Answer:
Nami's indifferent in 3 points that lie on the different curve, the three poits
that are mentions are -
1. Point C - 5 soda and 6 pizza slices
2. Pont E - 2 soda and 11 pizza slices
3. Point F - 14 soda and 3 pizza slices.
Do check the graph,
In which x-axis is for pizza slices and Y-axis is for soda counts. The all three points are represented as E -( 2, 11), C - (5, 6), and F - ( 14, 3).
Answer:
The uniform annual sales volume of the product for Nadine to be indifferent between the contracts is 7,772 units per year.
Explanation:
We have to compare the present-value of both plans to answer this question.
The Plan A has a present value of $30,000 as is an inmediate payment.
The Plan B has both an annual payment and a royalty, for a span of ten years.
The present value for Plan B is:
This can be simplified with a annuity factor for 10 years, with i=10%.
Then, the PV can be calculated as:
To be indifferent, both present values have to be equal:
The uniform annual sales volume of the product for Nadine to be indifferent between the contracts is 7,772 units per year.
Answer:
- An ordinary annuity of equal time earns less interest than an annuity due.
- When equal payments are made at the end of each period for a certain time period, they are treated as ordinary annuities.
- A perpetuity is a series of equal payments made at fixed intervals that continue infinitely and can be thought of as an infinite annuity.
Explanation:
With an Annuity due, the payments are made at the beginning of the period as opposed to an ordinary annuity which is paid at the end. This difference gives the Annuity due more time to accrue interest which leads it to earning more interest than an ordinary annuity of the same time.
As earlier mentioned, Ordinary annuities involve payments made at the end of each period. Annuities are always equal payments so the second statement holds true.
A Perpetuity is indeed an annuity because of the fixed payments characteristic that it has. It is therefore called a Perpetual/ Infinite Annuity.
Answer: C) the demand for coffee beans has increased
Explanation:
The law of supply states that: "all things being equal" the higher the price the higher the quantity supplied and the lower the price, the lower the quantity supplied.
Coffee growers sold just 200 million pounds of coffee when the price was $2 per pound but they increased their supply of coffee to 240 million pounds when the price per pound is $3.
This is an evidence to show that suppliers supply more products when price increase in order for them to make more profits.
Answer:
intensity of rivalry
Explanation:
You answer this question based on Porter's Five forces model. This model is used to analyze how stiff competition is in a given industry. It includes, threat of new entrants, bargaining power of suppliers, bargaining power of buyers, intensity of rivalry and threat of substitute goods. In this case, the leaders must address the intensity of rivalry because the market is already saturated with those three big companies. Therefore, your company must evaluate level of homogeneity of products that already exists, consumers' switching costs and brand loyalty to come up with a competitive strategy.
