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White raven [17]
3 years ago
9

Suppose ABC Dairy is one firm competing in the perfectly competitive market for milk. Now suppose ABC Dairy decides to produce o

nly organic milk. Which of the following best describes the effects of this change in the market?
a. ABC Dairy will still be a price taker because it is still operating in a perfectly competitive market.
b. ABC Dairy will have a monopoly on organic milk due to very high entry barriers.
c. The other dairy firms will produce with excess capacity, but ABC Dairy will be efficient.
d. ABC Dairy is differentiating its product and will likely be able to charge a higher price than before.
Business
1 answer:
Sedbober [7]3 years ago
8 0

Answer:

The correct option is D.

Explanation:

In a perfectly competitive market, there are many sellers selling the same product and in this market, firms have easy entry and exit, products are identical in nature from one seller to another and also the sellers are price taker.

So, in this case, ABC firm compete in this market for milk but later on they changed their production to produce organic milk and this change would be described by the effect that ABC firm is differentiating its product from market and they will have a chance to charge high price than earlier.

Therefore, the correct option is D.

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I want to take a survey of students at my university to find out what proportion like the new bus service on campus. how many wi
laiz [17]

Answer:

N = 3,120 (Approx)

Explanation:

Given:

z- score for 99% confidence = 2.58

Proportion (P) = 75% = 75 / 100 = 0.75

E = 2% = 0.02

Q = 1 - P = 1 - 0.75 = 0.25

Computation:

N = (Z/E)^2 \times pq

N = (2.58/0.02)^2 \times (0.75 \ times 0.25)

N = (129)^2 \times (0.1875)

N = (16,641) \times (0.1875)

N = 3,120.1875

Therefore, N = 3,120 (Approx).

5 0
3 years ago
If the American company Stryker builds and operates a new factory in France, a. it engages in foreign direct investment. By itse
Iteru [2.4K]

Answer:

(D) - It engages in Foreign Direct Investment, which by itself raises US net capital outflow

Explanation:

Foreign Direct Investments (FDIs) are investments in physical assets, infrastructures, etc and other long-term assets made in a foreign country. They differ from Foreign Portfolio Investments (FPIs) which are investments in stocks, bonds, treasury securities and other listed securities which can be sold easily in financial markets. For instance, when a US-based corporation invests in the stocks or bonds of a French company, this is FPI. Whereas, when the US-based corporation establishes a company in France by investing as plants and machinery, this is FDI.

FDIs requires cash commitment for investing in the foreign nation. However, because the assets created as a result of these investments are owned by the originating country, it increases the volume of assets the country has abroad leading to an increase in net capital outflow. Net Capital Outflow is the volume of capital investment made by a nation in other countries, less the capital investment made by other countries into the nation.

Therefore, when Stryker builds and operate a new factory in France, it engages in Foreign Direct Investment. By itself this action raises US net capital outflow.

4 0
4 years ago
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erastovalidia [21]
No, because consumers equate quality of batteries with higher prices. With batteries consumers believe there is a price- quality relationship, it does not make the consumers, price insensitive. Also, there is no indication Energizer set a target price and adjusted cost and quality components to maintain wholesaler and retailer margins. 
6 0
3 years ago
How does financial manager involes operating decision<br>​
daser333 [38]

Answer:

they use financial statements and other information prepared by accountants to make financial decision and are focused on the cash flows, the inflows and outflows of cash.

Explanation:

7 0
3 years ago
A music download costs $1.00 for one song. $1.00 is an example of _____ .
Inga [223]
A retail price. Retail price meaning: <span>The entire </span>price<span> charged for a product sold to a person.</span>

6 0
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