As a barrier to new entry, absolute cost advantages can be based on: <u>Control over low-cost inputs required for production, be they labor, materials, equipment, or management skills.</u>
<h3>
What is a Barrier to Entry ?</h3>
In theories of competition in economics, a barrier to entry, or an economic barrier to entry, is a fixed cost that must be incurred by a new entrant, regardless of production or sales activities, into a market that incumbents do not have or have not had to incur.
Barriers to entry, in economics, obstacles that make it difficult for a firm to enter a given market. They may arise naturally because of the characteristics of the market, or they may be artificially imposed by firms already operating in the market or by the government.
Barrier to entry is a high cost or other type of barrier that prevents a business startup from entering a market and competing with other businesses. Barriers to entry can include government regulations, the need for licenses, and having to compete with a large corporation as a small business startup.
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<span>The following series of payments has present value zero:
Contributions 10 20 100
___________ ________
Time (in years) 0 15 30
The present value at time 10 of the payments at time 15 and at time 30 is
â’20(1.03) to the power -10 + 100(1.03) to the power -40 = â’14.8818 + 30.6557
= 15.7738
This equals the present value at time 10 of the initial deposit, i.e.
10(1â’d/4) to the power -40 = 15.7738
So, d = 4.5318%</span>
The answer & explanation for this question is given in the attachment below.
Answer:
a. $200 decrease in net income.
Explanation:
When insurance is paid in advance, the entries required are;
Debit Prepaid Insurance
Credit Cash account
As time elapses and the insurance expires,
Debit Insurance expense
Credit Prepaid Insurance
Given that the Adjustments columns show expired insurance of $200, this will be recorded as an expense and will thus decrease the net income.
Prior sales and communication activities
To determine the current communication budget, rule-of-thumb methods use prior sales and communication activities. These methods are simple to implement, but they do have some limitations.
<h3>What is rule-of-thumb?</h3>
A rule-of-thumb is a heuristic guideline that gives simplified counsel or a fundamental rule-set for a certain subject or course of action. It is a broad principle that provides specific directions for completing or performing a task. Generally, rules of thumb emerge from practice and experience rather than scientific study or a theoretical underpinning.
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