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1 year 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:

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In 2009, based on concepts similar to those used to estimate U.S. employment figures, the Japanese adult non-institutionalized p

tigry1 [53]

Answer: 59.27% and 4.77%.

Explanation:

Given that,

In the year 2009:

Japanese adult non-institutionalized population = 110.272 million

Labor force = 65.362 million

Number of people employed = 62.242 million

Japanese labor-force participation rate = $\frac{Total\ labor\ force}{Total\ population}$

= $\frac{65.362}{110.272}$

= 0.5927 or 59.27%

Unemployment rate = $\frac{Total\ labor\ force - Number\ of\ people\ employed }{Total\ labor\ force}\times100$

= $\frac{65.362 - 62.242}{65.362}\times100$

= 4.77%

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2 years ago

After a sluggish quarter, the Federal Reserve Bank decides to increase the money supply in the economy. When the money-creation

Maslowich

Answer:

20; $1 billion

Explanation:

Given that,

New funds = $20 billion

Required reserve ratio = 5%

Money multiplier:

= 1/Required reserve ratio

= 1/0.05

= 20

Initial money increase by:

= Funds wants to be in the money supply × Required reserve ratio

= $20 billion × 5%

= $1 billion

Therefore, the Fed should initially increase $1 billion in the money supply.

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2 years ago

Curtab, a company that manufactures digital watches, implements marketing strategies to attempt to eliminate analog watches from

Gnesinka [82]

Answer:

A) Design competition

Explanation:

Digital watch manufacturers and manufacturers of analog watches compete against each other because their products basically satisfy the same needs. Each one offers a very different product with its pros and cons, but even though their products are so different, they can be considered substitutes.

In the concept of innovation streams, Curtab is the innovator that is trying to create a sustainable competitive advantage because it works by designing an innovative product while its competitors rely on updating old designs.

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2 years ago

Suppose that you observe a market with four firms, each with about 25% market share. What does it suggest about the following at

emmasim [6.3K]

level of differentiation across the firm's offerings

Answer: Option C.

Explanation:

Differentiation are the differences that a firm might offer to his customers and clients. These differences make the firms different from each other which exist in the market.

More different and innovative practices that a firm has compared to the competitors, more successful it would be in the market and would have more customers attracted towards it because of the innovation and the differentiation.

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2 years ago

Leaper Corporation uses an activity-based costing system with the following three activity cost pools: Activity Cost Pool Total

NNADVOKAT [17]

Answer:

Order processing= $930 per order

Explanation:

First, we need to calculate the estimated costs for order processing:

Order processing cost= (380,000*0.3) + (150,000*0.45) + (170,000*0.3)

Order processing cost=$232,500

Now, we can calculate the activity rate:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Order processing= 232,500 / 250

Order processing= $930 per order

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2 years ago