Price leadership refers to the setting of price in a market by a dominant company which is observed by other in the same market. It is a form of cooperative pricing. The method of price leadership is often used by matured and established industries.
INCREASE IN RIVALRY AMONG COMPANIES AND DECREASE IN PRICE AND PROFITS can occur when the price leadership model break down.
Answer:
a) An increasing number of import quotas
b) Better high-speed rail lines
c) Improvements in telecommunications
d) International trade agreements such as the General Agreement on Tariffs and Trade (GATT)
Explanation:
All of the above applies as in order to increase the international trade.
As with the increase in quotas there is a pressure to increase the imports. Further when there is easy chain of supply even in the international market that is railway facility is smooth and that the telecommunications is also easy.
Further, with increased trade agreements there is provision of reduced tariffs and taxes and accordingly the international exchange is not complicated and is rather smooth.
Answer:
1,000 units
Explanation:
The break even point refers to the number of units of a product a company would sell such that the company's sales is equal to the total cost.
The total cost includes the fixed and variable costs. As such, at break even point, net profit is zero.
Let the number of units be G
25G = 10G + $15,000
15G = $15,000
G = 1000 units
The number of units that has to be produced and sold to break even is 1,000 units.
Answer: $2,400; $2,400
Explanation:
If a deposit of $6,000 is made, the reserve requirement is 20% so the bank will have to reserve this amount of:
= 6,000 * 20%
= $1,200
The bank will be left with:
= 6,000 - 1,200
= $4,800
The bank lends all of this out.
The public holds 50% of the currency so they will keep:
= 50% * 4,800
= $2,400
The rest - which is $2,400 - will be deposited as checkable deposits.
