Answer:
Rivalry among existing competitors is high when competition is fierce in a market and low when competitors are more complacent.
Explanation:
The market in this case is a general place or area where the business of trade can be conducted. The trade is usually for commercial purposes. In a market where there are many parties involved particular in the sale of the same goods or services, competition is likely to develop. Competition in the context of marketing is the activity of a company or business trying to gain an upper hand over the other party. Competition is always over the same products and services or over similar target audience. The main aims of competition in business is to achieve more sales or to gain a larger share of the market over the competition. Business competition is important due to various factors; improves service delivery, makes the business better, improves employee efficiency and also boosts innovation.
An existing competition in a market can be defined as either high or low depending on the level of aggression by the competitors in that market. A fierce market is one where the competitors are very aggressive, this means that the rivalry among existing competitors is high. On the other hand, when the competitors are complacent, the rivalry in the market is low
Answer:
$3,673.015 per year
Explanation:
Initial depreciation = cost - salvage value /number of years
= (66,300 -2500)/7
= 9114.28 per year
Accumulated depreciation for 3 years= 9114.28× 3 = 27,342.85
Revised depreciation = (66,300 -27,342.85714 -5,900)/9
=$3,673.015 per year
Answer: Please refer to Explanation
Explanation:
The magazine The Economist publishes an article indicating that analysts expect the value of Canadian dollars to rise relative to Ethiopian birr.
-The Ethiopian Birr will DEPRECIATE in relation to the Canadian Dollar because the article will lead to a rise in demand for Canadian dollars and a drop in Demand for the Birr.
The central bank in Ethiopia announces that it is going to raise interest rates on government bonds.
-Ethiopian Birr will APPRECIATE relative to the CAD as the demand for the Birr will increase due to the attractiveness of it's bonds.
Based on a World Bank report, the inflation rate in Ethiopia is going to be 0% next year, while the inflation rate in Canada is going to be 10%.
- The Birr will APPRECIATE relative to the CAD because goods will be more expensive in Canada. This causes the demand for the Birr to rise as it is the preferred currency.
The price of a specific basket of goods in Ethiopia is roughly 1.9 times higher than an identical basket of goods in Canada, even after adjusting for the exchange rate.
- The Birr will DEPRECIATE relative to the CAD as a higher basket price indicates that the price is higher in Ethiopia than in Canada which will reduce the demand for the Birr increase that of the CAD.
Answer: Average profit
Explanation:
Both average profit and profit margin show the percentage of profit that a company can expect to receive from $1 worth of sales. It is calculated by dividing the profits by the sales figure,
If sales are $10 and profits are $3, the profit margin would be:
= 3/10
= 30%
This means that for every $1 of sales, there is $0.30 in profit. This method shows us whether the total profit will be negative or positive by showing us individual product profit.
