Answer:
Explanation:
4 worries about Bold and Best (BB) are:
- Demand for BB may fall in the next few years, as customers are now less interested in purchasing BB or there is another substitute product for BB which is available in the market.
- Input costs/Production cost for BB may rise in the next few years, may be because of shortage of raw materials.
- The decline in BB sales may affect Baldwin's profitability as a whole because BB's revenue is currently the largest portion of the total revenue.
- Real purchasing power of customers fall because of a rise in expected inflation in the economy, which will lead to a fall in sales of BB.
<u>Because the </u><u>equilibrium quality </u><u>chosen by the market would be lower than the level that most people would consider desirable, the quantity of public college education determined in a free market (without government intervention) is a</u><u> market failure.</u>
How does government intervention lead to a collapse of the market?
- Lack of information, market regulation, public goods, and externalities can all contribute to market failure.
- Government intervention, such as new laws, taxes, tariffs, subsidies, and trade restrictions, can be used to fix market failures.
How does the market for education fail?
- Due to systematic undervaluation of the roles of motivation and engagement by educational policy, there is a significant market failure in the context of education.
- Lack of metrics for those qualities and ignorance of their potential usefulness serve as examples of this undervaluation.
Learn more about market failures
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Answer:
False
- At MultiMarkets, a chain of retail stores, top management decided to respond to the growing challenge of online retail websites with <u>DECENTRALIZED</u> planning , using planning experts to help store managers develop their own plans.
Explanation:
In a corporation, decentralized planning means that some planning functions and decision making processes are delegated to lower level managers.
In this case, MultiMarkets' upper management is delegating planning functions to local store managers as a way to respond to an increase in online retailing.
Answer:
in the latter, foreign savings complement domestic savings in financing investment spending
Explanation:
In a closed economy, the country does not permit trade with other economies. The nation considers itself self-sufficient hence, it does not require to import or export any goods or services. All products and services produced within the economy are consumed within the boundaries of the country.
An open economy is the contrast of a closed economy. The country will allow international trade. Goods and services produced in foreign countries will be imported and consumed locally. In an open economy, foreigners are permitted to invest locally.
Answer:
nominal interest rate= 0.2= 22%
Explanation:
Giving the following information:
Inflation rate= 10%
Real interest rate= 12%
<u>The real interest rate is the result of deducting from the nominal interest rate the inflation rate. Inflation has the opposite effect than interest.</u>
<u></u>
Real interest rate= nominal interest rate - inflation rate
nominal interest rate= real interest rate + inflation rate
nominal interest rate= 0.12 + 0.10
nominal interest rate= 0.2= 22%
