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To ensure that prices abroad do not rise, a firm can implement effective cost management strategies, such as negotiating favorable contracts with suppliers and optimizing logistics to reduce transportation costs. Additionally, the firm can monitor currency fluctuations and hedge against foreign exchange risks to maintain stable pricing. Establishing strong relationships with local partners can also provide insights into market dynamics, enabling better pricing strategies. Lastly, leveraging economies of scale through increased production or distribution efficiency can help keep costs low.
What else can I help you with?
What are three different approaches a firm might use to set prices for customers different geographical areas?
A firm might use a personal survey approach to help them set prices for customers of different geographical areas. They might also use a market research study. The really aggressive firm is going to call potential customers themselves and ask what they would pay for certain items.
2 Does the fact that a firm is a monopolist ensure that it will be able to earn positive economic profits Why or why not?
No. It depends on the monopolistic firm. If the firm is a monopolist because it has lowered its prices on products so low to drain out the competition and force the other firms to exit the market, it may not be profiting at all and it may be losing money instead. However, in the long run a monopolistic firm can be profitable because when all firms exit the market it has the ability to raise prices to pay for any loss it may have experienced by lowering prices in the earlier part of its monopolistic strategy. A firm that is a monopolist in a market may never see profitability. It all depends on the monopolist's ability to defend its product that it takes to market. Also, a firm isn't ever guaranteed positive economic profit. The demand might cease at any time and the firm might find itself in a never ending loss scenerio.
What allows another firm to produce and sell a company's product abroad?
foreign license agreement
How does a firm respond to a higher demand for its goods?
it raices prices
What does a firm's supply curve for a good indicate?
A firm's supply curve for a good indicates the quantity of that good the firm is willing and able to produce and sell at different prices.
What are three different approaches a firm might use to set prices for customers different geographical areas?
A firm might use a personal survey approach to help them set prices for customers of different geographical areas. They might also use a market research study. The really aggressive firm is going to call potential customers themselves and ask what they would pay for certain items.
2 Does the fact that a firm is a monopolist ensure that it will be able to earn positive economic profits Why or why not?
No. It depends on the monopolistic firm. If the firm is a monopolist because it has lowered its prices on products so low to drain out the competition and force the other firms to exit the market, it may not be profiting at all and it may be losing money instead. However, in the long run a monopolistic firm can be profitable because when all firms exit the market it has the ability to raise prices to pay for any loss it may have experienced by lowering prices in the earlier part of its monopolistic strategy. A firm that is a monopolist in a market may never see profitability. It all depends on the monopolist's ability to defend its product that it takes to market. Also, a firm isn't ever guaranteed positive economic profit. The demand might cease at any time and the firm might find itself in a never ending loss scenerio.
What allows another firm to produce and sell a company's product abroad?
foreign license agreement
What can a firm with market power do?
A firm with market power has the ability to control prices and total market output .
How does a firm respond to a higher demand for its goods?
it raices prices
What is price leadership by low cost firm?
Price leadership by low cost firm is what results when a firm determines the prices of services and goods within its sector.
Why is the stock prices important to a firm?
its inportant to the firm on the cause that it give some reputation, it also ofthen give a valiu of the state of that firm (Notice: the firm can have a low stock and goes good)
What does a firm's supply curve for a good indicate?
A firm's supply curve for a good indicates the quantity of that good the firm is willing and able to produce and sell at different prices.
Under what market structure does the firm have the most control over prices?
Monopoly
What is the economic term that describes the ability of a market participant to influence prices instead of merely being forced to accept market prices?
Market power is the ability of a firm to dictate their own prices without having to succumb to market prices. Market power usually occurs if the firm has control over a large part of the market.
What is the difference between captive and non-captive outsourcing with examples?
Captive sourcing refers to sourcing form the firm's own production facilities located abroad ,while non-captive is from different firm facilities
Can a perfectly competitive firm set a price for its products that is above marginal cost?
A perfectly competitive firm would set its prices at a perfectly competitive price.
