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3 years ago

When the cross price elasticity between good X and other related goods is positive and very low firm X can be assumed to have?

Business

1 answer:

geniusboy [140]3 years ago

3 0

Answer:

c. a significant amount of market power

Explanation:

Cross price elasticity measures the responsiveness of quantity demanded of a good to the changes in price of another good.

If the cross price elascitiy is postive, the goods are subsituites.

If the cross price elasticity is negative, the goods are complementary goods.

If the cross price elasticitiy is low the firm has market power. It means that it's consumers do not change the quantity demanded when the price of the good changes

If the cross price elasticitiy is high, the market has low market power.

I hope my answer helps you.

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M8-1 Evaluating the Decision to Extend Credit [LO 8-1 Nutty Productions Inc. generated service revenue of $48,000 and income fro

emmasim [6.3K]

Answer:

Yes

Explanation:

In this question, we have to compare the total income based on credit extended The computation is shown below:

If credit is not extended, then the total income would be

= Service revenue + income from operations

= $48,000 + $19,000

= $67,000

If credit is extended, then the total income would be

= Service revenue + income from operations - additional expenses for wages and bad debts

= $87,000 + $19,000 - $34,000

= $72,000

Yes the company extend credit as the total income is increased by $5,000

7 0

2 years ago

Why must a monopoly supply a good or service that has no close substitute

butalik [34]

Answer:

Because a monopoly is when one person or buisness provides a good or service that people can't get anywhere else so they can continue to make money.

Explanation:

5 0

2 years ago

Consider a palletizer at a bottling plant that has a fi rst cost of $150,000, operating and maintenance costs of $17,500 per yea

pshichka [43]

Answer:

Annual equivalent cost of the investment = $30,603.43 per annum

Explanation:

Equivalent Annual cost is the Present Value of the total cost over the investment period divided by the appropriate annuity factor.

Step 1 

PV of cash flows

PV of first cost = 150,000

PV of annual maintenance cost of $17,500

= 17,500× (1-(1+0.08)^(-30))/0.08

= 197,011.21

PV of salvage value

$25,000 × (1+0.08)^(-30)

= 2,484.43

PV of net total cost

= 197,011.21 +150,000 - 2,484.43

= 344,526.78

Step 2

Determine the annuity factor for 30 years at 8%

(1-(1+0.08)^(-30))/0.08

=11.2577

Step 3

Equivalent annual cost

= 344,526.78 / 11.2577

 =$30,603.43

Annual equivalent cost of the investment = $30,603.43 per annum

6 0

3 years ago

Because strategic alliances rarely work as well as managers expect they will, why do companies continue to go through with them?

I am Lyosha [343]

Answer:

Strategic alliances rarely work as well as managers expect they will, yet companies continue to go through with them because Many owners, managers, and business analysts believe they are essential to survive in an industry.

Explanation:

In a business industry, It is required to always stay afloat otherwise the competition might drown the business. One of the ways to maintain your stake is through strategic alliances.

A strategic alliance is an arrangement between two companies that have decided to share resources to undertake a specific, mutually beneficial project. This agreement could help a company develop a more cost effective process. and achieve their objectives faster.

Strategic alliances rarely work as well as managers expect they will, yet companies continue to go through with them because business owners, managers, and business analysts believe they are essential to survive in an industry.

3 0

3 years ago

During a review of the meeting agenda, the store's marketing manager stated, "Today, we will focus on the consumer's belief

kondaur [170]

Answer:

The correct answer is: Self-Concept.

Explanation:

Self-Concept is the definition that individuals provide about themselves. In this description, people make subjective definitions of their physical features and their internal characteristics -personality. Also, individuals analyze their fears and weaknesses as well as their strengths and skills.

5 0

3 years ago