Answer:
The correct answer is letter "A": number of firms in an industry.
Explanation:
A concentration ratio measures the number of competitors within the same industry. The lowest concentration ratio of a firm, it represents there are more market rivals. The highest the concentration ratio, the lower the number of competitors of the firm. The ratio is expressed in percentage terms. A firm having a 100% concentration ratio is a monopoly.
Answer:
This situation is an example of cross Price elasticity of Demand
Explanation:
If change in Price in Rental Company A doesn't necessitate change in prices in Rental companies B.C.D.E & F
Then the products A has on offer are not close substitutes to the rival companies
However where Rental company G lowers his price and it immediately triggers a Price reduction in Companies B to F, then obviously they offer similar products that are close substitutes and serve similar segment or channel of the Market Size. Thus failure to lower their Price will automatically see Customers rent cars more from Company G.
This situation is an example of cross Price elasticity of Demand
Answer:
2. indicates the quantities of the good that people will buy at various prices.
Explanation:
Demand refers to an individual's willingness to buy a product in consideration for a price.
The law of demand states that more of a good is demanded at a lesser price and vice versa. When price of a good changes with other factors affecting demand remaining constant, the quantity demanded for that good changes which is termed as movement along the demand curve.
A demand schedule for a good represents the tabular relationship which shows the quantity demanded by customers at different price levels.
A demand schedule when represented graphically creates a downward sloping demand curve depicting inverse relationship between price of a good and it's quantity demanded.
Answer:
0.7835 or 78.35%
Explanation:
Budgeted Sales = $90 per unit x 4620 units = $415,800
Break-Even Sales (Revenue) = 1000 units x $90 per unit = $90,000 units
Margin of safety = (Budgeted Sales - Break-Even Sales) ÷ Budgeted Sales
Margin of Safety = ($415,800 - $90,000) ÷ $415,800 = 0.7835 or 78.35%
