elasticity of demand Inelastic demand curve will be less than 1 Inelastic demand curve will be less than 1 Elastic demand curve will be greater than 1 Elastic demand curve or Kinked demand curve will be greater than 1 Is there a presence of economic profits? No Yes Yes Yes Introduction: Printing is one of the most highly competitive industries in America today there are literally thousands of printers in the United States‚ they range from a small mom and pop operation to multinational
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production of gasoline‚ so it ’s an essential component. Secondly seasonality plays a part in the pricing of gas. This means at specific times during the year gas prices may differ for various reasons. Lastly futures market influence the price of gas by changing the price of oil itself. One of the biggest factors that effects the price of gasoline is the price of crude oil. Crude oil is "unprocessed" oil‚ that is extracted from the ground. This oil has not yet been refined‚ it ’s sold as is and is an important
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will rise as income rises. Price: spending decisions according to relative prices of g-and-s Demand inverse relationship with price Price of Substitutes: substitutes: Those used in place of other products eg. Generic brands As the price of one rises‚ a consumer may switch to a substitute as it is cheaper Price of Complements: complements: those used in conjunction with other g-and-s. car Car and petrol If one good rises‚ demand falls for that good and its complement
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problems‚ etc. Under this system‚ a shareholder believes that the executives are representing their best interests and doing everything they can to generate wealth and grow the firm. However‚ since the shareholders are not involved in every minor decision taken within the company‚ it gives the executives the edge to get away with ignoring shareholders’ interests or even fraud in extreme cases. Again this may take a number of years for the shareholders to identify. Also in this system‚ it is understood that
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IMPACT OF VALUE-ADDED TAXATION ON INDIAN ECONOMIC SYSTEM A tax is “a backbone of every country to meet their social obligations”. Value Added Tax (VAT) is a general consumption tax assessed on the value added to goods and services. It is a general tax that applies‚ in principle‚ to all commercial activities involving the production and distribution of goods and the provision of services. India has a well-developed tax structure with clearly demarcated authority between Central and
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As defined in the Bills of Exchange Ordinance Act No.25 of 1927‚ a Bill of Exchange is an unconditional order in writing‚ addressed by one person to another‚ signed by the person giving it‚ requiring the person to whom it is addressed to pay on demand‚ or at a fixed or determinable future time‚ a sum certain in money to or to the order of a specified person‚ or to bearer. There are five important parties of a bill of exchange; • Drawer: The drawer is the person who has issued the bill. In an
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Analyse the effects of changes in the exchange rate of the Australian dollar (against other currencies) on the Australian economy. Fluctuations in the exchange rate of the Australian dollar can have significant implications on the Australian economy. The exchange rate is the price of one currency in terms of another economy’s currency. Typically in the case of Australia‚ the Australian dollar is measured in terms of the US dollar. Changes in the exchange rate‚ whether the alteration is an appreciation
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services regulated? 4. Explain the concept of a “margin squeeze.” Outline DT’s argument for why its pricing practices do not constitute a margin squeeze. Outline the counter argument. 3. Conclusions 4. What is the current status of the firm(s). About Deutsche Telekom Deutsche Telekom is one of the world’s leading integrated telecommunications companies with more than 131 million mobile customers‚ 33 million fixed-network lines and over 17 million broadband lines (as of September 30‚ 2012)
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the projection of a firm’s cash receipts and disbursements over a future time period and is useful in determining the amount of short-term funds the firm will need to borrow. Financial Forecasting in the Telecom Industry: What Went Wrong? The 1990’s technology boom saw investments of over $750 billion in telecom company stocks and bonds. Many companies built fiber -optic data transmission networks based on the expectation that demand (i.e.‚ Internet traffic) would continue growing at extremely high
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Unless specified otherwise‚ all questions are worth 4 points. For multiple-choice questions‚ circle the best answer. 1. On April 15 a distraught employee‚ Bob Heavyfoot‚ backed his truck into your main plant and destroyed the plant and all of its contents. Fortunately‚ certain accounting records were kept in another building. Therefore‚ you know the following for the period January 1 to April 15‚ 2004: Revenues $500‚000 GM (% of revenues) 25% Direct materials purchased $170‚800 Direct
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