Grande communications offers a lower price to customers who subscribe to Grande television, telephone, and internet services all at once. This is an example of price bundling.
Price bundling is a pricing strategy where companies package separate products together and offer them at a single typically lower price in order for higher sales and profit.
Price bundling is very common these days as it is seen that these days there are various companies who sell two products together at a lower price than the sum of the individual price of each product. Thus, by this they sell two products and make their sales.
Hence, Grande communications offers a lower price to customers whoever subscribes to Grande television, telephone, and internet services all at once.
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They are used to measure productivity
Answer:
Covered Interest Arbitrage
Explanation:
The Covered Interest Arbitrage is a term that refers to arbitrage trading approach in which a stockholder take the chance to gain advantage from the disparity in interest rate between two nations.
The trading strategy helps in its verifiability, quantifiability, consistency, and objectivity
It is designed to profit the investor from the differences in interest rates between two countries, when buying and selling foreign currencies.
When a market is small or there's a high level of competition, there's a possibility that the earnings on covered interest rate arbitrage won't yield much.
Answer:
C) Around $56,100
Explanation:
total maintenance costs should be:
<u>year</u> <u>cost</u>
1 $0
2 $0
3 $0
4 $3,500
5 $5,250
6 $7,000
7 $8,750
8 $10,500
9 $12,250
10 $14,000
11 $15,750
12 $17,500
to determine the present value of the 12 year annuity we can use an excel spreadsheet and the present value function:
=PV (6%,select the 12 cells) = $56,099.39 ≈ $56,100
Answer:
Monopolistic Competition
Explanation:
In Monopolistic Competition, there are many buyers and sellers. Firms do not have full control over prices, but take the market prices as a benchmark, and can charge a slightly lower or higher price depending on the product they offer.
Products are not perfect substitutes, they have some grade of differentiaton, and buyers have access to information, and can easily compare products and suppliers.
This type of market it's typical of crowded, competitive economic sectors such as retail, including clothing stores, restaurants, and shoe stores.
