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serious [3.7K]
3 years ago
6

Penny Bank, a discount store, is highly competitive. When entering a new market, Penny Bank often cuts prices so deeply that it

sells below costs, effectively pushing smaller retail stores with less purchasing power out of the market. In this case, Penny Bank is using ________. Group of answer choices cost-plus pricing market skimming deceptive pricing predatory pricing psychological pricing
Business
1 answer:
Mariulka [41]3 years ago
5 0

Answer:

predatory pricing

Explanation:

Based on the scenario being described within the question it can be said that in this case, Penny Bank is using predatory pricing. This is an approach to pricing in which a company lowers prices to really low levels in order to steal customers from their competitors and drive out the new competitors from the market, since they will not be able to match or sustain those low prices and will eventually go bankrupt.

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Preferences are characterized generally by: A. income. B. consumption bundles. C. indifference curves. D. budget constraints.
damaskus [11]

Answer:

B. consumption bundles

Explanation:

Customer preference is defined as the likes and dislikes that a customer has that determines his choice in making purchases.

For exams a customer may want to buy shoes that are black in colour, but shoes that are yellow in colour are ignored.

Preferences of buyers are independent not prices and income level.

Rather it is dependent on consumption bundle. That is the set of goods that will give highest satisfaction to the buyer.

4 0
2 years ago
n the cash flow information for the Ping Kings project, Ping spent $300,000 for research and development of the golf clubs. Ping
Gre4nikov [31]

Answer: C. $0

Explanation:

When including initial costs in a project's cash-flow, the relevant costs are those that henceforth will be spent on the project. Sunk costs are not to be included because they have already been incurred and cannot be recovered.

Research and Development costs have already been incurred and so are sunk costs. Hence they are not to be included in the initial cash-flow for the project.

6 0
3 years ago
To overcome this problem when selling to less-affluent consumers in developing countries, many companies make simpler or smaller
xxMikexx [17]

This kind of problem is known as price escalation.

<u>Explanation:</u>

A divergence in estimating where merchandise have greater expenses in a remote market than in the local market because of transportation and sending out expenses is known as price escalation.

Price escalation can likewise allude to the total of cost factors in the circulation channels which mean a higher last expense for an item in a remote market.

5 0
2 years ago
​A stock's average return is 10 percent. The average risk-free rate is 7 percent. The standard deviation of the stock's return i
svet-max [94.6K]

Answer:

The Treynor index for the stock will be 0.02.

Explanation:

The average return of the stock is 10%.

The average risk-free rate is 7%.

The standard deviation of the stock's return is 4%.

Stock's beta is given at 1.5.

Treynor index

= (Portfolio return- risk free return)/beta of the portfolio

=(0.10-0.07)/1.5

=0.03/1.5

=0.02

So, the Treynor index for the stock will be 0.02.

4 0
3 years ago
Which of the following statements is false?
tangare [24]
I believe the In a limited liability partnership, all partners are limited partners
4 0
2 years ago
Read 2 more answers
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