Answer:
more intense the competitive pressures posed by substitute products.
Explanation:
The lower the user's switching costs: the more intense the competitive pressures posed by substitute products.
Switching costs can be defined as the cost of a consumer switching from a product to a substitute good.
Therefore when such switching costs are low, it will be easier to switch from one product to another, implying that the competitive pressure from substitute goods are higher.
Answer:
A. $60
Explanation:
Recall that, consumer's surplus refers to the price that a consumer is willing to pay less the amount he or she actually pays.
Thus
Consumer surplus = maximum price willing to pay - actual market price.
Given that
Market price = $40
Vonda is willing to pay = $90
Aleiyah is willing to pay = $50
Hence.
Vonda consumer surplus = 90 - 40
= $50
Aleiyah consumer surplus = 50 - 40
= $10.
Total consumer surplus = 50 + 10
= $60.
Answer:
$9,000
Explanation:
Bad Debts Written off $22,000
Uncollectible accounts-recovered $(8,000)
Allowance for doubtful accounts reversed
(opening-closing $40,000-$35,000*) ($5,000)
Bad Debt Expense for the year $9,000
*270,000-235,000 =35,000
Answer:
The correct option is;
Loss of national monetary and exchange rate policy
Explanation:
The disadvantages of the establishment of monetary unions includes;
1) The loss of independence in monetary policy
2) The associated problems that arise due to the the initial establishment of the union
3) Tedious nature of the task of attaining comprehensive capital mobility
The advantages are;
1) Lack of uncertainty in exchange rate variation
2) Reduced cost of doing business
3) Improved fiscal stability as well as control of the inflation rate by supranational central bank.
That would be an example of traditional economy.
