All categories

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:

brainly.com/question/13974450

#SPJ4

You might be interested in

Susan Zupan, a lawyer, accepts a legal engagement in March, performs the work in April, and is paid in May. If Zupan's law firm

UkoKoshka [18]

Answer:

The month of April

Explanation:

Susan Zupan, a lawyer, accepts a legal engagement in March, performs the work in April, and is paid in May. If Zupan's law firm prepares monthly financial statements, the law firm should recognize the revenue in April because according to revenue recognition principle, revenue should be recognized in the accounting period in which services are performed, and Susan zupan performed the work in April so therefore the firm should recognize the revenue in April.

4 0

3 years ago

The following information is for Redwood Inc. for the year ended December 31, 2016. Redwood had a cash and cash equivalents bala

Alchen [17]

Answer and Explanation:

The preparation of the cash flow statement using the direct method is presented below:

Redwood Inc.

Cash flow statement

For the year ended December 31, 2016

Cash flow from operating activities

Cash Received from Customers $1,940

Interest on investments $220

Less: Interest on debt -$320

Less: Income tax -$84

Less: Purchase of inventory -$1,000

Less: Operating expenses -$520

Net cash provided by operating activities $236

Cash flow from investing activities

Sale of land $120

Less: Purchase of equipment -$4,500

Net cash used by investing activities -$4,380

Cash flow from financing activities

Sale of common stock $640

Issuance of debt securities $2,040

Less: Debt principal reduction -$1,540

Less: Dividends on common stock -$220

Net cash provided by financing activities $920

Decrease in cash -$3,224

Add: Beginning cash balance $5,600

Ending cash balance $2,376

The items which shows in a positive sign indicates the cash inflow and the items which shows in a negative sign indicates the cash outflow and the same is to be considered

5 0

3 years ago

If a company abandons a segment of its operation, the loss would be reported on the a.income statement immediately after cost of

kvv77 [185]

Answer:

d.income statement immediately after income from continuing operations.

Explanation:

We should look at what the accounting principles and normatives threatment suggest.

As the firm should firm indicate the resulf the going business the discontinued operation should be disclosure separately from it. Thus, once complete the disclosure of the continued operation the firm should post the loss on this discontinued operation

7 0

3 years ago

The process of influencing people to work toward a common goal is.

ra1l [238]

Answer:

Leading/Leadership

Explanation:

Leadership inspires, influences and motivates people to work towards a goal and achieve it.

8 0

2 years ago

Security a has an expected rate of return of 0.12 and a beta of 1.2. the market expected rate of return is 0.10, and the risk-fr

ivanzaharov [21]

The alpha of the stock is <u>6.6%</u>.

Alpha is also a degree of risk. With an alpha of - 15 means, the investment changed into far too risky given the go back. An alpha of 0 suggests that an asset has earned a return commensurate with the risk. Alpha of more than 0 means an investment outperformed, after adjusting for volatility. The process to calculate the alpha of the stock is: 0.12-[0.33+1.2(0.10+0.33)]= 0.066 = 0.066 * 100 = 6.6%

The expected return on monetary funding is the predicted fee of its return. it is a measure of the middle of the distribution of the random variable this is the return.

The risk-free rate is the rate of return offered by funding that consists of zero threat. Each investment asset contains a few levels of risk but is small, so the risk-free fee is something of a theoretical idea. In exercise, it is considered to be the interest rate paid on brief-term government debt.

Learn more about risk-free rates here brainly.com/question/19568670

#SPJ4

3 0

2 years ago