Response:
Option A
Clarification:
Complete Query
A university surveys its students, finding that a 10 percent increase in tuition would result in a 12 percent drop in enrollment. If the aim is to boost overall revenue, the university should ________ tuition because the demand for education here is ________.
A) not increase; elastic B) increase; inelastic C) not increase; inelastic D) increase; elastic
Solution -
The demand for college education is elastic, meaning changes in tuition significantly influence demand. Raising tuition leads to a drop in enrollment, indicating that demand is not stable based solely on quality. Hence, the demand will not rise with a tuition increase, showing elasticity in demand.
Complete question:
A firm that struggles in the market due to lacking valuable competitive resources that its competitors possess
A. ought to think about selling off assets and investing in promising new sectors.
B. could potentially cultivate substitute resources that achieve the same goals as the competitive assets owned by rivals.
C. can still leverage competitive strength in the market by featuring products or services that niche buyers desire.
D. is essentially restricted from offensive tactics and has to depend on defensive measures.
E. should eliminate strategy components that have caused its market disadvantages.
Answer:
Could potentially cultivate substitute resources that achieve the same goals as the competitive assets owned by rivals.
Explanation:
The marketplace is undergoing shifts. Altering the product mix is often reasonable. Adjusting your product marketing strategy is a proactive step forward in a dynamic market, engaging both consumers and employees. However, introducing new products can be risky, diverting focus from tried and true market practices.
Substituting products can offer clients a variety of options tailored to their needs. Conversely, companies may incur increased costs when innovating and marketing their best products.
The recorded amount for sales revenue at the initiation of the lease is $25,711.08.
To determine the present value of future cash flows from the lease, we apply the present value formula in excel as follows:
pv(rate,nper,pmt,fv)
where, rate is 7%, the rate embedded in the lease; nper denotes 3 years; pmt is the annual payment of $7,000; and fv remains unknown.
Using the formula, we find:
pv(6%,3,7000,0)=$18,711.08. Adding the $7,000 at commencement gives us:
$18,711.08 + $7,000 = $25,711.08.
