Joint venture is when two companies ask to do part or full of their job.
Answer:
It suggests that they are not doing anything competitively different.
Explanation:
Network externalities if well harnessed should bring about an increase in end users satisfaction and value derived.
Multi housing costs, ordinarily, and when taken as a whole, should results to an overall minimization of the total costs. Economics of scales and other resources are centrally allocated here, and the effect should be a gain to the entity.
Level of differentiation across firm's offerings - products or services, signals the procedures an organization adopt to mark the uniqueness of their products or services. It shows how distant they are among the other varying sets.
Thus, from the case given, the four firms have the same share of the market - 25%. The implication is that as far as we are concerned, their level of activities and postures in the market is same and/or similar. This ultimately cuts across the network externalities, multi housing costs and the level of differentiation of firm's offerings. They are thus not competitively different.
Answer:
$13,316.54
Explanation:
Data provided in the question:
Inflation rate, i = 1.2% = 0.012
Deposits = $11,000
Interest rate, r = 6% = 0.06
Time, t = 4 years
since compounded monthly, number of periods n = 12
Now,
Future value of money with the interest
= Deposits × ![[1+ \frac{r}{n}]^{n.t}](https://tex.z-dn.net/?f=%5B1%2B%20%5Cfrac%7Br%7D%7Bn%7D%5D%5E%7Bn.t%7D)
= $11,000 × ![[1+ \frac{0.06}{12}]^{12\times4}](https://tex.z-dn.net/?f=%5B1%2B%20%5Cfrac%7B0.06%7D%7B12%7D%5D%5E%7B12%5Ctimes4%7D)
= $13,975.38
Considering the inflation,
Amount after 4 years = Future value × [1 - i ]ⁿ
= $13,975.38 × [1 - 0.012]⁴
= $13,316.54
Answer:
125,000 units
Explanation:
Given that,
Target profit = $300,000
Unit sales price = $12
Unit variable cost = $8
Total fixed costs = $200,000
Firstly, we need to find out the contribution margin per unit:
= Unit sales price - Unit variable cost
= $12 - $8
= $4
Now, units required to sold for earning the desired profit is calculated by dividing the sum of desired net income and total fixed costs by the contribution margin per unit. It is calculated as follows:
= (Target net income + Total fixed cost) ÷ Contribution margin per unit
= ($300,000 + $200,000) ÷ $4
= $500,000 ÷ $4
= 125,000 units
Therefore, this company must be sold 125,000 units to earn income of $300,000.
I would say this is an example of the succession in the capitalist system whereby in this case a family business encourages the son to study a related field so he can take over from the father when he retires to own and manage the business and usually the one who inherits the business works in it for a time to get familiar with it.
