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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 prepaid insurance account had a beginning balance of $4,500 and was debited for $16,600 of premiums paid during the year. Jo
trasher [3.6K]

Answer:

prepaid expense 15,500 debit

prepaid insurance 15,500 credit

Explanation:

<em>The amount of unexpired insurance will be the ending balance of the account</em>

4,500 debit

+ 16,600 premium paid

+/- adjustment

5,600 ending

4,500 + 16,600 - 5,600 = 15,500

8 0
3 years ago
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Answer:

Maintenance, Installation, and Repair

Explanation:

Heres some evedence to proove:

During her day, Tiara often works on about eight different cars fixing any problems and making suggestions to customers about how to keep their cars in working condition. She manipulates numbers throughout the day to get her customers the best price possible. Based on her tasks, which most likely is her career?

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3 years ago
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You consider buying a share of stock at a price of $31. the stock is expected to pay a dividend of $2.58 next year, and your adv
Sophie [7]
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5 0
3 years ago
Francis Inc.'s stock has a required rate of return of 10.25%, and it sells for $57.50 per share. The dividend is expected to gro
aleksandrvk [35]

Answer:            ke = D1/Po + g

                 0.1025 = D1/57.50 + 0.06

        0.1025-0.06 = D1/57.50

            0.0425     = D1/57.50

                      D1    = 0.0425 x 57.50

                      D1    = $2.444

           

Explanation: Cost of equity is equal to dividend in 1 year's time divided by the current market price plus the growth rate. Other variables were provided in the question except the dividend at the end of the year (D1).

Thus, D1 becomes the subject of the formula. The appropriate cost of equity is $2.44. The correct answer is B.

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3 years ago
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If the the single cable TV firm from Sydney now has a new competitor coming into town, what will most likely happen with the price of the service is that it will go down and become more accessible to consumers, as a direct consequence of the generation of competition from market between the companies involved.

The concept of competition plays a central role in economic theory. it is a situation by which different actors (companies or consumers) compete for a share in the same activity, typically the sale or purchase of a product or service. For economic operators, it is often an advantage to have limited competition on their own side of the market and a lot of competition on the opposite side, as it allows for high profits. From the point of view of society, as high a competition as possible is usually an advantage, as it ensures the best possible utilization of society's resources.

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