Answer:
Correct Answer:
E. fewer substitutes are available because consumers are more sensitive to prices.
Explanation:
<em>Market power is the ability of a company to successfully influence the pricing of its products or services in the overall marketplace. </em><em>This is common among most big corporations that produces consumer goods and offer services. </em>
This market power can be influenced by some factors. On the other-hand, the market power could be eroded leading to inability of the companies to influence prices do to the following:
1.<u> Number of companies in the market:</u> The lower the companies producing same product in the market, the higher the chances of the companies to be able to influence market prices. Otherwise, the market power will be eroded due to high number of companies.
2. <u>Elasticity of demand:</u> The persistent demand of a product by people helps to determine the market power of those companies. When this is lacking, the market power is eroded.
3. <u>Product differentiation:</u> The ability of a company to provide a unique product that offers good services in a market helps it to achieve market power. Lack of these erodes the market power.
Answer:
-11.8%
Explanation:
the key to answer this question is to remember that valuation of a bond depends basically of calculating the present value of a series of cash flows, so let´s think about a bond as if you were a lender so you will get interest by the money you lend (coupon) and at the end of n years you will get back the money you lend at the beginnin (principal), so applying math we have the bond value given by:
so in this particular case that one year later there are 29 years to maturity so we have:
so as we have a higher rate the investment has the next return:
This is known as family branding. Family branding or also
known as umbrella branding is a marketing strategy that uses a single brand
name in marketing the products. The family branding develops familiarity in the
market due to its name and logo. This helps their new product lines to get
distinguished in the market.
