Answer:
market net operating profit per square foot = $8.80
Explanation:
total investment = $145 per square foot
the investor requires a 6% rate of return = $145 x 6% = $8.70 per square foot
total revenue per square foot = $11
proportional market vacancy and credit loss = $11 x 5% = ($0.55)
<u>other expenses = $11 x 15% = ($1.65) </u>
market net operating profit per square foot = $8.80
The project should be carried out since the net operating profit is larger than the investor's required rate of return.
Not trying to sale to the wrong company or risking on a single product of some sort.
Answer:
The correct answer is A) Lend support to the invisible hand by maintaining property rights and political stability
.
Explanation:
The absence of the government in legislative tasks related to the market is, therefore, one of the main bases of the economic theory developed by Adam Smith throughout his bibliographical work. For Smith, the leaders must deal with other areas of control more focused on defense or justice, leaving the market to its free operation.
The invisible hand presupposes that there is an inertia by which the market and its self-regulation leads individuals to make the best decisions for the majority of the population to achieve well-being. In other words, it is a kind of automatic control mechanism that compensates the actions taken as a whole, regulating social conformations.
Therefore, it is assumed that the self-regulation facilitated to the markets helps to achieve an optimal market. To do this, individuals must behave in such a way that they can act without state mediation and in pursuit of their own interest.
The metaphor of the invisible hand also supposes that individuals are encouraged or held back to produce or not to follow the level of prices that exist in the market. Prices and profits are sufficient indicative to know when to participate in the market or not. Basically, if there is profit in a market niche, this supposes a stimulus for production, while losses lead individuals to quit.
Answer:
Only one seller.
Explanation:
A monopoly is a market structure which is typically characterized by a single-seller (one seller) who sells a unique product in the market by dominance. This ultimately implies that, it is a market structure wherein the seller has no competitor because he is solely responsible for the sale of unique products without close substitutes.
Also, a monopolist refers to any individual that deals with the sales of unique products in a monopolistic market.
For example, a public power supply company is an example of a monopoly because it serve as the only source of power supply to the general public in a society.
A public power company refers to a company that provides power (electricity) utility to the general public of a society.
In conclusion, a monopoly is a market that has only one seller.
Answer:
1. The measures that City Bus Risk Manager should take in the risk management process are as follows
Figure out the risk context: In this case, we need to find out which market City Bus is catering to and what sort of service it can provide. The risk manager will take into account what the business requirements are, what are the technical criteria for delivering this service, such as the legal regulations that City Bus has to follow.
