Answer:
A perfectly elastic demand curve means that the firm can sell as much output as it chooses at the current price.
Explanation:
The perfectly elastic demand implies that the demand curve is horizontal line parallel to the X axis. The price is fixed at a point and the firm can sell any amount of output at this point. The demand is infinite at the given price level. If the firm makes any changes in this price level, the demand will become zero.
Answer:
Explanation:
MTV and cable channels can have higher operating profits largely because they have lower costs and can reach very specific demographic groups quite easily. MTV and Nickleodeon are typically not paying high and uncertain prices for their shows. They air mainly reruns of proven shows or relatively low-cost reality shows. This means that they have more cost certainty.
In addition, they have very clear target audiences where the networks do not. MTV is clearly aimed at teens and young adults while Nickleodeon is a kids' channel. Advertisers are attracted to channels with such clear demographics.
As far as Porter's five forces go, the most likely reason for the higher cable profits would have to do with brand equity and the lower propensity among buyers to substitute.
These would mean that cable channels have a lower threat of new competition and a lower threat of substitute products. It is true that it is easy for a new cable channel to be created, but it is much harder for such a channel to get the name recognition and brand equity that MTV and Nickleodeon have.
No. They are not the same.
Pls mark brainliest.
If the federal gasoline tax increases to $1 per gallon, the gasoline price rises, demand for bicycles shifts rightward.
Option B
<u>Explanation:</u>
If the price of gasoline increases, then probably there will be a decrease in the consumption of the same as a result of which the demand for the substitute product, bicycle increases.
Demand curve a graphical representation of changes in the product or service demanded along with the changes in the cost or price of the service or product. Increase in the demand for a product, is generally represented by the rightward shift in the demand curve.
