subject
Business, 16.07.2021 01:50 kam71

Suppose that, prior to other firms entering the market, the maker of a newsmartphone (Way Cool, Inc.) earns $100 million per year. By reducing itsprice by 50 percent, Way Cool could discourage entry into ๎€‚its๎€ƒ market, butdoing so would cause its profits to sink to ๎€€ $5 million. By pricing such thatother firms would be able to enter the market, Way Cool๎€„s profits would dropto $75 million for the indefinite future. In light of these estimates, do youthink it is profitable for Way Cool to engage in limit pricing? Is any additionalinformation needed to formulate an answer to this question? Explain

ansver
Answers: 1

Another question on Business

question
Business, 21.06.2019 21:30
Afreezer manufacturer might purchase sheets of steel, wiring, shelving, and so forth, as part of its final product. this is an example of what sub-classification of business market?
Answers: 1
question
Business, 22.06.2019 07:00
Pennewell publishing inc. (pp) is a zero growth company. it currently has zero debt and its earnings before interest and taxes (ebit) are $80,000. pp's current cost of equity is 10%, and its tax rate is 40%. the firm has 10,000 shares of common stock outstanding selling at a price per share of $48.00. refer to the data for pennewell publishing inc. (pp). pp is considering changing its capital structure to one with 30% debt and 70% equity, based on market values. the debt would have an interest rate of 8%. the new funds would be used to repurchase stock. it is estimated that the increase in risk resulting from the added leverage would cause the required rate of return on equity to rise to 12%. if this plan were carried out, what would be pp's new value of operations? a. $484,359 b. $521,173 c. $584,653 d. $560,748 e. $487,805
Answers: 1
question
Business, 22.06.2019 11:30
Amano s preguntes cationing to come fonds and consumer good 8. why did the u.s. government use rationing for some foods and consumer goods during world war ii?
Answers: 1
question
Business, 22.06.2019 19:10
Do it! review 16-3 the assembly department for right pens has the following production data for the current month. beginning work in process units transferred out ending work in process 0 22,500 16,000 materials are entered at the beginning of the process. the ending work in process units are 70% complete as to conversion costs. compute the equivalent units of production for (a) materials and (b) conversion costs. materials conversion costs the equivalent units of production
Answers: 2
You know the right answer?
Suppose that, prior to other firms entering the market, the maker of a newsmartphone (Way Cool, Inc....
Questions
question
Mathematics, 08.12.2021 01:00
question
Mathematics, 08.12.2021 01:00
question
Mathematics, 08.12.2021 01:00
question
Mathematics, 08.12.2021 01:00
question
Mathematics, 08.12.2021 01:00
Questions on the website: 13722361