Projecting Sales Price Changes Depends on Factors Specific to the Firm

question 4

Multiple Choice

Projecting sales price changes depends on factors specific to the firm and its industry that might affect demand and price elasticity.Which of the following types of companies would most likely be able to increase prices?

• A) A firm in a capital intensive industry that is expected to operate near capacity for the near future.
• B) A firm in a capital intensive industry in which excess capacity exists.
• C) A firm operating in an industry that is expected to experience technological improvements in its production process.
• D) A firm operating in an industry that is transitioning from the high growth to the maturity phase of its life cycle.

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Definitions:

Negatively Correlated

A statistical relationship between two variables in which one decreases as the other increases, and vice versa.

Bystanders

Individuals who are present at an event or incident but do not take part in it.

Helping Behaviour

Actions taken to assist or benefit another individual or group without expectation of reward.

Snoring

The hoarse or harsh sound that occurs when air flows past relaxed tissues in the throat, causing the tissues to vibrate during sleep.