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spin [16.1K]
3 years ago
14

Consolidation among fuel providers serving airport facilities is viewed in the five forces model of competition as a(n): a. redu

ction of the airlines' ability to benefit from economies of scale. b. increase in switching costs because the airlines have no choice but to use jet fuel and other oil products. c. increase in the bargaining power of suppliers of a critical input. d. increase in the intensity of rivalry among airlines for scarce resources.
Business
1 answer:
Sonja [21]3 years ago
7 0

Answer:

c: increase in the bargaining power of suppliers of a critical input

Explanation:

Five Forces Framework by Porter's can be regarded as a method involving analysis of competition in a business. It's analysis dream through

industrial organization economics determine forces that are responsible for competitive intensity. The forces are;

✓potential new market entrants

✓number and power of a company's competitive rivals

✓ influence of suppliers, customers,on company's profitability.

It should be noted that Consolidation among fuel providers serving airport facilities is viewed in the five forces model of competition as a increase in the bargaining power of suppliers of a critical input.

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increasing returns to scale

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The biggest barrier for other firms are increasing returns to scale. This is because Eric and Chris have their company already established and also have their clientele all hooked up and using their service. This allows them to produce a much higher electrical output for their clients with a certain Income. Newer companies will need a much higher income just to be able to produce a similar electrical output in order to try and compete with Eric and Chris.

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Calculate the price of a two-year bond with a face value of $100, a coupon rate of 5%, and a yield-to-maturity of 5%.
aalyn [17]

The price of the bond is $100.

The bond's price is the present value of the face value plus the present value of the interest accrued throughout the bond's term.

The coupon interest rate is 5% of 100, that is $5 per year. The yield to maturity is also 5%. Because the coupon rate is equal to the yield, the bond's present value will only be its face value.

Present value = 5(P/A, 5%, 2) + 100(P/F, 5%, 2)

                      = 5×1.85941+ 100×0.90703

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Therefore, the price of the bond is $100.

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