All categories

2 years ago

When companies join together to try to control prices or eliminate competition so that they exclusively benefit, it is called?

1 answer:

7 0

When companies join together to try to control prices or eliminate competition so that they exclusively benefit, it is called collusion.

Collusion occurs in oligopoly market, when oligopoly firms make joint decisions, and act as if they were a single firm to control prices or eliminate competition. Collusion requires an agreement between cooperating firms, the agreement can be either explicit or implicit, in order to restrict output and achieve the monopoly price.

So this causes the firms to be interdependent, as the profit levels of each firm depend on the firm’s own decisions and the decisions of all other firms in the industry.

Hence, an example of illegal collusion is a secret agreement between firms to fix prices.

To learn more about collusion here:

brainly.com/question/13974450

#SPJ4

You might be interested in

According to the _________ concept, a firm must (1) find out what customers want and provide it, (2) make sure everyone in the o

aniked [119]

Answer:

(C).Marketing

Explanation:

According to the marketing concept, firms must develop strategies to determine and satisfy the needs of their customers, increase sales of goods and services to earn maximum profit, and also do better than their competitors.

This concept expects that finding out and satisfying the needs of customers better than competitors can, should be prioritized.

6 0

3 years ago

During its first year of operations, Silverman Company paid $12,385 for direct materials and $10,600 for production workers' wag

Bingel [31]

Answer:

Finished goods inventory final balance= 12, 495

Explanation:

PRODUCTION COST COMPONENTS

Direct materials 12,385
Direct work 10,600
Lease and utilities 9,600

TOTAL PRODUCTION COST = 32,585

TOTAL UNITS PRODUCED = 6,650

UNIT COST= (Total Production Cost / Total Units Produced) = 32,585 / 6,650 = 4.9

FINAL GOODS INVENTORY = (Total Units Produced – Total Units Sales) = 6,650 – 4,100 = 2,250

FINAL GOODS INVENTORY AMOUNT = (Final goods Inventory * Unit Cost) = 2,250 * 4.9 = 12,495

4 0

4 years ago

Which of the following statements is correct regarding variable costing and absorption costing income statements for a company t

Arturiano [62]

Answer: Option (A) is correct.

A basic difference between absorption and variable costing is that the absorption costing approaches fixed factory overhead as a product cost, while variable costing approaches the same as a period cost.

Where production of inventory outpaces sales, fixed factory overhead under absorption costing approach will remain on balance sheet as unsold inventory; therefore keeping the costs off of income statement until inventory is sold. Whereas; under variable costing, fixed factory overhead will be expended to the income statement in given period .

8 0

4 years ago

Emerald Co. uses a perpetual inventory system and records purchases of merchandise at net cost. The company recently purchased 2

STALIN [3.7K]

Answer:

Credit to cash for $3,000

Explanation:

Based on the information given the appropiate the journal entry to record payment of this invoice after the discount period has expired is: CREDIT TO CASH FOR $3,000 which is calculated as (1/2*$6,000).

Credit to cash for $3,000

(To record payment of invoice after the discount period has expired)

6 0

3 years ago

Company A has current assets of $6,000, net fixed assets of $25,100, current liabilities of $4,950, and long-term debt of $12,00

oee [108]

Answer:

What is the value of the shareholders’ equity account for this firm?

14150

Explanation:

Current Assets 6000

Net fixed assets 25100

Assets 31100

Current Liabilities 4950

Long term debt 12000

16950

ASSET-LIBILITIES=EQUITY

31100-16950=EQUITY

EQUITY=14150

4 0

4 years ago