in price has an equal and proportionate effect on quantity demanded.
percentage change in price = 1.21 / 0.99 - 1 = 0.222 = 22%
Percentage change in quantity demanded = 169 / 433 = -0.6097 = - 60.97%
Elasticity of demand = 60.97% / 22% = 2.77
Demand is elastic, so if price in reduced, there would be a rise in quantity demanded that would exceed the rise in price. This would increase revenues
Answer:
can be achieved by exploiting resources that are competitively valuable, rare, and hard to imitate by rivals
Explanation:
A resource-based strategy is a form of the technique used by business managers to efficiently utilized the existing and valuable resources of the firm. These resources would be difficult to come by for the competitors such that it is hard for competitors to replicate. Thereby leading a sustainable or long term competitive advantage to the firm
Hence, in this case, the correct answer is A resource-based strategy "can be achieved by exploiting resources that are competitively valuable, rare, and hard to imitate by rivals."
Question Completion:
ANSWER CHOICES
A. operating with decreasing returns to scale
B. a natural monopoly
C. a legal monopoly
D. monopolistically competitive
E. productively efficient
Answer:
Based on this data, the market for product Z is:
A. operating with decreasing returns to scale.
Explanation:
For the Average Revenue (Price) to equal the Average Total Cost (ATC) and enable the firms operating in the market to break-even, the firms must increase their production units from 2 million to 3.5 million units. The conclusion that the market for product Z is operating with decreasing returns to scale for a single supplier is because it will take a 75% increase in production for the average total cost to fall from $7 to $5 for the single producer. In other words, the percentage increase in production does not result in a proportionate decrease in average total cost.
