In a perfectly competitive market, which of the following statements is true? Options: A. Firms have some control over the price of their product. B. There are significant barriers to entry for new firms. C. Firms are price takers. D. There is limited competition among firms. Don't use chatgpt or other ai tool. If you know correct answer then attempt if you gave wrong answer I will give 10 dislikes and more from my friends account
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- Consider a company faced with a competitor's price reduction. Should the company also reduce price in order to maintain market share or should the company maintain its current price? The company has conducted some preliminary research showing the financial outcomes of each decision under two competitor responses: the competition maintains its price or the competition lowers its price further. The company feels pretty confident that the competitor cannot lower its price further and assigns that outcome a probability (p) of 0.7, which means the other outcome would have only a 30 percent chance of occurring (1-p=0.3). These outcomes are shown in the table below:Competitive ResponseCompany action Maintain Price, p=0.7 Reduce Price, (1-p)=0.3Reduce Price $155,000 $125,000Maintain Price $165,000 $95,000What is the expected value of perfect information (EMV Subscript PI)? Should the research be conducted? Assume that conducting more research costs $15,000.Consider a company faced with a competitor's price reduction. Should the company also reduce price in order to maintain market share or should the company maintain its current price? The company has conducted some preliminary research showing the financial outcomes of each decision under two competitor responses: the competition maintains its price or the competition lowers its price further. The company feels pretty confident that the competitor cannot lower its price further and assigns that outcome a probability (p) of 0.8, which means the other outcome would have only a 20 percent chance of occurring (1-p=0.2). These outcomes are shown in the table below:Consider a company faced with a competitor's price reduction. Should the company also reduce price in order to maintain market share or should the company maintain its current price? The company has conducted some preliminary research showing the financial outcomes of each decision under two competitor responses: the competition maintains its price or the competition lowers its price further. The company feels pretty confident that the competitor cannot lower its price further and assigns that outcome a probability (p) of 0.8, which means the other outcome would have only a 20 percent chance of occurring (1-p=0.2). These outcomes are shown in the table below:Competitive ResponseCompany action Maintain Price, p=0.8 Reduce Price, (1-p)=0.2Reduce Price $165,000 $125,000Maintain Price $175,000 $105,000The expected monetary value (EMV) of reducing the price is
- In a strategy meeting, a manufacturing company’s president said, “If we raise the price of our product, the company’s break-even point will be lower.” Thefinancial vice president responded by saying, “Then we should raise our price. The company will be less likely to incur a loss.” Do you agree with the president? Why? Do you agree with the financial vice president? Why?Identify each of the following risks as most likely to be systematic risk or diversifiable risk: The risk that the economy slows, decreasing demand for your firm’s products due to COVID-19. The risk that your best employees will be hired away. The risk that the new product you expect your R&D division to produce will not materialize.When dealing with Make or Buy - we have several alternatives that could be possible. Like with any problem associated with relevant decision making, we have to list all of our alternatives side by side and choose the best one. Yet, as we've discussed, there are items that are important that can be non-financial. For instance, if a series of alternatives suggests we should drop a product line because the numbers say it'd be a good move, do we just do it? What about the political fall out? The loss of jobs? All of these things need to be weighed when making these all to complicated decisions.
- In a strategy meeting, the computer manufacturing company's president said, "If we raised the price of our product, the company's break-even point will be lower." The financial vice president responded by saying, "The company will also be less likely to incur a loss." As a management accountant would you agree or disagree with these statements and why?CEO: "If we were to increase the price of our goods the company's break-even point would be lower," he noted in a strategy meeting. The vice president of finance answered by adding, "Then we should boost our pricing. As a result, the organization is less likely to suffer a financial loss." Do you share the president's sentiments? To what end? Is the vice president correct? To what end?Which of the following is not a central problem of an economy? A) What to produce B) How to produce C) For whom to produce D) When to produce Don't use chatgpt or other ai tool. If you know correct answer then attempt if you gave wrong answer I will give 10 dislikes and more from my friends account
- Question-. If a pure monopolist can price discriminate by separating buyers into two or more groups: A. the marginal revenue curve will now shift to a position above the demand curve. B.marginal revenue will become less at each level of output than it would be without price discrimination. C. the firm will face multiple marginal revenue curves. E. the marginal revenue curve and the total revenue curve will now coincide I think the answer is C?Corning’s market value was below its book value because it was facing pricing pressure in the market, which reduced its ROIC. What are some ways to tell if pricing pressure is temporary – and if a company should wait it out – or permanent, and the company should consider shutting down?Describe an adverse selection problem a company is facing. What is the source of the asymmetric information? Who is the less informed party? What transactions are not being consummated as a result of the information? Could you (or do you) use signaling or screening to consummate these transactions? Offer your company some sound advice, complete with computations of the attendant profit consequences.