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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.

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The manager at​ Tom's Taxidermy expects to sell 1,000 units at $70 each unit. In order for the manager to​ breakeven, the manage
STatiana [176]

Answer:

A.$63,000

Explanation:

The margin of safety is defined as the difference between the actual sales volume and the breakeven volume.

In this case, Tom's Taxidermy expects to sell 1,000 units at $70 each and their breakeven volume is 100 units, the margin of sales, in dollars, is:

MS = (1,000-100)*\$70\\MS=\$63,000

The answer is A.$63,000.

6 0
3 years ago
A customer who is long 500 shares of xyz writes 7 calls against the position. this is an example of
taurus [48]

Answer: Covered Call

When a person holds a stock and writes (sells) calls on the same stock, the strategy is known as a covered call.  

A person can opt for this strategy if he has a neutral view on the stock, but wants to generate an income stream by receiving premiums by writing the call option.  

The risk involved in this strategy occurs when the stock price moves above the strike price. In this scenario, the covered call writer has to deliver the shares when the call is exercised. He doesn’t benefit from an increase in price.

3 0
4 years ago
Use the following chart to explain how the loan repayment period affects the total cost of the loan.
FromTheMoon [43]

Loan 1 and Loan 2 have the same principal and interest rate but different monthly payments and total loan costs, therefore, the loan repayment periods would be different.

<h3>What is the loan repayment period?</h3>

The loan repayment period refers to the time it takes to repay a loan.

When the amount being repaid is smaller, the loan repayment period tends to be longer, and vice versa.

Data and Calculations:

           Loan Repayment   Principal    Interest Rate    Monthly     Total cost

             Period                                                              Payment    of the loan

Loan 1    5 years                  $5,000    6.47 percent       $98         $5,866

Loan 2  10 years                 $5,000     6.47 percent       $57         $6,804

Thus, the loan repayment periods are affected by the monthly payments and total costs to reflect the loan terms.

Learn more about loan repayments at brainly.com/question/25599836

#SPJ1

6 0
2 years ago
I want a solution to the problem of coffee break in the company. Because the employees are getting late in the coffee break all
ELEN [110]

Answer:

The solution to prevent employees getting late at work could be a regressive strategy like warning employees about the duration after which they cannot be at break and telling them that there would be a pay cut from their monthly salary if they exceed the time like $0.1/minute.

In order to increase the productivity of the company, there are many strategies that can be opted at different levels of organization

Like at manufacturing level: 1) installing more efficient Plant and machinery

2) Hiring more skilled labours

and at managerial level: 1) Improved planning 2) hiring competent and trained staff

Explanation:

6 0
3 years ago
Hominins have canines that are:________a. small, blunt, and nonprojecting, with no diastema. b. part of a honing complex. c. lar
e-lub [12.9K]

Hominins have canines that are: small, blunt, and nonprojecting, with no diastema.

<h3>When did humans lose canines?</h3>

4.5 million years ago

Canine teeth shrank in human ancestors at least 4.5 million years ago

<h3>What are human canine teeth called?</h3>

In humans, the canine teeth are located outside your incisors and are also known as your cuspids.

Although our diets have certainly evolved from that of our hunter-gatherer ancestors, modern humans still use canine teeth to grip and tear food, just like our ancestors did. Without the pointed surface of your canines, you'd have a very difficult time biting into a sandwich or an apple!

To learn more about Canine teeth , refer

brainly.com/question/27260143

#SPJ4

3 0
2 years ago
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