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Luden [163]
2 years ago
6

Firm A and Firm B are the only two companies that sell mail-order DVD rental subscriptions. For several years, Firm A priced its

subscriptions below average variable cost. Firm B tried to compete by also selling subscriptions below average variable cost, but went bankrupt and exited the market. Several months after Firm B exited the market, Firm A raised prices by 40 percent and is currently earning large, positive economic profits. Based only on this information, an argument can be made that:________
a. the mail-order DVD rental subscription market is a monopolistically competitive market.
b. Firm A engaged in predatory pricing.
c. Firm B must have made bad business decisions because it went bankrupt.
d. Firm B engaged in predatory pricing.
e. FirmA and Firm B must have had a collusive agreement
Business
1 answer:
sveta [45]2 years ago
3 0

Answer:

b. Firm A engaged in predatory pricing.

Explanation:

Since Firm A and B are the only two companies that sell mail-order DVD rental subscriptions.

Firm A decided to price its subscriptions below average variable cost thereby causing Firm B to also sell subscriptions below average variable cost, but they went bankrupt and exited the market. Firm A then raised prices by 40% and is currently earning large, positive economic profits.

Based on this information only, an argument can be made that Firm A engaged in predatory pricing.

Predatory pricing is a marketing or pricing strategy that involves lowering the cost of goods and services for a short-term, in order to lure competing firms to lower their price, thus causing them to go bankrupt and exiting from the market.

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Suppose the cost per hour incurred in operating a cruise ship is 3a + bv3 dollars per hour, where a and b are positive constants
Airida [17]

Answer:

Suppose the cost per hour incurred in operating a cruise ship is 3a + b v^{2}dollars per hour, where a and b are positive constants and v is the ship's speed in miles per hour. At what speed (in miles per hour) should the ship be operated between two ports, at a distance D miles apart, to minimize the cost? (Hint: Minimize the cost, not the cost per hour.)

<em>The speed at which the ship would maximize cost is </em>\sqrt[3]{\frac{3a}{2b} }

Explanation:

The problem can be solved using differentiation to get the minimum value of the speed to travel between the two ports. Step by step calculation is contained in the attached images;

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2 years ago
Why is it important to YOU to save money ? ILL MARK BRAINLIST * How and why to save money *
dangina [55]

First and foremost, saving money is important because it helps protect you in the event of a financial emergency. Additionally, saving money can help you pay for large purchases, avoid debt, reduce your financial stress, leave a financial legacy, and provide you with a greater sense of financial freedom. I would save money by keeping it secure in a special place like a wallet.

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2 years ago
Read 2 more answers
Christie and Jergens formed a partnership with capital contributions of $390,000 and $490,000, respectively. Their partnership a
xxMikexx [17]

Answer:

Christie 's share =  $ 37759.09

Jergens Share = $ 47,441

Explanation:

Partner's Profit share are calculated after the deduction of salary or any other interest incomes.

Profit for the current year = $ 163,000

Christie' s Salary                    $ 69,000

Christie Interest Income          $ 3900

10 % 0f $ 390,000

Jergens  Interest Income         $ 4900

10 % 0f $ 490,000

Profit  Balance                                       $ 85,200

Profit Sharing Ratio

Christie : Jergens

390,000: 490,000

39: 49

Christie 's share = $ 85,200 * 39/88= $ 37759.09

Jergens Share = $ 85,200 * 49/88= 47440.9= $ 47,441

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3 years ago
A reading researcher does what
Dmitry_Shevchenko [17]

Answer:

They reveal how the author(s) interpreted the findings of their research and presented recommendations or courses of action based on those findings.

Explanation:

7 0
1 year ago
Catherine works for BluCorp, which has an employee handbook stating that employees will be terminated for good cause. Catherine'
barxatty [35]

Answer:

b. contract exception to employment at will.

Explanation:

The implied contract exception to employment law is available in at-will employment. BluCorp may be found liable for breach of contract firing Catherin due to be violating an implied employment contract.

Implied employment contracts are seen when there are employer's personnel policies stating that an employee will not be fired except for good and fair cause.

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