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VLD [36.1K]
4 years ago
11

Strategic trade policy Suppose there are only two producers of aircraft in the world, AirCraft in the United States and Air Euro

pa in the European Union. The following hypothetical payoff matrices show the profits (in millions of dollars) for each company. In the absence of subsidies, if only one company makes aircraft, it receives a profit of $65 million. If both companies decide to produce, they each lose $3 million. When a company decides not to produce, it earns zero profit.
Business
1 answer:
Murrr4er [49]4 years ago
5 0

Answer:

False because when it also produces, both will produce and it will bear a loss of 2 million.

Explanation:

We should change the payoffs to AirEurope when it produces from -2 to 7 when AirCraft produces and from 90 to 99 when AirCraft does not produce. This is because a subsidy is provided when AirEurope produces irrespective of whether its rival produces or not

With the subsidy, regardless of the decision of AirCraft, AirEurope will produce if it desires to maximize its profit. This is because producing is now its dominant strategy.

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On January 1 of the current year, the Barton Corporation issued 8% bonds with a face value of $73,000. The bonds are sold for $7
Goryan [66]

Answer:

$6,278

Explanation:

The discount of issuance of bond will be amortized until period of maturity while Total interest expense on a discounted bond is the addition of amortization of the discount amount and coupon payment.

Therefore;

Coupon payment = $73,000 × 8%

= $5,840

Discount on the bond = $73,000 - $70,810

= $2,190

Discount amortized per year = $2,190/5

= $438

Total interest expense = Coupon payment + Amortization of discount

= $5,840 + $438

= $6,278

8 0
3 years ago
Budgeting for Needs
DanielleElmas [232]

Answer:

From the bank statement of $23000 the needs are:

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Explanation:

A need is something needed for an individual to live a fulfilling life without adverse effect. if a need is not fulfilled it can cause an adverse effect like sickness,death or it might cause a fine or penalty.

cell phone plan is an need because without a cell phone plan a cell phone user might be unable to communicate properly with his business associates and family who might not always be with him and he might be unable to pass along proper and timely information as well

Rent is necessary because housing is one of the most important needs of a man without rent plan there would be no proper housing

car insurance: insurance helps to reduce the burden of accidents on the car owner. if he fails to pay his insurance when due. if the car is caught up with eventualities of accident, the insurance company might not respond to him

Electric bill : this is a very important need as well in America. failure to pay the electric bill results to shortage of electricity and electricity is vital to everyday living.

car payment: the regular payment of car loans helps to escape the penalty of late payment hence this is a need.

7 0
3 years ago
When an employee works in year 1 but is paid in year 2, the company must recognize an expense in years) ______.
Ivanshal [37]

When an employee works in year 1 but is paid in year 2, the company must recognize an expense in years 1 only.

An expense is the monetary value of tasks that an organization causes to create income. As the well-known saying goes, "it costs cash to bring in cash.

Normal expenses incorporate installments to providers, worker compensation, manufacturing plant leases, and hardware devaluation.

Organizations are permitted to discount charge deductible costs on their annual government forms to bring down their available pay and hence their assessment obligation.

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4 0
1 year ago
What is research limitation
svetlana [45]

Answer:

are influences that the researcher cannot control. They are the shortcomings, conditions or influences that cannot be controlled by the researcher that place restrictions on your methodology and conclusions

4 0
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The arrangements between buyer and seller as to when payments for merchandise are to be made are called:______.
rusak2 [61]

The arrangements between buyer and seller as to when payments for merchandise are to be made are called credit terms.

Payment is the transfer of money, items, or offerings in alternate for goods and services in suited proportions which have been formerly agreed upon via all parties worried. Payment can be made in the form of services exchanged, coins, tests, twine transfers, credit cards, debit cards, or cryptocurrencies.

Form of payment method coins, a take a look at, a debit card, pay as you go card or every other approach with the aid of which customers pay for goods or services, and consists of particular brands (e.g., big name, NYCE) or sorts (e.g., PIN debit) of debit playing cards or another manner of the fee.

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3 0
2 years ago
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