Answer:
D. no control over either the price of pretzels or the wage it pays to its workers.
Explanation:
A competitive market is characterised by many firms that are price takers. Firms that are price takers have no influence over the price they charge for their products; prices are set by the forces of demand and supply.
If the market for pretzels are competitive, the firm cannot set the price for pretzels. If the pretzel stand owner increases the price for pretzels, consumers patronize other pretzel stand owners. There would be no incentive for the pretzel owner to reduce its cost because the pretzel stand owner would be reducing its revenue and reducing its profit
If the market for pretzel makers is competitive, firms have no influence on wages that can be paid to workers.Wages are determined by the forces of demand and supply. If wages are cut, workers move to other firms. There would be no incentive to increase wages because it would increase cost and reduce profit.
Answer:
The loss of the financial institution is $413,000
Explanation:
Let's say that after 3 years the financial institution will receive:
0.5 * 10% of $10million
= 0.5 * 0.1 * 10000000
= $500,000
Then, they will pay 0.5 * 9% of $10M
= 0.5 * 0.09 * 10000000
= $450,000
Therefore, their immediate loss would be $500000 - $450000
= $50000.
Let's assume that forward rates are realized to value the rest of the swap.
The forward rates = 8% per annum.
Therefore, the remaining cash flows are assumed that floating payment is
0.5*0.08*10000000 =
$400,000
Received net payment would be:
500,000-400,000= $100,000. The total cost of default is therefore the cost of foregoing the following cash flows:
Year 3=$50,000
Year 3.5=$100,000
Year 4 = $100,000
Year 4.5= $100,000
Year 5 = $100,000
Discounting these cash flows to year 3 at 4% per six months, the cost of default would be $413,000
Answer:
This is the comment referred to in the question:
Just got back from Serendipity Rack in Vegas. What a great store! I spent over $350, but I got such bargains. I bought designer shoes and a terrific winter coat that would have cost $350 alone full price. Tell all of your friends!
The answer is that I would respond to the comment.
Explanation:
The customer is giving a positive review to the business, highlighting a positive experience because of the perceived low prices.
As the director for customer service, it would be good to respond to the comment, in a manner that appreciates the customer's positive feelings about the store, and encourages him to visit the store again.
In this way, the customer would not only feel that the store is valuable, but would feel himself valued by the store, something that would likely enhance his loyalty.
Answer: Quality at the source
Explanation: In simple words, it refers to the concept which states that quality should not be measured only at the end of the process but it should be taken care of at every step of the production.
In other words, every individual working in the production process is responsible for maintaining the quality.
Thus, from the above we can conclude that the correct answer is Quality at the source.
