Answer:
The correct answer is option c.
Explanation:
The price of Kate's breakfast special is $5.
The average variable cost is $3.95.
The average fixed cost is $1.25.
The average total cost
= $3.95 + $1.25
= $5.20
The price is not covering the average total cost but it is covering the average variable cost. The firm can continue operating in the short run but stop production in the long run.
Answer:
International.
Explanation:
International strategy is the process of increasing involvement of enterprises in international markets. More specifically, internationalisation comprises the planning and implementation of specific products and services that can easily be adapted to foreign markets and cultures.
Why is it important to look abroad?
• Desire to grow
• Increase in performance and recognition
• Unsolicited foreign orders
• Domestic market saturation or limitations The crisis presents challenges at home, but also opportunities abroad
• Potential to exploit a new technological advantage
• Different geographies have different needs and complement each other in presenting a wide range of gaps and opportunities to build market presences.
When overall interest rates fall (to 2%), the bond you already own (with 5% coupon rate) becomes more valuable to potential buyers, so its price will rise.
<h3>What is the relationship between interest rate and bond prices?</h3>
A bond is a debt instrument used by companies, individuals and the government to raise capital for its activities. Bondholders earn interest on their investments at predetermined regular intervals. When the bond matures, the bondholders would receive the amount that was invested.
There is an inverse relationship between the price of a bond and the interest rate. When interest rate rises, the price of bonds would fall. Conversely, when interest rate falls, the price of bonds will rise.
The reason for this inverse relationship is that when interest rate rises, the cost of borrowing becomes higher. This discourages people from buying bonds. As a result, the demand for bonds would fall and this would lead to a fall in the price of bonds. On the other hand, if interest rate falls, it becomes cheaper to borrow, the demand for bonds would rise and this would lead to an increase in the price of bonds.
To learn more about bonds, please check: brainly.com/question/15282698
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