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nasty-shy [4]
3 years ago
6

In a statement to Gillette’s shareholders, its CEO indicated, "Despite several new product launches, Gillette’s advertising-to-s

ales declined dramatically . . . to 7.5 percent last year. Gillette’s advertising spending, in fact, is one of the lowest in our peer group of consumer product companies." If the elasticity of demand for Gillette’s consumer products is similar to other firms in its peer group (which averages -4.5), what is Gillette’s advertising elasticity?
Business
1 answer:
castortr0y [4]3 years ago
7 0

Answer: ‭0.34

Explanation:

Gillette’s advertising elasticity tells of the impact that Gillette's advertising has on its demand.

Given the details in the question, the following formula can be used;

Advertising elasticity/ -Gillette elasticity of demand = Gillette’s advertising-to-sales

Advertising elasticity/ -(-4.5) = 7.5%

Advertising elasticity = 7.5% * 4.5

= ‭0.34

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9. Each of the following is a business expense, except payment for *
Nadya [2.5K]

Answer:

equipment

Explanation:

Equipment refers to tools or machinery used in the production of other goods and services for sale. They are not consumables, nor are they meant for sale. Equipment is treated as assets of the business.

Payments for assets is not an expense.  Since the equipment will be used in many financial periods, its cost cannot be assigned to the purchase year alone. Payment for the equipment is treated as a capital or asset acquisition.

3 0
3 years ago
Which of these is a characteristic shared by both oligopolies and monopolies?a. Normal profits in the long runb. Significant bar
sveta [45]

Answer:

The characteristics which is shared among both monopolies and oligopolies is that they have significant barriers to the entry into the market.

Explanation:

Oligopoly market is the market structure which have  a small number of firms, and could not have significant influence. The market have the barriers for entering into the market.

Monopoly market is the one which have a market structure having a single seller, selling the unique product, faces no competition and no substitute available with customers. In this market, there is also barriers for entering into the market.

8 0
3 years ago
Which TWO of the following best describe the use and characteristics of discounted cash flow methodology?
konstantin123 [22]

Answer:

The correct answer is option 1 and 4.

Explanation:

Discounted Cash Flow Methodology attempts to assign present values to an investment's expected future cash flows. It is an effective way to evaluate and compare various investment options to one another. As fixed-income securities have fixed interest payments, DCF is an effective way to compare fixed-income securities. It is also used to calculate the current market values of these securities.

The project with positive NPV is accepted or higher NPV means the project is more lucrative.

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3 years ago
When a company strives to achieve lower overall costs than rivals and appeals to a broad spectrum of customers, it pursues Multi
dybincka [34]

Answer:

an overall low-cost provider strategy.

Explanation:

Competitive advantage can be defined as conditions, factors or circumstances that allow a business firm (organization) to manufacture finished goods or services better and perhaps cheaper than other (rival) firms in the same industry. Thus, it's responsible for putting a business firm in a superior or more favorable position than rival firms.

This ultimately implies that, a competitive advantage has a significant impact on a business because it increases its level of sales, revenue generation and profit margin when compared to rival firms in the same industry.

A overall low-cost provider strategy is a strategic business model that's typically focused on a broad customer base (segment) while still making profit by providing low-cost goods and services to the customers, as well as underpricing rivals in the same industry.

This ultimately implies that, it is a business strategy that involves lowering the price of goods and services in order to stimulate demand, generate more revenue, draw more customers and gain a competitive advantage over competitors or rivals in the same industry.

Hence, when a company strives to achieve lower overall costs than its rivals in the same industry and appeals to a broad spectrum of customers, it is considered to pursue an overall low-cost provider strategy.

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