Answer:
false
Explanation:
False. The location-specific advantages argument associated with John Dunning does help explain the direction of FDI. However, the location-specific advantages argument does not explain why firms prefer FDI to licensing or to exporting.
quizlet
<span>Contingency tables are the most common way of showing both marginal and conditional distributions. Reading them is quite easy and intuitive, and often the graphical part of the analysis is left at that. Taking a step further, one can translate the table into a chart: it is advised to use a bar chart to effectively show the data</span>
We are given
P = $15,000
i = 8% per year
n = 9 months
First we convert the interest to per month
i = 8%/12 = 0.67%
And we solve for the future worth of the note
F = P ( 1 + i)^n
F = 15000 ( 1 + 0.0067)^9
F = $15929.12
The value of the note is $15929.12<span />
Elastic.
This is
the formula for elasticity:
Elasticity
= (Quantity variation/Quantity)/(Price variation/Price)
Inelastic
demand is the one in which a variation in price doesn’t lead to an important
variation in the quantity bought by consumers. So, in the formula, numerator is
much smaller than denominator, so the fraction is lower than 1. That happens
with necessary goods (typically, food).
On the
contrary, elastic demand is the one in which a variation in the price leads to
an important variation in the quantity bought by consumers, and that means the
fraction is higher than 1. So if I sell the product at a lower price, I will
sell much more product.
Considering the formula:
R = P*Q, when demand is elastic,
I will
have much more sold quantity with just a little lower price, which leads to a higher
revenue.
Answer: C. Firm A reduces the price to $7 causing Firm B to reduce its price to $4.50.
Explanation:
Since firm A is impatient to earn more profits and Firm B wishes to last in the business for the long-run, then Firm A will reduce the price to $7 causing Firm B to reduce its price to $4.50.
Since Firm A reduces the price to $7, this will lead to an increase in the quantity demanded of the product and therefore the firm can earn more profit. On the other hand, firm B will reduce its price to a point where the price meets the marginal cost which is $4.50.
