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Elena L [17]
3 years ago
6

In order for "limit pricing" to be effective, the firm practicing such a strategy must be able to charge a price that is:_______

_
a. greater than the potential entrant's ATC but lower than the firm's own ATC.
b. lower than the potential entrant's ATC but greater than the firm's own AVC.
c. lower than the potential entrant's ATC but greater than the firm's own ATC.
d. greater than the potential entrant's ATC but lower than the firm's own AVC.
Business
1 answer:
Paul [167]3 years ago
7 0

In order for "limit pricing" to be effective, the firm practising such a strategy must be able to charge a price that is lower than the potential entrant's ATC but greater than the firm's own ATC.

Explanation:

A pricing strategy is a level where products are sold by a supplier at an expense that is cheap enough to make the market unprofitable for others. Monopolies use it in order to discourage market entry and in many cases it is illegal.

It is not able to sustain a monopolistic-ally profitable firm where P = MC and growth, with a long-run balance, generates an efficiency that approaches the minimum possible in an ATC business. Profit so long as potential customers can not enter the market.

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1. Which of the following is NOT a reason why employees lose their jobs?
stich3 [128]

Answer:B. Good attendance

Explanation: Employers want their employees to have good attendance, this is a good quality, it is NOT a reason why employees lose their jobs.

4 0
3 years ago
Steve Conyers and Chelsy Poodle formed a partnership, dividing income as follows: Annual salary allowance to Poodle of $146,160.
Ahat [919]

Answer:

Conyers = $38,580

Poodle = $222,420

Explanation:

Annual salary allowance to Poodle of $146,160.

Interest of 6% on each partner's capital balance on January 1.

Any remaining net income divided to Conyers and Poodle, 1:2.

net income $261,000

distribution of interests:

  • Conyers = $54,000 x 6% = $3,240
  • Poodle = $93,000 x 6% = $5,580

drawings (annual salary allowance):

  • Poodle = $146,160

remaining income = $261,000 - $146,160 - $3,240 - $5,580 = $106,020

  • Conyers (1/3) = $35,340
  • Poodle (2/3) = $70,680

total distributed:

  • Conyers = $3,240 + $35,340 = $38,580
  • Poodle = $5.580 + $146,160 + $70,680 = $222,420
6 0
3 years ago
According to the video, what qualities do Carpenters need to have? Select three options.
r-ruslan [8.4K]

Answer:

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8 0
3 years ago
Read 2 more answers
Given the following, calculate total manufacturing costs: Direct materials: $40,000; Direct labor: $100,000; Manufacturing overh
vfiekz [6]

Answer:

cost of goods manufactured= $278,000

Explanation:

Giving the following information:

Direct materials: $40,000

Direct labor: $100,000

Manufacturing overhead applied: $120,000

Beginning Work in process inventory: $30,000

Ending Work in process inventory: $12,000

<u>To calculate the total manufacturing costs, we need to use the following formula:</u>

cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP

cost of goods manufactured= 30,000 + 40,000 + 100,000 + 120,000 - 12,000

cost of goods manufactured= $278,000

4 0
3 years ago
Give at least one example that you believe demonstrates when the cost of government actions outweighs the benefits.
Dovator [93]

Answer: The creation of a government set price for gasoline by ni government.

Explanation:

In 1970 president Nixon inteoduced a soft artificial price ceiling on gasoline in the United States. This was as a result of the OPEC crisis of 1970s. It is a good example of scenerios where the cost of government action outweighs the benefits. this was due to the creation of the government-set price which would cause the quantity demanded to be more than the quantity supplied because gasoline was cheaper now.

7 0
3 years ago
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