Answer:
True.
Explanation:
If investors prefer firms that retain most of their earnings, then a firm that wants to maximize its stock price should set a low payout ratio.
And her in a case of a retired individual who lives on his or her investment income, then it would make sense for this person to prefer stocks with high payouts so he or she could receive cash without going to the trouble and expense of selling stocks. On the other hand, it would make sense for an individual who would just reinvest any dividends received to prefer a low-payout company because that would save him or her taxes and brokerage costs.
Answer:
The correct answer is letter "B": threat of new entrants is most likely low.
Explanation:
According to American Harvard professor Michael Porter (born in 1947), the Five Forces determine the competition in a market: <em>competition in the industry, the threat of new entrants into the market, bargaining power of suppliers, bargaining power of customers, </em>and <em>the threat of substitutes</em>.
The threat of new entrants is stronger if the product of a given market is undifferentiated and does not offer any competitive advantage for consumers. Besides, the less established a company is, the more likely new entrants will appear with the intention of taking over the market.
Therefore,<em> if the internet service provider of Megalopolis has high brand loyalty, economies of scale, and proprietary technology it implies the firm offers differential advantages to its clients and that the firm is well-established. New entrants' threat is low under these circumstances.</em>
Answer:
True
Explanation:
Fixed cost is the cost which cannot be avoided and is not dependent on level of activity thus, if there is high fixed cost than variable cost, in that case with decrease in level of output the loss will rise rapidly.
Where variable cost is more than fixed cost, then the cost will only increase or incur when there is production accordingly in case of low sale or low production the loss will also be less, as accordingly cost will be less.
Therefore, the statement in question is TRUE
In a pure competition market, all products that being sold in that market is EXACTLY the same. None is worse and none is better.
In that condition, Buyers will make their decision based on price ( since all product's quality is possible)
That's why producers should sell where p=MC, which mean they should sell in the lowest price possible to be able to compete with other competitors
Answer:
I am unsure of this answer
Explanation:
yes