Figure 111 Assume That Lexus (L)is the First Automobile Company

question 108

Multiple Choice

Figure 11.1 Assume that Lexus (L) is the first automobile company to produce a luxury class hybrid automobile and is the only such company for the past four years.BMW is now considering producing its own luxury hybrid automobile and Lexus must decide whether or not to lower the price of its luxury hybrid to counter BMW's entry into the luxury hybrid niche.
-Refer to Figure 11.1.Should Lexus lower its price in order to deter BMW's entry into the luxury hybrid automobile market?

• A)In terms of profit earned, it makes no difference whether Lexus lowers its price or not; in either case it will make $280 million profit if BMW enters.
• B)No, it should keep the same price and work to capitalise on its brand loyalty.
• C)Yes, it will drive BMW out of the market.
• D)No, because BMW will enter the market regardless of Lexus' decision about its price.

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Definitions:

Skeletal System

The body system composed of bones and cartilage that provides structure, support, and protection, as well as enabling movement.

Rheumatoid Arthritis

A chronic inflammatory disorder affecting the joints, characterized by pain, swelling, and potential loss of function, primarily in the hands and feet.

Thoracic Vertebrae

The segment of the spine located in the mid-back, consisting of 12 vertebrae that are attached to the rib cage.

Posterior Attachment

A term typically used in anatomy to refer to structures attached towards the back side of the body.