How does penetration pricing discourage rival companies from entering the market? (Choose every correct answer.) Multiple select question. It negates the experience curve effect, which usually helps competitors. It encourages price skimming, which is too risky for most companies to engage in. The profit potential in the market is relatively low. Competitors who enter the market will temporarily face higher unit costs.

The owner of firewood to go is considering buying a hydraulic wood splitter which sells for $50,000. he figures it will cost an additional $100 per cord to purchase and split wood with this machine, while he can sell each cord of split wood for $125. if, for this machine, design capacity is 50 cords per day, effective capacity is 40 cords per day, and actual output is expected to be 32 cords per day, what would be its efficiency?