The newest version of a product like Crutchfield headphones is likely to use price skimming, while the new version of Monster Energy is likely to use penetration pricing
<h3>What is
price skimming?</h3>
Price skimming is a pricing strategy that a company can use when launching a new product or service.
Electronic products, such as the Apple iPhone, frequently use a price-cutting strategy during the initial launch period. Then, after competitors launch competing products, such as the Samsung Galaxy, the price of the product drops to maintain the product's competitive advantage.
The pricing strategy will be influenced by the stage of the product's life cycle. The process of charging a relatively high price for a product is referred to as price skimming. Skimming is commonly used when a product is new to the market (in its introduction or growth phase) and has few competitors.
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Answer:
The answer is $41.21
Explanation:
Required Rate of Return = Risk Free Rate + Beta*(Market Risk Premium)= 5.2% + 0.9 * 6% = 10.6%
Cost of Equity = D1/Current Stock Price + Growth Rate
10.6% = $3/$40 +g
g = 3.1%
Stock Price After 3 Years = Current Stock Price*Growth Rate= $40 * (1.031)= $41.21
Answer:
The amount of loan after two years is $2875.68.
Explanation:
Given information:
Interest rate = 7%, compounded continuously.
Time = 2 years
Initial value of loan = $2500
The formula for amount after continuous compound interest is
where, P is principal,r is nominal rate per year, t is time in year.
Substitute P=2500, r=0.07, t=2 in the above formula.
Therefore the amount of loan after two years is $2875.68.
Answer:
d. the level of technology and the quantity of capital per hour worked
Explanation:
Labour Productivity denotes the amount of output or income value, by a labour. It depends upon the level of technology & quantity of capital per worker.
Labour productivity is directly related to level of technology & capital per worker. More technology & capital per worker imply high labour productivity; less technology & capital per worker imply less labour productivity. However, the labour productivity increases with level of technology & capital per labour at a diminishing rate. So, labour productivity curve is a upward sloping swamp shaped curve.