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Kobotan [32]
3 years ago
5

The Library is a new bar in town. Unlike the other bars in town, it charges no cover charge. The new bar has also priced its bee

r at $3 less per pitcher than its competition. Given what you know about pricing strategies, which pricing strategy is the owner of the new bar using
Business
1 answer:
My name is Ann [436]3 years ago
5 0

Answer: B. Penetration pricing

Explanation:

Penetration pricing is a strategy that is used by new companies in a market to capture market share from more established competitors. The process is for the new company to charge a lesser price than the amount that the other companies are charging which will bring people to the new firm for patronage.

It will thus capture market share and due to the high demand, be able to make profits due to Economies of Scale.

By charging less than its competitors, the new bar's owner is most likely pursuing a Penetration Strategy.

You might be interested in
The degree of pretax cash flow operating leverage at Rackit Corporation is 2.7 when it sells 100,000 units of its new tennis rac
coldgirl [10]

Answer:

the fixed costs for Rackit Corporation is $161,500.

Explanation:

Cash Flow DOL = 1 + Fixed Cost / EBITDA

2.7 = 1 + Fixed Cost / 95,000

1.7 = Fixed Cost / 95,000

Fixed Cost = $161,500

Therefore, the fixed costs for Rackit Corporation is $161,500.

4 0
3 years ago
You are the IT director at Attaway Airlines, a small regional air carrier. You chair the company's systems review committee, and
Masja [62]

<u>Explanation:</u>

Been the IT director at Attaway Airlines, it will be important to prepare a draft of the advantages and the level of difficulties the new computerized reservation system from an IT perspective.

However, the ultimate goal is not to simply win arguments, but to explain and consider the facts from both the Vice president of finance and the Marketing Manager.

4 0
3 years ago
In the theory of perfect competition, the assumption of easy entry into and exit from the market implies:_____.
Hitman42 [59]

The assumption in perfect competition that there is an easy entry and exit from the market implies that firms will make a zero economic profit in the long run.

<h3>Why do firms make a zero economic profit?</h3>

In a pure competition, companies are allowed to freely enter and leave.

They take advantage of this to enter a market when prices are high and economic profit is being made.

As more firms enter, the economic profit keeps decreasing as prices decrease until this profit gets to zero and then turns to economic losses.

At this point, some firms will leave the market to stop making losses. When they do, the supply will decrease which leads to prices rising once more.

The cycle will then repeat itself and keep the companies at a zero economic profit in the long run.

Find out more on perfect competitions at brainly.com/question/1748396

#SPJ1

3 0
2 years ago
4941551496 p.a.ssw.ord yaP2D2<br><br>CO.ME FA.ST ON ZO.O.M​
fiasKO [112]

Answer:

WHY FAST?

Explanation:

5 0
3 years ago
Select the correct answer. Which skill ensures that you follow fair/legal practices in your work and while dealing with people i
kicyunya [14]

Answer:

E

Explanation:

When following corporate ethics, you are proving that you are following your company's ethics and expectations of appropriate behavior.

4 0
3 years ago
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