In <u>modifying the market</u>, Johnson and Johnson increased the consumption of the current product.
<h3>What is market modification?</h3>
Market mofification can be defined as the way in the a manufaturer target the market so as to attract potentials customers.
Most producer tend to make use of market modication as a marketing strategy so as to have more advantage over other competitors by reaching their competitors customers and to as well increase sales.
Therefore in <u>modifying the market</u>, Johnson and Johnson increased the consumption of the current product.
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Answer:
Explanation:
What is given:
The price of a new fabricating machine - 60
The price of a one-year-old machine - 51
The real interest rate is 10% per year
Marginal product of fabricating machines 165-2K (K - desired number machines)
If calculate the depreciation, (60-51)/51 = 15%
a) Find user cost of capital
User cost of capital is the sum of interest rate and depreciation cost multiplied by the price of new machine
= 60*(0.10+0.15) = 15 units
b) Determine the number of machines that will allow Missing Link to maximize its profit
165-2K=15
2K = 150
K = 75 machines
c)
Suppose that Missing Link must pay a tax equal to 40% of its gross revenue. What is the optimal number of machines for the company?
165-2K = 15/(1-0.4)
165-2K=14/0.6
165-2K=25
2K=140
K=70 macines
I believe the answer is false
Answer:
The correct answer is option a.
Explanation:
Apples and oranges are substitutes. An increase in the price of oranges will cause the demand for apples to increase. This is because people will prefer a cheaper substitute. This increase in the demand for apples will cause its demand curve to shift to the right.
The rightward shift in the demand curve will cause the equilibrium price to increase. But this change in price will not cause a change in demand. The change in price affects only the quantity demanded. Change in demand happens because of a change in other factors.
So, the given statement is not correct.
Answer:
Dividend yield=10.3%
Explanation:
Mv=Do(1+g)/(Ke-g)
MV=?
Do=2.27
g=2.1%
Ke=14.56%
Mv=2.27(1+2.1%)/(14.56%-2.1%)
MV=2.75/(12.46%)
MV=$22.1
Dividend yield=dividend per share/share price per share
Dividend yield=2.27/22.1
Dividend yield=10.3%
