Answer:
The correct answer is d) product life-cycle.
Explanation:
The life cycle of a product is the evolution of sales of that product during its permanence in a given market. Depending on the product and the sector, its useful life may be greater or lesser. In addition, other factors also influence such as the administration's policies in the area where the product is marketed.
A product since it appears in the market does not always maintain the same sales trend. There are fluctuations that have to do with demand but can also influence other issues such as those related to legislation.
With regard to demand, it can happen, for example, that a product goes out of style or is replaced by a new one that meets the needs of the former. E.g. Think of the music player market, how many have we met? From the walkman, through the discman, then the Mp3, Mp4, Ipod, and even the mobile phone as a player. We can say that the discman, for example, had a fairly short life cycle.
In this regard in Economics there is a theory that explains the stages through which a product passes with respect to its production and sales, it is known as the theory of the life cycle of a product. It was defined by the American economist Raymond Vernon who assured that every product or service undergoes a similar market evolution.
Answer:
Graphs show the relationship between 2 variables. A graph is used to condense numeral information making patterns clearer. Using graphs makes data readable for economists.
The answers to the blanks provided above are DECREASES and INCREASES, respectively. This is based on the concept of what a business cycle is. What happens during recession is that they try to restore the economy by expansion, and therefore, through this, the government increases their spending and cutting taxes as well.
Answer: $30
Explanation:
Given that,
Average variable cost (AVC) = $25
Average fixed cost (AFC) = $5
Marginal cost (MC) = $30
Average total cost (ATC) = Average fixed cost (AFC) + Average variable cost (AVC)
= $5 + $25
= $30
Therefore, average total cost is the sum of average fixed cost and average variable cost. Alternatively, average total cost is calculated by dividing total cost to units of output produced.
Answer:
The required rate of return is 7.20%
Explanation:
The price of the preferred stock share is the dividend which is divided through the required rate of return. It is the same as the model of the constant growth, with the dividend growth rate of the 0%.
This is the special case of the model of the dividend growth where the growth rate is 0 and the level of perpetuity.
So, using the equation, compute the price per share of the preferred stock as:
Rate = Dividend (D) / Price (P0)
where
Dividend is $5.80
Price (P0) is $80.50 per share
So, putting the values above:
Rate = $5.80 / $80.50
Rate = 7.20%
