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Elena L [17]
4 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]4 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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Financial statement data for the years ended December 31 for Dovetail Corporation follows:2016 2015Net income $448,750 $376,000
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Answer:

The earnings per share for 2016 are $5.45 per share while the earnings per share for 2015 were $5.60 per share.

The earnings per share has fallen in 2016 as compared to 2015, thus there is an unfavorable trend.

Explanation:

Earning per share (EPS) is the amount of net income allocable to each share of common stock outstanding. It is a useful measure for investors as it tells them how much $ return a business in earning on every share of common stock. The earnings per share is calculated as follows,

Earnings per share = (Net Income - Preferred dividends) / Weighted average shares on common stock outstanding

<u />

<u>The earnings per share for Dovetail is</u>

2015 EPS = (376000 - 40000) / 60000    = $5.60 per share

2016 EPS = (448750 - 40000) 75000    = $5.45 per share

4 0
4 years ago
C&amp;s wholesale grocers and if you were cohen and had decided to announce the transition to self-managed teams, what would you
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8 0
4 years ago
Connie is analyzing the financial statements of MegaMart and Bullseye Company. She wants to invest in one of the companies and i
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Answer:

D. financial accounting information.

Explanation:

Financial reporting can be defined as the formal communication or disclosure of financial information and statements to present and potential users such as investors and creditors.

Financial accounting is an accounting technique used for analyzing, summarizing and reporting of financial transactions like sales costs, purchase costs, payables and receivables of an organization using standard financial guidelines such as Generally Accepted Accounting Principles (GAAP). These accounting informations are prepared and made available for investors and other external agencies. Examples of financial statements includes Balance sheet, cash-flow and income statement.

In this scenario, Connie is analyzing the financial statements of MegaMart and Bullseye Company. She wants to invest in one of the companies and is trying to decide which company has the better past performance.

Hence, Connie is examining the financial accounting information.

4 0
3 years ago
Capital requirements for banks serve all of the following purposes EXCEPT:________.a.to offset the change in incentives caused b
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Answer:

b. to reduce deposits

Explanation:

A Capital requirement refers to the amount of capital that a financial institution must have to meet the requirements set by it's financial regulator. All of the answers provided are purposes that this hopes to accomplish except for reducing deposits. It actually hopes to increase deposits which means more customers that are coming in.

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3 years ago
Jack complains that his wife is not sufficiently supportive, which causes him to do poorly at his job. jack's wife responds that
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