1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Alexandra [31]
3 years ago
5

Xerox, the U.S. Postal​ Service, and​ McDonald's have enjoyed significant market power in the past. List and explain three major

factors that have eroded this market power. Market power is eroded when A. better substitutes become available because the market has less competition. B. fewer substitutes are available because the market has less supply. C. no substitutes are available because consumers have no choices. D. better substitutes become available because consumers will not be willing to pay as much for a good. E. fewer substitutes are available because consumers are more sensitive to prices.
Business
1 answer:
Elena L [17]3 years ago
3 0

Answer:

Correct Answer:

E. fewer substitutes are available because consumers are more sensitive to prices.

Explanation:

<em>Market power is the ability of a company to successfully influence the pricing of its products or services in the overall marketplace. </em><em>This is common among most big corporations that produces consumer goods and offer services. </em>

This market power can be influenced by some factors. On the other-hand, the market power could be eroded leading to inability of the companies to influence prices do to the following:

1.<u> Number of companies in the market:</u> The lower the companies producing same product in the market, the higher the chances of the companies to be able to influence market prices. Otherwise, the market power will be eroded due to high number of companies.

2. <u>Elasticity of demand:</u> The persistent demand of a product by people helps to determine the market power of those companies. When this is lacking, the market power is eroded.

3. <u>Product differentiation:</u> The ability of a company to provide a unique product that offers good services in a market helps it to achieve market power. Lack of these erodes the market power.

You might be interested in
Lauer Corporation provided the following information about one of its laptop computers: Date Transaction Number of Units Cost pe
PilotLPTM [1.2K]

Answer:

D. $934,500.

Explanation:

FIFO Method:

170 x $870 = 147,900

270 x $970 = 261,900

370 x $1,070 = 395,900

115 x $1,120 = 128,800

Hence, Total Cost of Goods Sold for 925 Laptop Computers will be $934,500.

3 0
4 years ago
Break-Even Sales Under Present and Proposed Conditions
solong [7]

Answer:

<h3>Portmann Company</h3>

1. Total variable costs = $89,000,000

Total fixed costs = $40,600,000

2. a Unit variable cost = $89

b. Unit contribution margin = $100

3. Break-even sales (units) = Fixed cost/Contribution margin per unit

= $40,600,000/$100

= 406,000 units

4. Break-even sales (units) = Fixed cost/Contribution margin per unit

= $45,100,000/$100

= 451,000 units

5. Break-even sales (units) to achieve target profit = (Fixed cost + Target Profit)/Contribution margin per unit

= ($45,100,000 + $59,400,000)/$100

= 1,045,000 units

6. Maximum operating income possible with the expanded plant is:

= $61,900,000

7. Operating income if the proposal is accepted and sales remain at the current level is:

= $54,900,000

Explanation:

a) Data and Calculations:

Sales volume during current year = 1,000,000

Sales price per unit during current year = $189

Income statement is as follows:

Sales                                $189,000,000

Cost of goods sold           (101,000,000)

Gross profit                      $88,000,000

Expenses:

Selling expenses             $16,000,000

Administrative expenses  12,600,000

Total expenses                (28,600,000)

Operating income          $59,400,000

                                      Variable    Fixed

Cost of goods sold           70%        30%

Selling expenses              75%        25%

Administrative expenses 50%        50%

Total variable costs for the current year:

                                      Variable  

Cost of goods sold           70% * $101,000,000 = $70,700,000

Selling expenses              75% * $16,000,000 =     12,000,000

Administrative expenses 50% * $12,600,000 =      6,300,000

Total variable costs = $89,000,000

Variable unit cost = $89 ($89,000,000/1,000,000)

Contribution per unit = $100 ($189 - $89)

Total fixed costs for the current year:

                                          Fixed

Cost of goods sold             30% * $101,000,000 = $30,300,000

Selling expenses                25% * $16,000,000  =      4,000,000

Administrative expenses   50% * $12,600,000 =       6,300,000

Total fixed costs =  $40,600,000

Projected sales for the next year = $202,230,000 ($189,000,000 + $13,230,000)

Percentage Increase in sales for the next year = $13,250,000/$189,000,000 * 100 = 7%

Fixed costs caused by expansion = $4,500,000

Total fixed costs = $45,100,000 ($40,600,000 + $4,500,000)

Variable costs = $95,230,000 ($89,000,000 * 1.07)

Contribution margin:

Sales                                $202,230,000

Variable costs                      95,230,000

Contribution margin        $107,000,000

Expenses:

Fixed costs                          45,100,000

Operating income            $61,900,000

Sales volume = 1,070,000 units (1,000,000 * 1.07)

Contribution per unit = $107,000,000/1,070,000 = $100

Sales at current level:

Sales                                $189,000,000

Variable costs                     89,000,000

Contribution                    $100,000,000

Fixed costs                          45,100,000  

Operating income           $54,900,000

6 0
3 years ago
Which sentence best completes the diagram?
Sauron [17]

Answer:

The answer might be option no C

5 0
3 years ago
Read 2 more answers
The county government has decided to redo the street you live on and plans to block the street off which causes you and your nei
Anastaziya [24]

Answer:

Path A-F-G-H is the critical path

Explanation:

Path A-F-G-H is the longest path on the network with length of 30  days. A path with the longest length is the critical path.

8 0
3 years ago
Given the cost formula, y = $7,000 + $1.80x, total cost for an activity level of 4,000 units would be:
zaharov [31]
The total cost for this certain activity level can be calculated by substituting 4000 to the x of the equation given above,
                          y = 7000 + 1.8(4000)
                          y = 14200

Thus, the total cost of the activity level is $14,200.
4 0
3 years ago
Other questions:
  • Dexter Industries purchased packaging equipment on January 8 for $98,000. The equipment was expected to have a useful life of th
    13·1 answer
  • Suppose the economy is operating at an output of $4,000 billion. Assume furthermore that potential output is $5,000 billion and
    15·1 answer
  • In a construction contract, if the owner breaches before construction begins, the contractor can receive _____. If the owner bre
    7·1 answer
  • On April 17, 2014, Naughton Ltd. received an order from a customer for a delivery to be made in May 2014. Naughton Ltd. does not
    11·1 answer
  • As the level of activity increases, how will a mixed cost in total and per unit behave? In Tota Per UnitA) Increase DecreaseB) I
    7·1 answer
  • The creation of a new product goes through several stages. At the _______ phase, a product idea is presented to a sample of pote
    8·1 answer
  • Entertainer's Aid plans five annual colossal concerts, each in a different nation's capital. The concerts will raise funds for a
    6·1 answer
  • During the 1990s, consumers started to drink bottled water instead of soft drinks. The Coca-Cola Company and PepsiCo decided to
    8·1 answer
  • The following information is available for Lock-Tite Company, which produces special-order security products and uses a job orde
    8·1 answer
  • due to a recession, lauren was laid off by her organization. to avoid having lauren and other laid-off workers stop spending mon
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!