A firm claims on its website that it has been in the same location for over 50
Question:
A firm claims on its website that it has been in the same location for over 50 years and has lower overhead than other firms because it bought the land 50 years ago when it was inexpensive. It also claims that it charges lower prices than competitors because of its lower overhead. Discuss the logic of these claims.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 88% (17 reviews)
The idea that lesser overhead due to already owning the property lowers the f...View the full answer
Answered By
Eliel Valdivia
I am a very skilled freelancer with more than eight years of experience. I have had both online and one on one classes with my student who have recorded a great deal of improvement in there class work. Looking forward to helping many more students here.
0.00
0 Reviews
10+ Question Solved
Related Book For
Managerial Economics And Strategy
ISBN: 9780134899701
3rd Edition
Authors: Jeffrey M. Perloff, James A. Brander
Question Posted:
Students also viewed these Business questions
-
A farmer has been in the habit of always planting potatoes on his farm. In previous years, the seeds for the potatoes were planted in the spring, and were ready to harvest in mid-July. After that, a...
-
The Fillups Company has been in the business of exploring for oil reserves. During 2013, $ 10 million was spent drilling wells that were dry holes. Under GAAP, Fillups has the option of accounting...
-
The Fillups Company has been in the business of exploring for oil reserves. During s19x1, $10 million was spent drilling wells that were dry holes. Under GAAP, Fillups has the option of accounting...
-
PIM Industries, Inc., manufactures electronics components. Each unit costs $30 before the final test. The final test rejects, on average, 5 percent of the 50,000 units manufactured per year. The...
-
Verify the accuracy of the ideal gas model when it is used to calculate specific volume for saturated water vapor as shown in Fig. 3.9. Do the calculation for 10 kPa and 1 MPa.
-
A random variable is normally distributed with a mean of = 50 and a standard deviation of = 5. a. Sketch a normal curve for the probability density function. Label the horizontal axis with values...
-
To what extent are additional disclosures about human resources likely to be significant to financial analysts and investors?
-
On July 1,Fritz Corporation purchases 500 shares of its $5 par value common stock for the treasury at a cash price of $9 per share. On September 1, it sells 300 shares of the treasury stock for cash...
-
=1 Let a = (-5, 5) and b = (1,0). Find the projection of b onto a. proj b = < Question Help: Video Submit Question >
-
Jamie Lee Jackson, age 26, is in her last semester of college and is waiting for graduation day that is just around the corner! It is the time of year again when Jamie Lee must file her annual...
-
What is the effect on the short-run equilibrium of a specific subsidy of s per unit that is given to all n firms in a market?
-
Economists often use the model of perfect competition to analyze the effect of economic shocks in particular industries. Which of the following industries is best approximated by perfect competition:...
-
What are a firm's dynamic capabilities? To what extent can managers create or "manage into existence" a firm's dynamic capabilities?
-
Oil is siphoned from the bottom of an atmospheric ( open ) feeding tank to a lower level tank through a 2 c m diameter pipe 4 0 m in length. The bottom of the feeding tank is 1 . 5 m above the exit...
-
Can you elaborate on the mechanisms of localized corrosion, such as pitting and crevice corrosion, and discuss the microstructural and environmental conditions that contribute to their initiation and...
-
Answer the questions using the following graph. D 20 B 27 5 F 8 14 A E 17 12 30 10 G 15 7 G (a) Draw the sequence of edges (represented by edge weight) added to the minimal-cost spanning tree...
-
Which has a greater impact on effective patient care ethics or law? justify your answer.
-
Explain the joint venture and partnerships that occur between Chinese Private Equity Firms,Western private equity firms , western firms and Chinese firms
-
A 1996 law suit against Unocal was dismissed on the grounds that the Unocal could not be held liable for the actions of a foreign government against its own people although the judge noted that the...
-
Record the following selected transactions for March in a two-column journal, identifying each entry by letter: (a) Received $10,000 from Shirley Knowles, owner. (b) Purchased equipment for $35,000,...
-
Illustrate the logic of the endowment effect using a kinked indifference curve. Let the angle be greater than 90. Suppose that the prices change, so the slope of the budget line through the endowment...
-
Why would a consumers demand for a product change when the product price is quoted inclusive of taxes rather than before tax? Do you think fewer people would apply for a job if the salary were quoted...
-
In the Managerial Problem, suppose that entertainment is relatively more expensive in London than in Seattle so that the LL budget line cuts the LS budget line from below rather than from above as in...
-
Delta Company produces a single product. The cost of producing and selling a single unit of this product at the company's normal activity level of 108,000 units per year is: Direct materials Direct...
-
Explain to Khalid 1. When consolidation entry "G is prepared? 2. Give two reasons why is consolidation entry "G prepared? Assume an upstream intra-entity transfer. Khalid did not give an answer.
-
! Required information [The following information applies to the questions displayed below.] The following events apply to Gulf Seafood for the Year 1 fiscal year: 1. The company started when it...
Study smarter with the SolutionInn App