Answer:
C. lower, higher
The reason for this is that when growth rates are lower investors will be willing to pay less for the stock is because low growth rate mean that the capital gains will be less as stock price is less likely to increase in the future and dividend growth is also less. Also the DDM model D*(1+G)/1-R shows that mathematically a lower growth rate would mean lower stock price
Also Higher required returns mean that the investor requires higher returns to buy the stock, because he may view the stock as risky and requires higher returns for the risk he is taking or he may have a higher opportunity cost (for eg interest rates may be high) with other investments. Mathematically the DDM model D*(1+G)/R-G shows us that a higher R would mean lower stock price.
Explanation:
I think it’s Option D
Society and it’s individuals have unlimited wants
Answer:
C. skimming
Explanation:
Based on the information provided it is safe to say that by setting the price at $12,700 Xerox used a skimming pricing strategy. This is a pricing strategy in which the firm/company places their new product in the market with the highest price they can give it and go slowly lowering the price as time goes on. This is mostly done with brand new, one of a kind products that do not have competition, like the portable fax machine that Xerox designed.
Answer:
C. the fair distribution of economic benefits
Explanation:
In economics, there is equity in resource distribution if resources are distributed in such a way as to ensure fairness and justice.
In a command economy, in order to ensure justice and fairness, the government is charged with the responsibility of redistributing economic resources. While in a capitalist economy, the price system does the work of income redistribution.
The question of equitable resource distribution can be achieved through pareto optimal allocation of resources, Vilfredo Pareto in his book “Manual of Political Economy”, 1906. A Pareto-optimal allocation of resources is achieved when it got to a point where it is impossible to make anyone better off without making someone else worse off.
