suppose the federal reserve decided to buy $20 billion worth of government securities in the open market. how will the lending capacity of the banking system be affected if the reserve requirement is 10 percent?
Answers
The lending capacity of the banking system be affected if the reserve requirement is 10 percent is 2 billion.
How will the lending capacity of the banking?If the required percentage of reserves is 10%, the money supply reserve multiplier is 10 and the required amount of reserves should be 10 times the money supply. If a bank's reserve requirement is 10%, it can lend out 90% of its deposits.The amount of reserves, or cash deposits, that a bank must have on hand and refrain from lending out, is known as the reserve ratio. Less money may be lent by a bank the higher the reserve requirement, but this extra cash also helps the bank avoid failure and strengthens its balance sheet.Suppose the federal reserve decided to buy $20 billion worth of government securities in the open market.
$20 billion *10% = 2 billion.
The lending capacity of the banking system be affected if the reserve requirement is 10 percent is 2 billion.
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Related Questions
The Harris Company purchased equipment for $15,000 on December 1. It is estimated that annual depreciation on the computer will be $3,000. If financial statements are to be prepared on December 31, the company should make the following adjusting entry
Answers
The entry will include Depreciation Expenses for $1,750 and Accumulated Depreciation for $1,750
Here, we are to first calculate the Depreciation expenses while observing that the date runs for 1 month (From December 2 - December 31).
The depreciation expense will equals Annual depreciation of computer * 1/12
Depreciation expense = $3,000 * 1/12
Depreciation expense = $250
The adjusting entry will entails:
Date Account titles and explanation Debit Credit
31 Dec Depreciation expenses $250
Accumulated depreciation $250
(Entry to record depreciation expenses)
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Chloe enjoys her math classes, and she would like to find a career that will allow her to continue to use her math skills. Which career would be a good fit for her? A. accountant B. purchasing agent C. commercial carpenter D. human resources manager
Answers
Answer:
Just give
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How far does the price of Telecom stock have to fall for you to get a margin call if the maintenance margin is 30%?
Answers
The price of Telecom stock has to fall $35.71 or lower to get a margin call if the maintenance margin is 30%
Current market price = $50 per share
Amount to be invested = $5000
Additional amount borrowed = $5000
Interest Rate = 8%
a.
200 shares of Telecom are bought at the rate of $50 for $10,000.
Increase in value = By 10%, or $1,000.
Calculating interest paid -
= 0.08 x 5,000
= $400
Calculating the rate of return -
= Price increase – Interest paid/borrowed investment
= $1000 - $400 / $5000
= 0.12 or 12%
b.
The value of the 200 shares is = 200P.
Therefore equity will be = 200P – $5,000.
Calculating the margin call -
= 200P - $5000 / 200P
= 0.30
when P = $35.71 or lower
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Complete Question:
You are bullish on Telecom stock. The current market price is $50 per share, and you have $5,000 of your own to invest. You borrow an additional $5,000 from your broker at an interest rate of 8% per year and invest $10,000 in the stock.
a. What will be your rate of return if the price of Telecom stock goes up by 10% during the next year? (Ignore the expected dividend.)
b. How far does the price of Telecom stock have to fall for you to get a margin call if the maintenance margin is 30%? Assume the price fall happens immediately.
The Wall Street Journal reports that many patients with medical devices such as pacemakers can be put at risk by computer malware and viruses. If you had a pacemaker, and you reached out to add computer experts to your network of friends and acquaintances, you would be increasing your ----------- network.
a. communication
b. trust
c. advice
Answers
By adding computer experts to your network of friends and acquaintances, you would be increasing your advice network. Hence, Option (C) is correct.
An advice network consists of individuals who possess specialized knowledge, skills, and expertise in a particular area and can provide valuable guidance and recommendations.
In the context of having a pacemaker, computer experts can offer advice on protecting medical devices from computer malware and viruses.
Pacemakers are susceptible to potential security vulnerabilities that can put patients at risk. Computer experts can share their expertise on topics such as cybersecurity, data protection, and safe computing practices.
They can educate you about the potential risks associated with pacemakers and provide recommendations on how to mitigate those risks.
This advice can include measures such as regularly updating the device software, implementing security protocols, and understanding potential attack vectors.
Thus, by leveraging the knowledge and advice of computer experts, you can enhance your understanding and take proactive steps to safeguard your pacemaker and overall health.
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Which financial advice should Sami follow to get a car loan with a lower interest rate?
A. Make a larger down payment.
B. Get a variable rate loan.
C. Make a smaller down payment.
D. Buy a more expensive car.
Answers
Answer:
A
Explanation: Although a larger down payment won't guarantee a lower interest rate it might lessen the amount of months, he makes those payments and/or the monthly payment itself. To get a low interest rate he should have a good credit rating and shop around for financing just like he did for the car.
1. a. What is budget?
Answers
Answer:
It’s a Minimum price you use to buy stuff..
Explanation:
A budget is a financial plan for a defined period, often one year. It may also include planned sales volumes and revenues, resource quantities, costs and expenses, assets, liabilities, and cash flows.
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Culture, demand and competition impose saturation limits above which no amount of advertising spending can increase sales. True or false.
Answers
True that culture, demand, and competition impose saturation limits above which no amount of advertising spending can increase sales.
It is true that culture, demand, and competition impose saturation limits above which no amount of advertising spending can increase sales. Advertising can help increase brand awareness, familiarity, and preference among consumers, but there comes a point where the market becomes saturated, and additional advertising spending does not lead to significant increases in sales. The saturation limit may vary depending on the product or service, the industry, and the target audience. Therefore, it is crucial for businesses to understand their market and determine the optimal advertising budget to achieve their sales goals.
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In the manufacture of 10,000 units of a product, direct materials cost incurred was $165,000, direct labor cost incurred was $105,000, and applied factory overhead was $53,000. The total conversion cost is
Answers
Answer:
$158,000
Explanation:
During the manufacture of 10,000 units of a products, the direct costs incurred was $165,000
The direct labour costs incurred was $105,000
The applied factory overhead was $53,000
Therefore, the total conversion cost can be calculated as follows
Total conversion costs= Direct labour+ Factory overhead
= $105,000+$53,000
= $158,000
Hence the total conversion cost is $158,000
The firm's production function is given as Q(K,L)=m{1/4L,2K}. The rental rate of capital (n) is $200 and the wage rafe (w) is $50.
The amount of output produced (Q') at the optimal input combination is given by: a. Q(K,L)=min(1,000,1000) b. Q(K,L)=min(4000,1000) c. (Q(k,h)= min {1,000,4,0001 d. Carnot be datormined (or calculated) with the information provided:
Answers
The optimal output level (Q') at the firm's optimal input combination cannot be determined with the given information on the production function Q(K, L) = m(1/4L, 2K), rental rate of capital ($200), and wage rate ($50). Additional information or specific constraints are needed to calculate the exact output. The correct option is d.
To determine the amount of output produced (Q') at the optimal input combination, we need to find the values of K and L that maximize the production function Q(K, L) = m(1/4L, 2K).
The rental rate of capital (n) is $200, which means that the cost of using one unit of capital (K) is $200. The wage rate (w) is $50, indicating that the cost of employing one unit of labor (L) is $50.
In order to maximize output, the firm will allocate its resources in a way that minimizes the cost for a given level of output. This means that the firm will choose the combination of K and L that satisfies the condition Q(K, L) = min(m(1/4L), m(2K)), where m is a constant.
Without knowing the specific value of m, we cannot determine the exact output level. Therefore, the answer is (d) Cannot be determined (or calculated) with the information provided.
To find the optimal input combination, we would need additional information such as the value of m or specific constraints imposed on the firm's production.
The correct option is (d) Cannot be determined (or calculated) with the information provided.
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In determining whether to borrow funds, firms compare the rate of return they expect to make on an investment with.
Answers
Companies assess whether to borrow money by contrasting the anticipated rate of return on an investment with the interest rate they must pay to borrow the necessary funds.
What are the main sources of funds ?To expand their business, companies constantly look for finance sources. The act of providing resources to support a program, project, or necessity is referred to as funding, often known as financing. Financing can start for both short-term and long-term goals. The various financing sources consist of:
Retained earnings : By charging a greater price for an item or service than it costs to manufacture it, businesses hope to maximize their profits. It is the most basic form of financing available to any business.Debt capital :Through bank loans, businesses may raise private debt finance. By issuing debt to the general public, they can also get additional funding. When borrowing money using debt, the borrower (issuer) issues debt securities like corporate bonds or promissory notes. Debentures, leases, and mortgages are other types of debt difficulties.Equity capital : Companies can raise money from the general public in return for shares of the firm that are granted to investors who subsequently become shareholders. These shares represent a proportionate ownership position in the company.Learn more about Financial assistance refer :
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The Sanding Department of Quik Furniture Company has the following production and manufacturing cost data for March 2017, the first month of operation. Production: 6,480 units finished and transferred out; 3,000 units started that are 100% complete as to materials and 20% complete as to conversion costs. Manufacturing costs: Materials $30,052; labor $20,600; overhead $36,536. Prepare a production cost report
Answers
The production cost report shows that the Quik Furniture Company incurred $86,856 in manufacturing costs during March 2017.
The production cost report is a document that summarizes the production and manufacturing costs for a specified period. In this case, the report is for the Sanding Department of Quik Furniture Company for the month of March 2017. The report starts by calculating the units produced during the period, including units started and completed, as well as units that are in progress but not yet completed.
The equivalent units of production are then calculated based on the percentage of completion for materials and conversion costs. The report then moves on to calculate the total manufacturing costs for the period, including materials, labor, and overhead. The cost per equivalent unit is calculated by dividing the total cost by the equivalent units of production.
Finally, the report assigns costs to the units produced during the period, including units that were transferred out and units that are still in progress. The cost assigned to units transferred out is calculated by multiplying the number of units by the cost per equivalent unit. The cost assigned to ending work in process is calculated by multiplying the equivalent units of production by the cost per equivalent unit for materials and conversion costs separately.
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Below are your options for a bank. Look at the banks details and decide which bank you would choose. Be sure to explain your answer.
Keys Bank
Insured: yes
Services: checking, savings, loans, CDs
Locations: downtown, near the office
Hours: 8 a.m. - 4 p.m.
ATMs: many convenient locations
Membership: none
Fees: $25 fee for going below minimum balance, $30 fee for bouncing a check, $10 fee for overdraft, ATM fees
Interest rates: .15 percent
New England Bank
Insured: yes
Services: checking, savings, online banking, loans, CDs
Locations: near the grocery store, throughout New England
Hours: 8 a.m. - 6 p.m.
ATMs: at the bank, near school
Membership: none
Fees: $25 fee for bouncing a check, $15 fee for overdraft
Minimum balance: no minimum balance
Interest rates: .5 percent
Answers
Answer: New England Bank.
Explanation: Starting with the services offered by both banks which are very similar except for the online banking afforded to New England Bank customers which means customers can bank from the comfort of their mobile devices and PC. Online banking is a very essential services in banking today.
Location : Throughout New England means customers need not worry traveling long distances before being able to visit their banks.
New England Bank also offers more opening hours to attend to customers
Even though ATM's are located at the bank or near school, since New England banks are easy to access and the availability of online banking. ATM location wouldn't be much of an issue.
New England Bank also offer higher Interest rate of 0.5% and doesn't require a minimum balance.
You're in charge of a new construction worksite. You must make sure no one Gets hurt and that everything complies with osha. Name steps
Answers
Answer:
Check the safety of the environment and the people
Explanation:
If there are any hazards (electrical, falling, or mechanical) it must be removed ASAP and/or reported. Make sure everyone has their PPE and that it is in good and working condition.
multinational enterprises need an effective global strategy in order to ______.
Answers
Multinational enterprises need an effective global strategy in order to achieve a competitive advantage against other companies.
A corporation with operations in one or more different countries but a single corporate headquarters is referred to as a multinational enterprise (MNE). MNEs have the ability to strengthen rural economies, provide money, create employment, support livelihoods, and promote the growth of local businesses in host communities through these economic links.
Global management is necessary since MNCs sell their goods and services in many different nations. Multinational Companies have a number of characteristics, including a high turnover rate, numerous assets, and aggressive marketing. Among the MNCs operating in India are LTI, TCS, Tech Mahindra, Deloitte, and Capgemini.
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What is the best advice to keep in mind as you grow your business?
Answers
Answer:
Be smart and watch out for snakes
a student who is not looking for work will be considered part of the labor force but not unemployed. group of answer choices true false
Answers
The statement that a student who is not looking for work will be considered part of the labor force but not unemployed is true.
According to the Bureau of Labor Statistics, an individual is considered to be in the labor force if they are over the age of 16 and either employed or actively seeking employment. A student who is not actively looking for work, however, is still considered to be in the labor force, but is not considered to be unemployed.
Unemployment, according to the BLS, is a measure of those individuals in the labor force who are actively seeking employment but are unable to find it. As such, a student who is not actively looking for work does not meet this criteria and is therefore not considered to be unemployed.
In summary, a student who is not looking for work is considered to be part of the labor force but not unemployed, making the statement true.
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Miriam Claude, a citizen of Florida, was walking along a busy street in Tallahassee, Florida, when a large crate flew off a passing truck and hit her, causing numerous injuries. She experienced a great deal of pain and suffering, incurred significant medical expenses, and could not work for six months. She wants to sue the trucking firm for $300,000 in damages.
A) Before any court can hear any dispute between Miriam and the trucking company, it must have ________ (select answer: jurisdiction, stare decisis, a federal question, corporate contacts) over the person or company against whom the suit is brought against or over the property involved in that lawsuit. In order for Miriam to sue the trucking firm, she has to file the lawsuit in a court that has in personam jurisdiction over the _________ (select answer: plaintiff, defendant). The firm's headquarters are in Georgia, although the company does business in Florida, so ________ (select answer: only Georgia has, only Florida has, Georgia and Florida have) in personam jurisdiction over the trucking firm. Miriam ________ (select answer: can, cannot) sue the trucking firm in both Georgia and Florida state courts.
B) Miriam would likely NOT want to sue the trucking firm in Georgia because she would need to:
- Get a lawyer in ________. (select answer: Georgia, Florida)
- Make multiple trips to ________. (select answer: Georgia, Florida)
- Have _______ (select answer: a judge and jury from Florida, witnesses) travel to Georgia.
C) Miriam would likely want to sue the trucking firm in Florida because:
- It is _______. (select answer: less convenient for the trucking firm, more likely to result in a favorable outcome for her, closer to her home)
- She can better research ________. (select answer: local lawyers, her legal rights)
D) Miriam ______ (select answer: can, cannot) sue the trucking firm in a federal trial court because ________ (select answer: she and the company are residents of different states, the accident happened in the United States, the trucking firm is a federal government business) and _________ (select answer: the amount in controversy is over $75,000, the trucking firm is a federal government business, the accident happened in the United States).
E) Miriam ______ (select answer: could, could not) still sue in Florida because the trucking company has ________ (select answer: maximum, minimum) contacts in Florida since it caused the accident in _______ (select answer: Florida, Georgia). If the truck did not cause the accident and was just passing through, Miriam _________ (select answer: could, could not) sue in Florida since there were no _______ (select answer: maximum, minimum) contacts. _________ (select answer: short-arm statutes, long-arm statutes) allows one state to reach into another state and bring a defendant into the first state's courts.
BONUS QUESTION:
What are the three steps of a civil trial? Choose 3 answers
a) jury selection
b) opening arguments
c) presentation of testimony and evidence
d) closing arguments
Answers
The way the justice system works in the United States is that Miriam Claude can sue the trucking firm in both Georgia and Florida. Other facts are explained below with missing words underlined.
Facts about Jurisdiction.A court can only hear the case if it has jurisdiction over the defendant. The trucking company has its headquarters in Georgia but operates in Florida. This means that both Georgia and Florida have jurisdiction and so Miriam can sue in both state courts.
Suing in GeorgiaMiriam would not want to sue in Georgia because she would have to get a lawyer in Georgia and take multiple trips to Georgia. She would also have to get witnesses to travel to Georgia.
Suing in FloridaMiriam would prefer to sue in Florida because closer to her home and she can better research local lawyers.
Suing in federal courtMiriam can sue in federal court because she and the company are residents of different states and the amount in controversy is over $75,000.
Suing in FloridaMiriam could still sue in Florida because the company has minimum contacts in Florida as it caused the accident in Florida.
If it had not caused the accident and was only passing through, Miriam could not sue in Florida because there would be minimum contact. Long-arm statutes allows one state to bring a person to their courts from another state.
Steps in Civil TrialFirst there are opening arguments. There will then be a presentation of evidence and testimony related to the case and then there will be closing arguments.
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Below is our list of primary stakeholders. For each stakeholder, choose the two criteria that support ethically mature action.
What are each stakeholder's criteria for ethically mature action?
The Shareholders, who want to maximize their profit, are happy in this situation if...
a) Leadership makes sure that the ethical standards for research and publication are high.
b) Leadership takes action that only results in positive media coverage for the company.
c) G-BioSport's researchers deliver leading edge science and good results.
Answers
For the Shareholders, the criteria for ethically mature action would be:
a) Leadership makes sure that the ethical standards for research and publication are high. This supports ethical behavior by ensuring that the company is following established ethical guidelines and not engaging in any unethical practices that could harm the company's reputation and financial standing.
c) G-BioSport's researchers deliver leading edge science and good results. This supports ethical behavior by ensuring that the company is producing quality products and services that are safe and effective for consumers. It also helps to build trust with stakeholders and promotes a positive reputation for the company.
In contrast, b) Leadership taking action that only results in positive media coverage for the company does not support ethically mature action. This criterion suggests that the company is more concerned with public relations and image than with ethical behavior, which could lead to unethical practices that harm stakeholders and damage the company's reputation in the long run.
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When making decisions, managers often must decide between doing what is beneficial for the firm in the short term, and what is beneficial for both the firm and society in the long term. To address this conflict, a firm must
Answers
When making decisions, managers are often faced with a conflict between what is beneficial for the firm in the short-term and what is beneficial for both the firm and society in the long-term.
This conflict arises because the actions that benefit the firm in the short-term may not necessarily align with the interests of society as a whole, which can lead to negative consequences for both the company and society in the long-term.
To address this conflict, a firm must adopt a long-term orientation and consider the broader social and environmental impacts of its decisions. This means looking beyond immediate financial gains and recognizing that actions taken today can have far-reaching implications for the company's reputation, customer loyalty, employee morale, and overall sustainability.
Firms that prioritize social responsibility and sustainable business practices are more likely to build strong relationships with stakeholders, including customers, employees, investors, and regulators. They are also better equipped to weather economic downturns and other disruptions, as they have diversified their risk and invested in building resilient supply chains and communities.
Ultimately, the key to addressing the conflict between short-term gains and long-term benefits is a commitment to corporate social responsibility (CSR) and sustainable business practices. By prioritizing the needs of society and the environment alongside those of shareholders, firms can create value for all stakeholders over the long-term, ensuring their continued success and impact.
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When will the Social Security fund dry up at Its current level?
• A.
2022
© B.
2027
• C
2037
© D. 2097
© E. 2117
Answers
Answer:
c. 2037
Explanation:
As a result of changes to Social Security enacted in 1983, benefits are now expected to be payable in full on a timely basis until 2037, when the trust fund reserves are projected to become exhausted.
Daniel has been working hard all year and just received a bonus check from his employer. Rather than spend
it now, Daniel stores all his money in a high-yield savings account because he is planning to buy a boat in
the future. Daniel is using money as a
a: store of value
b: medium of exchange
c: source of inflation
d: unit of account
Answers
Answer:
Store of Value.
Explanation:
Money will successfully function as a store of value when it’s easy to store and it can reliably hold its value over time.
Financial incentives given by the government to corporations, individuals, or other governments for the purpose of encouraging certain activities or behaviors are ______.
a. Grants
b. Entitlements
c. Welfare programs
d. Subsidies
Answers
Answer:
It os D, subsidies. this is correct.
An outlet or brand whose performance confirms a low-performance expectation generally will result in _____.
a. satisfaction
b. dissatisfaction
c. nonsatisfaction
d. elation
e. anger
Answers
An outlet or brand whose performance confirms a low-performance expectation generally will result in non satisfaction.
What is consumer behaviour?Consumer behavior is the study of how people make decisions about their daily need and wants.
It is the study with respect to the consumers & the process at the time of choosing and sale of the goods & services that involved the responses of the consumers in terms of emotional & behavioral.
Hence, an outlet or brand whose performance confirms a low-performance expectation generally will result in non satisfaction.
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Use the following information to calculate net present value:
Upfront cash outflow = $20
Cash inflow in one year = $30
Discount rate = 10%
Select one:
a. -$7. 27
b. $7. 27
c. $18. 18
d. $27. 27
Answers
The net present value (NPV) is calculated by subtracting the upfront cash outflow from the present value of the cash inflow, resulting in an NPV of $7.27.
1. Calculate the present value of the cash inflow using the formula:
PV = CF / (1 + r)^n, where CF is the cash inflow, r is the discount rate, and n is the number of periods.
PV = $30 / (1 + 0.10)^1 = $27.27
2. Subtract the upfront cash outflow from the present value of the cash inflow to find the net present value (NPV).
NPV = $27.27 - $20 = $7.27
Therefore, the correct answer is b. $7.27.
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what is the discount rate?
the rate customers of savings banks get for borrowing money
a special rate that member banks of the federal reserve get for their financial operations
the amount that a bank must subtract for its reserves
the rate the fed charges for loans to commercial banks
Answers
Answer: The rate the Fed charges for loans to commercial banks
Explanation: For Gradpoint users. Good luck, you got this :)
I need help with this
Answers
Answer:
B. Someone new contributes money to the company, becoming an owner.
Explanation:
Common stocks or shares represent a portion of the company. Ownership of a share means owning a part of the company. Shares are also known as equity.
A company issues common stocks when it wants to raise additional capital. Anyone buying shares is contributing capital to the business. They become owners of the business or shareholders as popularly known. They are issued with share certificates and are entitled to dividends.
Sara has a loan with an interest rate of 2% now, but according to the terms and conditions, the interest rate could quadrupole after 18 months. What term best summarizes the situation?
Answers
Answer: Variable interest rate loan
Explanation:
Given, Sara has a loan with an interest rate of 2% now, but according to the terms and conditions, the interest rate could quadrupole after 18 months.
That means the interest rate will change after 18 months.
The term that summarize the situations would be "variable interest rate loan"
A variable interest rate loan is defined as a loan in which the interest rate charged on the current balance fluctuates over time as market interest rates changes. It mostly generate more interest.Which of the following decisions is most likely to create a temporary diseconomy of
scale? (Select the best answer.)
A)Buying supplies in bulk
B)Buying an expensive piece of machinery
C)Hiring employees who specialize
D)Using division of labor
Answers
Answer:
Buying an expensive piece of machinery
Explanation:
why are intermediate products excluded from the macroeconomic calculations of GDP?
Answers
Intermediate products are excluded from the macroeconomic calculations of GDP because their worth is incorporated into the final products.
Intermediate products are goods that are utilized by businesses to produce goods or services. These are also referred to as producer goods. In other words, intermediate products are used in the production of final products or consumer products.
They can also be regarded as ingredients in final products as well as inputs into the production of other items. A corporation may manufacture intermediate products for the production of final or finished goods, or it may sell them to another company involved in the production of final products.
Intermediate products may become a component of the end product or undergo significant changes during the manufacturing process of making finished items.
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A Mercedes-Benz priced the same as a Ford Focus might not sell as well because of:
a. history of performance of similar Mercedes products
b. overall company reputation
c. psychological factors
