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Igoryamba
4 years ago
13

It has been observed that whenever one imported beer distributor raises its price, other imported beer distributors quickly rais

e their price as well. Such behavior is characteristic of:
(A) price leadership.
(B) the kinked-demand curve model of oligopoly.
(C) the barometric-firm model of price leadership.
(D) explicit collusion.
Business
1 answer:
dolphi86 [110]4 years ago
6 0
I believe it is A price leadership
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Answer:

Incremental sales= $586,100

Explanation:

Giving the following information:

It is considering adding a lower-priced line of handbags that sell for $79 each. The firm estimates it can sell 21,000 of the lower-priced handbags but expects to sell 7,200 less of the higher-priced handbags by doing so.

We need to consider not only the incremental sales of the lower-priced but also the decrease in the higher-priced handbags.

Low-priced= 21,000*79= $1,659,000

Canibalized sales= 7,200*149=(1,072,900)

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<h3>What is the units sold that would yield an operating profit of $159,500? </h3>

Operating profit is total profit that is earned from the daily business operations of a business. Operating profit is total revenue less fixed cost and variable cost.

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