Answer and Explanation:
The computation of the volume necessary for each location is as follows;
a) Volume required for break even at location A
= ($5,400 + $10,000) ÷ ($2.70 - $1.90)
= 19,250 units
Volume required for break even at location B
= ($5,700 + $10,000) ÷ ($2.70 - $1.90)
= 19,625 units
Volume required for break even at location C
= ($5,950 + $10,000) ÷ ($2.70 - $1.90)
= 19,938 units
Answer:
The correct answer is (A) Penetration pricing.
Explanation:
In this type of pricing, a product is initially priced low to quickly reach a large part of the market and to encourage the word of mouth marketing from consumers. This strategy works with the expectation that customers will be attracted to the new brand due to the low price. But in the case of batteries, the customer compares quality with a high price (Auger et al., 2010). So, this will not be considered as a successful pricing approach from Energizer.
Reference
Auger, P., Devinney, T. M., Louviere, J. J., & Burke, P. F. (2010). The importance of social product attributes in consumer purchasing decisions: A multi-country comparative study. International Business Review, 19(2), 140-159.
Answer:
A. 3,789
B. 100%
C.5,000
Explanation:
(a) Total market ($'000) = 310 + 725 + 405 = 1,440
Firm 1 share = 310 / 1,440 x 100 = 21.53%
Firm 2 share = 725 / 1,440 x 100 = 50.35%
Firm 3 share = 405 / 1,440 x 100 = 28.12%
HHI = (21.53)2 + (50.35)2 + (28.12)2 = 3,789
(b) Since there are only 3 firms in market, therefore the four-firms concentration ratio will be 100% b
(c) Total revenue share of the two firms = (310 + 405) / 1440 x 100 = 49.65%
Post-merger HHI = (49.65)2 + (50.35)2 = 5,000
Yes. If the guideline considers any post-merger HHI above 1800 as highly concentrated market, this merger will be probably attempt to block a horizontal merger between two firms with sales.
Answer:
The advantages of starting own business:
- Flexibility: a person who starts his own business does not necessarily have to work 9/5 monday-friday, he can set his own schedule. Needless to say, many business owners work longer hours than regular employees, but the do so because of the hope to earn more money from profits than from a regular wage.
- The possibility of profit: an employee in a legal firm will not be able to obtain any dividends (unless he owns stock), while the very definition of a business owner is someone who obtains profits.
- Fulfillment: it is probably more fulfilling to see your own business develop and grow than go to work everyday for someone else's company.
Some disdavantages are:
- Risk: starting a business is risky. The business might result in losses instead of profits, in other words, the business may fail.
- Capital needs: to start a business, you need some capital, and it is not always easy to obtain. Most business owners either get debts, or liquidate some of their own assets (house, car, etc) to finance the company.
- Longer work hours: as stated above, it's very likely that a business owner will have to work night and day, especially during the first stages.
