Answer: Higher price of bicycles
Explanation: Higher steel prices will lead to a rise in the input cost of the producers of bicycles. As a result of this, the supply for bicycles will decline shifting the supply curve upward to the left. With no information given about change in the demand for bicycles, the demand curve will not change.
The net effect will be an increase in the price of bicycles.
Answer:
<em>c. Sustainable Competitive Advantage</em>
Explanation:
<em>Sustainable competitive advantages</em> are business assets, characteristics, or capabilities that are hard to replicate or achieve ; and provide a long-term superiority or favorable role over competitors.
Types of Sustainable Competitive Advantage include:
- <em>Reduced cost provider / Fair pricing
</em>
- <em>Market or Pricing Power
</em>
- <em>Strategic assets
</em>
- <em>Excellent management / employees
</em>
Answer:
A) Unless they have found other ways to cut expenses, some dairy farmers are no longer making a profit.
Explanation:
The situation for dairy farmers is as follows:
- were barely making any profit five years ago
- their costs have significantly increased
- their revenue has stayed the same
Then many of them should be working without making any profit at all or directly losing money.
The equation is simple: Revenue - total costs = profit
If revenue stayed the same and total costs increased, then profits decreased.
