Answer:
The correct answer is option b.
Explanation:
In an open economy, domestic firms have to face competition from the foreign producers. If firms face losses in the long run, because of import competition, these firms will leave the industry.
As the number of domestic firms get reduced, the demand curve of the other firms will become flatter. This happens because of the foreign firms that bring in a large variety of goods in the domestic market.
Answer:
Total fixed costs= $150
Explanation:
Giving the following information:
Parker's only overhead is a storage unit for the inventory that costs $125 a month and a $25 monthly fee for website hosting.
<u>A cost is categorized as fixed because it does not vary with production (in relevant ranges).</u>
In this case, the only two cost that is fixed is the storage and website hosting.
Total fixed costs= 125 + 25= $150
Answer:
The correct answer is option D.
Explanation:
A purely domestic firm can face competition from an MNC. An MNC has the advantage of more than one sources of inputs and more than one product market. But the domestic firm also possesses an advantage of having a thorough knowledge of the local market as they have operated there unlike MNCs.
The domestic even though operating in the domestic territories may still face foreign exchange risk. This is because their competitors may be operating internationally.
Answer: pricing
Explanation:
Pricing is the determination of an exchange price acceptable to both the buyer and the seller of a product.
When a seller is determining the price of a product, she considers cost of production, projected revenue, price of competitors, market condition and regulation.
A buyer would consider the quality of the product ,economic conditions and utility when deciding on the price to acquire a product.
The different types of pricing strategies are -
1. Penetration pricing - when prices are set very low to attract customers and to gain access into a market.
2. Premium pricing- when prices are set very high so that the product would appeal to certain consumers.
Answer:
franchises
Explanation:
A franchise is a business model where the franchisee acquires the right to a business logo, name, and model from the franchisor. The franchisor is usually an established, successful, and popular business. The franchisee gets a license to operate an independent outlet that is similar in all aspects to the franchisor's business.
The franchise business takes advantage of the franchisor brand name popularity to acquire customers and thereby increase its chances to succeed. Mcdonald and Starbucks are examples of popular franchise businesses. This business model applies to all industries. Restaurants, Gas stations, Pharmaceuticals, and other retail outlets ave embraced the franchising business model.
