Answer:
The correct answer is Cost leadership.
Explanation:
Cost leadership are those strategies with which products similar to those of other companies are offered at a lower cost, that is, a certain company is considered to be the lowest cost producer in its industrial sector in order to achieve a differentiation.
At lower prices than its rivals, the leader's position translates into higher returns, however, standard products should not be sold ignoring the basis of product differentiation itself, since, if the customer does not perceive the product as comparable, The company must set very low prices in relation to the competition to achieve sales.
The sources to obtain this type of advantages are varied and depend on the structure of the industrial sector itself, including economies of scale, the use of proprietary technology, preferential access to the raw material, among others.
The cost leadership strategy aims to make a company the leader, rather than several companies struggling to reach that position, as this implies tough rivalry and competition that can have unfavorable consequences for all.
Answer:
<u>Monopolist competition</u>.
Explanation:
The market structure of monopolistic competition occurs when there are several companies offering similar products, which even though substitute products cannot be considered perfect substitutes. Monopolistic competition is characterized when in the market there are many sellers competing for a higher market position of some product or sector. This type of monopolistic competition is characterized by free entry to other companies, which makes it increasingly competitive in the pursuit of customer preference.
Answer:
<em>For the 2 year treasury securities it was 7%, and for a 3 year treasury securities it was 7.33%</em>
Explanation:
<em>From the example, </em>
<em>The real risk rate of interest is= 4%</em>
<em>The inflation expectation of this year=2%</em>
<em>Inflation expected for the next 2 years=4%</em>
<em>Maximum risk premium=0</em>
<em>Therefore</em>
Rt= r* + (Inflation/ year)
Rt2= 4 + (2 + 4 / 2) = 7%
<em>Rt3= 4 + (2 + 4 / 3) = 7.33% </em>
Answer:
Dividend
First year = $2.544
Second year = $3.053
Third year = $3.48
Fourth year = $3.97
Fifth year = $4.53
Sixth year =$5.16
Explanation:
As dividend is the share of earning distributed to the stockholders. The stockholders expects a good return from the company against their interst in the company. Company make a dividend policy and calculates the growth of dividend accordingly.
Dividend Paid = $2.12
Company expected 20% growth in next two years so,
Dividend First year = $2.12 x 120% = $2.544
Dividend Second year = $2.544 x 120% = $3.053
Dividend of following three years will grow at 14%
Dividend Third year = $3.053 x 114% = $3.48
Dividend Fourth year = $3.48 x 114% = $3.97
Dividend Fifth year = $3.97 x 114% = $4.53
After this it will grow 8% indefinitely
Dividend Sixth year = $4.53 x 114% = $5.16
In the long run, if inputs are increased by 10 percent and output increases by 20 percent, then diseconomies of scale are said to exist. It is because diseconomies of scale is likely to happen in the long run for a business with increasing inputs without decreasing the cost of production. It can happen when the increase in production is dependent on one part that needs to be completed but there is a delay on producing the parts. Another reason is that the cost of shipping may increase base on how far will be the distance and the weight of the product.
