According to our text (HBR, 2011), “Rivalry among existing competitors takes many familiar forums, including price discounting, new product introductions, advertising campaigns, and service improvements. High rivalry limits the profitability of an industry. The degree to which rivalry drives down an industry’s profit potential depends, first, on the intensity with which companies compete and, second, on the basis of which they compete” (p. 56-57). For this discussion forum, describe the intensity and the basis of rivalry in the industry in which you currently work? If you are not currently working, select an industry in which you are familiar. Please choose the restaurant indusrty
In: Operations Management
Using the data in the table below, estimate the demand function for cod.
|
Price, dollars per pound |
Quantity, thousand pounds per day |
|
1.90 |
1.5 |
|
1.35 |
2.2 |
|
1.25 |
4.4 |
|
1.20 |
5.9 |
|
0.95 |
6.5 |
|
0.85 |
7.0 |
|
0.73 |
8.8 |
Using the Excel trendline option to estimate a linear demand function, the linear demand function is
Qequals=12.53 minus 6.25 p12.53−6.25p.
Suppose the quantity in the first row of the table were
22
instead of 1.5.
The linear demand function would now be
Qequals=nothingminus−nothingp.
(Enter your responses rounded to two decimal places.)
In: Finance
You recently opened up a third-party customer service business in which companies outsource their customer service needs to your service. You invested $350,000 of capital to get the project off the ground, and are trying to determine the price you will charge for the service. You are seeking a 20% return on your investment and project that each service opportunity will carry with it a $5,000 cost to set up the account. If you project that you will work with 150 clients in the first year, what would be your pricing level for this service, using a targeted return approach?
Group of answer choices
$4,750.99
$6,689.99
$5,158.64
$6,354.58
$5,466.67
In: Finance
Phoenix Industries has pulled off a miraculous recovery. Four years ago it was near bankruptcy. Today, it announced a $1.50 per share dividend to be paid a year from now, the first dividend since the crisis. Analysts expect dividends to increase by 50 percent a year for 3 years. Dividends are expected to grow at a rate of 20 percent for another 2 years. After the sixth year, dividend growth is expected to settle down to a more moderate long-term growth rate of 8 percent. If the firm’s investors expect to earn a return of 20 percent on this stock, what must be its price?
In: Finance
In this scenario you will decide how the best method for entering the local market for a small business venture. The business will be creating 3D real estate listings for realtors your local area. The industry standard for 3D listings is dominated by a company called Matteport. First research the company Matteport and the service it provides. Then research how many Matteport service providers serve the area that you are in. What is there price points? What services do they offer? How would you attack the local market to create your own Matteport business? What would you do to defend your market share once you established yourself?
In: Economics
14, A residential property is acquired on the first day of the tax year for a purchase price of $300,000 plus acquisition costs of $15,000. The property is held for five years and sold on the last day of the tax year.
|
Tax Assessment |
Allocation Percentage |
Basis Allocation |
|
|
Land |
$ 60,000 |
30% |
$94,500 |
|
Improvements |
+ $140,000 |
70% |
$220,500 |
|
TOTAL Assessments |
$200,000 |
a. What is the cost-recovery deduction for each full year of acquisition?
b. What is the annual cost-recovery deduction for each full year of ownership?
c. What is the cost-recovery deduction for the year of disposition?
d. What is the total cost recovery taken during the recovery period?
In: Accounting
Suppose a business firm faces the following demand equation: Q = 40 – 0.5P. Marginal cost is MC = $20. Now suppose the firm decides to offer quantity discount by selling the product in bundles of 10 units.
a. What is the maximum price that the firm can charge for the first 10 units, for the second 10 units, and for the third 10 units? Now compute the revenue and cost of selling the three bundles (a total 30 units) .
b. Which pricing strategy (quantity discount or two-part) is more beneficial to the business? Why?
b. Which pricing strategy (quantity discount or two-part) is more beneficial to the business? Why?
In: Economics
This is a closed economy. Wages are unable to adjust in the short run. At first, the economy equilibrium is at Y=Original, and P=Pe (the expected price level when managers signed contracts for nominal wages. This is a horizontal short-run aggregate supply curve.
Consider this: The government increased spending (G) by 215.
A) How will Investment (I) change in the short-run?
B) How will Consumption (C) change in the short-run?
C) How will Output (Y) change in the short-run?
D)How will Y change in the long-run?
E) How Will C change in the long-run?
F) How will I change in the long-run?
In: Economics
In: Accounting
Bryant leased equipment that had a retail cash selling price of $620,000 and a useful life of five years with no residual value. The lessor paid $540,000 to acquire the equipment and used an implicit rate of 8% when calculating annual lease payments of $143,780 beginning January 1, the beginning of the lease. Lease payments will be made January 1 each year of the lease. Incremental costs of consummating the lease transaction incurred by the lessor were $16,000. What is the effect of the lease on the lessor's earnings during the first year (ignore taxes)? (Input decreases to income as negative amounts. Round Interest revenue to the nearest whole dollar.)
In: Accounting