Answer:
Relationships; Competition.
Explanation:
In today's business environment, firms that truly focus on customers must instill a corporate culture that places customers and other stakeholders at the top of the organizational hierarchy. when this occurs, the firm shifts its focus from transactions to <u>relationships</u>, and from <u>competitions</u> to collaboration.
Customer are considered to be king in the current open market condition, where seller are trying every bit to attract more and more customer. When a firm possesses capabilities that allow it to serve customers' needs better than the competition, the firm is said to have competitive advantage, however, this lead to shift of focus from transaction to relation building with customer to gain profit in long run and it does not focus only on competition but look for collaboration with customer to gain competitive advantage for future.
Answer:
Unlike perfectly competitive firms, in the long run monopolistically competitive firms face excess capacity or unused capacity. They produced at a higher cost which implies wastage of resources or under-utilization of resources.
Answer: With a loss
Explanation:
The firm here has its Marginal cost higher than it's marginal revenue.
This means that for every additional unit sold, the company is incurring a loss of $0.50 which is the difference between the marginal cost and the marginal revenue.
The company is therefore operating at a loss because every additional unit is costing them instead of benefitting them. To counter this, they need to reduce production so that marginal cost will fall.
Answer:
$5.73(Approx).
Explanation:
Given:
= 0.32
Growth rate = 25% = 0.25
Number of year = 4
Growth rate after 4 year = 3% = 0.03
Required rate of return = 15% = 0.15
Computation of divined in 4 year:
Price of stock after year 4 = [Divined in 4 year × (1 + new growth)] /[Required rate of return - Growth rate after 4 year ]
Price of stock after year 4 = [0.78125 × (1+0.03)] / [0.15 - 0.03]
Price of stock after year 4 = [0.8046875] / [0.12]
Price of stock after year 4 = $6.70572917
Present value = Future value / 
Present value = $6.70572917 / 
Present value = $6.70572917 / 
$5.73(Approx).
Answer:
The NPV of this investment is $64,581.75
Explanation:
Hi, we need to discount to present value all the future cash flows, the formula to use is as follows:
Where
NPV = Net Present Value
CF = The cash flow stated in the problem by year
r= discount rate (in our case, 0.08 or 8%)
Now, let´s solve this.
So, the net present value of this project is $64,581.75
Best of luck.
