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2 years ago

price discrimination will occur when a firm can segment its existing and potential customers into different groups based on:

Business

1 answer:

lana [24]2 years ago

8 0

Customers whose demand has a higher degree of price elasticity will pay less.

<h3>How Does Price Discrimination Occur and types of Price Discrimination?</h3>

Price discrimination is a marketing tactic where sellers charge clients various prices for the same good or service depending on what they believe will win the customer over. A merchant that practices pure price discrimination will impose the highest price possible on each customer. The more typical types of price discrimination involve the vendor classifying clients into groups according to particular characteristics and charging each group a different price.

There are three types of price discrimination:

First-Degree Price Discrimination: when a company charges the highest price per unit of consumption.

Second-Degree Price Discrimination: when a business offers discounts for large orders or imposes various prices on customers depending on how much they eat.

Third-Degree Price Discrimination: when a business charges varied prices to various customer segments.

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Western company begins the year with $50,000 of inventory on hand. During 2018, western purchases additional inventory for $100,

slava [35]

Answer:

Debit cost of goods sold $40,000

Explanation:

As with the details of inventory we have:

Opening value of inventory = $50,000

Purchases = $100,000

Thus, total inventory = $150,000

On the closing date we have the balance of inventory in hand = $110,000

Therefore, cost of goods sold = Total inventory - Closing

= $150,000 - $110,000 = $40,000

Cost of goods sold is an expense, and shall be debited.

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3 years ago

Nordstrom, an upscale department store, has a well-known reputation for going the extra mile to serve its customers. This reputa

11Alexandr11 [23.1K]

Nordstrom, an upscale department store, has a well-known reputation for going the extra mile to serve its customers. This reputation for excellent customer service will most likely result in a sustainable competitive advantage.

<h3><u>Explanation:</u></h3>

When a firm offers its customers with any products that has higher quality and benefits or lower price that its competitors then it refer to the competitive advantage. It is the advantage that the firm attains when compared with their competitors.

There are many different kinds of competitive advantage that can be used by a firm such as cost, product differentiation, niche strategies, etc. It is the thing that is absent in the competitors. In the given example, Nordstrom has well known reputation for the service that it gives for its customers and hence it is the likely result of sustainable competitive advantage.

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3 years ago

The manager of a chain of fast-food restaurants has noticed that the number of breakfast customers has fallen by 50 percent in t

Darya [45]

Answer:

c. make an accurate diagnosis of what is causing the problem

Explanation:

The manager of the fast-food restaurant should understand the underlying problem first. Working on the assumption that it's because of a competitor marketing campaign may not give the desired results. A customer's preference may change due to many reasons.

The manager should make an accurate diagnosis of the problem first. With a precise reason as to why customers as fleeing, then he can develop a counter-strategy. Retaining the current member of the crew will not reverse the situation. Reducing prices may affect profitability, which is not the desired result. With low prices, some customers may question the quality of the breakfast.

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3 years ago

Nathan has $300 to open a checking account. He wants an account with the lowest fees. He plans on using the ATM machine, and his

forsale [732]

The answer would be account D

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4 years ago

Read 2 more answers

a company purchased supplies for cash, which will be consumed during future months. which of the following correctly describes t

harina [27]

The answer choice that correctly describes the impact of the supplies purchase on the financial statements is A. total assets will remain unchanged.

<h3>What is an Asset? </h3>

This refers to financial property owned by a company or individual that has some degree of value.

Hence, we can see that given the fact that a company purchased supplies for cash that would be used in a few months, this would leave the total assets unchanged.