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lakkis [162]
1 year ago
12

you are a manager for a monopolistically competitive firm. from experience, the profit-maximizing level of output of your firm i

s 100 units. however, it is expected that prices of other close substitutes will fall in the near future. how should you adjust your level of production in response to this change? multiple choice produce more than 100 units. produce less than 100 units. produce 100 units. there is insufficient information to decide.
Business
1 answer:
alisha [4.7K]1 year ago
6 0

It is expected that prices of other close substitutes will fall in the near future. How should you adjust your level of production in response to this change produce less than 100 units. Hence, option A is right.

A company that owns the exclusive right to produce a specific good or service is said to be operating as a monopolistic enterprise. These goods are profit-maximizing goods because market prices are set by consumer demand, and they are manufactured at marginal costs that are equivalent to their marginal revenues.

It is advisable to create fewer than the customary 100 units to still maximize profit when the prices of the product's near substitutes drop because this will result in a decrease in demand and a corresponding decrease in market pricing.

To know more about close substitutes: brainly.com/question/3262385

#SPJ4

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The sales message varies little from customer to customer in a(n) _____.​
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<span>A sales message or pitch with a little variation is a Canned Sales Presentation. The answer is Canned Sales Presentation because a sales message or pitch that has little variation means it has been well rehearsed, it is well organized and systemic in nature. Also Canned Sales Presentations are usually well written scripts that are meant to be adhered to and written to obtain a positive response from the prospect or customer.</span>
4 0
4 years ago
An organization decides to ask three advertising agencies to pitch a proposal to handle the organization's business, instead of
PtichkaEL [24]

Answer:

C.

Explanation:

Satisficing is searching for and accepting something that is satisfactory rather than insisting on the perfect or optimal.

Managers tend to satisfice rather than optimize in considering and selecting alternatives.

Characteristics:

-accept good enough

-do not obsess over other opinions

-can move on after deciding

-happier with outcomes

4 0
3 years ago
Chris has been offered a seven-year bond (face value $1,000) issued by Bayley Ltd at a price of $943.22. The bond has a coupon r
ZanzabumX [31]

Answer:

As the actual price of such bonds should be $950.51 and the bonds are offered at a lower price, the bonds should be bought at the offered price.

Explanation:

To determine whether the bonds should be bought at the given price or not, we first need to calculate the price of the bond. The formula for the price of the bond is attached.

The interest payed by the bonds can be treated as an annuity.

The semiannual rate will be = 9% / 2 = 4.5%

The number of semi annual payments will be = 7 * 2 = 14

The YTM expressed semi annually will be (r) = 10% / 2 = 5%

Semi annual coupon payment or C = 1000 * 0.045 = 45

Bond Price = 45 * [(1 - (1+0.05)^-14) / 0.05] + 1000 / (1+0.05)^14

Bond Price = 950.5068 rounded off to $950.51

As the actual price of such bonds should be $950.51 and they are offered at a lower price, the bonds should be bought at the offered price.

5 0
3 years ago
Which of the following statements is best?
frozen [14]

Answer:

Option D I, II and IV only are true.

Explanation:

Conflict explanation:

The reason is that their is conflict between marketing and finance that greater the marketing, the greater is the cost to the company. Similarly the greater the production of unit is, the greater is the cost to the company. The conflict between marketing and production department is that greater the marketing of the product is, the greater are the number of units of the product must be produced by the production department. So the statement 1 is correct.

What we derived from conflict explanation?

Marketing objectives can be met by the production meets the demand of the customers. This means the higher is the marketing expense the greater is the stress on production department to produce more to meet demand. This means Statement 2 is also correct.

Statement 3 is incorrect because the higher the inventory levels are, the higher are the cost to company to hold these inventories. So here we have a conflict of finance and production department.

Statement 4 is correct because the primary objective of the production department is producing more to meet the maximum number of customers need and grasp economies of scale.

5 0
3 years ago
As a​ rule, product decisions are likely to be highly involving if the consumer believes there is a great deal of​ ________. thi
Stella [2.4K]

If there is a high level of PERCEIVED RISK, then consumers will take more time and effort in making a decision.

Think for example buying a house versus buying a soda.

There is not much thought needed when you are buying a soda. Choose which brand and what size, you are done.

When buying a house, because it is both more complex and more expensive, there is a greater perceived risk of losing money. When buying a home, it is a large investment and carries much risk, therefore the consumer will take more time and effort evaluating the purchase decision.

8 0
3 years ago
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