All categories

2 years ago

Predatory pricing occurs when(ever):

Business

1 answer:

denis-greek [22]2 years ago

3 0

Answer:

Answer is option D, i.e. Firms engage in "dumping" practices, particularly when foreign firms market to US customers.

Explanation:

Predatory pricing is a kind of pricing strategy that is used to drive out the newly entered competitor out of the market. The strategy uses lowering the price of the product into a very cheap product that grasps the attention of the customers and tempts them to buy from that very brand instead of the new entry. This is sometimes referred to as “dumping” strategy.

You might be interested in

A net worth statement, financial goals, and a budget are all part of a _____.

Gemiola [76]

A net worth statement, financial goals, and a budget are all part of a financial plan.

5 0

2 years ago

An insurer sells a very large number of policies to people with the following loss distribution: $100,000 with probability 0.005

kogti [31]

Answer:

a) $2000

b) $1,886.7925

C) $2,036.7925

Explanation:

First, the question states to determine the expected claim cost per policy

Expected Claim Cost represents the fund required to be paid by an insurer for a particular contract or a group of contracts as the case maybe. This is usually based on the policy taken.

A) Expected Claim Cost per policy

= (Policy Loss Value A x its probability) + (Policy Loss Value B x its probability) + (Policy Loss Value C x its probability)+(Policy Loss Value D x its probability)+ (Policy Loss Value E x its probability)

= ( (100000 x 0.005 )+ (60000 x 0.010) + (20000 x 0.02) + (10000 x 0.05) + 0 = $2000

Part B: discounted expected claim cost per policy

Since, the sum of $2000 is expected to be paid by the insurer by the end of the year, the interest to be earned based on the rate (discounting used)

=$2,000 ÷ (1 + 0.06)

= $1,886.7925

Part C:: Determine the Fair Premium

Fair Premium is calculated as follows

The discounted policy claim cost + the Processing Cost per application + The fair profit loading

= $1,886.7925+ $100+50 = $2,036.7925

3 0

3 years ago

Pola and quint want to form and do business as river tours corporation. a corporation can consist of?

Tpy6a [65]

'Pola and quint want to form and do business as river tours corporation. a corporation can consist of one or more natural persons.

A corporation is an organization (usually a group of people or a legal entity) authorized by the State to act as a single entity and legally recognized as such for a specific purpose. Early incorporated entities were established by charter. Most jurisdictions now allow the formation of new companies through registration.

The company is managed and directed by its directors and officers. Directors are appointed by shareholders and are responsible for the overall management and corporation governance of the company. The directors appoint officers who are responsible for the day-to-day management and operations of the company.

Learn more about corporation brainly.com/question/1918077

#SPJ4

4 0

1 year ago

Two investments were made totaling $15000. for a certain year these investments yielded $1432 in simple interest. part of the $1

Andrews [41]

<span>Let amount invested at 9% be "x"; Interest on this is 0.09x dollars Amt. invested at 10% is "15000-x" ; Interest on this is 0.1(15000-x)=1500-0.1x dollars EQUATION: interext + interest=1432 dollars 0.09x + 1500-0.10x = 1432 -0.01x = -68 x=$6800 (amt invested at 9%) 15000-6800=$8200 (amt invested at 10%)</span>

3 0

3 years ago

Sort each change or goal into the category where it fits best.

ankoles [38]

I'm trying to finish setting my account up so sorry I don't know the answer just putting this down so I complete the steps.

3 0

2 years ago