1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
vagabundo [1.1K]
4 years ago
11

Which of the following statements is FALSE? I. If the demand curves are different, it is more profitable to set a single price t

han different prices in markets. II. To maximize profit the firm should set a lower price in markets with more elastic demand. III. The presence of arbitrage makes it easy for a firm to price discriminate.
Business
1 answer:
Amanda [17]4 years ago
3 0

Answer:

1st & 3rd are False, 2nd is True .

Explanation:

Price Discrimination is pricing strategy - involving firms charging different prices from different customers, for same goods & services.

If demand curves of different markets (customer groups) are different it is profitable for firms to do price discrimination - i.e selling at different prices, rather than single price. This enables firm charging maximum of their paying capacity from each customer group. Hence 1st statement is False

Markets having customers with more elastic (more price sensitive) demand should be charged lower prices. Markets having customers with less elastic (less price sensitive) demand should be charged higher prices. So, 2nd statement is True.

Arbitrage is ability of buying goods from low priced markets, selling them in high priced markets. In presence of arbitrage, it is difficult for firms to discriminate. So, 3rd statement is False.

You might be interested in
Jackie owns and operates a website design business. To keep up with new technology, she spends $5,000 per year upgrading her com
stiks02 [169]

Answer:

a) Jackie's accounting profit of just zero, her revenue have to be $5000

b) The revenue would give Jackie an economic profit of just zero is $67,000

Explanation:

a)  $5,000 is the only cost that would have to add to the accounting profit calculation, which is the cost of upgrading her computer equipment every year as she runs the business out of a room in her home. For her accounting profit to be just equal to zero, her total revenue would have to be $5,000 to meet the requirement.

b)  Total revenue is $67,000, which includes the cost of equipment upgrade, the opportunity cost of not renting out the room, and the opportunity cost of Jackie’s time. All the costs that will add to the calculation for the economic profit of the company.  Jackie’s total revenue would have to be $67,000 to be just zero to meet the requirement.

7 0
4 years ago
How did IT help the company solve that problem?
Vikentia [17]

Answer:

IT helps society and determines how people interact with each other on a daily basisIt enables you to identify problems quicker and easier and helps you better analyze a complex problem. Technology students are especially encouraged to be innovative and to want to improve a current situation by encountering and solving problems, in an advanced way.

Explanation:

IT means Information Technology

#HOPE IT HELPED#

8 0
2 years ago
You have a franchised planet fitness gym. you began the business by paying your initial franchise fees and now you pay royalties
sdas [7]

You have a franchised planet fitness gym. you began the business by paying your initial franchise fees and now you pay royalties on a regular basis. this typical fee structure for a franchise is an Example Of an advantage For An Franchisor.

In the aforementioned scenario, we first pay the initial franchise fees and then we are required to pay royalties on a regular basis. As a result, it is obvious that the franchisor benefits financially and that overall growth also benefits because the franchisor does not assume any risk in the Planet Fitness Gym; instead, they merely provide their franchises and receive regular basis income.

Additionally, they lower market and gym startup costs, among other things. They also gain from the fact that opening a new gym raises the value of their brand in the marketplace, which helps the franchisor long-term and accelerates their overall growth.

A franchise is a kind of license that gives a franchisee access to a franchisor's confidential company information, operational procedures, and trade names, enabling the franchisee to conduct business under the franchisor's brand.

Learn more about franchise here

brainly.com/question/14034124

#SPJ4

3 0
2 years ago
You buy a share of The Ludwig Corporation stock for $21.70. You expect it to pay dividends of $1.00, $1.16, and $1.3456 in Years
Vesnalui [34]

Answer:

g = 16%

dividends yield:

Year 1 4.60%

Year 3: 4.78%

<u>expected rate of return: </u>

year 1 20.6%

year 3 20.78%

<u></u>

Explanation:

<u>grow rate:</u>

D1 /D0 = g

1.16/1.00 - 1 = 0.16

1.3456/1.16 - 1 = 0.16

the grow rate is 16%

<u>dividend yield:</u>

dividends/stock price =  dividend yield

1/21.7 = 0,0460 = 4.60%

1.3456/28.15 = 0,04780 = 4.78%

<u>expected rate of return: </u>

dividend yield + grow rate

4.60% + 16% = 20.6%

4.78% + 16% = 20.78%

8 0
3 years ago
Ecolap Inc. (ECL) recently paid a $1.26 dividend. The dividend is expected to grow at a 20.16 percent rate. At a current stock p
user100 [1]

Answer:

Expected return will be 22.65 %

Explanation:

We have given recently paid dividend = $1.26

Growth rate g = 20.16 %

Current stock price P_0=60.12 $

Next year dividend D_1=D_0(1+g)=1.26\times (1+0.2016)=1.26\times 1.2016=1.514

We have to find the expected return K_e

We know that current stock price is equal to P_0=\frac{D_1}{K_e-g}

60.72=\frac{1.514}{K_e-0.2016}

60.72 K_e - 12.241 = 1.514

60.72 K_e = 13.755

K_e = 0.2265 = 22.65 %

So expected return will be 22.65 %

8 0
4 years ago
Other questions:
  • In Munich, a bratwurst costs 5 euros; a hot dog cots $4 at Boston’s Fenway Park. At an exchange rate of $1.05/euro, what is the
    7·1 answer
  • Use Cases have been used in a number of process models listed below, except: A. Unified Process B. Data Flow Process Model C. IB
    14·1 answer
  • The physical production possibilities frontier depicts the various combinations of output that society can produce given:_____.
    12·1 answer
  • There are often fees associated with ATM transactions. True False
    10·1 answer
  • The excess return is the difference between the average return on a security and the average
    7·1 answer
  • Ed is a freelance writer who could work for a newspaper for a salary of $25,000 a year but instead works for himself for $41,000
    11·1 answer
  • Which of the following is true about duration and modified duration?
    12·1 answer
  • Identify the items from the following list that are likely to serve as source documents. (You may select more than one answer. S
    11·1 answer
  • If you could franchise a business - what business would you choose? (2-3 sentences)
    13·1 answer
  • How much overhead will be allocated during july to products with a direct labor of 5 hours?
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!