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
Artemon [7]
3 years ago
12

3. Problems and Applications Q3 This chapter discusses companies that are oligopolists in the market for the goods they sell. Ma

ny of the same ideas apply to companies that are oligopolists in the market for the inputs they buy. If sellers who are oligopolists try to increase the price of goods they sell, the goal of buyers who are oligopolists is to try to decrease the prices of goods they buy. Major league baseball team owners have an oligopoly in the market for baseball players. The owners' goal is to keep players' salaries . True or False: This goal is difficult to achieve because teams have different budgets. True False Baseball players went on strike in 1994 because they would not accept the salary cap that the owners wanted to impose. True or False: The owners felt the need for a salary cap to help prevent any team from cheating. True False
Business
1 answer:
NARA [144]3 years ago
6 0

Answer: 1. Low

2. False

3. False

Explanation:

1. The owners' goal is to keep players' salaries <u>Low</u>.

As the text says, Oligopolist buyers would try to reduce the price of goods that they buy. In the MLB world, the teams are the buyers and the players are the sellers with the salaries being their price. Team owners will therefore try to keep salaries at a low level so that they make more profit.

2. False

This goal is not difficult to achieve due to budget differences but rather because different payers offer varying contributions to the team's game. Some players push the team forward more and hence are able to demand their fair share. This makes it difficult to cap their salaries.

3. False

They only tried to impose the salary cap so that they could reduce the cost of running the basketball teams and not to prevent teams from cheating. The salaries they were paying were high enough that they felt they weren't making enough profit. So they conspired to impose a salary cap so that they could make more profit.

You might be interested in
Bert's Car Sales is a new firm that is still in a period of rapid growth. The company plans on retaining all of its earnings for
DaniilM [7]

Answer:

The correct choice is C)

The most logical thing to do would be to calculate the value of the stock in 5 years time.

Explanation:

This speaks to ones understanding of dividend growth stock valuation models. These tools are used to establish a fair value for a stock by discounting the present value of its future dividends. A commonly used model is the constant growth dividend discount model.

The formula for the DDM, which assumes constant growth in dividends, is provided below.

P0 = D1/(r-g)

Where,

P0 = intrinsic value of stock

D1 = dividend payment one year from today

r = discount rate

g = growth rate

Identifying the correct answer entails establishing a timeline of the expected cash flows. We are given the following information:

t0 = $0

t1 = $0

t2 = $0

t3 = $0

t4 = $0

t5 = $0.20

t6 = $0.20 * 1.035

Given a rate of return, we could use the constant growth dividend discount model to establish the fair value of the firm at t5 (five years from today). Incidentally, to determine today's value, we'd discount it back another five years.

Based on the information above,  we are able to prove that the answer is '5'.

Cheers!

3 0
3 years ago
Illinois Company is attempting to develop the cost function for repair costs. The following past data are available: Machine Hou
Harlamova29_29 [7]

Answer:

$480

Explanation:

Data provided in the question:

Machine              Hours Repair Costs

2,400                       $6,385

1,200                        $3,480

2,000                       $5,285

3,400                       $8,980

Now,

                       Machine              Hours Repair Costs

Highest             3,400                       $8,980

Lowest              1,200                        $3,480

Difference        2,200                       $5,500

Unit variable cost =  $5,500 ÷ 2,200

= $2.5

Total cost at high level = $8,980

Machine hours highest level = 3,400

Also,

Total cost at high level = Fixed cost + Variable cost at highest level

or

$8,980 = Fixed cost + [ $2.5 × 3,400 ]

or

Fixed cost = $8,980 -  [ $2.5 × 3,400 ]

= $8,980 - $8,500

= $480

7 0
3 years ago
A theory of strategic factor markets suggests that the resources a firm possesses might give it an advantage versus competitors
dybincka [34]

Explanation:

Organizations are integrated systems that use resources to achieve certain objectives and goals and become profitable and competitive.

Globalization was a phenomenon that contributed to an increase in the flow of information and changes in technologies and paradigms that contributed to a greater speed in consumer trends, and in the number of companies competing in the market.

Therefore, to achieve competitive advantage, it is not enough for the organization to use its resources in a conventional way, it is necessary to use strategies to add value to its processes. Considering the current business scenario, it can be said that the human resource in companies is the one that will give it a sustainable competitive advantage, since the knowledge acquired is one of the main resources used for the company to position itself in relation to competitors, each time more companies are promoters of social responsibility, so prioritizing knowledge and its stakeholders will always be the most advantageous option for creating value and competitive advantages.

4 0
3 years ago
General pharmacy’s stock has a beta of 1.8 and an expected return of 14%, and sicoras corp.’s stock has a beta of 1.5 and an exp
Shalnov [3]
Given:
<span>General pharmacy’s stock has a beta of 1.8 and an expected return of 14%,
Sicoras corp.’s stock has a beta of 1.5 and an expected return of 16.2%.

Let Rf stand for risk free rate.
Let Rm stand for expected market return.

General Pharmacy: 14% = Rf + 1.8(Rm-Rf)
Sicoras Corp.: 16.2% = Rf + 1.5(Rm-Rf)

0.14 = Rf + 1.8Rm - 1.8Rf
0.14 = Rf - 1.8Rf + 1.8Rm
0.14 = -0.8Rf + 1.8Rm
0.14 + 0.8Rf = 1.8Rm

Rm = 0.14/1.8 + 0.8Rf/1.8
Rm = 0.078 + 0.444Rf

</span><span>0.162 = Rf + 1.5(Rm-Rf)
</span>0.162 = Rf + 1.5[(0.078+0.444Rf) - Rf]
0.162 = Rf + 0.117 + 0.666Rf - 1.5Rf
0.162 - 0.117 = Rf + 0.666Rf - 1.5Rf
0.045 = 0.166Rf
0.045/0.166 = Rf
0.271 = Rf

<span>Rm = 0.078 + 0.444Rf
</span>Rm = 0.078 + 0.444(0.271)
Rm = 0.078 + 0.120
Rm = 0.198

Rf = 27.1% ; Rm = 19.8%

The risk free rate is 27.1% and the expected market return is 19.8%.

To check, simply substitute the value of Rf and Rm in the above equation.
5 0
3 years ago
A private university is made up of various "schools," such as the School of Journalism, the School of Business, the School of La
Oxana [17]

Answer:

The correct answer is D

Explanation:

SBU stands for Strategic business unit , it is a profit center whose focus is on the product offering and the market segment. It is usually have a marketing plan which is discrete, marketing campaign and analysis of competition, though it is a part of larger business entity.

So, the private university facing financial problems, they decided to become a profit center. Therefore, this scheme is parallel to SBU which is Strategic business unit.

6 0
3 years ago
Other questions:
  • Brownstone Corporation has 1,000 shares of stock issued and outstanding. These shares are owned by the following people : 200 sh
    10·1 answer
  • Rising prices for raw materials, the increasing availability of recycling facilities, and a move toward increased environmental
    11·2 answers
  • MOSS COMPANY Selected Balance Sheet Information December 31, 2018 and 2017 2018 2017 Current assets Cash $ 90,650 $ 32,800 Accou
    11·1 answer
  • Gulph Company reported the following results from the sale of 5,000 hammers in May: sales $200,000, variable costs $120,000, fix
    6·1 answer
  • Which of the following statements is correct about the relationship between the nominal interest rate and the real interest rate
    13·2 answers
  • The Wheeler-Lea Act: a. expanded the FTC's authority to regulate advertising. b. limited the FTC's authority to regulate only ad
    5·2 answers
  • While filling out a personal assessment, a student notices that many of her interests involve science and research. Therefore, t
    5·2 answers
  • A project manager is overseeing a complex custom CSM solution that has rigorous quality standards and tight schedule constraints
    5·1 answer
  • How could U.S. currency lose value?
    15·1 answer
  • _____ in the emails serve the same role that headlines do in newspapers and magazines.
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!