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Oxana [17]
3 years ago
7

The company has the largest market share in the industry. In order to restrain the smaller competitors in the market, the compan

y sells some of its products at very low prices. This is an example of ________ pricing.
Business
1 answer:
snow_tiger [21]3 years ago
6 0

The given excerpt is an example of predatory pricing .

<u>Explanation: </u>

Predatory pricing is a pricing strategy that identifies a product or service at a very low price, aimed at new customers or at taking competitors off the market or at creating barriers for new potential competitors.

However, it is hard to prosecute the claims of this activity because defendants make an argument that low prices are part of normal trade instead of a concerted attempt to disrupt the economy. Yet predatory prices are always not efficient because of the problems of restoring lost revenue yet removing rivals effectively.

Consumers may benefit from lower prices in the shorter term, but they will suffer if the strategy succeeds in reducing competition, and prices increase and choice decreases.

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What is the total stockholders' equity based on the following account balances?
Rashid [163]

Answer:

The total stockholders' equity amounts to $640,000

Explanation:

The total stockholders' equity is computed as:

Total stockholders' equity = Common Stock + Paid-In Capital in Excess of Par + Retained Earnings - Treasury Stock

where

Common Stock is $375,000

Paid-In Capital in Excess of Par is 90,000

Retained Earnings is 190,000

Treasury Stock is 15,000

Putting the values in the above:

= $375,000 + $90,000 + $190,000 - $15,000

= $655,000 - $15,000

= $640,000

3 0
3 years ago
Chocolate Co. reports the following information from its sales budget: ​ Expected sales:
maksim [4K]

Answer:

The total amount of cash expected to be received from customers in September is: B. $ 108,000

Explanation:

The total amount of cash expected to be received from customers in September include the following :

  1. <em>Cash Sales in the month of September - 25 %</em>
  2. <em>Cash Receipts from Accounts for August Sales - 75 %</em>

<u>The Calculation of cash expected to be received from customers in September is as follows :</u>

Cash Sales - September = 120,000 × 25% =  30,000

Credit Sales - August = 104,000 × 75%      =   78,000

Total                                                              =  108,000

4 0
3 years ago
Recent financial statement data for Harmony Health Foods (HHF) Inc. is shown below.
MissTica

Answer:

1. B. 3.14

2. C. 1.12

Explanation:

1. Times Interest Earned ratio

Measures how well a company is able to cover it's debt obligations using it's earnings.

The formula is simply,

= Earning before Interest and Tax / Interest Expense

Therefore,

Times Interest Earned ratio = 116/37

= 3.14

HHF's times interest earned ratio is Option B, 3.14.

2. Debt to Equity Ratio

This ratio compares the debt used to fund a company vs it's equity. It measures how much of either way used to fund the company.

The formula is,

= Total Debt / Total Equity

= 540/484

= 1.12

HHF's Debt to Equity ratio is 1.12, Option C.

4 0
3 years ago
What is an externality? how do externalities relate to socially optimal quantity?
Elodia [21]
An externality in business or economics is where an industrial activity has an unexpected side effect which does not figure in the cost of the goods and services involved.  For example, I worked many years at a large mine. Just the existence of the mine there meant it was a no-hunting area so a side effect was that the moose used it as a refuge during hunting season which as a side effect was beneficial to the moose (and deer). Another example is that we used to crush mine rock for the haulroads for winter traction. As a result, it was found that the fines from this were concentrated with copper values so were put in the mill for processing-an unexpected outcome.
7 0
3 years ago
Can a server be too attentive to their patrons? Explain.
Vedmedyk [2.9K]
Yes, hovering over customers can make them feel uncomfortable in, for example, having a conversation because of another set of ears listening and constantly being interrupted
3 0
3 years ago
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