Question

The firm worries that having two stores this close may create ___________ and "steal" business from...

The firm worries that having two stores this close may create ___________ and "steal" business from the original Starbucks location.

A. cannibalization

B. shrinkages

C. externality costs

D. competition costs

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

The correct answer is Option A.(Cannibalization).

The firm worries that having two stores this close may create Cannibalization and "steal" business from the original Starbucks location. Cannibalization means loss of sales of original product due to the introduction of the new product. This happens in case of companies who have introduced a new product and new product is liked more than the original one. For example, Apple introduced I Phone 5S sales lead to drop in the sales of I Phone 5C. The customers are buying from the same company but they have shifted the product preference.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
1. A monopoly is best defined as a firm doing which of the following? A. Selling...
1. A monopoly is best defined as a firm doing which of the following? A. Selling a product for which there are no close substitutes B. Making short-run economic profits C. Having a degree of market power D. Having a downward-sloping demand curve 2.What is assumed to be the monopoly firm’s underlying objective? A. To charge the highest price possible B. To produce as little as possible C. To maximize profits D. To force competition out of business 3. When...
Economies of scale may arise from which of the following activities? Choose all that apply a.)...
Economies of scale may arise from which of the following activities? Choose all that apply a.) Doubling promotional expenses to expand sales less than proportionately. b.)increasing the scale of the business so that average total cost rises c.)Having a larger retail space can expand sales more than proportionately. d.) Government economic subsidies protect firms from competition to avoid losses.
3. The two most common ways that commissions may be fraudulently increased are: MULTIPLE CHOICE a....
3. The two most common ways that commissions may be fraudulently increased are: MULTIPLE CHOICE a. Skimming and theft of non cash assets.     b. Larceny and bribing.     c. False sales and increasing the rate of the commission. d. Misuse of non cash assets and shorting company purchases. 5. Which of the following is not a strong control for protecting blank checks? MULTIPLE CHOICE a. Blank checks should be kept under lock and key. b. The key to the blank checks...
In May of the current year 2020, Aleksander began investigating the possibility of opening an law...
In May of the current year 2020, Aleksander began investigating the possibility of opening an law firm. From May through July he spent $1,200 on a market survey, $3,600 in consulting fees to find the best location and $2,000 in professional fees setting up an accounting and inventory system. Although he had never run his own business before, on August 1 he opened his doors for business. What is the maximum amount of deduction for the current year attributable to...
We are considering data from the GSS on numbers of close friends people reported having. The...
We are considering data from the GSS on numbers of close friends people reported having. The mean for this variable is 7.44, with a standard deviation of 10.98. Let's say that you decide to use the GSS data to test whether people who live in rural areas have a different mean number of friends than does the overall GSS sample. Again, treat the overall GSS sample as the entire population of interest. Let's say that you select 40 people living...
Assume there are two polluting firms in two different cities. In the business-as-usual outcome, Firm #1...
Assume there are two polluting firms in two different cities. In the business-as-usual outcome, Firm #1 would emit 20 units of pollution (e1=20) and Firm #2 would emit 20 units of pollution (e2=20). Additionally, assume the marginal abatement costs for Firm #1 and Firm #2 are given below: MAC1 (x1) = 0.5x1    &    MAC2 (x2) = 2x2 This pollutant is known to cause adverse health effects when in high concentrations. Since the firms are in different cities, assume the marginal social benefit...
Which one of the following may not explain the observed deviations from purchasing power parity (PPP)...
Which one of the following may not explain the observed deviations from purchasing power parity (PPP) among the currencies of different countries? a. Differences in regulations and taxes across countries. b. Trade barriers and transportation costs. c. Lack of perfect competition in most markets. d. Differences in the prices of perfectly tradable products when measured in a common currency. e. None of the above.
Jojo Inc. is a profitable tax paying firm (pays taxes close to 10 million per year...
Jojo Inc. is a profitable tax paying firm (pays taxes close to 10 million per year from other unrelated projects). Jojo is evaluating a new project where it expects project sales of 1.5 million this year, 2.2 million next year and zero sales after that. Sale price is a $14.50 and the cost to produce is $5.80 per unit. In order to have these profits, machinery must be purchased that costs 12 million dollars up front and which will be...
Two oligopoly firms are in the process of evaluation their marketing strategies. Firm 1 can generate...
Two oligopoly firms are in the process of evaluation their marketing strategies. Firm 1 can generate estimated profits of $10 mil. From strategy A if the second firm reacts by strategy C abd $15 mil. From strategy A if the second firm reacts by strategy D. On the other hand firm 1 may follow strategy B which could return profits of $8 mil. Or $9 mil. If firm 2 reacts by strategy C or D respectively. The second firm’s potential...
1. There are two players: A government, G, and a firm, F . The firm can...
1. There are two players: A government, G, and a firm, F . The firm can choose to invest in a Research and Development project, action R, or not, action N . If the firm chooses R, it gets a payoff of pπ − c, where p is the level of patent protection given to the firm, π are the profits generated by the invention to a monopolist, and c is the cost of research. So if p = 1,...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT