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Oxana [17]
2 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]2 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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You are thinking of purchasing a house. The house costs $350,000. You have $50,000 in cash that you can use as a down payment on
jeyben [28]

Answer:

$63,852

Explanation:

The computation is shown below:

a) PV of payments is

= $23,500 × (1.07^30 - 1) ÷ (0.07 × 1.07^30)

= $2,91,612

b) The Loan PV of payments is $3,00,000

c) And, the Balloon payment required is

= (Borrowed amount - loan PV payments) × (1 + rate of interest)^number of years

= ($300,000 - $291,612) × 1.07^30

= $63,852

5 0
3 years ago
Using the allowance method, is bad debt expense recognized in
mezya [45]

Using the allowance method, is bad debt expense recognized in the period in which sales related to the uncollectible account are made.

One of the most typical types of bad debt is credit card debt. Lenders issue credit cards, which let you make purchases on credit. These credit cards frequently have exorbitant interest rates that can soon become out of control.

Bad debt costs are typically listed on the income statement as a sales and general administrative expenditure. Accounts receivable on the balance sheet are reduced when bad debts are recognized, but firms still have the right to collect money if the situation changes.

Learn more about bad debts here

brainly.com/question/24871617

#SPJ4

3 0
1 year ago
What is the point at which supply and demand intersect at a given price?
WINSTONCH [101]
The answer is an equilibrium point. In economics, this relates to the condition of the economic forces in which supplies and demand meet meaning the demand is equal to the supplies of the certain product. It is set by increasing or decreasing the price of a good in response to the movement of the supply and demand in the market. 
8 0
3 years ago
Read 2 more answers
As Facebook, Twitter, and text messaging become more popular ways to communicate, which type of communication is eliminated? A.
Sophie [7]
The correct answer is B. Speeches
7 0
3 years ago
Read 2 more answers
g Cathy Rogers deposits $200 in currency in her checking account at a bank. This deposit is treated as:
Step2247 [10]

Answer: 4) No change in the money supply because the $200 in currency has been converted to a $200 increase in checkable deposits

Explanation:

The money supply refers to the total amount of money currently in circulation. In this instance it remains the same because no new money was introduced into the economy.

All that has happened is that Ms. Rogers took her $200 which was already in circulation and part of money supply and deposited it in her checking account. The money is therefore still in circulation, just not in immediate cash.

Money supply therefore remains the same.

4 0
3 years ago
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