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Alenkasestr [34]
2 years ago
14

During the 1990s, one of the dominant firms in the U.S. cigarette industry would raise prices once or twice a year by about 50 c

ents per carton. Other firms in the industry typically raised their prices by the same amount. This is an example of:price skimmingprice leadershipa kinked demand curveprofit maximizationpredatory pricing
Business
1 answer:
ahrayia [7]2 years ago
3 0

Answer: price leadership

         

Explanation: Price leadership is a circumstance where one business, typically the dominant one in its market, sets prices that its rivals follow closely.

This business is typically the one with the minimum cost of production, thus being able to outperform the prices charged by any rival who tries to set their prices below the price range of the market leader.

Rivals could increase prices than the cost leader, but this would likely lead to lower share of the market unless rivals were able to distinguish their goods adequately.

Hence from the above we can conclude that the given case depicts price leadership strategy.

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"Much of the information that allows decision makers to run their organizations effectively in the digital age comes to them in
Alenkasestr [34]

Answer:

The correct answer is letter "B": reports.

Explanation:

Financial reports are the accounting statements managers request to find out what the performance of the company is. Based on that information that could be digitally formatted, top executives can decide what course the firm should take. If the current strategy is not working as expected, adjustments could be made or new strategies can be adopted to run the business effectively.

3 0
3 years ago
Read 2 more answers
Buyers in country X prefer to use the older, cheaper version of Firm A's product although it is bulkier and less user-friendly.
Rzqust [24]

Options:

A.) Firm A needs to revamp its after-sales services.

B.) The sales of industrial goods are higher in Country X than in Country Y.

C.) The perception of quality can differ a cross countries

D.) Country X is a highly industrialized nation.

E.) Country Y has a lower average income level compared to Country X

Answer: C.) The perception of quality can differ a cross countries.

Explanation: The scenario illustrated above is most likely related to choice between users of different countries which may probably have different cultures, opinion, economic stability and various other reasons why they use the companies product.

This is because buyers in both countries are aware of the different versions of the product, However, buyers in one country tend to stick with the cheaper, older and bulkier version while buyers of the other nation preffered the newer and lightweight version. This is a clear issue of perception or ideas whereby some users think older versions of products even though may be less sleek in terms of appearance posses better quality than newer versions while some think otherwise that newer versions are always better in quality.

7 0
2 years ago
Malholtra Inc. is considering a project that has the following cash flow and WACC data.
Blababa [14]

Answer:

The correct option is B,15.65%

Explanation:

Modified Internal Rate of Return(MIRR) can be determined by using the excel MIRR function,whose formula is given below:

=MIRR(values,finance rate,reinvestment rate)

The values are the cash inflows and the initial capital outlay of $850

the finance rate is the same as the reinvestment of 10% which is the rate of return that would make the investment present values of cash inflows equal the initial investment

MIRR=15.65% as found in the attached.

Download xlsx
3 0
2 years ago
Classifying Cash Flows - Identify whether each of the following would be reported as an operating, investing, or financing activ
Yanka [14]

Answer:

<em><u>Classifying Cash Flows:</u></em>

Retirement of bonds payable  ⇒  <em><u>Financing activity</u></em>

Purchase of inventory for cash  ⇒  <u><em>Operating activity</em></u>

Cash sales  ⇒  <u><em>Operating activity</em></u>

Repurchase of common stock  ⇒  <em><u>Financing activity</u></em>

Payment of accounts payable  ⇒  <u><em>Operating activity</em></u>

Disposal of equipment ⇒  <em><u>Investing activity</u></em>

8 0
3 years ago
Carryon Company sells a product and a 12-month service package for that for a combined price of $800. Separately, the product an
anzhelika [568]

The part of the combined price allocated to the product is less than 50% which might be around 35-40%.

<u>Explanation:</u>

Since the price of the product all alone is $450 and the price of the service alone is $550, so the combined amount totals up to be nothing less than $1000. But the company under the discount and offer, offers the both things combined for $800.

This shows that the company is under some loss which it has to incur. The loss is of $200 under the discount to be offered to the clients which serves as the incentive to the customers.

3 0
3 years ago
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