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.
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.
E) Cross-functional teams are used for developing new ideas and coordinating complex projects.
Explanation:
A cross-functional team is composed of members of the same hierarchical level but work in the different departments or areas of the organization, like finance, human resource, research and development, security and legal.
These members are usually the heads of offices of these departments who gather together to discuss, innovate and develop new ideas geared towards the advancement of the organization.
Goal congruence is a vital component in a cross-functional team.
According to the Heckscher-Ohlin model, a country should export the good that is has a relative abundance in and import the good it has relative scarcity in.
Find out labor to land ratio of both countries:
Country Alpha = 45 / 15 = 3
Country Beta = 200 / 100 = 2
Country Alpha has 3 labor units per acre
Country Beta has 2 labor units per acre
Country Alpha therefore has more labor abundance and should export the labor intensive good which is good A which means <u>Country B will import A</u>.
Country Beta should <u>export more land intensive good which is good B. </u>
Proactive change is the change that occurs when an organisation makes different modifications to to a work place and methods.
Most organisations carry out proactive changes due to the following reasons:
1) Gaining entry into a new market.
2) Change in the normal business condition.
3) Acquiring operational capabilities.
Proactive changes helps to identify new innovation for the growth of the company, it also allows for flexibility and better internal understanding among employees.
Since the rate of return is calculated as dividend payment/stock price + dividend growth rate and since that growth rate for the next five years will be 0.5 %, than rate of return will be higher than 0.5 %.
