The break even level of sales is <span>$1400</span> +$13*n
Answer:
Real cost of the tv= $1104
Explanation:
Giving the following information:
You can buy a TV now, and wait a year to pay (with no interest).
So, if you take home a $ 1,150 TV today, you will owe them $ 1,150 in one year.
Your bank is offering 4 % interest, you can lend the $1,150 to the bank and profit from the interest generated.
We need to use the following formula:
FV= PV*(1+i)^n
FV= Final value
PV= present value
i= interest rate
n= number of years
FV= 1150*(1.04)^1= $1196
Real cost of the tv= 1150- 46= $1104
Answer:
B. Increased competition
Explanation:
Free trade is an economic policy where there are no restrictions to imports or export of goods and services.
Before the free trade, Sapphira had market power. She could set the price of her products. She would probably set her prices high enough to maximise profits.
Due to free trade which introduces more products to the market, sapphira is no longer able to set her prices as high as she used to. If her price is too high, consumers would not purchase her products.
This is an example of increased competition.
I hope my answer helps you