4.) A firm contemplating an advertising campaign that promises to yield $120 one year from now for $100 spent now. Explain why the firm should not undertake the advertising campaign. Because of the Time Value of Money; the $120 might have a Present Value that is lower than the $100 spent now‚ therefore the campaign would have a negative Net Present Value and should not be undertaken. 5.) Determine which of two investment projects a manager should choose if the discount rate of the firm is 10
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In 1983/84‚ the average amount of household rubbish per person per year in England was 397 kilograms (Defra‚ 2007)‚ in the following years‚ this increased and by 2006/07‚ this figure had grown by 28 percent to 508 kilograms. This trend has been explained by the growing affluence of the general person and their greater amount of disposable income‚ which is then being spent on luxury products. As a result‚ more and more waste is being generated each year; this essay will explore the arguments around
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Cindy Buntinx Liqiong Gu Lore Jorissen Omar Hamdy LAFARGE-AGET 1. How can Lafarge-Aget differentiate its position in the eyes of customers? Lafarge-Aget can use segmentation to better understand its customers by stratifying all customers into two groups. The first group is tactical oriented and the second group is strategic oriented. For the tactical oriented customer‚ Aget should develop customer support teams‚ which will aid the customer starting with the project design and materials
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1. Discuss the characteristics of a perfectly competitive market? Give 2 examples of perfectly competitive markets? - Infinite buyers and sellers * Zero entry and exit barriers * Perfect factor mobility Perfect information * Zero transaction costs * Profit maximization * Homogeneous products * Non-increasing returns to scale Eg: Fish market and the vegetable or fruit vendors who sell at the same place‚ the bars in "Le Carré" (Liège‚ Belgium) or the
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Homework Problem Set #1 Delectation Delicatessen Problem a) Answer: Delectation wants to determine the number of Fish-n-Fowl and Surf-n-Turf sandwiches it should make each day to maximize the deli’s revenues in USD$. The decision variables are how many units of Fish-n-Fowl and Surf-n-Turf sandwiches Delectation should make each day. F= units of Fish-n-Fowl sandwiches Delectation should make each day. S= units of Surf-n-Turf sandwiches Delectation
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Analysis of Market Structures and Pricing Strategies The markets today are so complex and deal with so many variables it can be difficult to understand just exactly how they operate. In the following I will reveal the different kinds of market structures along with their different pricing strategies. Relating to these topics‚ I will focus on the importance of cost‚ competition and customer. 1. Analysis of different market Structures Different
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Marginal Analysis Economics & Global Business Applications‚ EGT 1‚ Task 1 A. Explanation of profit maximization The total revenue‚ TR‚ is the overall amount of all sources of a business’s income. It consists of total sales or profit‚ over a period of time. The TR can be calculated by taking the price and multiplying it by the quantity. For example‚ if a business decides to retail another product and the total revenue does increase‚ thus the marginal revenue would be greater than zero
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The Law of Diminishing Marginal Production Econ 31514 Shenika De Silva SS/2009/087 Content 1. Introduction 2. Production 3. Stages of Production 4. Production Function 5. Production Time Periods 6. Marginal productivity Theory i. Diminishing Marginal Productivity ii. Example 1 iii. Example 2 7. References Introduction Diminishing returns‚ also called law of diminishing returns or principle
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How to tackle alcohol abuse There are many market failures associated with alcohol such as increased anti-social behaviour‚ an increased cost on healthcare and reduced productivity. A minimum price is the best way to tackle market failures associated with alcohol. Market failure occurs when an economy fails to deliver and efficient allocation of resources; a minimum price is set above the equilibrium in order to raise the price of the good. A minimum price can act as a deterrent for the good and
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ALTERNATIVE MARKET STRUCTURES It is traditional to divide industries to categories according to the degree of competition that exists between the firms within the industry. There are four such categories. At one extreme is perfect competition‚ where there are many firms competing. Each firm is so small relative to the whole industry that it has no market power to influence price. It is a price taker. At the other extreme is monopoly‚ where there is just one firm in the industry‚ and hence no competition
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