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:

Sixteenth

Referring to being in the position of number sixteen in a sequence; the ordinal form of the number sixteen.

Jews

An ethnoreligious group originating from the Israelites or Hebrews of the ancient Middle East, known for their shared heritage, religion (Judaism), and traditions.

Serfdom

A condition of bondage or modified slavery in which an individual is tied to owning land and owes service and labour to the landowner.

Unpopulated Parts

Areas or regions that are not inhabited by people.