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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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Bond valuationlong dashSemiannual interest Find the value of a bond maturing in 4 ​years, with a ​$1 comma 000 par value and a c
algol [13]

Answer:

824.28

Explanation:

Market price of a bond is the total sum of discounted coupon cashflow and par value at maturity. This is a 4-year bond with semi-annual payment so there will be 8 coupon payment in total. Let formulate the bond price as below:

Bond price = [(Coupon rate/2) x Par]/(1 + Required return/2) + [(Coupon rate/2) x Par]/(1 + Required return/2)^2 + ... + [(Coupon rate/2) x Par + Par]/(1 + Required return/2)^8

Putting all the number together, we have

Bond price = [(4.5%) x 1000]/(1 + 7.5%) + [(4.5%) x 1000]/(1 + 7.5%)^2 + ... + [(4.5%) x 1000 + 1000]/(1 + 7.5%)^8

                  = 824.28

7 0
2 years ago
Imagine that you are a management coach and one of your clients, a new manager, says, "I’ve heard that about two thirds of manag
Schach [20]

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I think 1 and 3

Explanation:

8 0
3 years ago
An associate is seeking advice on which device to purchase for a friend who is a business owner. The friend needs the ability to
Anton [14]

Answer: The following would be the best recommendation: <u><em>Smart watch</em></u>

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Smart watch will help his friend and give him the ability to chat activity while keeping in contact with the home office.

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8 0
2 years ago
I need help ASAP.......If you were interviewing someone what questions would you ask???
Rzqust [24]

Answer:

Tell me about yourself.

What are your strengths?

What are your weaknesses?

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7 0
2 years ago
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Compute conversion costs given the following data: direct materials, $361,300; direct labor, $195,300; factory overhead, $216,70
Radda [10]

Answer:

a. $412,000

Explanation:

Conversion cost is the combination of direct labor and manufacturing overhead which directly or indirectly are necessary to produce a product other than the direct raw materials.

We know,

<em>Conversion costs = Direct Labor + Manufacturing Overhead</em>

Here,

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Direct labor = $195,300

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Therefore,

<em>Conversion costs = </em>$195,300 + $216,700

<em>Conversion costs = </em>$412,000

8 0
2 years ago
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