Answer:
A. Offer the product for free early on, and increase the price later.
Explanation:
Network effect occurs when the value of a product or service increases as more people use it.
For a company that believes its product will exhibit network effects and wants to get as many customers as possible to use the product,<u> it is best to offer the product for free to create a buzz around the product.</u>
This increases the chances of the people becoming aware of the product.
With time, <u>the company can increase the price of the product as people will be willing to pay for it because they consider it to be valuable.</u>
Answer:
Variable costing income statement
Explanation:
The Variable costing income statement only includes variable costs in the cost per unit product. Variable costs examples are raw materials, direct labor and other variable overheads.
The fixed manufacturing costs together with the non-manufacturing costs are treated as period costs and expensed in the period in which they are incurred.
Answer:
d. Selling Price
Explanation:
Break even point is calculated as 
Thus, break even point in units only in two cases,
- Fixed cost is reduced that is decreased,
- Contribution per unit is increased.
Now, here the options are
a. Increase in units sales volume is of no relevance as will not impact the fixed cost or contribution per unit.
b. Increase in fixed cost will result in higher break even point, as numerator in the fraction will increase.
c. Increase in unit variable cost will ultimately decrease the contribution thus, it is of no relevance.
d. Increase in selling price will increase the contribution per unit, that is the increase in denominator value in fraction, thus, break even units will decrease.
Correct option is
d. Selling Price
Answer:
Option B, positively skewed, is the right answer.
Explanation:
A positive-skewed distribution generally has a long right or positive tail. The positive-skew distributions are also known as the Right-skewed distribution. The main reason behind calling this a positive-skew is that this skew has a long tail in the positive direction on the number line.
In the given question, positively-skewed implies to one-year return risk-neutral distribution, as the delta put raises, the volatility decreases but not in the same proportion. In such a condition, the median will be less than the mean. Therefore, it will be Right-Skewed or Positively Skewed Distribution.
The answer to your question is D
