All categories

3 years ago

Which of the following statements is (are) TRUE?

Business

1 answer:

Ede4ka [16]3 years ago

4 0

Answer:

III. If a competitive industry is in long-run equilibrium, a decrease in demand causes firms to earn negative profit because the market price will fall below average total cost.

Explanation:

A perfect competition is characterised by many buyers who sell homogenous products.

All firms in a perfect competition earn zero economic profit in the long run because there are no barriers to entry or exit.

In the long run, equilibrium occurs at: P = LMC = LATC

If demand falls, prices would fall below average total cost and the firm would earn negative profit .

You might be interested in

When a wealthy individual invests his or her own money into a business project or start-up company with little intention to infl

kaheart [24]

The answer is: Angel investor

Angel investors only injected their capital with the businesses if they believe that the leaders are capable in making the decision by their own.

This hands-off approach in investments tend to be reall risky. But Angel investors tend to be wealthy enough to the point where they can afford the financial blow back even if a couple of their start up investments fail.

7 0

3 years ago

The Style of leadership uses a hands-off approach,allowing the group to direct itself. Authoritarian. Democratic. Laissez-faire

natali 33 [55]

The correct answer is Laissez-faire.

Laissez faire is a style of leadership which uses hands-off approach by allowing the group to direct itself.

Laissez faire is termed as the economic system where there are free from intervention of government.

For example, tariffs, privileges, subsidies and regulations. It is a word which came from French to mean let it go.

8 0

3 years ago

Read 2 more answers

More businesses and organizations, such as Amazon, Uber, MTA, an airline industry, professional sport organizations such as MLB

irina1246 [14]

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.

8 0

3 years ago

Veronica is thinking about getting a prepaid debit card. She has made a list of good reasons to get the card. What reason should

Anna [14]

Going out to buy things that she doesn't need in life

3 0

3 years ago

A department store, pressured to meet year-end targets, liquidated a large amount of merchandise at low prices even though it wa

brilliants [131]

Answer:

Sales Growth pricing objective

Explanation:

Since prices are being reduced then the aim will not be profitability, neither was it mentioned that it was because of competitors but it was done in the bid to meet internalsales targets.

This is an example of which pricing objective of Sales Growth:

Sales Growth’s objective is to increase sales volume. It sets its price in such a way that more and more sales can be achieved. It is assumed that sales growth has direct positive impact on the profits. So, pricing decisions are taken in way that sales volume can be raised. Setting price, altering in price, and modifying pricing policies are targeted to improve sales.

4 0

3 years ago