Which of the Following Is a Potential Defensive Move to Ward

question 13

Multiple Choice

Which of the following is a potential defensive move to ward off challenger firms?

• A) Granting volume discounts or better financing terms to dealers/distributors and providing discount coupons to buyers to help discourage them from experimenting with other suppliers/brands
• B) Signaling challengers that retaliation is likely in the event they launch an attack
• C) Making an occasional strong counter-response to the moves of weak competitors to enhance the firm's image as a tough defender
• D) Maintaining a war chest of cash and marketable securities
• E) All of these

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Definitions:

Average Total Cost

Is calculated by dividing total cost by the quantity of output produced, reflecting the per-unit cost of production.

Variable Cost

Costs that vary directly with the level of production or output.

Fixed Cost

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance.

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance premiums.