Answer:
The correct answer is True.
Explanation:
The concept of “Disruptive Innovation” is relatively new, it was introduced by Clayton Christensen in 1997 in the book “The innovators dilemma” and refers to how a product or service that originally was born as something residual or as a simple application without Many followers or users quickly become the leading product or service in the market.
Disruption therefore occurs when emerging companies use new technologies or new business models and outperform the market that were the leaders until then.
There comes a time when users do not perceive as a differential advantage the type of evolutionary innovation that has been applied to a product, because they no longer need all those new features that the manufacturer has added to increase the profit and then the manufacturer becomes vulnerable and the evolution of that particular product ceases to be decisive, from that moment the price of that product can become decisive or another product will arrive with a new disruptive technology that will compete with the previous product and with the established technology. The most normal is that new products or services are easier to use and cheaper than products that were already on the market before and thus quickly capture the interest of consumers.
Answer: False
Explanation:
Shoes and socks are complementary goods. A complementary good is a good that the demand for the good increases when there is reduction in price of its complement. Complementary goods have a negative cross elasticity of demand i.e. the demand for the good rises when the price of the other good decreases. Assuming "A" is a complement to "B" , a rise in the price of "A" will have a negative effect on the demand for "B".
A reduction in the price of A leads to a positive outcome on the demand for B resulting in an outward shift of its demand curve. The quantity demanded of one good has a direct relationship on the quantity demanded of the other good as they are linked together. When the price of shoes increases, less of socks will be demanded and vice versa.
Answer:
The answer is: False
Explanation:
a product can sell if the price is higher or lower than its perceived value, take a market crash for example, many stocks are priced lower than its perceived value but some investors still buy it, or overpriced stocks, people that believe the stock will continue to go up would most likely buy it.
Answer: Option A
Explanation: In simple words, firms stock refers to the securities that a company has issued for gaining funds for operations. Prices of such securities are highly fluctuating and changes as per the prospects and existing economical conditions.
A rise in prices of the stock indicates that the returns for the stock will be going to increase in future and thus can happen only if the investors are expecting high profits in coming period.
An expansion of business opens new opportunities for the firm in market and increasing their profits proportionately leading to increase in stock prices.
Hence the correct option is A .
Answer:
The present value of the total amount that Brooke needs to have saved at the beginning of her son's first year of college is 31.959,13
Explanation:
Tuition Fees after inflation at
Year 18 = 15000* ( 1+6.5%)18 = 46599.8157
Year 19 = 15000* ( 1+6.5%)19 = 49628.8037
Year 20 = 15000* ( 1+6.5%)20 = 52854.6759
Year 21 = 15000* ( 1+6.5%)21 = 56290.2299
Since discount rate = 10%
So discount factor = 1+r = 1+10% = 1.1
Since fees are paid at beginning of period hence
Present Value of Fees = Fees (year 18)/1.1^18 +Fees at Year 19/1.1^19 +Fees at Year 20/1.1^20 + Fees at year 21/1.1^21 = 46599.8157/1.1^18 + 49628.8037/1.1^19 + 52854.6759/1,1^20 + 56290.2299^21 = 31959.13
