Answer:
It is both of them.
Explanation:
Because the business needs to have the promotion for customers to come and buy the products. This can help by creating positive image for the enterprise in the minds of current and potential customers.
Answer:
The correct answer is option e.
Explanation:
In a perfectly competitive market, there are no limitations on the entry and exit of firms. If the existing firms have positive economic profits, this attracts other potential firms to join the market. In case of losses the firms incurring losses exit the market.
If Dirk’s Doughnuts is operating in a perfectly competitive market and is incurring economic losses, firms having losses will exit the market.
This will cause the market supply to decrease. As the supply curve shifts to the left, the price of the product will increase. This will cause profits to increase. The firms will operate at zero economic profits.
Answer:
The correct answer is option b.
Explanation:
Sunk costs refers to historical funds spent or incurred that cannot be recovered. Such costs are considered irrelevant during decision making which impacts on the business's future as they present no influence on present or future prospects.
<u>Example</u>
ABC investors decide to acquire land and develop residential houses at a location X. This decision is informed on the fact that the government had recently enacted a policy that led to an increase in demand for residential properties in that location. 6 months into construction of the residential houses, the government reviews and rescinds the policy. This leads to a sharp decline in property values in location X. ABC investors had already incurred 10 million dollars in the project. The 10 million dollars is considered sunk cost.
Answer:
It will return 1,936,000 dollars
from which 336,000 will be interest
Explanation:
We solve using the future value of a lump sum:
Principal 1,600,000.00
time 2.00
rate 0.10000
Amount 1,936,000.00
We calculate interst by the different os the amount borrow and the amount returned:
1,936,000 - 1,600,000 = 336,000
Answer: $8,009.3
Explanation:
Given that,
Deposits(P) = $100 today (Annuity amount)
Additional deposits = $100 end of each quarter for the next 13 years
nominal annual rate = 6% compounded annually
= 0.015
No. of deposits (n) = 53
Payments are made at end of quarter. So future Value of annuity formula will become applicable.
Future value of annuity due = 
= 
= 100 × 80.09
= $8,009.3
Therefore, she will have $8009.38 for her trip.
