Answer:
A. can choose the quantity of butter that it produces but not the price at which it sells its butter.
Explanation:
Taking into consideration the characteristic of the market explained in the exercise we would say that it is a Competitive Market.
One of the characteristics of a Perfect Competitive Market is that the price of the products is determined by the market, which means that no single seller can't change or influence the price on its own.
Hope it helps. Good luck.
Answer:
The closest answer is option A,$7649
Explanation:
The net present value of the investment is the present value of annual cost savings minus the initial cost of investment.
present of cash flow=cash flow/(1+r)^n
r is the discount rate of 12%
n is the year the cash flow relates to ,for instance year zero for the initial investment
NPV=-$54,000+$16,000/(1+12%)^1+$16,000/(1+12%)^2+$16,000/(1+12%)^3+$16,000/(1+12%)^4+($16,000+$7,000)/(1+12%)^5=$ 7,648.41
note that the project gives $7,000 in salvage value in year 5
Answer:
(b) purchase contract with no contingencies.
Answer:
Explanation:
Serving them with a unique (service/product usage) experience they will not receive form the competition. Create and make a difference for them and tell them about that.
E.g. - the idea of exclusivity air a personalized approach.
So you could calculate the time it would take to get to work. And the cost to get there like transportation and gasoline.
