Answer: d. Dynamic pricing strategy
Explanation:
The companies mentioned above are increasingly turning towards Dynamic pricing in order to maximize sales and therefore increase profitability.
Dynamic pricing refers to a strategy where goods are priced at the optimal price based on the conditions at the time. In other words, it involves trying to sell at a price that is cheapest for the customer based on factors such as consumer willingness to pay, competition and others.
Prices can therefore change multiple times in as little a period as a day just to ensure that customers buy the goods being offered.
Answer:
C. it will sell its products only to people who agree to buy only from it and not from rival firms.
Explanation:
Generally, any business can choose its business partners. But, under certain circumstances, there are limits on this freedom for a firm with a big market power.
There is an attempting to define those limited situations when this kinds of firm may violate antitrust law:
- The first option is that it violate the antitrust law by refusing to do business with other firms, or do business but under certain requisites. The key here is how the refusal to deal helps the monopolist maintain its empire, or allows the monopolist make an strategy where its monopoly is use in another market to attempt to monopolize other market.
- They can also refuse to deal with customers or suppliers, what cause the effect of preventing them from dealing with a rival: "If you deal with my competitor, I refuse to deal with you."
- Also, regarding to a firm dealing with its competitors, if the monopolist refuses to sell a product or service to a competitor and it makes it available to others, or if the monopolist has done business with the competitor and then stops, then the monopolist needs a legitimate business reason for its actions.
Answer:
The effect on net operating income would be an increase of $137,900
Explanation:
Giving the following information:
Selling price $85
Variable expenses per unit $ 35
If Price Paper spends an additional $12,100 on advertising, sales volume should increase by 3,000 units.
To calculate the effect on income, we need to determine the incremental total contribution, and deduct the incremental fixed costs:
Effect on income= 3,000*(85 - 35) - 12,100= $137,900
Answer:
option (c) 9%
Explanation:
Data provided in the question:
current price of outstanding shares = $38.89
Last Dividend paid = $3.50
Marginal tax rate = 34%
Now,
cost of preferred equity = Dividend ÷ Price per share
thus,
cost of preferred equity = $3.50 ÷ $38.89
or
cost of preferred equity = 0.0899
or
cost of preferred equity = 0.0899 × 100%
= 8.99% ≈ 9%
Hence,
The correct answer is option (c) 9%
Answer:
The correct answer is A
Explanation:
Adam Smith is one of the first theorist who refer to the system of capitalism. Under this system, he asserts that when the person or an individual conduct or make a trade, they value what they bought more than they value what are exchanging for the commodity.
So, under this system, he believed that the fair as well as correct prices of the commodity or the goods will be determined through the competition among the businesses.
