Answer: The price of the tied good is $27.
Explanation: The practice of tying is used to package products in such a way that the price of the tied (combined) good is closer to the buyers total willingness to pay for the two goods.
In this case, the total willingness to pay of Carnivore is $20+$7=$27
While, that of Leafygreens is $8+$12=$20
Thus, the producer will sell the combined good at $27 as it will give him more revenue.
Answer:
The correct answer is letter "B": a price increase results in higher profits; otherwise, the market is too narrow.
Explanation:
When firms are interested in acquisitions or mergers they have to determine if the target company is part of a relevant market. The term refers to the competitive conditions that offer the economy where the target company is located. The relevant market also considers the type of product or service the target company offers.
<em>Relevant markets optimal for mergers are those where an increase in prices generates more revenue for firms. If there are too many competitors offering undifferentiated products, the market will not allow organizations to profit from price increases. Those markets, then, are too narrow.</em>
What you described is called an executive order. The president can do this whenever he wants and if it's unconstitutional then the congress and the judiciary system, more specific the Supreme Court, can overthrow this and ban the executive order because it's considered to be unconstitutional or harmful. The president can use this for almost anything.
Answer:
An increase in your income causes you to buy more hamburgers.
Explanation:
An increase in your income causes you to buy more hamburgers.
Option "A" is correct because the increase in income exhibits an increase in purchasing power. Moreover, there is a positive relationship between the income the demand for normal goods which means if the income rises, then the demand rises. If the income falls, then demand for goods also falls. Therefore, option "a" is right.
Answer:
Small individual investors will benefit the most.
Explanation:
From the case given, it can be established that small individual investors represent the bulk of shareholders or business owners.
Also, from Smith Jones stock, we see that Pension and Mutual Fund constitute a bulk in the share position, and the direct intervention of shareholders motivate the management.
From the foregoing analysis, the shareholders holders have thus seek to incorporate corporate governance in the organization as a tool to reduce the agency problem between business owners and management. By this, management objectives and the shareholders could be aligned. The business owners singular objective is the profit maximization of their wealth, while the management is interested in their job security, status, mutual funds, pension and all. Since this objective of management has been duly taken care of by the shareholders, it is believer that this will boost the management morale and ultimately improve their performance. The result is thus increase in organisational performance with resultant growth in profit, share price and returns from the business. These are benefits to the individual investors.