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Answer:
In the country that promotes free-market economy is expected to start seeing firms arriving in this country and invest in those activities where this country has a comparative advantage.
Explanation:
This would lead to an efficient allocation of productive resources taking the economy to optimum production. The technology and tools will rapidly spread, and the industrialization process will be achieved. In the other country, investment and technology implementation is lead by the government allocating resources inefficiently and delaying industrialization.
Answer: $73.33
Explanation:
Dividend discount model can be used to calculate the value of the shares:
= Earnings paid out / (Cost of equity - growth rate)
Earnings to be paid out:
= 60% * 5,500,000
= $3,300,000
Value of shares:
= 3,300,000 / ( 9% - 6%)
= $110,000,000
Share price:
= Value of shares / Number of shares outstanding
= 110,000,000 / 1,500,000
= $73.33
Answer:
increase the price of our products or services.
Explanation:
When the price elasticity is less than 1 (inelastic), then an increase in the price of our products or services will result in a proportionally smaller decrease in the quantity demanded. Therefore, by increasing our prices, we can increase total revenue even if the quantity demanded decreases a little.