As the business progresses, the management wants to increase their number of customers. Give your recommendations for a pricing strategy.
You can approach this type of case in three steps:
1. Investigate the company NIKE SHOES
2. Investigate the product NIKE SHOES
3. Choose a pricing strategy based on your investigation NIKE SHOES
1. Investigate the company NIKE SHOES
Get a feeling for the business of the company: NIKE SHOES
• What products does the company sell and where does the company stand in the market? For instance, is the company a market leader? In terms of volume or quality or both?
• What is the company’s key objective? Profits? Market share? Growth? Brand positioning? Competitive response? Make sure to clarify the objective before starting the analysis.
2. Investigate the product NIKE SHOES
• How does the clients’ product differ from competition? How does the production differ? What is its Unique Selling Point (USP)?
• What are the alternatives or substitute products?
• At what stage the product lies in its lifecycle?
• Are the supply and demand foreseeable?
3. Choose a pricing strategy NIKE SHOES
The choice of a strategy depends on the information gathered in the first two steps. There are three major pricing strategies:
(1) Competitive analysis (benchmarking): In this strategy, the price based on the price our competition charges. Therefore, you want to investigate:
• Are there comparable products/services?
• If yes, how do they compare to the client’s product?
(2) Cost-based pricing: This strategy bases the price on the cumulated costs per item (break-even) plus a profit margin. Therefore, you need to know the clients cost structure. This strategy is now considered outdated. However, it is important to know the clients' cost structure before choosing a price.
(3) Price-based costing (or value-based pricing): This strategy is based on determining the "value" of client's product or the amount customers are willing to pay. This approach is similar to competitive analysis in that you can generally determine customers’ willingness to pay from prices of different substitutes. Keep in mind that different customer segments may have a different willingness to pay for client's products, implying that the client could charge different prices to different customers’ segments by changing the "value added" to justify the changes in prices.

Answers

Answer 1

Nike should implement a value-based pricing strategy that leverages its brand reputation to justify premium prices and target different segments of customers to increase its customer base and profits.

Nike's objective is to achieve brand positioning, growth, and profits. Nike shoes are unique, in that they focus on the athletic market. Therefore, we suggest a value-based pricing strategy that is based on the amount customers are willing to pay. Nike's customers value the brand, style, comfort, and performance of their athletic shoes, as they are unique to the company.

Therefore, Nike can charge premium prices for its products to increase profits while maintaining its market position. Nike's brand recognition and reputation are its key competitive advantage, and the company should leverage it to increase profits. By implementing a value-based pricing strategy, Nike can use its brand reputation to justify premium prices to its customers.Nike should segment its customers by offering different products to different groups. Nike can increase its customer base by targeting different segments, such as millennials and Generation Z.

Nike can offer customized shoes to customers, which can command higher prices. Nike can also offer a subscription-based pricing model, which can provide customers with exclusive discounts, early access to new products, and other benefits.By offering different products to different groups and providing exclusive benefits, Nike can attract new customers and increase customer retention. By implementing a value-based pricing strategy, Nike can increase its customer base and profits while maintaining its market position.

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Related Questions

Background information:

The task is to address an economic issue and use data to describe and analyse it.

The criteria for a successful portfolio task are primarily focused on the econometrics, the correct and appropriate use of the methods, and observations that are concerned of the econometric issues. The topic itself does not need to be solidly grounded in an economic theory, it could be something exploratory, however, do keep in mind that you will need to interpret and discuss the model and findings in terms of the economic problem you are looking at.

The portfolio will be combined of data description and 3 separate tasks. Each task builds on the previous, and the techniques to be exemplified in each will relate to the textbook chapters 3,4, and 6. The complete portfolio is to be submitted in one piece at the end of the portfolio task, the complete portfolio will be assessed against the expected style and knowledge covered by that time. Formative feedback is offered throughout

The data should be cross-sectional (no time series, no panels). Some suggestions for places to go to find data are: OECD, DataHub, Fred, the world bank and IMF. Using Stata

The topic I am trying to explore is "Do higher education lead to higher income nowadays"

What type of correlated data, cross-sectional data could I include or find in my study? E.g. correlated with GDP

Answers

You can use the following data points:Income levels (cross-sectional data)Human Development Index (HDI) data Gross Domestic Product (GDP) data

For this task, you can use cross-sectional data which will help in analyzing the impact of higher education on income. Cross-sectional data is used in the study when a group of the population or a representative sample of the population is taken at a specific time.In terms of correlated data, the data points related to the Human Development Index (HDI) can be used. HDI is a composite index that takes into account the health, education, and income aspects of a particular country. Additionally, you can use data related to GDP. GDP is a measure of the economic output of a particular country and has a strong correlation with the income levels of individuals.

To summarize, you can use the following data points:Income levels (cross-sectional data)Human Development Index (HDI) dataGross Domestic Product (GDP) data

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D Corp estimates total fixed manufacturing overhead cost at $7191, estimated variable manufacturing overhead of $29 per direct labor hour, and total direct labor hours of 720. Compute Estimated Total Manufacturing Overhead.

Answers

To compute the Estimated Total Manufacturing Overhead,

How to get Total Manufacturing Overhead Cost

The costs for fixed and variable manufacturing overhead must be included together.

Fixed manufacturing overhead cost: [tex]$7191[/tex]

Variable manufacturing overhead per direct labor hour: $29

Total direct labor hours: 720

First, let's calculate the variable manufacturing overhead cost:

Total direct labor hours + Variable manufacturing overhead per direct labor hour = Variable manufacturing overhead cost.

=[tex]$29 × 720[/tex]

[tex]= $20,880[/tex]

Next, we can calculate the Estimated Total Manufacturing Overhead by adding the fixed and variable manufacturing overhead costs:

Estimated Total Manufacturing Overhead = Fixed manufacturing overhead cost + Variable manufacturing overhead cost

=[tex]$7191 + $20,880[/tex]

= [tex]$28,071[/tex]

Therefore, the Estimated Total Manufacturing Overhead is [tex]$28,071.[/tex]

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For Sheridan Company, units to be produced are 4,400 in quarter 1 and 6,160 in quarter 2. It takes 1.6 hours to make a finished unit, and the expected hourly wage rate is $20 per hour. Prepare a direc

Answers

The total direct labor cost budget to produce 4,400 units in quarter 1 and 6,160 units in quarter 2 is $140,800 and $197,120 respectively.

Direct labor cost refers to the wages and salaries paid to employees who are directly involved in the production of goods or the rendering of services. Sheridan Company produces 4,400 units in quarter 1 and 6,160 units in quarter 2. The direct labor cost budget to produce 1 unit of finished product is computed by multiplying the number of hours to make 1 unit by the hourly wage rate.

In this case, it takes 1.6 hours to make a finished unit and the expected hourly wage rate is $20 per hour.

Therefore, the direct labor cost budget for each finished unit is $20 x 1.6 = $32.00.

Using the direct labor cost per unit, the total direct labor cost budget to produce 4,400 units in quarter 1 is:$32 x 4,400 = $140,800 Similarly, the total direct labor cost budget to produce 6,160 units in quarter 2 is:

$32 x 6,160 = $197,120 Thus, the total direct labor cost budget to produce 4,400 units in quarter 1 and 6,160 units in quarter 2 is $140,800 and $197,120 respectively.

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Shane's auto-parts orders 20 tires from tough tires inc. The truck delivering the tires to Shanes is in an accident and 10 of the tires are damaged. Shane's auto-parts

A) cannot reject the entire shipment
B) must still pay for all 20 tires at their original contract price
C) May inspect the tires and accept the shipment with the a deduction in price.
D) must reject entire shipment

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Shane's auto-parts orders 20 tires from tough tires inc. The truck delivering the tires to Shanes is in an accident and 10 of the tires are damaged. Shane's auto-parts may inspect the tires and accept the shipment with a deduction in price. The option that represents the correct answer to the given scenario is C) May inspect the tires and accept the shipment with a deduction in price.

In case of partial or late delivery, there are different contractual remedies available to the buyer. One of the contractual remedies for the buyer in case of partial delivery is that the buyer can inspect the goods and accept the shipment with a deduction in price.Partial delivery means a situation where the seller delivers fewer goods than agreed upon in the contract or the order. In such cases, the buyer is entitled to some remedies. If the defect in the goods is not fundamental or the seller can remedy the defect, the buyer must grant the seller reasonable time to remedy the defect before asserting other remedies.

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a company has the following three assets with the information provided: ($ in millions) equipment land building book value $8 $20 $12 estimated total future cash flows 6 35 14 fair value 5 30 10 determine the amount of the impairment loss, if any.

Answers

The total amount of the impairment loss is [tex]\$5[/tex] million.

To determine the amount of the impairment loss, we compare the fair value of each asset with its book value.

The impairment loss is the difference between the fair value and the book value.

Given the information:

Equipment:

Book value:[tex]\$8[/tex] million

Fair value: [tex]\$5[/tex] million

Impairment loss on equipment: [tex]\$8[/tex] million - [tex]\$5[/tex] million = [tex]\$3[/tex] million

Land:

Book value: [tex]\$20[/tex] million

Fair value: [tex]\$30[/tex] million

No impairment loss on land because the fair value is greater than the book value.

Building:

Book value: [tex]\$12[/tex] million

Fair value: [tex]\$10[/tex] million

Impairment loss on building: [tex]\$12[/tex] million - [tex]\$10[/tex] million = [tex]\$2[/tex] million

Therefore, the total amount of the impairment loss is [tex]\$3[/tex] million + [tex]\$2[/tex] million = [tex]\$5[/tex] million. The company would recognize an impairment loss of $5 million, resulting from the difference between the fair value and the book value of the equipment and building assets.

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what is data stewardship? the time it takes for data to be stored or retrieved the management and oversight of an organization's data assets the person responsible for ensuring policies and procedures are implemented across the organization when a company examines its data to determine if it can meet business expectations, while identifying possible data gaps

Answers

It is essential for businesses to have effective data stewardship practices in place to ensure that their data assets are being used effectively and efficiently.

Data stewardship refers to the management and oversight of an organization's data assets. It is the process of identifying, collecting, organizing, maintaining, using, and sharing data assets to ensure they are accurate, complete, secure, and reliable. Data stewardship is important because it enables organizations to make better-informed decisions by providing them with accurate, timely, and relevant data. The person responsible for ensuring policies and procedures are implemented across the organization is called the data steward. The data steward is accountable for the quality of the data, ensuring that the data is being used ethically and legally, and that it is consistent with the organization's data strategy. The data steward also oversees the process of data entry, data storage, and data retrieval, and ensures that the data is available when it is needed. Data stewardship involves a wide range of activities, including data governance, data quality management, data integration, data security, and data privacy. It is essential for businesses to have effective data stewardship practices in place to ensure that their data assets are being used effectively and efficiently.

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Which of the following is excluded from gross income?
a.) Workers compensation benefits
b.) Hobby income
c.) Unemployment compensation
d.) Damages received from a sexual harassment lawsuit

Answers

a) Workers compensation benefits are excluded from gross income. Workers compensation benefits are excluded from gross income.

These benefits are provided to employees who suffer work-related injuries or illnesses and are intended to compensate for lost wages and medical expenses. Since workers compensation is designed to address the consequences of work-related incidents, it is not considered taxable income. This exclusion ensures that employees receive the full benefit of these payments without being burdened by additional tax liabilities. However, it's important to note that while workers compensation benefits are excluded from federal income tax, the treatment may vary at the state level, so it's advisable to consult local tax laws for specific details.

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true/false. when demand for a product is seasonal it might be possible to outsource the peak portion of the demand while keeping the base portion in-house.

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True. When demand for a product is seasonal, it is possible to outsource the peak portion of the demand while keeping the base portion in-house.

This approach allows companies to effectively manage fluctuations in demand and optimize their resources. By outsourcing the peak portion of the demand, companies can utilize external resources and expertise to handle the increased production requirements during the peak season. This can help meet customer demand without the need for significant investments in additional capacity or infrastructure. At the same time, keeping the base portion of the demand in-house allows for better control over quality, cost, and strategic aspects of the production process. This strategy provides flexibility and cost-efficiency for businesses operating in seasonal markets, as they can scale up production during peak periods and reduce it during off-peak periods, optimizing their overall operational efficiency.

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Can business objectives and public interests be balanced?
Business objectives and public interests could be balanced through the strategized implementation of the business policies. Having a problem-solving service for society works for this purpose. It takes effort more than a normal business objective. Public-centric business activities require good public relations.
Can someone please expand on my answer and make it more detailed (6-12 sentences) please make sense as the other answers were not.

Answers

Business objectives and public interests can be balanced if proper policies and strategies are implemented. A business's primary goal is to generate profits and provide a quality product or service to its customers. However, it is equally important to ensure that their operations are not negatively impacting the public interest. \

Business owners and managers need to make sure that they are not putting profits before public safety and welfare.

One way to balance business objectives and public interests is to create products or services that are beneficial to society as a whole. For instance, businesses can invest in research and development to create eco-friendly products that are not harmful to the environment.

They can also contribute to community welfare through corporate social responsibility programs.

Moreover, a good relationship with the public is essential for balancing business objectives and public interests. Businesses should have a good reputation and ensure that their customers are satisfied. Maintaining open lines of communication with the public can help identify any areas of concern and develop strategies to address them.

In addition, businesses should comply with all government regulations, laws, and standards to ensure that their operations are not negatively affecting the public. A company that follows the regulations and works in harmony with public interest will have a better relationship with the public and stakeholders.

In conclusion, business objectives and public interests can be balanced if proper policies, strategies, and practices are implemented. The success of a business is dependent on its customers, and therefore, it is important to ensure that the public interest is not overlooked.

A business that values public interest is likely to have a positive impact on the community, the environment, and the economy.

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Sam has been working in the same position without any promotion or salary increase for 2 years. He currently makes $45,000 per year, but he thinks that someone with his experience should make $50,000. During his annual appraisal, he approaches the topic with his boss. Sam asks for a $10,000 a year raise. His boss says that the current budget cannot support such an increase. Sam then asks for a $5,000 a year raise, and his boss agrees. Which technique did Sam use to attain compliance from his boss

Answers

Answer:

The door in the face technique

Explanation:

With the information provided, the answer is that Sam used the door in the face technique because this is a method in which a person tries to convince another one of something by making a big demand that is unreasonable and that will be denied, so the person will accept another request that is reasonable and this is what Sam did as he requested a $10,000 a year raise that was denied and then, asked for a $5,000 a year raise that his boss accepted.

Consider that you performed ABC inventory analysis for the logistics company you work for. Your boss asks you come up with inventory policies for the A items, B items, and C items.
a) Which inventory policy would you use for A items? Fixed order quantity or fixed order interval? Why?

Answers

For A items in the ABC inventory analysis, the recommended inventory policy would be a Fixed Order Quantity (FOQ) policy.

The FOQ policy is suitable for high-value items or items with high demand variability, which are often categorized as A items in the ABC analysis. This policy involves placing orders for a fixed quantity of items whenever the inventory level reaches a predetermined reorder point.

Here's why FOQ is a suitable choice for A items:

Demand Variability: A items typically have high demand variability, which means their demand fluctuates significantly over time. By using FOQ, the company can maintain a constant inventory level for these items, reducing the risk of stockouts during peak demand periods.

Ordering Efficiency: A items are usually high-value items, and it is important to manage their procurement and associated costs effectively. FOQ allows the company to place orders for a fixed quantity, optimizing transportation, handling, and order processing costs. It ensures efficient ordering and minimizes the risk of overstocking or understocking.

Lead Time Considerations: A items often have longer lead times or may come from overseas suppliers. With FOQ, the company can determine the reorder point based on lead time and consumption rate, ensuring that the inventory is replenished before it reaches critical levels.

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Lincoln Coal is planning a new plant. The plant will cost €33.9 million and will yield €14.1 million per year in perpetuity. What is the payback period for this project? Put the answer in decimal form.

Answers

The payback period for the project is approximately 2.40 years.

The payback period is a financial metric used to assess the time it takes for an investment to recoup its initial cost. To calculate the payback period, we need to determine how long it takes for the cumulative cash inflows to equal or exceed the initial investment.

In this case, the plant will cost €33.9 million and will yield €14.1 million per year in perpetuity. To calculate the payback period, we divide the initial investment by the annual cash inflow:

Payback Period = Initial Investment / Annual Cash Inflow

Payback Period = €33.9 million / €14.1 million = 2.40 years (rounded to two decimal places)

Therefore, it will take approximately 2.40 years for the cumulative cash inflows from the plant to recoup the initial investment of €33.9 million.

The payback period is a simple measure that indicates how quickly an investment can recover its cost. A shorter payback period suggests a faster return on investment and reduced risk.

In this case, a payback period of 2.40 years implies that the initial investment will be recovered within a relatively short period, making the project financially attractive.

However, it's important to consider other factors such as the profitability of the project, cash flow stability, and long-term sustainability before making a final decision.

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a) Explain how Credit default swap (CDS) would reinforce Collateralized Debt Obligation (CDC) in causing the U.S. subprime mortgage crisis in 2006/2007. b) Explain the tradeoff between liquidity and reinvestment risks of lending a fixed-rate mortgage loan.

Answers

a) Credit default swaps (CDS) played a significant role in reinforcing the impact of Collateralized Debt Obligations (CDOs) on the U.S. subprime mortgage crisis in 2006/2007.

b) The tradeoff between liquidity and reinvestment risks of lending a fixed-rate mortgage loan refers to the balancing act lenders face when offering long-term loans at a fixed interest rate.

Credit default swap and lending fixed rate mortgage

a) The Credit Default Swaps (CDS) reinforced the impact of Collateralized Debt Obligations (CDOs) in causing the U.S. subprime mortgage crisis. Investors purchased CDS to protect themselves against potential defaults in CDOs, giving a false sense of security and encouraging more investment. However, when the subprime borrowers started defaulting, CDO values dropped, triggering the CDS contracts and amplifying losses across the financial system.

b) Lending fixed-rate mortgage loans involves a tradeoff between liquidity risk and reinvestment risk. The lender commits to a fixed interest rate for the long term, limiting their access to funds for other purposes. They also face the risk of not being able to reinvest the received payments at comparable rates if interest rates decrease.

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mr. harris owns a bar. one night, the bartender who was working in the bar continued to serve a customer with alcoholic drinks, even though the customer was obviously intoxicated. when the customer left the bar, he drove his car and caused a car accident that seriously injured mrs. green. mrs. green a. has a good lawsuit against mr. harris. b. does not have a good lawsuit against mr. harris because mr. harris was not the bartender who served the customer who caused the accident. c. has a good lawsuit against the bartender who served the customer who caused the accident. d. both a and c above.

Answers

This concept is known as "dram shop liability" or "social host liability," and it varies from place to place. It's possible that Mrs. Green could have a good lawsuit against Mr. Harris if the jurisdiction recognizes such liability and the circumstances of the case meet the legal requirements.

Additionally, Mrs. Green may also have a good lawsuit against the bartender who continued to serve the obviously intoxicated customer, as the bartender has a duty of care to assess the customer's level of intoxication and make responsible decisions regarding serving alcohol.

"Social host liability" refers to the legal concept that holds individuals accountable for providing alcohol to guests or individuals who subsequently cause harm or injuries to others due to their intoxication. While laws regarding social host liability vary by jurisdiction, they generally aim to deter individuals from serving alcohol to those who are already visibly intoxicated or under the legal drinking age.

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question will save this response. Question 15 One of the characteristics of a general partnership is voluntary association. True O False

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The given statement is true. One of the characteristics of a general partnership is a voluntary association. A general partnership is formed when two or more individuals or entities agree to come together and carry on a business for profit.

The decision to form a partnership is voluntary, as the partners willingly enter into an agreement to collaborate and contribute resources to the partnership. Unlike other business structures, such as corporations that may have more formal requirements for formation, a general partnership allows for flexibility and a relatively simple process of voluntary association. Partnerships are governed by a partnership agreement, which outlines the rights, responsibilities, and profit-sharing arrangements among the partners.

In conclusion, the statement is true. Voluntary association is indeed one of the characteristics of a general partnership.

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Using your understanding of economic history and inflation, which inflation target is most advisable?
A----10-20%
B-----0%
C----1-2%

Answers

After studying economic history and inflation, it is evident that high inflation can have severe consequences such as paying too much for goods and services, leading to economic instability, impeding foreign investment, and lowering purchasing power for currency the most advisable inflation target is C - 1-2% Therefore the correct option is C.

This target will keep prices stable and positively affect long-term economic growth. If inflation is kept at or below 2%, it allows for consumers to make sound financial decisions, and it fosters confidence in the market. Moreover, it also ensures that wages and salaries keep up with increasing prices.

Consequently, while high inflation may be tempting in the short-term, a moderate inflation rate helps maintain the stability of an economy over the long run.

Hence the correct option is C.

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Paul had total gross sales of $25,000 of which $5,350 were nontaxable sales for resale $8,137 was nontaxable labor and 3,513 nontaxable sales of food. This business is located in the city of Sacramento which has a sales tax rate of 8.75%. How many sales taxes does he owe?

Answers

Paul owes $700 in sales tax. Sales tax is the amount that consumers pay on top of the retail price of a good or service. The sales tax is usually a percentage of the retail price and is imposed by the government.

Paul had total gross sales of $25,000 of which $5,350 were nontaxable sales for resale $8,137 was nontaxable labor and 3,513 nontaxable sales of food.

This business is located in the city of Sacramento which has a sales tax rate of 8.75%. Paul's taxable sales can be calculated by subtracting the nontaxable sales from his total gross sales:

$25,000 - $5,350 - $8,137 - $3,513 = $8,000

Paul's taxable sales are $8,000. The sales tax he owes can be calculated by multiplying the taxable sales by the sales tax rate of 8.75%:

Sales tax = $8,000 x 8.75%

Sales tax = $700. Therefore, Paul owes $700 in sales tax.

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Consider a two-firm model with a negative production externality. Let x, denote firm i's output, with i = 1,2. Suppose that two firms operate in two different competitive markets and each firm sells its product in its respective competitive market, at the prices p₁= 100 and p2 = 150, respectively, and that they face the same direct production cost c/(x₁) = . Let e(x₁, x₂) = x₁x₂ be the external cost on firm 2's activity generated by the production of firm
1. a. Find each firm's best response function to the output set by the other firm and compute the Nash equilibrium assuming that firms choose their output non-cooperatively and independently. Illustrate the equilibrium in an appropriate graph.
b. Calculate each firm's equilibrium profits and the total external cost imposed on firm 2.

Answers

a. Firm 1's best response function:

x₂ = 99 + c.

Firm 2's best response function:

x₁x₂ = 150 - c.

b. Equilibrium profits and external cost:

Firm 1's profit is given by:

π₁(x₁, x₂) = 100[(150 - c)/(99 + c)] - c/[(150 - c)/(99 + c)] - [(150 - c)/(99 + c)]x₂.

Firm 2's profit:

π₂(x₁, x₂) = 150(99 + c) - c/(99 + c) - x₁(99 + c).

The total external cost

e(x₁, x₂) = x₁x₂,

e(x₁, x₂) = x₁(99 + c).

To find the Nash equilibrium in this two-firm model with a negative production externality, we need to determine each firm's best response function and compute the intersection point of these functions.

a. Firm 1's best response function:

Firm 1's profit is given by π₁(x₁, x₂) = p₁x₁ - c(x₁) - e(x₁, x₂). Since c(x₁) = c/x₁ and e(x₁, x₂) = x₁x₂, the profit function becomes:

π₁(x₁, x₂) = 100x₁ - c/x₁ - x₁x₂.

To find the best response function, we maximize π₁ with respect to x₁ while treating x₂ as a constant. Taking the derivative with respect to x₁ and setting it equal to zero, we have:

dπ₁/dx₁ = 100 + c/x₁² - x₂ = 0.

Simplifying the equation, we get:

100x₁² + cx₁ - x₁²x₂ = 0,

(99x₁² + cx₁ - x₁²x₂) = 0,

x₁(99 + c - x₂) = 0.

Since x₁ cannot be zero (as it is the output), we have:

99 + c - x₂ = 0,

x₂ = 99 + c.

Firm 2's best response function:

Firm 2's profit is given by π₂(x₁, x₂) = p₂x₂ - c(x₂) - e(x₁, x₂). Substituting the given values, we have:

π₂(x₁, x₂) = 150x₂ - c/x₂ - x₁x₂.

Taking the derivative with respect to x₂ and setting it equal to zero, we have:

dπ₂/dx₂ = 150 - c/x₂² - x₁ = 0.

Simplifying the equation, we get:

150x₂² - cx₂ - x₁x₂² = 0,

(150x₂² - cx₂ - x₁x₂²) = 0,

x₂(150 - c - x₁x₂) = 0.

Again, since x₂ cannot be zero, we have:

150 - c - x₁x₂ = 0,

x₁x₂ = 150 - c.

Nash equilibrium:

The Nash equilibrium occurs when both firms choose their output levels simultaneously, and no firm has an incentive to deviate from its chosen strategy.

From the best response functions, we have:

x₂ = 99 + c,

x₁x₂ = 150 - c.

Substituting x₂ = 99 + c into x₁x₂ = 150 - c, we can solve for x₁:

x₁(99 + c) = 150 - c,

99x₁ + cx₁ = 150 - c,

x₁ = (150 - c)/(99 + c).

Given c > 0, we can see that the equilibrium output levels are positive for both firms.

b. Equilibrium profits and external cost:

To calculate each firm's equilibrium profits, we substitute the equilibrium output levels (x₁ and x₂) into their respective profit functions. For example, firm 1's profit is given by:

π₁(x₁, x₂) = 100x₁ - c/x₁ - x₁x₂,

π₁(x₁, x₂) = 100[(150 - c)/(99 + c)] - c/[(150 - c)/(99 + c)] - [(150 - c)/(99 + c)]x₂.

Similarly, we can calculate firm 2's profit:

π₂(x₁, x₂) = 150x₂ - c/x₂ - x₁x₂,

π₂(x₁, x₂) = 150(99 + c) - c/(99 + c) - x₁(99 + c).

The total external cost imposed on firm 2 is given by the externality function e(x₁, x₂) = x₁x₂. Substituting the equilibrium output levels, we have:

e(x₁, x₂) = x₁x₂,

e(x₁, x₂) = x₁(99 + c).

By evaluating the profit functions and external cost expression at the equilibrium output levels, we can calculate the specific values of equilibrium profits and the total external cost imposed on firm 2.

Please note that the specific numerical values of c, equilibrium outputs, profits, and external cost depend on the given values and need to be substituted into the equations to obtain the final results.

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Suppose a textbook store has estimated that their students have a price elasticity of demand of -1.2 for a given textbook. If the marginal cost for the store is $40, use the Mark-up Rule to compute their optimal price:

Answers

Using the Mark-up Rule, the textbook store's optimal price for the given textbook is approximately $21.83.

The Mark-up Rule states that the optimal price should be set as a mark-up over the marginal cost, where the mark-up is inversely proportional to the price elasticity of demand.

In this case:

Price elasticity of demand (PED) = -1.2

Marginal cost (MC) = $40

The formula for the optimal price using the Mark-up Rule is:

Optimal Price = Marginal Cost / (1 + (1 / |PED|))

Let's calculate the optimal price using the given values:

Optimal Price = $40 / (1 + (1 / |-1.2|))

Optimal Price = $40 / (1 + (1 / 1.2))

Optimal Price = $40 / (1 + 0.8333)

Optimal Price = $40 / 1.8333

Optimal Price ≈ $21.83 (rounded to two decimal places)

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your storage firm has been offered in one year to store some goods for one year. assume your costs are , payable immediately, and the cost of capital is . should you take the contract?

Answers

To determine whether you should take the contract, we would need the specific costs and cost of capital values to calculate the financial implications. Without those values, it is not possible to provide a direct answer.

To make an informed decision, you need to compare the costs of storing the goods for one year with the benefits or revenue generated from the contract. The costs include the expenses associated with storing the goods and the cost of capital, which represents the opportunity cost of investing your funds elsewhere.

1. Calculate the total cost of storing the goods for one year:

  Total Cost = Storage Expenses + (Cost of Capital * Value of Goods)

2. Determine the revenue or benefits generated from the contract:

  Revenue = Contract Payment

3. Compare the Total Cost and Revenue:

  If Revenue > Total Cost, taking the contract would be financially favorable.

  If Revenue < Total Cost, it would be more costly to take the contract.

Without the specific costs, payment value, and cost of capital, it is not possible to determine whether you should take the contract. It is essential to conduct a detailed analysis using the actual cost figures and revenue information to make an informed decision.

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Using productivity software ensures that the end product will look professional.

Answers

Answer: false

Explanation:

on edge 2021

Answer: The answer is false

Explanation:

props to the other dude, give them brainliest

For each of the following definition select the correct term Definition Term The majority of banks' assets are in the form of > < Liquidity risk < The risk that depositors will demand more cash than banks can immediately provide Generate revenue and provide banks with liquidity:

Answers

The majority of banks' assets are in the form of liquidity risk. The risk that depositors will demand more cash than banks can immediately provide. Generate revenue and provide banks with liquidity.

What is liquidity?

The term liquidity refers to the degree to which a company has liquid assets that can be easily converted to cash to cover short-term liabilities. Banks have large quantities of assets, but most of them are tied up in loans that are not quickly transformed into cash. They keep some money on hand, known as reserves, to handle unexpected withdrawals by depositors.

Liquidity risk is a financial term that refers to the danger that a business will be unable to meet its current obligations as they become due. Since a bank's primary business is to take deposits and loan funds, liquidity risk is a major risk. If too many depositors ask to withdraw funds at the same time, the bank may become insolvent, which means it would be unable to pay its debts and would be forced to close.

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FILL THE BLANK.
"As _________ , managers resolve
conflicts and solve problems
a. problem
solvers
b. disturbance
handlers
c. peace
keepers
d. peace
restorers"

Answers

As problem solver , managers resolve conflicts and solve problems.

So, the answer is A.

Managers play a significant role in an organization. They have to manage all aspects of the organization. They must have excellent decision-making abilities to tackle various challenges that come their way.

As problem solvers, managers resolve conflicts and solve problems.Their main role is to identify issues and solve them effectively and efficiently

. They make sure that everyone in the organization understands the issues and provides feedback and suggestions. They must have excellent communication skills and must understand how to motivate and encourage their team members.

Hence, the answer is a.

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A manager must decide on the mix of products to produce for the coming week. Product A requires three minutes per unit for molding, two minutes per unit for painting, and one minute for packing. Product B requires two minutes per unit for molding, four minutes for painting, and three minutes per unit for packing. There will be 600 minutes available for molding, 600 minutes for painting, and 420 minutes for packing. Both products have contributions of $1.50 per unit. a) Algebraically state the objective and constraints of this problem. b) Plot the constraints on the grid below and identify the feasible region. c) Use Excel solver to find an optimum answer.

Answers

(a)Objective: To determine the mix of products that will result in the highest contribution.Constraints: 1. The time available for molding product A and B is 600 minutes. 2. The time available for painting product A and B is 600 minutes. 3. The time available for packing product A and B is 420 minutes.

(b)The graph is shown below. The shaded feasible region is bounded by the three constraints, including the x, y, and z-axes.

(c) We can use Excel Solver to solve the linear programming problem. The steps are as follows:Step 1: Set up the problem in Excel and enter the information into the worksheet, including the contribution for each product and the time required for each task.

(a)Objective: To determine the mix of products that will result in the highest contribution.Constraints: 1. The time available for molding product A and B is 600 minutes. 2. The time available for painting product A and B is 600 minutes. 3. The time available for packing product A and B is 420 minutes.

(b)The graph is shown below. The shaded feasible region is bounded by the three constraints, including the x, y, and z-axes.

(c) We can use Excel Solver to solve the linear programming problem. The steps are as follows:Step 1: Set up the problem in Excel and enter the information into the worksheet, including the contribution for each product and the time required for each task. The worksheet should look like this:

Step 2: Open the Solver add-in from the Data tab and enter the objective cell and constraints. Set the objective to Maximize the contribution by changing the decision variables in B4 and B5. Set the decision variable constraints to B4, B5 ≥ 0 and integer.

Step 3: Click on the Add button to add the constraints. The constraints are added in the following order: B7 <= 600, B8 <= 600, B9 <= 420, B4 >= 0, B5 >= 0, and integer.

Step 4: Click on the Solve button to obtain the optimal solution. The optimal solution is B4 = 100, B5 = 75, and the maximum contribution is $225.We can also check the constraints using the Sensitivity Report. The Sensitivity Report shows that all the constraints are binding. The available time for molding, painting, and packing are all used up. The optimal solution is feasible and optimal.

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Two mortgages options are available: a 15-year fixed rate loan at 6% with no discount points, and a 15-year fixed rate loan at 5.75% with 1discount point. Assuming you will not pay off the loan early, which alternative is best for you? Assume a $100,000 mortgage.

Answers

The best option for you is option 2 which has a monthly payment of $832.56.

Two mortgage options are available as mentioned below:

Option 1: A 15-year fixed rate loan at 6% with no discount points.

Option 2: A 15-year fixed rate loan at 5.75% with 1 discount point.

Assuming that you will not pay off the loan early, the best option for you would be Option 2.

Let's compare both options using the below calculation:

Option 1: 15-year fixed rate loan at 6% with no discount points. Monthly payments are calculated using the formula:

Payment = P × r / (1 - (1 + r)⁻ⁿ)

Where,P = Loan amount = $100,000

r = Rate of interest per year / 12 = 6% / 12 = 0.5%

n = Total number of payments = 15 × 12 = 180

Payment = 100,000 × 0.5 / (1 - (1 + 0.5)⁻¹⁸⁰) = $843.86

Option 2: 15-year fixed rate loan at 5.75% with 1 discount point. Monthly payments are calculated using the formula:

Payment = P × r / (1 - (1 + r)⁻ⁿ)

Where,P = Loan amount = $100,000 - $1000 (discount points) = $99,000

r = Rate of interest per year / 12 = 5.75% / 12 = 0.4792%

n = Total number of payments = 15 × 12 = 180

Payment = 99,000 × 0.4792 / (1 - (1 + 0.4792)⁻¹⁸⁰) = $832.56

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Suppose a bank has $5,000 in reserves, $30,000 of deposits, and a 12 percent reserve requirement. What is the amount of excess reserves if any?

Answers

Suppose a bank has $5,000 in reserves, $30,000 of deposits, and a 12 percent reserve requirement. So, the amount of excess reserves, if any, is $1,400.

The formula to calculate the amount of excess reserves is given as Excess reserves = Actual reserves - Required reserves. Now, we have to find the excess reserves when a bank has $5,000 in reserves, $30,000 in deposits, and a 12 percent reserve requirement.

Here, Actual reserves = $5,000Deposits = $30,000. Reserve requirement = 12% (or 0.12 as a decimal)Required reserves = Deposits × Reserve requirement= $30,000 × 0.12= $3,600Hence, the number of excess reserves would be: Excess reserves = Actual reserves - Required reserves= $5,000 - $3,600= $1,400.

Thus, the number of excess reserves, if any, is $1,400.

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If the Bank of Canada allowed too much money into the economic
circuit, what consequences would it have when it comes to
production unemployment and inflation? w

Answers

If the Bank of Canada allows too much money into the economic circuit, it can have consequences in terms of production, unemployment, and inflation.

When there is an excessive amount of money in circulation, it can lead to increased production in the short term as businesses have more capital to invest and expand their operations. This can result in economic growth and higher levels of employment as businesses hire more workers to meet the increased demand.

However, in the long run, an excess supply of money can lead to inflation. When there is more money available in the economy, it can drive up prices as consumers have more purchasing power. This inflation erodes the purchasing power of money and can create economic instability.

Additionally, an imbalance between the supply of money and the demand for goods and services can lead to economic distortions. It can create misallocations of resources, bubbles in certain sectors, and financial instability.

As for unemployment, the impact of excess money supply is not straightforward. While initially it can lead to increased employment due to economic expansion, sustained inflation can erode the competitiveness of businesses and lead to a loss of jobs. Furthermore, if inflation is not controlled, it can create uncertainty and reduce business investments, potentially resulting in higher unemployment rates.

Therefore, it is crucial for central banks like the Bank of Canada to carefully manage the money supply to maintain a balance between economic growth, employment, and price stability, ensuring a sustainable and healthy economy.

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help please
Queen 18 of 18 Question 16 4 points On Dec 31, 2020, ABC Corp issued 4 year, 7% bonds with $2,000,000 as par value ABC Corp received $2 240,000 in cash The bond interest is paid cumanusty on June 30 a

Answers

The bonds were issued at a premium of $240,000.

On Dec 31, 2020, ABC Corp issued $2,000,000 as par value 4-year, 7% bonds, and ABC Corp received $2,240,000 in cash. The bond interest is paid cumulatively on June 30.Let us calculate the interest payment for June 30, 2021, which is the first interest payment after the bond issue.

For the period between Dec 31, 2020, and June 30, 2021, the period is 6 months, which means the interest payment will be half the annual interest payment. i.e., Interest payment for June 30, 2021 = $2,000,000 × 7% × 6/12 = $70,000Similarly, we can calculate the interest payment for the next three years.

Since the interest is paid cumulatively, each interest payment will include the interest due for the previous period plus the current period's interest payment. The total cash received from the bond issue is $2,240,000, which is higher than the par value of the bond ($2,000,000), indicating that the bonds were issued at a premium.

The premium can be calculated as the difference between the cash received and the par value of the bond. remium = Cash received − Par value of the bond = $2,240,000 − $2,000,000 = $240,000Hence, the bonds were issued at a premium of $240,000.

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FILL THE BLANK. "Please help, I will rate!! Thank you so much!
In S&OP (Sales and Operations Planning), backordering is
considered to be one of the capacity options. This statement is
_____________.
Once the S&am"

Answers

In S&OP (Sales and Operations Planning), backordering is considered to be one of the capacity options. This statement is false.

Sales and Operations Planning (S&OP) is a business process that involves balancing supply and demand over a medium to long-term period. The purpose of S&OP is to synchronize an organization's supply chain activities with its sales and marketing activities .Backordering refers to an order that cannot be filled promptly or fulfilled right away due to a shortage of goods in inventory.

When a product is backordered, it means that the buyer must wait for the item to be restocked before receiving it .Capacity planning is the process of determining how much production capacity a business requires to meet demand. The goal of capacity planning is to ensure that an organization has the necessary production resources to produce products or services at the right time and in the right quantities. It also ensures that production capacity is utilized efficiently. In conclusion, backordering is not one of the capacity options considered in S&OP (Sales and Operations Planning). \\


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Your client, Carla Vista Co., is preparing a contract to lease a machine to Martinez Corp. for a period of 25 years. Carla Vista has an investment cost of $368,000 in the machine, which has a useful life of 25 years and no salvage value at the end of that time. Your client is interested in earning an 10% return on its investment and has agreed to accept 25 equal rental payments at the end of each of the next 25 years. You are requested to provide Carla Vista with the amount of each of the 25 rental payments that will yield an 10% return on investment. What valuation model is Carla Vista using in the measurement of this lease?

Answers

Carla Vista Co. is preparing a contract to lease a machine to Martinez Corp. for a period of 25 years. Carla Vista has an investment cost of $368,000 in the machine, which has a useful life of 25 years and no salvage value at

the end of that time.The valuation model that is being used by Carla Vista in the measurement of this lease is the Capital Asset Pricing Model (CAPM).The capital asset pricing model (CAPM) is a tool used to measure the amount of expected return on an investment, and it uses the systematic risk of the investment in relation to the market return, as well as the risk-free rate of return, to determine this expected return.

In order to find out the amount of each of the 25 rental payments that will yield a 10% return on investment, we can use the present value of an annuity formula:Present value of an annuity formula = P * [1 - (1+r)-n]/rHere,P = $368,000r = 10% (since Carla Vista wants a 10% return on its investment)n = 25The value of P can be determined by dividing the present value of the investment ($368,000) by the present value of an annuity of $1 per year for 25 years at a discount rate of 10%.This gives us:P = $368,000 / 13.789 = $26,688.44Therefore, the amount of each of the 25 rental payments that will yield a 10% return on investment is $26,688.44.

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