Answer:
leader pricing strategy
Explanation:
Based on the information provided within the question it can be said that the pricing tactic that is being mentioned is a leader pricing strategy. This strategy focuses on placing lower price points on the products in order to attract customers to a new brand or to gain interest in general to the business as a whole. Therefore luring customers into the store and hopefully increasing sales.
The more debt used, the greater the leverage a company employs on behalf of its owners.
What is financial leverage?
Financial leverage is the use of borrowed money (debt) to finance the purchase of assets with the expectation that the income or capital gain from the new asset will exceed the cost of borrowing.
What is financial leverage example?
Example of financial leverage usage include using debt to buy a house, borrowing money from the bank to start a store and bonds issued by companies.
Learn more about financial leverage here:
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Answer:
a. The firm experiences constant returns to scale.
b. The firm experiences diseconomies of scale.
c. The firm experiences economies of scale.
Explanation:
To answer the question, the following are explained first:
1. Economies of scale: This occurs when a percentage increase in input by a firm leads to greater percentage increase in its output.
2. Diseconomies of scale: This occurs when a percentage increase in input by a firm leads to less percentage increase in its output.
3. Constant returns to scale: This occurs when a percentage increase in by a firm input leads to an equal percentage increase in its output.
From the question therefore, we have:
a. Outputs increase 15 percent: The firm experiences constant returns to scale since a 15 percentage increase in its input leads to an equal percentage increase in its output.
b. Outputs increase by less than 15 percent: The firm experiences diseconomies of scale since a 15 percentage increase in its input leads to a lsess than 15 percentage increase in its output.
c. Outputs increase by greater than 15 percent: The firm experiences economies of scale since a 15 percentage increase in its input leads to an a greater percentage increase in its output.
