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ArbitrLikvidat [17]
3 years ago
7

Your college is considering renting space in the student union to one or two commercial textbook stores. The rent the college ca

n charge per square foot of space depends on the profit​ (before rent) of the firms and hence on whether there is a monopoly or a duopoly. Which number of stores is better for the college in terms of​ rent? Which is better for​ students? ​ Why?
Business
1 answer:
poizon [28]3 years ago
5 0

Answer and explanation:

In both cases, in terms of rent and terms of students benefits, it will be better for the college to have two stores, In that way, the college makes sure the profits will be higher than just by having one store on campus and students are benefited because of the variety of books they could find in the two stores, not just in one.

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You are considering purchasing stock in Canyon Echo. You feel the company will increase its dividend at 3.9 percent indefinitely
yKpoI14uk [10]

Answer:

$48.2

Explanation:

The increase in dividend is 3.9%

= 3.9/100

= 0.039

The recently paid dividend is $3.62

The required return is 11.7%

= 11.7/100

= 0.117

Therefore the price per share of the company stock can be calculated as follows

= 3.62(1+0.039)/0.117-0.039

= 3.62(1.039)/0.078

= 3.761/0.078

= 48.2

Hence the price per share is $48.2

5 0
3 years ago
Elmer Sporting Goods is getting ready to produce a new line of golf clubs by investing $1.85 million. The investment will result
Tems11 [23]

Answer:

The payback period for this project is 2.43 years.

Explanation:

Elmer Sporting Goods is getting ready to produce a new line of golf clubs by investing $1.85 million.

The investment will result in additional cash flows of $525,000, $812,500, and 1,200,000 over the next three years.

The payback period is the time it takes to cover the investment to be covered by returns.

The investment cost remaining in the first year

= $1,850,000 - $525,000

= $1,325,000

The investment cost remaining in the second year

= $1,325,000 - $812,500

= $512,500

The third year payback

= \frac{\$ 512,500}{\$ 1,200,000}

= 0.427

The total payback period

= 2.43 years

6 0
2 years ago
Regional Economic Integration Threats (textbook) In a way, price differentials in the same economic integration would decline in
Svetach [21]

Answer:

TRUE

Explanation:

The integration of countries from the same region into a trade bloc has the purpose of free movement of goods and services among lower-priced member countries. This is because from integration, countries give up tariffs and customs barriers, allowing products to be marketed to everyone at a lower cost, aiming at the common good. If countries use the same currency, the benefits of integration are even greater as they eliminate currency conversion costs.An example of this type of integration is the European Union, where products move freely between member countries and are sold in the same currency, the euro.

6 0
2 years ago
How useful is GDP as an economic indicator? Answer in 4-6 sentences.
kherson [118]

Answer:

it represents the value of all goods and services produced over a specific time period within a country's borders.

Economists can use GDP to determine whether an economy is growing or experiencing a recession.

Investors can use GDP to make investments decisions

a bad economy means lower earnings and lower stock prices.

Explanation:

good luck

4 0
2 years ago
In 2007, Salesforce.com recognized an emerging market for platform as a service (PaaS) offerings and developed a new competency
Debora [2.8K]

Answer:

Option D. Building new core competencies to create and compete in markets of the future.

Explanation:

The market entrants when enter they don't have any share of market. To attain the market they bring with them uniqueness in their product which the rival companies cann't offer. For this reason, many existing companies try to add additional capabilities and competencies in its existing strengths. This uniqueness achieved gives a competitive advantage which means the correct option is option D.

7 0
2 years ago
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