Answer: Price war
Explanation:
Price war is a market strategy in which a firm lowers it's price in comparison to the prices of other seller's in the market in order to gain absolute control of the Consumers patronage.
Price war it's more prevalent in a market where the sellers sell differentiated products either through branding or qualities.
The firm also employed advertising to drag home the superiority of their products and cheap prices.
Answer:
If Colin sells the stock for $675, he will have a short-term capital loss.
Explanation:
The cost of acquisition for the transferee will be stated as the fair market value as on the date of the transfer. if the shares are further sold at $675, then he shall be liable for the short-term capital loss.
Answer:
A) Price elasticity of demand = 8
B) PED is elastic
C) increase Danny's total revenue
Explanation:
we can calculate the price elasticity of demand using the formula:
PED = % change in quantity demanded / % change in price = [(300 - 100) / 100] / [(1.5 - 2) / 2] = (200 / 100) / (-0.5 / 2) = 2 / 0.25 = 8
if the PED is the same when the price decreases from $1 to $0.50, total revenue will :
- when price = $1.50, total revenue = $1.50 x 300 = $450
- when price = $1, total revenue = $1 x 1,100 = $1,100
*a 33.33% decrease in the price will cause a 266.6% increase (= 33.33% x 8) increase in the quantity demanded = 300 units + (300 x 266.6%) = 300 + 800 = 1,100 units
Answer:
ROA = 10%
Explanation:
Net Income October: $35,000
Assets Beginning October: $374,000
Assets Ending October: $326,000
Average Total Assets: ($374,000 + $326,000)/2= $350,000
Return on Assets (ROA) = Net Income for the Period / Average Total Assets for the Period
ROA: $35,000 / $350,000 = 10%