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saw5 [17]
3 years ago
11

the authors cited statistical evidence that the price elasticity of demand for royal crown cola is -2.4, and the price elasticit

y of demand for coke is roughly -5.5. Which firm likely has stronger brand loyalty among customers that provides greater potential for monopoly power in the cola market
Business
1 answer:
Mekhanik [1.2K]3 years ago
8 0

Answer:

royal crown cola

Explanation:

Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.

Price elasticity of demand = percentage change in quantity demanded / percentage change in price  

 If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.  

Demand is inelastic if a small change in price has little or no effect on quantity demanded. The absolute value of elasticity would be less than one

Demand is unit elastic if a small change in price has an equal and proportionate effect on quantity demanded

both companies have an elastic demand because their coefficient of elasticities is greater than 1. Coke has a higher elasticity as a result, consumers would respond sharply to changes in price. this makes them enjoy less brand loyalty when compared with royal crown cola that has a lower elasticity of demand

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Assume there is a fixed exchange rate between the Canadian and U.S. dollar. The expected return and standard deviation of return
gregori [183]

Answer:

The expected return on the portfolio is 15.5%.

Explanation:

The expected return on portfolio formula requires multiplying every asset's weight in the portfolio by their respective expected return, then summing up all values together.

\text{Expected Return}=W_{A}\cdot R_{A}+W_{B}\cdot R_{B}

Here,

<em>W</em> = weight of the respective asset

<em>R</em> = expected return of the respective asset

It is provided that:

The expected return on the U.S. stock market is 18%.

The expected return on the Canadian  stock market is 13%.

The proportion of money invested in both stock markets is 50%.

Compute the expected return on the portfolio as follows:

\text{Expected Return}=W_{U}\cdot R_{U}+W_{C}\cdot R_{C}

                           =(0.50\times 0.18)+(0.50\times 0.13)\\=0.09+0.065\\=0.155

Thus, the expected return on the portfolio is 15.5%.

4 0
3 years ago
Use each of the key terms to complete the following sentences.
Degger [83]

Answer:

1. Negative reinforcement.

2. Social learning.

3. Behavior modification.

4. Extinction.

5. Classical conditioning.

Explanation:

Operant conditioning can be defined as an associative learning process which involves reinforcing the strength of a behavior. Thus, the outcome depends on the response in operant conditioning.

A reinforcement of a desired behavior involves the process of strengthening a positive behavior being exhibited by an individual through the use of stimulus.

Behavior modification is a therapeutic process that is focused on changing any undesirable negative behavior in an individual through the use of positive or negative consequence and biofeedback.

Behavior modification is typically based on operant conditioning principles, through negative or positive reinforcement, undesirable behaviors developed by an individual are mainly replaced with more desirable ones.

1. Negative reinforcement: every time the new machine is turned on it beeps loudly until the operator runs a full safety check on it. After the safety check is complete, the beeping stops.

2. Social learning: after watching a coworker get in trouble for deviating from the call center script while handling a customer, you decide to always say exactly what the company wants you to when speaking with customers.

3. Behavior modification: one of your subordinates is very inconsiderate and often leaves his empty coffee cups around the office when he is done rather than throwing them out. You start paying attention to when he throws out his trash and comment on how much this is appreciated and keeps the office looking nice.

4. Extinction: your colleague likes to tell inappropriate jokes before meetings and this makes you and the rest of your team uncomfortable. You and your teammates start ignoring the comments instead of smiling politely when the jokes are told to help eliminate the behavior.

5. Classical conditioning: Every time the HR representative comes to work dressed in a suit, layoff notices seem to be distributed. You and your colleagues start worrying whenever you see the HR representative dressed up for work.

Classical conditioning can be defined as a learning process which involves repeatedly pairing two stimuli: conditioned stimulus and unconditioned stimulus. In classical conditioning, a response which is at first brought forth by the second stimulus is later brought forth by the first stimulus alone.

Basically, it is a process through which a living organism learns to associate stimuli and as a result anticipating events.

5 0
3 years ago
A company purchased a weaving machine for $190,000. The machine has a useful life of 8 years and a residual value of $10,000. It
vodka [1.7K]

Answer:

second year depreciation 13,072

Explanation:

190,000 - 10,000 = 180,000 ammount subject to depreciation

then we do:

180,000/75,000 = 0.688 rate per bolt

to get the depreciation for the second year:

19,000 x rate = 19,000 x 180,000/75,000 =  $13,072.00

doing it in a single step avoid rounding errors.

4 0
4 years ago
Theo chocolate is ready to take their products abroad. Deborah, Theo chief marketing officer, has decided that the company needs
gayaneshka [121]

Answer: B) export strategy

Explanation:

3 0
4 years ago
Consider a coupon bond with a 5% coupon rate. It will mature in one year and its yield to maturity is 10%. If the 1-year interes
brilliants [131]

Answer:

$95.45

Explanation:

First, we need to calculate the price of the bond using both yields to maturity

Current Price

Use the following formula to calculate the price of the bond

P = ( C x PVAF ) + ( F x PVF )

Where

F =Face value = $1,000

C =Coupon Payment = $1,000 x 5% = $50

PVAF = ( 1 - ( 1 + 10% )^-1 ) / 10% = 0.90909091

PVF = 1 / ( 1 + 10% )^1 = 0.90909091

Placing values in the formula

P = ( $50 x 0.90909091 ) + ( $1,000 x 0.90909091 )

P = $954.55

After 1 Year

The Bond will be matured on this time

At the of Maturity the price of the bond will be equal to the face value

Price of the bond = $1,000

Now calculate the return on the bond

Return on the bond = Coupon Interest + Price appreciation

Where

Coupon Interest = $50

Price appreciation = $1,000 - $954.55 = $45.45

Placing values in the formula

Return on the bond = $50 + $45.45 = $95.45

3 0
3 years ago
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