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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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Which economic player did John Maynard Keynes feel was capable of restarting the economy during the Great Depression
Reptile [31]

Answer:

the government

Explanation:

5 0
2 years ago
The fictional country of Alpetra increases the income tax rate so that tax revenues increase by $50 million. If GDP, consumption
bezimeni [28]

Answer:

There is no change in investment for Apletra.

Explanation:

Because GDP, consumption, and government spending remains the same there would also be no chane in investment for Alpletra.

5 0
3 years ago
Heather's interest and gains on investments for the current year are as follows:
Leviafan [203]

Answer:

c. $1,400

Explanation:

Gross income

= Interest on U.S. government bonds + Interest on a Federal income tax refund  + Gain on the sale of Madison County school bonds  

= $700 + $200 + $500

= $1,400

Therefore, Heather must report gross income in the amount of $1,400.

5 0
3 years ago
Century Real Estate’s primary broker is John Kerr. John is licensed as the broker of that company and he is licensed as a broker
fomenos

Answer:

The broker is doing two different jobs; so it is okay to have two different licenses.

Explanation:

In this case, since the broker is doing two different jobs then it is okay for him to have two different licenses. In a hypothetical case that the individual Broker was doing the same job role for two different companies then that would be considered a form of conflict of interest and may cause problems with both firms in the future. Since this is not the case, then he should not have any problem.

3 0
3 years ago
Among the most effective ways to increase sales of an online service is to offer some form of free trial for users to experiment
Basile [38]

Answer:

Option D

Explanation:

When providing an online service, a company firstly targets to reach the maximum audience. With the increase in reach of audience the chances and feasibility of sales also increases.

But, still there are many customers who desire to have a free trial of service, in order to ensure themselves about the quality and  detailed description of service.

In case company agrees to provide free trial, those customers are also satisfied and tend to avail the online service.

Thus, although the sales is directly proportional to the number of visitors, but it would definitely increase by providing the free trial of online service, as ensures more satisfaction in customers.

Final Answer

Option D

7 0
2 years ago
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