New entry is among the most common reasons why a cycle of competitive actions and reactions gets started among similar competitors.
Answer the following statement true (T) or false (F)
True
New entry into markets, whether by start-ups or by incumbent firms, nearly always threatens existing competitors. This is true in part because nearly every market need is already being met, either directly or indirectly, by existing firms. As a result, the competitive actions of a new entrant are very likely to provoke a competitive response from companies that feel threatened. This, in turn, is likely to evoke a reaction to the response.
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A company decided to conduct a market survey for its new MP3 player which it had priced at $150. However, in the survey, 95 percent of the participants said that the maximum they would pay for the MP3 player is $100
This is an example of which of the following possible consumer reference prices? A) historical competitor price B) expected future price C) usual discounted price D) upper-bound price E) last price paid
Answer the following statements true (T) or false (F)
1.Bonded warehouses and foreign trade zones have the effect of allowing domestic importers to prorate their input duties over time. 2.A country whose imports of a product constitute a very small portion of the world market supply of that product is a price taker. Thus, this country faces a constant world price for the imports of this product. 3.Graphically, consumer surplus is the area above the demand curve and below the product's market price. 4.Producer surplus is the revenue producers receive over and above the minimum necessary for production. 5.For a "small" country, a tariff raises the domestic price of an imported product by the full amount of the tariff. a. True
Databases make the creation and management of a useful connector list easier, but they
A) cannot replace cold calling. B) make the use of MPR cost-prohibitive. C) increase the likelihood that a firm will require a media audit. D) are not a substitute for critical thinking. E) reduce the effectiveness of a company's conventional advertising campaigns.
Which of the following is a recommended guideline for evaluating the lease versus buy decision for a three year lease?
a. 1% rule b. 2% rule c. 5% rule d. 4% rule e. 3% rule