Kramerica industries is a aaa-rated company that needs to fund a project with an estimated life of 10 years. it can borrow at a fixed rate of 8.75% or it can borrow at a floating rate of 3-month libor. vandelay industries is a bbb-rated company that also needs to borrow for 10 years. it can borrow at a fixed rate of 10.50% or it can borrow at a floating rate of3-month libor + .25%. produce a swap quote that reduces the borrowing costs of both kramerica and vandelay industries, and makes a spread for the swap bank, super terrific national bank. show how much each company saves and how much is made by stnb
the answer is: d. reiko should add other foods to the menu and offer discounts to attract more people to her restaurant.
according to adam smith, producers need to provide a product that is needed by the market in order to obtain profit, not the other way around.
since the majority of the people in the cities did not like japanese food, seiko need to accept the fact that there is not enough demand for that particular food and start to develop new menus that attract the locals (she can do this by mixing some characteristics from japanese food with western food).
on top of that, offering discounts create an incentives for the consumers to come and try the new products.
a consumer uses goods and services to satisfy his needs and wants everyone has their own sets of needs and wants and when you consume those needs and wants, you are a consumer. the opposite is a producer which is a person that produces the consumer's needs and wants.
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