1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
lawyer [7]
3 years ago
8

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:
pentagon [3]3 years ago
5 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.

You might be interested in
A company is evaluating a new 4-year project.
Andrej [43]

Answer:

$ 714.957,6‬

Explanation:

<u>We should solve for the book value afer four years:</u>

3,800,000 x (0.2 + 0.32 + 19.2 + 11.52) =

3,800,000 x       0,8272‬    =  3.143.360

book value: 3,800,000 - 3,143,360 = 656.640‬

Now, we compare it against our expected sales value

745,000 - 656,640 = 88,360

This gain will be taxes at 34%

88,360 x 34% = 30.042,4‬

Now, the after tax salvage value will be :

745,000 - 30,042.4 = 714.957,6‬

8 0
4 years ago
An investment counselor calls with a hot stock tip. He believes that if the economy remains​ strong, the investment will result
mixer [17]

Answer:

6,000

Explanation:

The expected value from this investment can be calculated by possible values for random variables by multiplying them by their probability

DATA

Strong  = 30,000   , probability = 30%

Moderate = 10,000 , probability = 60%

Weak = -30,000 , probability = 10%

Calculation

Expected profit = Values x Probability

Expected profit = (30,000 x 30%) + (10,000 x 60%) + ( 30,000 x 10%)

Expected profit = 6,000 + 6,000 -6,000

Expected profit = 6,000

7 0
4 years ago
Monopolistically competitive firms do not achieve allocative efficiency because the _____. Multiple choice question. price for a
andreev551 [17]

Answer:

price for a monopolistically competitive firm exceeds the marginal cost

Explanation:

Monopolistically competitive firms do not achieve allocative efficiency because the <em>"price for a monopolistically competitive firm exceeds the marginal cost"</em>

Allocative efficiency is known to be an economic concept which actually regards efficiency at the societal level. This usually refers to the production of the optimal quantity of some output. The quantity produced is actually the marginal benefit of one more unit which the society enjoys and which is equal to the marginal cost.

In a monopolistically competitive industry, they will produce a lower quantity of a good and then their prices will be higher than would a perfectly competitive industry. A monopolistic competitive firm’s demand curve actually slopes downward. This then means that it will charge a price that exceeds marginal costs.

4 0
3 years ago
Which of the following statements is TRUE?
dedylja [7]

Answer:B. The portfolio of smaller stock are typically less volatile than individual small stock.

C. On average smaller stock have lower return than larger stock.

Explanation:

The larger stock most times have a higher volatility than smaller stock and usually have better records of performance, this therefore makes their returns higher than lower stock.

On an average the volatility of a smaller stock is greater than that of a portfolio of smaller stock for the portfolio stock will compensate for one another to limit the volatility.

A treasury bill has a government guarantee, their return is therefore lower and same applies to their volatility when compared to smaller stock.

8 0
4 years ago
Should a registered representative enter into a private securities transaction that would entail earning compensation, the emplo
Andre45 [30]

The employing member will have the opportunity to approve or disapprove of the associated person's participation.

“Registered representative” is a term that describes a person who is licensed to shop for and promote securities for customers and is subsidized by using a firm registered with the financial industry Regulatory Authority (FINRA).

Independent broker-dealers feature as complete-provider brokerage companies, however, continue to be unfastened from the limitations and demands of a large Wall Street corporation. RIAs are independent fiduciaries who may accomplice with several broker-sellers, promoting a variety of products and services.

Registered representatives constitute customers within the buying and selling of investment merchandise including stocks, bonds, and mutual budgets. Many manage complicated trades or complicated products which can be out of doors the abilities of online trading.

Learn more about Registered representatives here brainly.com/question/26179492

#SPJ4

7 0
2 years ago
Other questions:
  • What are the ways that panera bread can conduct ethical and proper forms of competitive analysis to learn about potential compet
    7·1 answer
  • Why is it important to compute real GDP?
    6·1 answer
  • Todrick Company is a merchandiser that reported the following information based on 1,000 units sold: Sales $ 300,000 Beginning m
    6·1 answer
  • Cox Corporation had 1,200,000 shares of common stock outstanding on January 1 and December 31, year 2. In connection with the ac
    8·1 answer
  • Which of the following statements is consistent with the ideas that W. Edwards Deming promoted regarding quality management? a.
    12·1 answer
  • Burger King is a cash-basis taxpayer but maintains its financial accounting records using full
    14·2 answers
  • A company forecasts sales of $91,500 for the quarter ended December 31. Its gross profit rate is 18% of sales, and its September
    10·1 answer
  • Advertising is NOT a good way to find harmful information about a product because a. it is not endorsed by the government. b. th
    6·1 answer
  • What is revision?<br><br> a. the step in the writing process where you look
    12·1 answer
  • True or false? the patient should be given a receipt for payments on account even if the account is not paid in full.
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!