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olga_2 [115]
1 year ago
7

Firms might be tempted to cheat on the collusive agreement because each firm could achieve multiple choice 8 increased sales. hi

gher productivity. lower costs. higher profits.
Business
1 answer:
blagie [28]1 year ago
6 0

Through price collusion, each firm would achieve higher profits.

When competing businesses agree to cooperate, such as by raising prices in order to increase profits, this is called collusion. Collusion is a strategy used by businesses to increase profits at the expense of customers and lowers market competition.

Lower consumer surplus, higher prices, and more profits for the colluding businesses are the results of collusion. It may enable oligopolists to exercise monopoly power and increase their group earnings. In an oligopoly, businesses have a strong incentive to work together.

Collusion may be a tactic used in times of unproductive economic circumstances to try and rescue the industry and save companies from going out of business, which would not be for the long-term benefit of consumers.

To learn more about collusion

brainly.com/question/15776792

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What is the reason AD is downward sloping ? what causes AD to shift? Define OKun's law
salantis [7]

Answer:

Increased spending power.

Explanation:

At a lower price level, consumers are likely to have higher disposable income and therefore spend more.

4 0
3 years ago
Mcgraw hill education physical science vocabulary list 8th grade
Pani-rosa [81]
Um.. is that a question or just telling us?...
3 0
2 years ago
Cane company manufactures two products called alpha and beta that sell for $225 and $175, respectively. each product uses only o
tester [92]

Answer:

The special order should be rejected since it decreases net profit.  

Explanation:

Alpha = $225

Beta = $175

total production capacity = 130,000 pounds

raw materials = $6 per pound

Production costs per unit                        Alpha                Beta

direct materials                                          $42                   $24

direct labor                                                 $42                   $32

variable manufacturing overhead            $26                   $24  

fixed manufacturing overhead                 $34                   $37

variable selling expenses                         $31                    $27

<u>common fixed expenses                          $34                   $29  </u>

total cost per unit                                    $209                 $173

Cane expects to sell 114,000 Alphas.

Net profit = (114,000 x $225) - (114,000 x $209) = $25,650,000 - $23,826,000 = $1,824,000

If the new sales order is accepted, Cane's revenue will increase to:

  • 101,000 x $225 = $22,725,000
  • 29,000 x $156 = $4,524,000
  • total = $27,249,000

Their total cost will by:

  • 114,000* x $209 = $23,826,000
  • 16,000 x ($209 - $34 avoidable fixed costs) = $2,800,000
  • total = $26,626,000

*This sale increases the output, but previous costs cannot be avoided.

Net profit with special order = $27,249,000 - $26,626,000 = $623,000

The special order should be rejected since it decreases net profit.  

6 0
3 years ago
The failure to record which transaction has no effect on the quality of inventory?
zimovet [89]

Do not record transactions that do not affect inventory quality. A recorded inventory transaction has actually taken place.

Records of inventory purchases made during the accounting period. The purchase account is increased by direct debit. The manufacturing costs of the goods sold are overestimated by the same amount. An overstatement of cost of goods sold will result in an understatement of net income and retained earnings by the original margin of error.

If the auditor is dissatisfied with the accuracy of the closing balance sheet and may be materially increase.

Inventory write-downs affect both the income statement and the balance sheet. Write-offs are treated as expenses. This means your net income and tax liability will be reduced. Therefore, a decrease in net income will reduce a company's retained earnings and reduce shareholders' equity on the balance sheet.

Learn more about inventory at

brainly.com/question/25887081

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4 0
1 year ago
A cash dividend payment to shareholders during the year should be reported on the statement of cash flows as:Multiple ChoiceAn i
mafiozo [28]

Answer:

A decrease in cash flows from financing activities

Explanation:

When cash dividend is paid,

It is an outflow of cash as paid, therefore it will decrease the cash flows.

Further dividend is paid to equity, or preference capital raised for business, which is a financing activity.

Therefore, a cash dividend paid to shareholders will result in decrease in cash flow from financing activities.

Whereas cash dividend received is investing activity.

Final Answer

A decrease in cash flows from financing activities.

3 0
3 years ago
Read 2 more answers
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