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Ugo [173]
3 years ago
5

Erin Reinhardt and her friend Carol Newman have just arrived in the country Boloni for a summer holiday. While renting a car on

their first day in Boloni they notice that the car rental rates are so much higher than rates back home. Carol says that in a matter of​ time, competition should drive prices down. Erin feels that the market for car rentals is probably competitive​ enough; it could just be high cost of operations in Boloni that are responsible for the high prices.
Which of the​ following, if​ true, would weaken​ Carol's argument that competition will drive prices​ down?

A. The car rental industry recently implemented​ no-show fees for customers who do not pick up their cars after making a reservation.
B. Information on car rental rates being easily​ available, it is almost impossible for firms to charge different consumers different prices.
C. To reduce​ emissions, the government has recently introduced tax per mile driven on automobiles.
D. Compared to​ Carol's home​ country, people in Boloni have lower purchasing power.
E. The government of Boloni set aside a substantial amount of money this year for the construction of freeways.
Business
1 answer:
lana66690 [7]3 years ago
3 0

Answer: <em>Option (C) is correct</em>

Here in this given comprehension, Carol profess that entry of new organization in market will further lead to reduction in prices.​ However, new tax introduced by authorities will therefore increase costs for organization in industry. Therefore, we could state that even though there are new​ firms entering, this does not necessarily mean prices will fall.

<em>i.e. To reduce​ emissions, the government has recently introduced tax per mile driven on automobiles, if​ true, would weaken​ Carol's argument that competition will drive prices​ down  </em>

<em> </em>

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Correct answer is D.

$4375

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Lin Corporation has a single product whose selling price is $140 per unit and whose variable expense is $70 per unit. The compan
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The sales units to achieve to achieve a target profit of $9,400 is 590 units

Explanation:

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fixed expense=$31,900

target profit $6,250

contribution per unit=$140-$70

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unit sales at a target profit of $6,250=($31,900+$6,250)/$70

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unit sales at a target profit of $9,400=($31900+$9400)/$70

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8 0
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from a company's viewpoint, the existence of an active, liquid, well-organised market in existing shares:
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From a company's viewpoint, the existence of an active, liquid, well-organized market in existing shares A. facilitates the raising of further capital in the secondary market.

<h3>What is a secondary market?</h3>

A secondary market is a securities market for the exchange of securities and assets among investors rather than with the issuing entities.

The types of secondary markets include:

  • Over-The-Counter Markets
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<h3>Answer Options:</h3>

A. facilitates the raising of further capital in the secondary market.

B. maintains the share price above the initial issue price.

C. encourages successful primary market issues.

D. is of little or no consequence.

Thus, from a company's viewpoint, the existence of an active, liquid, well-organized market in existing shares A. facilitates the raising of further capital in the secondary market.

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Salespeople receive a 7% commission on all items that they sell. Their sales for one day totaled $675. What was the amount of co
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"Net income for the period was $200,000. The retained earnings account had a beginning balance of $25,000. If the company paid d
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The Dividend paid would be a cash outflow which would reduce the balance of the retained earnings, hence it is deducted from it.

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