Are there any answer choices or is it a blank?
Answer:
The Hi-Stakes Company
a. If the direct exchange rate increases, the dollar strengthens relative to the other currency.
b. If the indirect exchange rate increases, the dollar also strengthens relative to the other currency.
Explanation:
When the exchange rate increases, it means that more of the other currency is required in order to embark on importing and exporting transactions. However, the increases will weaken the ability of the importing currency to afford the dollar-based goods, which have then being made more expensive.
Answer: Price leadership
Explanation: In simple words, under price leadership strategy the dominant firm in the industry sets the prices for their products in the first place and then after that the other competing firms sets their prices following that dominating firm.
In the given case, the general motors is practicing price leadership as they are setting the prices in the market initially which is then matched by other firms.
Answer:
A competitive price-searcher market is a market where there are low entry or exit barriers, and the suppliers can determine the price of their products. Some economists believe that this type of market is inefficient because the suppliers are not able to sell enough output in order to minimize their average costs. Since the demand is very elastic in price searcher markets, any price change will cause a drastic change in the quantity demanded.
Price searcher markets share a lot of similarities with perfect competition markets, the main difference is that suppliers and consumers are not price takers. This means that any supplier can change their sales output by changing their price, which leads to greater competition.
Answer:
<em> $220,000</em>
Explanation:
Given:
Effective Gross Income(EGF) : $396,000
Operating Expenses(OE) : $176,000 ( Including $4,400 reserve for replacements)
To Find Net Operating Income(NOI):
NOI = EGF - OE
NOI = $396,000 - $176,000
NOI = $220,000
So the Net Operating Income is $220,000
