Answer:
If the the single cable TV firm from Sydney now has a new competitor coming into town, what will most likely happen with the price of the service is that it will go down and become more accessible to consumers, as a direct consequence of the generation of competition from market between the companies involved.
The concept of competition plays a central role in economic theory. it is a situation by which different actors (companies or consumers) compete for a share in the same activity, typically the sale or purchase of a product or service. For economic operators, it is often an advantage to have limited competition on their own side of the market and a lot of competition on the opposite side, as it allows for high profits. From the point of view of society, as high a competition as possible is usually an advantage, as it ensures the best possible utilization of society's resources.
Answer:
Collision
uninsured motorist
comprehensive
liability coverage
Explanation:
From the question, we are informed about Abraham who has just purchased his first car. His bank, First State Bank, loaned him the money to buy the car and has required him to purchase insurance to protect the car as the collateral for the loan. In this case the basic types of coverage Abraham should buy to satisfy the bank requirement and to best protect himself from the risks of operating an automobile are;
✓ uninsured motorist
✓comprehensive
✓liability coverage
Insurance is very essential in protecting an individual or firm from any form of financial loss, it can be regarded as a kind of risk management and it is way to avoid uncertain loss. Then if Adam could buy the coverage he will be protected from loss in future.
Answer:
$267.1211
Explanation:
return on preference share per unit is $6 , thus at 12% annual rate of return. Initial value of preference shares will be $50 per unit ( $6 divided by 12%).
Total value of preference shares = $50 multiplied by 100 preference shares = $5000
Future value of preference shares = 5000 (1.12)^5 = $8,811.7084
to find the value of money to be deposited to be able to buy the preference shares at the end of 5 yrs.
we work back to get the present value using the mutual fund annual rate
$8811.7084 = pv (1.06)^60 the rate is compounded monthly. Hence we shall compound the return 60 times in 5 years
Bank account money = 8811.7084 divided by 32.9877 = $267.1211
Answer:
Key ideas:
- A single entity controls the flow of the product.
- Possesses the power to limit prices.
- Will have some influence in politics.
- Difficult for new companies to enter the market.
Explanation:
Monopoly refers to the state when there is only one company controlling the flow of products, therefore controlling the prices of it. There are a lot of examples of monopoly in the contemporary era such as AB Inbev, but it doesn't mean that it is totally a modern concept. Monopoly existed even in history take for example the case of Carnegie steel mills or the issue of railroads.
When one company possess such power that it can control the price, it can badly damages the interest of other investors and consumers. But the reason they create a monopoly is that they have heavy influence in politics. That is how they turn up the decisions to their own benefits. And monopolies always try to create hurdles for new investors to get in the market. Because they are charging whatever they want due to no competition, as soon as new competition arrive it will challenge the monopoly which it can't take.
Answer:
Real purchasing power increase= 2.16%
Explanation:
Giving the following information:
You deposit $1,900 in your savings account that pays an annual interest rate of 3.25%. The inflation rate is 1.09%.
In this example, we have two different and opposite effects. The interest rate increases your purchasing power. If the inflation rate is 0, the purchasing power will increase (in one year) 3.25%.
The inflation rate decreases the purchasing power of nominal income.
Real purchasing power increase= annual interest rate - inflation rate
Real purchasing power increase= 3.25 - 1.09= 2.16%
