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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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Morgan signs a contract with Shane agreeing to work with him for a movie. Halfway through the production of the movie, Shane dec
Mice21 [21]

Answer:

(b) Shane has to pay $20,000 to Morgan for breach of contract

Explanation:

In the situation, it is given that Shane decides to quit as he gets another job so he breaks the contract instead of finishing his work on time.  

Due to breach of contract, Shane has to pay $20,000 to Morgan because it is written in the party that if any party breaks the contract than he has to pay the amount. But due to some unnatural causes, no one has to pay.  

In the given case, Shane has deliberately broken the contract so it is compulsory to pay the $20,000 to Morgan.  

Hence, option b is correct

5 0
3 years ago
Kenner company produces two products: SR200 and TX500. Budged sales for four months are as follows;
NARA [144]

Answer:

The correct answer is B.

Explanation:

Giving the following information:

Budgeted production TX500

May 20,000

June 32,000

July 39,000

August 46,000

TX500 should have 40% of next months sales in ending Inventory. On May 1, there were 9,000 units of TX500.

Production for June:

Sales= 32,000 units

Ending inventory= (39,000*0.40)= 15,600

Beginning inventory= (32,000*0.4)= 12,800 (-)

Total= 34,800 units

8 0
3 years ago
During the course of your examination of the financial statements of the Hales Corporation for the year ended December 31, 2021,
Nana76 [90]

Answer:

$35,260

Explanation:

Calculation to Determine the proper amount of net income for 2021

Unadjusted net income $33,000

Adjustments:

a. Insurance expense overstated $2,800

[4,200-(4,200/3)]

b. Sales revenue overstated $(675)

c. Supplies expense overstated $645

d. Interest expense understated $(510)

(12%*17,000*3/12)

Adjusted net income $35,260

Therefore the proper amount of net income for 2021 will be $35,260

3 0
3 years ago
If a company spends $20 million to install new footwear-making equipment with capacity to produce 1 million pairs of athletic fo
labwork [276]

Answer: 10% or $2,000,000

Explanation:

Seeing as no figures were produced, we will have to do this ourselves.

We will make assumptions which include the following,

Life of the equipment = 10 Years

Salvage value = 0

Those are our 2 assumptions.

In that case then,

The Annual Depreciation will be,

Depreciation = (Cost of equipment - Estimated salvage value) / Estimated useful life

= (20 - 0) / 10

= $2 million

Seeing as 2 million is,

= 2/20 * 100

= 10%

That would mean that annual depreciation costs at that facility will rise by $2 million or 10%.

If you need any clarification do react or comment.

3 0
3 years ago
An increase in government spending by $100 would, if the mpc = 0. 90, result in an increase in real gdp by?
bixtya [17]

The answer is $1000

As Change in real GDP= Change in gov. spending/(1-MPC)

So

100/(1-0.90)=1000

Gross domestic product is the monetary fee of all finished goods and services made inside a country during a selected duration. GDP affords an economic snapshot of a rustic, used to estimate the scale of a financial system and growth charge. GDP can be calculated in 3 methods, the use of fees, production, or earning.

In economics, the marginal propensity to consume (MPC) is defined as the percentage of a mixture enhance in pay that a consumer spends on the consumption of goods and offerings, instead of saving it.

Learn more about Gross domestic product here

brainly.com/question/1383956

#SPJ4

5 0
1 year ago
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