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Novay_Z [31]
2 years ago
10

A monopolistic producer of caviar has historically sold all of its caviar to 10 distributors. Recently, one of the distributors

has acquired all of its competitors, becoming the caviar producer’s sole customer. How are the caviar producer’s prices and profits likely to change as a result of this downstream consolidation?
Business
1 answer:
neonofarm [45]2 years ago
4 0

Answer:

Price and profits will decrease.

Explanation:

The price and profits of the caviar producer will change as a result of this downstream consolidation because the customer now has power to negotiate price with the seller, and prices will likely fall as a result. Profits will decrease as the customer capture an increased share of the surplus.

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3 0
2 years ago
what is a basic premise of the acquisition method regarding accounting for a noncontrolling interest?
miv72 [106K]
Answer: D) A subsidiary is an invisible part of a business combination and should be included in its entirety regardless of the degree of ownership.


What is a basic premise of the acquisition method regarding accounting for a non controlling interest?
A) Consolidated financial statements should not report a non controlling interest balance because these outside owners do not hold stock in the parent company.
B) Consolidated financial statements should be primarily for the benefit of the parent company's stockholders.
C) Consolidated financial statements should be produced only if both the parent and the subsidiary are in the same basic industry.
D) A subsidiary is an invisible part of a business combination and should be included in its entirety regardless of the degree of ownership.


D) A subsidiary is an invisible part of a business combination and should be included in its entirety regardless of the degree of ownership.
7 0
2 years ago
I am not good at math, please help all grades are due monday
Vlad [161]
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4 0
2 years ago
Unlike advertising, public relations select one:
NARA [144]
B. is the best choice
6 0
3 years ago
The nominal interest rate in Fiji is 3%, while the nominal interest rate in the U.S. is 5%. Real interest rates in both countrie
Aloiza [94]

Answer:

1.98%

Explanation:

The computation is shown below:-

As we know that

PPP equation i.e

Nominal Interest rate = Real interest rate + Inflation rate

Now

The Inflation rate for Fiji is

= 5% - 2%

= 3%

And, the Inflation rate for US is

= 3% - 2%

= 1%

As we can see that the inflation rate for Fiji is more than the inflation rate for US so we should be depreciated the currency by considering the inflation differential which is shown below:

= (1 + 3%) ÷ (1 + 1%) -1

= 1.98%

8 0
2 years ago
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