In order for "limit pricing" to be effective, the firm practising such a strategy must be able to charge a price that is lower than the potential entrant's ATC but greater than the firm's own ATC.
Explanation:
A pricing strategy is a level where products are sold by a supplier at an expense that is cheap enough to make the market unprofitable for others. Monopolies use it in order to discourage market entry and in many cases it is illegal.
It is not able to sustain a monopolistic-ally profitable firm where P = MC and growth, with a long-run balance, generates an efficiency that approaches the minimum possible in an ATC business. Profit so long as potential customers can not enter the market.
Answer:
Number of air conditioners to be produced = 40
Optimal solution value = $1,900
Explanation:
See attached pictures.
Answer:
C
Explanation:
The total revenues from buyers and stock holders.
Answer:
Exposure Bias
Explanation:
Basically, exposure bias states that consumer are more likely to buy brands which have higher brand recognition than new companies with no name recognition.
------------------elasticity of demand<span> measures the sensitivity of the quantity demanded to changes in the price</span>
