Answer:
D. Razor -Razor -blade
Explanation:
A razor - razor blade business model is a type of business model that involves selling a particular product at a low price in increase sales of complementary goods. It refers to the sales of a core product of a firm at a low price with the expectation that consumer will purchase the more expensive dependent products.
True Vibgyor selling its e-book readers at a $15 and anticipating that the firm will make its profit when the customers buy or download books online is an example of a Razor - razor blade business model.
Hence the answer is D. Razor -Razor -blade
Answer:
According to the basic DCF stock valuation model, the value an investor should assign to a share of stock is dependent on the length of time he or she plans to hold the stock.
A. True
Explanation:
The DCF (Discounted Cash Flow) method of stock valuation is based on the assumption of the time-value of money. This approach considers that the cash flow that is received today is much more than the same amount of cash flow received any other time in the future. And the time of the future receipt or payment affects the amount of the cash flow, with decreasing consequences based on increasing time into the future.
Answer:
Consumer surplus decreases by $180.
Explanation:
Current consumer surplus = $25 * 90 unit = $2250
If the price of goods drop to $23 then the new consumer surplus will be
$23 * 90 units = $2070
The change in consumer surplus is $180 .
