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Lera25 [3.4K]
3 years ago
12

Lowering the price from $ 3.50 to $ 2.25 results in an output effect of ​$ nothing and a price effect of ​$ nothing. ​(Enter you

r responses as whole numbers and include a minus sign if​ necessary.)
Business
2 answers:
Ostrovityanka [42]3 years ago
5 0

Answer:

Lowering the price from $3.50 to $2.25 results in an output effect of $2.25 and a price effect of -$1.25

The pricing decisions for a product are affected by internal and external factors.  

A. Internal Factors:

1. Cost:  

While fixing the prices of a product, the firm should consider the cost involved in producing the product. This cost includes both the variable and fixed costs.  

2. The predetermined objectives:  

While fixing the prices of the product, the marketer should con­sider the objectives of the firm. For  

3. Image of the firm:  

The price of the product may also be determined based on the image of the firm in the market. For instance, HUL and Procter & Gamble can demand a higher price for their brands, as they enjoy goodwill in the market.  

4. Product life cycle:  

The stage at which the product is in its product life cycle also affects its price.  

5. Credit period offered:  

The pricing of the product is also affected by the credit period offered by the company.  

6. Promotional activity:  

The promotional activity undertaken by the firm also determines the price. If the firm incurs heavy advertising and sales promotion costs, then the pricing of the product shall be kept high in order to recover the cost.  

B. External Factors:

1. Competition:  

While fixing the price of the product, the firm needs to study the degree of competi­tion in the market. If there is high competition, the prices may be kept low to effectively face the competition, and if competition is low, the prices may be kept high.  

2. Consumers:  

The marketer should consider various consumer factors while fixing the prices. The consumer factors that must be considered includes the price sensitivity of the buyer, purchasing power, and so on.  

3. Government control:  

Government rules and regulation must be considered while fixing the prices. In certain products, government may announce administered prices.

4. Economic conditions:  

The marketer may also have to consider the economic condition prevail­ing in the market while fixing the prices.  

5. Channel intermediaries:  

The marketer must consider several channel intermediaries and their expectations. The longer the chain of intermediaries, the higher would be the prices of the goods.

Citrus2011 [14]3 years ago
3 0

Answer:

Question: Sally runs a vegetable stand. The following table shows two points on the demand curve for the heirloom tomatoes she​ sells:

                  Price                  Quantity demanded per week

                $ 3.00                         200,000

                 $ 1.75                         300,000

lowering the price from $3.00 to $1.75 results in an output effect of _______ and a price effect of _______

Answer: Output effect of = 1.75 * 100 = $175,000

              Price effect of =  1.25 * 200000

                                      = -$250,000

Explanation:

Output effect: there would be an increase in quantity sold by 100,000 units at $1.75. This gives the out to be sold

Price effect: since Sally reduces the price to $1.75, she would make a lose of $1.25 ($3.00 - $1.75) on the 200,000 units that could have been sold at $3.00

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Consider a portfolio consisting of only Duke Energy and Microsoft. The percentage of your investment (portfolio weight) that you
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Answer:

(2) 4%

Explanation:

The portfolio is considered to be less risky if its volatility is low. The higher standard deviation the more risky is the project. For Duke Energy and Microsoft the investment portfolio required is risk free investment. To calculate the risk free rate we calculate using the formula;

Var Rp = x1 2Var R1 + x2 2Var R2 +2 x1 x2 Corr (R1, R2) SD1 SD2

Var Rp = 0.14 + 0.44 + 2 (1) * (-1) * 6% * 24%

Solving for this we get the risk free investment at 4%.

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3 years ago
At the end of 2017, companies from one country collectively owned $22 billion in assets in its neighboring country. The $2 billi
Nastasia [14]

Answer:

A. Stock

Explanation:

The Stock of Foreign Direct Investment (FDI) measure the total level of direct investment at a given point in time, usually the end of a quarter or of a year.

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6 0
3 years ago
Look at Exercise 19.2. Compute the opportunity costs of producing sweaters and wine in both France and Tunisia. Who has the lowe
monitta

Answer:

Answer Illustration : Opportunity Cost of producing Wine is lesser in France, Opportunity Cost of producing Sweaters is lesser in Tunisia. So, France has comparative advantage in Wine, Tunisia in Sweater.

Explanation:

Opportunity Cost is the cost of next best alternative foregone while choosing an alternative.

Opportunity Cost of producing Sweaters & Wine in France & Tunisia are quantities of other goods (Sweaters or Tunias) sacrifised while choosing either. Sweater Opportunity Cost - Wines sacrifised, Wine Opportunity Cost - Sweaters sacrifised.

The country has a comparative advantage in a good if it can produce it with relatively less opportunity cost (in terms of other good sacrifised) than other country.

Ex : Production Possibilities

                   Wine            Sweater    Trade off (Wine :Sweater)

France          10                   5              1:0.5  or 2:1

Tunisia          8                   24              1:3  or 0.33:1

  • France produces Wine with lesser opportunity cost (sweater sacrifised) than Tunisia  [0.5 sweater < 3 sweaters] ; it has comparative advantage in Wine.
  • Tunisia produces Sweater with less opportunity cost (wine sacrifised) than France [ 0.33 wine <  2 wines] ; it has comparative advantage in Tunisia
7 0
3 years ago
g Which one of these will increase the present value of a set amount to be received sometime in the future? A) Increase in the t
alisha [4.7K]

Answer:

Decrease in the interest rate

Explanation:

Present value is the sum of discounted cash flows

let me use an example to illustrate

the present value of $100 in year 0 discounted at 6% = $100

the present value of $100 one year from now discounted at 6% = $94.33

the present value of $100 two years from now discounted at 6% = $89

We can see that present value decreases with an increase in time

2. the present value of $100 one year from now discounted at 6% = $94.33

the present value of $90 one year from now discounted at 6% = $84.91

We can see that present value decreases with a decrease in the future value.

3.  the present value of $100 one year from now discounted at 6% = $94.33

the present value of $100 one year from now discounted at 5% = $95.24

We can see that the lower the discount rate, the higher the present value

7 0
3 years ago
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