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SVEN [57.7K]
3 years ago
5

A company sells digital music players and is introducing its latest player to the market. The company knows it can’t compete hea

d-to-head with Apple and its iPods at $100. It decides to choose a pricing strategy that will capture more of the market by charging a much lower price of $39. It decides to increase the demand for its digital music players in order to take advantage of economies of scale. What type of pricing strategy should the company choose? a. skim pricing b. penetration pricing c. break-even pricing
Business
1 answer:
Katyanochek1 [597]3 years ago
4 0

Answer:

b. penetration pricing

Explanation:

Market-penetration pricing is nothing but strategy where the price that is set low in order to gain market share. In price penetration, the product is not highly distinctive. Low cost attracts price sensitive customers and they will prefer to buy the product because of its low cost.

This helps in increasing the market share as more customers will be attracted towards the products or services. This pricing strategy helps in developing the economies of scale. This refers to business optimizing profits by lowering the operational cost and improving the efficiency.

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Imagine you live on the planet Krypton. The loanable funds market on Krypton is thriving and life is good. However, the planet i
sergij07 [2.7K]

Answer: fall; decrease

Explanation:

People save in order to be able to consume in future. If it is discovered that there will be no fixture, there would be no need to save. The supply of loanable funds would therefore decrease as people stopped saving.

Because there is reduced loanable funds, less investments would be done as these require loanable funds. With less investments being done, the economic output will decrease.

5 0
2 years ago
The government has the ability to influence the level of output in the short run using monetary and fiscal policy. There is some
zubka84 [21]

The government has the capacity to influence the level of output in the short run by utilizing monetary and fiscal policy. There exists some disagreement as to whether the government should endeavor to stabilize the economy. The given statement is true.

<h3>What is the monetary and fiscal policy?</h3>

Monetary policy exists as a set of actions to control a nation's general money supply and achieve economic growth. Monetary policy strategies contain revising interest rates and changing bank reserve conditions. Monetary policy exists commonly categorized as either expansionary or contractionary.

In economics and political science, the fiscal policy exists as the use of government revenue assemblage and expenditure to control a country's economy. Fiscal policy exists the use of government spending and taxation to influence the economy. Governments typically employ fiscal policy to promote strong and sustainable growth and decrease poverty.

To create an economy more stable, active stabilization policy instruments that mitigate the effect of pessimism and optimism waves stand advocated. The waves of pessimism among consumers and businesses show the fall in aggregate demand. This fall in aggregate demand can be partly or fully offset by raising the money supply because the increase in money supply boosts aggregate demand.

The government has the capacity to influence the level of output in the short run by utilizing monetary and fiscal policy. There exists some disagreement as to whether the government should endeavor to stabilize the economy.

To learn more about monetary and fiscal policy refer to:

brainly.com/question/14088906

#SPJ4

7 0
2 years ago
Kathleen has two investment opportunities. She can invest in The Sunglasses Company or the Umbrella Company. She estimates there
zubka84 [21]

Answer:

Explanation:

Attachment below

5 0
3 years ago
Read 2 more answers
The following events apply to Gulf Seafood for the 2018 fiscal year: The company started when it acquired $60,000 cash by issuin
Arte-miy333 [17]

Answer:

depreciation per year:  9,000

<u>operating income: </u>     41,000

Explanation:

Q: Adjusted the records to reflect the use of the cooktop.

Under straight-line the company will recognize the same amount of depreciation over the course of the assets life. At year-end the company will adjsut for the loss in value for the asset generated for the past of time.

\frac{cost - salvage \: \:value}{useful \:\: life}

\frac{40,000- 4,000}{4}

depreciation per year: 9,000

<u>operating income:</u>

revenues                      72,000

salaries expense:        (25,000)

depreciation per year:  (9,000)

          total                    41,000

6 0
3 years ago
Borasco Corp. owns land with a fair market value of $200,000. Borasco purchased the land 10 years ago for $65,000 and owes a lia
sleet_krkn [62]

Answer:

$65,000

Explanation:

Borasco was the person who purchased the land for $65,000 in which the land was later transferred to Alvo. Therefore no gain or loss is been recognized in this liquidation because it subsidiary is been liquidated by the parent which is why the basis of land is said to be carryover basis of $65,000 at the end of the transaction.

5 0
3 years ago
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