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pickupchik [31]
3 years ago
15

A company believes that its product will exhibit network effects if enough consumers begin to use it. How might this company dec

ide to price its product? Offer the product for free early on, and increase the price later.
Business
1 answer:
stiv31 [10]3 years ago
5 0

Answer: a. Offer the product for free early on, and increase the price later

Explanation:

When a product is said to have a network effect, what it means is that the product gets more value as more people use it. For example Whtsapp which is only such an effective means of communication because more and more people are getting it. If people did not get it, it would not be such a good medium and would be valued less.  

If a company wants to price such a product, they should charge at lower rates first which would entice more people to use the product thereby giving the product more value. As the product value increases, the price can then increase to reflect this increased value.

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In the long run, the price charged by the monopolistically competitive firm attempting to maximize profits: must be less than at
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<span>must be less than atc</span>
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3 years ago
Define diverse nation
patriot [66]
The concept of diversity encompasses acceptance and respect. As a nation, we try to understand one's individuality and recognizing one's differences.

Hopes this helped.

~Bob Ross® 
3 0
4 years ago
Consider a U.S. importer desiring to purchase merchandise from a Dutch exporter invoiced in euros, at a cost of €512,100. The U.
Zolol [24]

Answer:

The importer accepts this price, so his bank will <u>debit</u> the importer's account in the amount of <u>$500000</u>

Explanation:

Debiting an account removes money from the account. Crediting an account adds money to the account.

The bank will  therefore <em>debit</em> his account because the money will be taken out and paid to the exporter.

The amount that the importer pays in dollars can easily be calculate as:

€512,100 / €1.0242 = $500000

5 0
4 years ago
Which channel is typically used between a supplier and manufacturer of industrial products?
ZanzabumX [31]

Direct channel is typically used between a supplier and manufacturer of industrial products.

A supplier is a person, company, or entity that provides products or services to another entity. For example, a laptop manufacturer or a company that sells her PCBA to his OEM is an example of a supplier.

Supply In his chain, a provider or seller is a company that provides goods or services. Generally, supply chain providers manufacture inventory/stock items and sell them to the next link in the chain. Today, these terms refer to providers of goods or services.

In business, a supplier is a person or entity that sells quality services and goods at a reasonable cost from manufacturers to retailers or distributors.

Learn more about supplier here:brainly.com/question/26500183
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4 0
2 years ago
Barton Health Services provided care to a patient worth $1,200. Because the patient was over the age of 65, Barton granted the p
musickatia [10]

Answer:

A. Cash 960

Service Revenue 960

Explanation:

In the given transaction, the trade discount is not shown in the recording of the journal entry but the effect is to be seen in the journal entry.

Since the cash is paid for providing the service and give the patient a 20% discount.

So, the discount amount would be equal to

= Service cost × discount rate

= $1,200 × 20%

= $240

And, the journal entry would be shown below:

Cash A/c Dr       $960

    To Service Revenue $960

(Being service is provided for cash and discount is given)

7 0
3 years ago
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