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svetoff [14.1K]
3 years ago
11

Differentiation business strategies are often associated with premium prices. There are, however, reasons why a firm would NOT w

ant to charge higher prices than the competition. Which of the following is the best example of why a firm would want to keep prices in line with competitors?
a. To leverage complements
b. To increase profit margins per item
c. To invest in product R&D
d. If the industry is in a high-growth stage
e. To drive up market share
Business
1 answer:
Natalija [7]3 years ago
4 0

Answer: e. To drive up market share

Explanation:

Differentiation strategies involve adding features to a good to make it stand out from the Competition. Since these features are usually beneficial, the value of the good goes up and the company selling them can charge more. This is the main way things are done in Monopolistic markets.

However, sometimes it is best to charge the same price the Competition is charging even though you have a better product. This way the company is able to capture Market Share because the consumers will believe they are getting a better value for their money. For instance, if a company was selling Toyotas at $2,000 and it's competitor was selling the same Toyota but with 2 extra tires for the same $2,000 who would you use? The Competitor most likely.

This is why a firm might want to keep prices in line with competitors.

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Steel-frame construction relies on the creation of a sound foundation to sustain the weight of the building, because without that all our buildings we have now would suffer from erosion causing the building to shift or even collapse.;


3 0
3 years ago
Donny owns and leases a coal mine to brian. the lease agreement states that brian will pay donny $4 per ton royalty on coal mine
Gnoma [55]

Answer: $25,000

Explanation:

Given Data:

Gross income from coal = $250,000

Income from trucking coal = $20,000

Royalty paid to Donny = $30,000

Taxable income on call excluding depletion = $40,000

Coal depletion rate = 10%

Lease agreement = $4/ton

Therefore:

brian's percentage depletion deduction for the current year is

= gross income x coal depletion rate

= $250,000 x 0.1

=$25,000

5 0
3 years ago
Teamwork processes have a moderate positive effect on ________ and a strong positive effect on ________.
Salsk061 [2.6K]

Teamwork processes have a moderate positive relationship with team performance and a strong positive effect on team commitment.

<h3>What is team relationship?</h3>

This is a relationship that exist within a team which brings about progress to an organization.

An effective team work would create an enabling work environment hence enables team member become more effective and efficient.

Hence, teamwork processes have a moderate positive relationship with team performance and a strong positive effect on team commitment.

Learn more about team relationship here : brainly.com/question/26491505

5 0
2 years ago
Dmitri doesn't like Val, one of his coworkers. Dmitri started to send an e-mail to his workgroup, falsely accusing Val of steali
bixtya [17]

Answer:

C. Professional Ethics.

Explanation:

Ethics are moral qualities which governs a persons behavior. A person is sometimes in an ethical dilemma scenario where he has to take decision which might impact his ethical values. Professional ethics is a situation where a person thinks how his decision will be viewed by an independent jury or audience.

7 0
3 years ago
Several market participants interact in developed markets to organize the exchange of funds from buyers to sellers. Such institu
Sergio [31]

Answer:

1. Commercial banks

2. Life insurance companies

3.  Mutual funds

Explanation:

commercial banks

The commercial bank is a financial institution that accepts deposits and offer other services such as giving loans and other basic financial services to both individuals and organisations.  

Life insurance companies

The life insurance companies are financial institutions that provide lump sums otherwise known as death benefits to beneficiaries  of their policy holders upon their demise, provided that premium is paid on regular basis.

Mutual fund

A Mutual Fund is an investment vehicle made up of a pool of funds collected from numerous investors for the purpose of investing in securities such as stocks, bonds, money market instruments and similar assets. Mutual Funds are operated by professional fund managers, who invest the fund's capital and attempt to produce capital gains and income for the investors.  

One of the main advantages of Mutual Funds is they give small investors access to professionally managed, diversified portfolios of equities, bonds and other securities. Each shareholder, therefore, participates proportionally in the gain or loss of the fund.​

4 0
3 years ago
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