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Answers to Complete Economics for Cambridge IGCSE® and O Level by Dan Moynihan, Brian Titley

badrobot14

badrobot14

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Ashwini1911 said:
Hello.
If anyone has answers to Complete Economics for Cambridge IGCSE® and O Level by Dan Moynihan, Brian Titley , please share it with me. Thank you
https://books.google.co.in/books?id=R87KDwAAQBAJ&pg=PA213&lpg=PA213&dq=ACTIVITY+3.21+Big+is+beautiful+Case+1:+Cleaning+up+their+act+A+global+detergent+manufacturer+has+recently+decided+to+invest+in+new+equipment+to+expand+its+production.+The+new+machines+are+very+expensive+but+can+produce+twice+as+many+soaps+each+hour+as+their+existing+machines.+A+bank+loan+will+be+used+to+finance+the+expansion.+Banks+are+willing+to+lend+to+the+firm+on+very+reasonable+terms+because+it+owns+many+valuable+assets+it+is+able+to+use+as+security+or+collateral+against+loans.+Banks+also+recognize+that+because+the+firm+produces+a+wide+range+of+detergents+for+many+different+overseas+markets,+any+demand+fluctuations+are+unlikely+to+seriously+affect+the+firm's+ability+to+repay+its+debts.+Smaller+competitors,+however,+will+find+it+difficult+to+raise+money+for+their+modernization.+Even+if+loans+are+made+available,+interest+charges+tend+to+be+higher+because+smaller+firms+are+often+less+financially+secure+than+larger+ones+and+therefore+their+risk+of+business+failure+is+higher.+The+large+manufacturer+has+a+new+soap+coming+on+to+the+market+next+week+and+it+is+planning+a+big+advertising+campaign+to+launch+it.+The+cost+of+the+campaign+is+around+$1+million,+but+with+an+output+of+10+million+bars+of+soap+per+month,+this+only+adds+10+cents+to+the+cost+of+producing+each+unit+of+soap.+If+it+was+producing,+say+only+2+million+soap+bars+a+month,+like+many+of+its+smaller+rivals,+the+c&source=bl&ots=WX8qvDGD-o&sig=ACfU3U3SxLCumtgwd16rdhlcBWeJfSCKeA&hl=en&sa=X&ved=2ahUKEwjTrrzTrO6EAxXu-TgGHRzGBokQ6AF6BAgHEAI
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IG ECONOMICS ANS KEY – Google Drive

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