Suppose that the four firms are colluding by acting like a monopolist, with each firm producing one-fourth of the market output. If one of the firms cheats on the cartel agreement and produces an additional unit of output, the profits of each of the compliant firms go from:
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Complete Question
The complete question is shown on the first uploaded image
Answer:
the correct answer is (b) decrease from $16 to $14
Explanation:
In order for profit to be maximized by a monopolist quantity produce will be MR = MC
from above graph MR = MC when Quantity = 8. As they are all producing equal portion of market output Hence Each firm will produce Q = 8/4 = 2 units.
When Market quantity = 8 then price they are getting = 12 per unit (From demand curve)
As there is no fixed cost and MC is constant => Total variable cost = MC*Q = 4Q
=> Total cost(TC) = Total fixed cost + total Variable cost = 0 + 4Q = 4Q
Total revenue = Price * quantity = PQ = 12Q
Hence Profit = 12Q - 4Q = 8Q and as Q = quantity per firm = 2
=> Profit they are earning = 8*2 = 16.
Now Suppose one firm cheats and hence now total quantity produces and sold = 2*3 + 3 + 9.
When Market quantity = 9 then price they are getting = 11 per unit (From demand curve).
Now, Profit = TR - TC = 11Q - 4Q = 7Q and Q remains same for those firms who didn't cheat.
So, Now profit = 7Q = 7*2 = 14.
Thus, If one of the firms cheats on the cartel agreement and produces an additional unit of output, the profits of each of the non cheating firms will decrease from $16 to $14.
Related Questions
The Federal Open Market Committee is comprised of A. the seven members of the Board of Governors plus five of the twelve Federal Reserve Bank presidents. B. the five members of the Board of Governors plus the twelve Federal Reserve Bank presidents. C. the seven members of the Board of Governors plus the twelve Federal Reserve Bank presidents. D. the five members of the Board of Governors plus seven of the twelve Federal Reserve Bank presidents.
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Answer:
A. the seven members of the Board of Governors plus five of the twelve Federal Reserve Bank presidents.
Explanation:
The Federal Reserve Bank commonly known as "The Fed" is the central bank of the United States of America.
The Federal Open Market Committee under the Federal Reserve Bank is comprised of the seven members of the Board of Governors plus five of the twelve Federal Reserve Bank presidents.
The Federal Reserve System (the 'Fed) was created by the Federal Reserve Act, passed by Congress in 1913. The Fed began operations in 1914. It was founded by President Woodrow Wilson under the Federal Reserve Act, which was aimed at backing each banks in order to put a definitive end to the bank panics of the 1800s.
Like all central banks, the Federal Reserve is a government agency that is saddled with the following responsibilities;
- Controlling the issuance of currency in United States of America (it promotes public goals such as economic growth, low inflation, and the smooth operation of financial markets).
- Providing banking services to all the commercial banks in the country (the Federal Reserve is the "lender of last resort).
- Regulating banking activities (it has the power to supervise and regulate banks).
A prospective homebuyer signs a brokerage agreement under which the real estate company will help the client find a three-bedroom house in the $185,000 to $200,000 price range. A seller comes into the real estate company's office and signs a listing agreement in which the real estate company will act as the seller's agent to sell a two-bedroom condominium for $170,000. Based on these facts, which statement is TRUE
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Options:
a.) The buyer is the real estate professional's client; the seller is the real estate professional's customer.
b.) The buyer is the real estate professional's customer; the seller is the real estate professional's client.
c.) While both the buyer and the seller are clients, the real estate professional owes the fiduciary duties of an agent only to the seller.
d.) Because both the buyer and the seller are the real estate professional's clients, the real estate professional owes the fiduciary duties of an agent to both
Answer: d.) Because both the buyer and the seller are the real estate professional's clients, the real estate professional owes the fiduciary duties of an agent to both
Explanation: According to the scenario above, both the buyer and the seller are clients of the real estate professional and as such service providers or professionals have moral and ethical obligations which must be performed in other to avoid situations which could compromise the integrity and professionalism of the real estate personnel. Therefore the real estate professional owes both the seller and buyer fiduciary duties (ethical relationship) and hence should deal with fairness between them.
purchased inventory for $4,900 and also paid a $430 freight bill. JC Manufacturing returned 30% of the goods to the seller and later took a 1% purchase discount. Assume JC Manufacturing uses a perpetual inventory system. What is JC Manufacturing's final cost of the inventory that it kept? (Round your answer to the nearest whole number.)
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Answer:
Final cost of Inventory $3,845.30
Explanation:
Calculation for the JC Manufacturing's final cost of the inventory that it kept
JC Manufacturing's final cost of inventory
Purchase Cost of inventory $4,900
Less Purchase returns and allowance ($1,470)
(30%*$4,900)
Less Purchase return ($14.70)
(1%*$1,470)
Add freight in $430
Final cost of Inventory $3,845.30
Therefore the Final cost of Inventory will be $3,845.30
Ken, a real estate agent, assures Lily that a certain parcel of commercial property fronts on the most highly trafficked street in Metro City. Lily buys the property and then discovers that the street has no more traffic than any other in its vicinity. Lily is most likely a victim of Group of answer choices
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Options :
a. mistake.
b. opinion.
c. an adhesion contract.
d. fraud.
Answer: Fraud
Explanation: From the scenario described above, it could be inferred that Ken, the real estate agent used trickery to lure Lily into purchasing the property. Hence, Lily could be said to have been defrauded by Ken who used what Lily needed to trick her into making the purchase because the main specification, that is high traffic, which Ken used to lure Lily was actually false. Fraud remains a grave offence as it could only be carried out by lying, issuing false statement, blackmail, impersonation and other grave offences.
Many economists believe that the market for wheat in the United States is an almost perfectly competitive market. If one firm discovers a technology that makes its wheat taste better and have fewer calories than all other wheat offered in the market, the wheat market would become less competitive:
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Answer: c. the products would no longer be similar in the wheat market.
Explanation;
In a perfectly competitive market, goods are meant to be homogeneous which leads to stiffer competition as a consumer could just switch from one seller to another and still get the same utility as all products are similar.
If one product starts to taste better and have fewer calories, the products in the market will no longer be homogeneous and competition will decrease because switching to this newer wheat would increase a consumer's utility as opposed to not therefore more people will switch and other competitors will not be able to compete unless they start producing better wheat as well.
Which of the following statements is most correct? Group of answer choices The percentage flotation cost associated with issuing new common equity is typically smaller than the flotation cost for new debt. The WACC is an estimate of the cost of all the capital a company had raised in the past. The WACC is an estimate of a company’s before-tax cost of capital. There is an "opportunity cost" associated with using retained earnings.
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Answer:
There is an "opportunity cost" associated with using retained earnings hence, they are not free
Explanation:
The opportunity cost is the cost that are incurred to gain a better thing by sacrificing the other thing among the other alternatives.
And, the retained earning is the amount which is left after pay off to the shareholders
Therefore the last statement is correct both of them are associated with each other
And the other options are incorrect
Frank wants to add contact information for his references to his resume what should he obtained before including this contact information
A.Training certificates
B. Each person’s approval
C. Experience letter
D. Membership certificates.
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Answer: B
Explanation: You should always contact someone before you list them as a reference to confirm that they are comfortable giving you a good recommendation if the potential employer contacts them, and also to confirm that you are listing the correct contact information on your resume.
Margarita, age 30, used to work 80 hours a week as a corporate lawyer. this year she quit her job to take care of her five-month-old daughter. she is currently not looking for a job. the survey conducted by the bureau of labor statistics will count margarita today as choose one:
a. not in the labor force.
b. not in the working-age population.
c. a discouraged worker.
d. employed.
e. unemployed.
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Answer: a) Not in the labor force
Explanation:
The category of people not in the labour force are those who either have no interest in working for someone, have retired, or has resigned(with no intentions to work for anyone). This category of persons have no interest in taking up job positions as they want to either rest, face another aspect of their life or can't work again due to their age. Margarita is in the category of those not in the labour force as she looks towards taking care of her daughter and won't be in for any job at the moment.
In the absence of a specific contract provision regarding the details of payment, the UCC provides that payment be made in full:A) within 10 days of the time and place that delivery occurs.B) within 20 days of the time and place that delivery occurs.C) within 30 days of the time and place that delivery occurs.D) at the time and place that delivery occurs.
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Answer:
Correct Answer:
D) at the time and place that delivery occurs.
Explanation:
When there is no available specific contract provision between two or more individual over a business transaction, there will be difficulty in keeping track of the payment and it subsequent structuring. To overcome this, there is need to make payment at the time and place the delivery occurs.
AARP is a powerful political interest group that also maintains a lucrative business providing health and life insurance to its members. What does AARP's strategy suggest about an interest group's ability to secure financial stability
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Answer:
In simple word, The given case relates to the practice of saving the lobbying interest by the political groups using monetary transaction and rules. It is beneficial for such a lobby group to set up a non-profit company.
Community groups can gain financial security by establishing non-profit organisations inside the organization. AARP uses the money from its insurance company to fund its legislative activities.
Which of the following will happen when the economy makes the transition from its short-run equilibrium to its long-run equilibrium? (Note: Do not adjust the graphs to reflect the transition to the long run.) Check all that apply.
A. The price level will fall.
B. The demand for money will fall.
C. The equilibrium interest rate will rise.
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Answer:
C. The equilibrium interest rate will rise.
Explanation:
According to the question, When the economy made the transition from the short run equilibrium to the long run equilibrium than there is a rise in the supply that results in rise in the nominal wages but the real wage would remain unchanged or constant
Therefore the option c is correct and the rest of the options are wrong
Answer:
C. The equilibrium interest rate will rise.
Explanation:
Nominal wages, prices, and perceptions adjust upward to this new price level.
You were asked to provide a report on performance of the project. The project is composed of 6 phases with each phase lasting for 2 weeks and an approved budget of $10,000 for the entire project. You are now at end of week 6. At this point you've spent exactly half your budget and the work that was planned for phases 1, 2, and 3 has been completed.
A. Project is on time and on budget
B. The project is on time, but we cannot determine whether the project is on budget
C. The project is on budget, but we cannot determine whether the project is on time
D. It's impossible to tell anything
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Answer:
Option B. The project is on time, but we cannot determine whether the project is on budget
Explanation:
Each of the phase takes 2 weeks and $100,000 and at the end of the week 6 we can say that 3 phases of the project have been completed. Therefore, the task of completing 3rd phase is within time (3*2=6), which means that the project is on time.
But here we can't tell which phase exceeded the budget and which didn't exceeded the budget. So this can not be estimated here because of lack of information. Hence we can say that we are unable to form opinion on whether the project was on budget or not.
Organic Produce, Inc. has shares of common stock outstanding and shares of preferred stock outstanding. The common stock is par value; the preferred stock is % noncumulative with a par value. On October 15, 2019, the company declares a total dividend payment of . How much dividend will be paid to the preferred stockholders?
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Answer:
Some information is missing, so I looked it up.
total common stocks outstanding = 49,000par value = $0.08 per stocktotal preferred stock = 4,000preferred stock par value = $100preferred dividends = 9%total dividends = $45,000preferred stockholders will receive 4,000 x $100 x 9% = $36,000 in dividends, which means that they will receive $9 per preferred stock
common stockholders will receive $9,000 / 49,000 = $0.1837 per common stock
John has an escalator clause in his labor contract by which his salary increases automatically by the amount of the previous year's inflation rate. If John's salary is $100,000, this year's consumer price index is 105, and the previous year's CPI was 100, by what percent will John's salary be increased?
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Answer: 5%
Explanation:
From the question, we are informed that John has an escalator clause in his labor contract by which his salary has to be increased automatically by the amount of the previous year's inflation rate.
If John's salary is $100,000, this year's consumer price index is 105, and the previous year's CPI was 100, the percent by which John's salary be increased will be (105 - 100) = 5%.
While your hands are on home row, your left hand rests lightly on _____. z x c v j k l ; q w e r a s d f
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it will rest lightly on the pinky finger on the right hand
Answer:
While your hands are on home row, your left hand rests lightly on A S D F AND The Space Bar
Explanation:
Please Mark as BRAINLIEST
Bob has been training with you for three months. He has lost 15 pounds (7 kg) and has changed his eating habits. A new position with his company is going to require him to travel around the country almost every week. In terms to eating healthy in restaurants, what information would be most beneficial to him
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Answer: Select smaller portions, order grilled items vs. fried, and limit sauces
Exercise often
Explanation:
Dieting asides it involving food has great discipline that is most important. In as much as an individual stops some meal or limit taking some, he needs to be consistent in the decision to stick by appying discipline in eating irrespective of their location, with the goal that was in the mind when the process began. Bob would have to continue with the same routine of food that made him loose weight and what I'll recommend for him would be Select smaller portions, order grilled items vs. fried, and limit sauces. Then, exercise often.
Daves Inc. recently hired you as a consultant to estimate the company's WACC. You have obtained the following information. (1) The firm's noncallable bonds mature in 20 years, have an 8.00% annual coupon, a par value of $1,000, and a market price of $1,000.00. (2) The company's tax rate is 25%. (3) The risk-free rate is 4.50%, the market risk premium is 5.50%, and the stock's beta is 1.20. (4) The target capital structure consists of 35% debt and the balance is common equity. The firm uses the CAPM to estimate the cost of equity, and it does not expect to issue any new common stock. What is its WACC? Do not round your intermediate calculations.
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Answer:
9.315%
Explanation:
The computation of WACC is shown below:-
But before that we need to do the following calculations
PV -$1,000
PMT 80
N 20
FV $1,000
Compute IY 8%
After tax cost of Debt = Before tax cost of debt × (1 - tax rate)
= 8% × (1 - 25%)
= 6%
According to the CAPM,
Cost of Equity =Risk free Rate + (Beta × Market Risk Premium)
= 4.5% + (1.2 × 5.5%)
= 11.10%
Weight of Equity = 100% - 35%
= 65%
WACC = (Weight of Equity × Cost of Equity) + (Weight of debt × Cost of debt)
= (65% × 11.10) + (35% × 6)
= 9.315%
Based on the information given Daves Inc WACC is 9.32%.
First step is to find then YTM using financial calculator
PV= -$1,000
PMT= 80
N=20
FV =$1,000
Hence:
YTM=8%
Second step is to calculate the After tax cost of Debt
After tax cost of Debt = Before tax cost of debt × (1 - tax rate)
After tax cost of Debt = 8% × (1 - 25%)
After tax cost of Debt = 6%
Third step is to calculate the Cost of Equity
Cost of Equity =Risk free Rate + (Beta × Market Risk Premium)
Cost of Equity= 4.5% + (1.2 × 5.5%)
Cost of Equity= 11.10%
Fourth step is to calculate WACC
WACC= (.35 × 6%×)+ [(1-.35)×11.10%]
WACC=(.35×6%)+(.65×11.10%)
WACC=2.1%+7.215%
WACC=9.315%
WACC= 9.32% (Approximately)
Inconclusion Daves Inc WACC is 9.32%.
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________involves employees and organizational representatives meeting with a neutral third party who tries to help the two sides reach a mutually agreed-upon solution
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Answer:
Mediation.
Explanation:
This is explained to be a process that has been well structured which is seen to be plain and also interactive, having compulsorily a third party who is impartial in conflict resolution that is seen to be between an employee and a said organisation. Certain mediation cases may be seen to be informal meeting among the parties or a scheduled settlement conference. This dispute in some cases when it is a little blown out of proportion by the mediator, may either be pending in a court or potentially a dispute which may be filed in court. Cases suitable for mediation are disputes in commercial transactions, workers compensation, labor or community relations, domestic relations, employment or any other matters which do not involve complex procedural or evidentiary issues.
In February, a homeowner contracted with a general contractor to have a basement storage space converted to a sauna, but never paid for the work. The homeowner stopped making mortgage payments in June. The owner is two years delinquent in property taxes to the county. The state gives mechanics' liens priority. If all of these creditors obtain judgments against the owner in November, what will be the priority of their liens (first to last)
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Answer:
Generally real estate liens are prioritized following a temporal order, from first to last. This applies to all liens except taxes. Taxes are always first and they are collected before any other lien in the event of a foreclosure.
In this case, the following priority would go to the mechanic's lien from the the general contractor (as a result from court order), then the mortgage, and finally the other creditors.
A company sells DVD players for $200 per unit. The players have a unit variable cost of $160. The company estimates that it will sell one home entertainment system for every four DVD players sold. Home entertainment systems have a unit variable cost of $460 and sell for $600 per unit. The company's fixed costs are $90,000. Assuming that the sales mix estimate is correct, how many DVD players need to be sold for the company to break even?
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Answer:
Break-even point= 1,200 DVDs
Explanation:
First, we need to calculate the sales proportion:
DVD= 4/5= 0.8
Home entertainment= 1/5= 0.2
Now, we need to calculate the break-even point for the whole company:
Break-even point (units)= Total fixed costs / Weighted average contribution margin
Weighted average contribution margin= (weighted average selling price - weighted average unitary variable cost)
Weighted average contribution margin= (200*0.8 + 600*0.2) - (160*0.8 + 460*0.2)
Weighted average contribution margin= 60
Break-even point (units)= 90,000/60= 1,500
Finally, the number of DVDs:
DVD= 1,500*0.8= 1,200 DVDs
DVD players need to be sold for the company to break even point :
Formula :
Break-even point (units)= Total fixed costs / Weighted average contribution marginBreak-even point (units)= 90,000/60Break-even point (units)= 1,500
Therefore, the number of DVDs:
DVDs= Break-Even Point-Sales Proportion DVD= 1,500*0.8DVD= 1,200 DVDsWorking Notes :
Sales Proportion:DVD= 4/5= 0.8
Home entertainment= 1/5= 0.2
Weighted average contribution margin= (weighted average selling price - weighted average unitary variable cost)Weighted average contribution margin= (200*0.8 + 600*0.2) - (160*0.8 + 460*0.2) Weighted average contribution margin= 60
DVD players need to be sold for the company to break even is 1200DVDs.
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Computing cash flows from financing LO P3 Additional short-term borrowings $ 20,000 Purchase of short-term investments 5,000 Cash dividends paid 16,000 Interest paid 8,000 Compute cash flows from financing activities using the above company information. (Amounts to be deducted should be indicated by a minus sign.)
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Answer:
Cash flows from Financing Activities $4,000
Explanation:
Computation of cash flows from financing activities
Additional short-term borrowings $20,000
Less Cash dividend paid ($16,000)
Cash flows from Financing Activities $4,000
Therefore the Cash flows from Financing Activities will be $4,000.
Kela Corporation reports net income of $450,000 that includes depreciation expense of $70,000. Also, cash of $50,000 was borrowed on a 5-year note payable. Based on this data, total cash inflows from operating activities are:
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Answer:
$520,000
Explanation:
Kela corporation reports a net income of $450,000
The depreciation is $70,000
A cash of $50,000 was borrowed on a 5-year note payable
Therefore, the total cash inflows from operating activities can be calculated as follows
= Net income+depreciation
= $450,000+$70,000
= $520,000
Hence the total cash inflow from operating activities is $520,000
Those who make dispositional attributions regarding poverty and unemployment tend to adopt political positions that:________
a. offer more direct support to the poor.
b. are unsympathetic to the poor.
c. tend to blame the poor for their problems.
d. are more neutral regarding poverty and unemployment.
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Answer:
a. offer more direct support to the poor.
Explanation:
Communicating public information messages internally to the workforce is important because it allows the PIO to: A. Enlist support and involvement of organization personnel while communicating a consistent message B. Demonstrate commitment to the organization C. Test the message on a " safe" audience D. Add to the measurable statistics
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Answer:
A. Enlist support and involvement of organization personnel while communicating a consistent message
Explanation:
The PIO (public information officer) is responsible for managing communications with the media, public and other agencies regarding information on incidents. The PIO coordiantes information between the incident commander and the staffs and between the emergency operations center. The communication and coordinating of information internally is important because it allows for organization personnel involvement and leads to dissemination of a consistent information
In increasingly fast-paced markets, price and technology are not enough. ________ is the factor that will often give a company its competitive edge and is defined as the totality of features that affect how a product looks, feels, and functions in terms of customer requirements
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Answer:
Design
Explanation:
Product design involves development of of ideas that will lead to new or different areas products.
Design of a product gives it a unique looks, feels, and functions in terms of customer requirements.
This provides a competitive advantage to the seller by differentiating this product from others in the market.
For example customers that purchase Sony televisions enjoy a unique quality that is associated with Sony televisions. They prefer to buy this product because of these unique traits
Alto Company issued 7% preferred stock with a $100 par value. This means that: Multiple Choice Only 7% of the total paid-in capital can be preferred stock. Preferred shareholders are entitled to 7% of the annual income. The amount of the potential dividend is $7 per year per preferred share. Preferred shareholders have a guaranteed dividend. The market price per share will approximate $100 per share.
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Answer:
The amount of the potential dividend is $7 per year per preferred share. [$100 x 7%] = $7
Explanation:
The preferred stockholder will receive $ 7 per share held each year provided there are sufficient net income to distribute those dividend.
The Greek government decides to introduce new austerity measures, which reduce government direct spending by $16 billion. Greece has a marginal propensity to consume of 0.6. What will be the final change in real GDP as a result of this decreased spending? Please give your answer as a whole number in billions of dollars.
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Answer:
-$40 billion
Explanation:
Given that
Reduction in government spending = $16 billion
Marginal propensity to consume = 0.6
Change in spending = $16 billion
Based on the above information
As we know that
Multiplier = 1 ÷ (1 - MPC)
= 1 ÷ (1 - 0.06)
= 1 ÷ 0.4
= 2.5
Now
The final change in real GDP is
= Multiplier × Change in spending
= 2.5 × -$16 billion
= -$40 billion
The general expenses necessary to run the business are called Question 30 options: operating expenses. annual projections. 10-year forecasts. profits.
Answers
Answer:
Operating expenses
Explanation:
Before a business yields a profit as an output , there is a need for some input from the business owners. One of these input is operating expenses .
Operating expenses is supporting cost of keeping the business running in the course of normal production , different from the cost of production and is necessary as every form of other cost may not get a desired result without the operating cost.
Examples include rent , payroll ,transportation , security fees among others.
Answer:
operating expenses
Explanation:
textbook
"A customer buys 300 shares of ABC at $40, depositing the Regulation T requirement on the 3rd business day after trade date. He holds the position for two months, during which $100 of interest is charged on the debit balance. What is the adjusted debit balance at the end of the two month period?"
Answers
Answer:
Explanation:
Given the following :
Number of shares = 300
Cost per share = $40
Interest charge = $100
Total cost of shares = (number of shares * purchase price)
Total cost of shares = 300 * $40 = $12000
The regulation T says an investor cannot borrow more than 50% of the purchase price.
Therefore, 50% of shares cost :
(50/100) * $12,000
0.5 * $12,000
= $6000
Therefore, Adjusted debit balance :
$6000 + $100 = $6,100
Herman Company has three products in its ending inventory. Specific per unit data at the end of the year for each of the products are as follows: Product 1 Product 2 Product 3 Cost $ 26 $ 96 $ 56 Selling price 58 138 88 Costs to sell 6 52 16 Required: What unit values should Herman use for each of its products when applying the lower of cost or net realizable value (LCNRV) rule to ending inventory?
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Answer:
What unit values should Herman use for each of its products when applying the lower of cost or net realizable value (LCNRV) rule to ending inventory?
Product 1: $26 (cost)Product 2: $86 (NRV)Product 3: $56 (cost)Explanation:
Product 1 Product 2 Product 3
Cost $26 $96 $56
Selling price $58 $138 $88
Costs to sell $6 $52 $16
net realizable value $52 $86 $72
which is lower? $26 (cost) $86 (NRV) $56 (cost)
the net realizable value = selling price minus any costs associated to the sales process
