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vredina [299]
3 years ago
14

Potential competitors may enter an industry and begin to take market share from existing companies. What would be one of the lar

gest challenges a new entrant would need to overcome to be successful when entering the industry?
Business
1 answer:
ludmilkaskok [199]3 years ago
8 0

Production costs are high and require high volumes to achieve profitability.

<h3><u>Explanation:</u></h3>

One of the largest challenges that will be faced by the potential competitors when they try to enter an industry will be that they will face that cost of production will be higher and they would require higher volumes for achieving profits. When a company is new to an industry there will be competitors who are already established well on that particular industry.

The challenges and the opportunity that are in existence will be well known to the existing competitors. They already have buyers and suppliers chain. Hence, the new entrant will have higher production cost and also they require higher volumes to achieve profits.

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A new company to produce state-of-the-art car stereo systems is being considered by Jagger Enterprises. The sales price would be
dybincka [34]

<u>Solution:</u>

The price per variable unit is set at 1.5 times the cost; the VC / unit is estimated at $2.50.

Price = 2.5 * 2.50 = $6.25

Variable cost = $2.50

Fixed cost = $220,000

Break-Even Volume = Fixed cost / (Price - Variable cost)

                                  = $220.000 / (6.25 - 2.50)

Break-Even Volume = 58,667 units

4 0
3 years ago
In the long run the prices charged by a firm in monopolistic competition will be
kumpel [21]

Answer: The correct answer is "d. equal to average cost, including the opportunity cost of capital.".

Explanation: In the long run the prices charged by a firm in monopolistic competition will be equal to average cost, including the opportunity cost of capital.

In long-term monopolistic competition, the demand curve will be tangent to the average long-term cost and the price set at this level. The benefits will be equal to zero and therefore there will be no entry or exit of companies.

6 0
3 years ago
Westover Winds just paid a dividend of $2.10 per share. The company will increase its dividend by 8 percent next year and will t
Alla [95]

Answer:

Price today = $26.54

Explanation:

The price of the stock can be calculated using the Dividend Discount Model (DDM). The DDM values the stock based on the present value of the expected future dividends from the stock.

The formula to calculate the price of the stock is attached.

Price today = 2.1 * (1+0.08) / (1+0.11)  +  2.1 * (1+0.08) * (1+0.06) / (1+0.11)^2  +  

2.1 * (1+0.08) * (1+0.06) * (1+0.04) / (1+0.11)^3  +  

[(2.1 * (1+0.08) * (1+0.06) * (1+0.04) * (1+0.02)) / (0.11 - 0.02)] / (1+0.11)^3

Price today = $26.54

7 0
3 years ago
Bruce is the owner of Orion Inc., a manufacturer of electronic gadgets. He wants to hire the most honest job applicants as marke
Evgesh-ka [11]

In the context of employee selection, it can be inferred that Bruce is likely to employ an integrity test .

<u>Explanation: </u>

The integrity test is a particular kind of psychological test intended to assess whether the individual is trustworthy, truthful and reliable. The lack of integrity is related to fraud, crime, vandalism, disciplinary issues, and absences.

Two main categories of honesty assessments are covert (character-based) tests that assess features relevant to obedience to rules; and transparent measures that analyze a candidate's attitudes to different CWBs explicitly.

Integrity tests can sometimes be reasonable job performance measurements all in all. This isn't shocking, because honesty is strongly linked to perception, which is a strong indicator of overall employment success.

When tandem with cognitive skills tests, credibility assessments may provide considerable value to a selection process as others ' personality characteristics.

6 0
3 years ago
Which of the following statements illustrates a rent ceiling​? A. The interest on mortgage loans has gone up to 4.87 percent in
torisob [31]

Answer:

C. Bluestone Properties is permitted to charge a rent of​ $2,350 for​ 2-bedroom apartments that would rent for​ $2,500 in an unregulated market. 

Explanation:

Rent ceiling is a form of price control which is known as price ceiling.

A price ceiling is when the government or an agency of the government sets the maximum price for a good or service.

Rent ceiling increases consumer surplus and reduces Producer surplus.

Rent ceiling can lead to shortage of houses and emergence of black market.

Price ceiling is binding when it is set below equilibrium price.

I hope my answer helps you

3 0
3 years ago
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