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pickupchik [31]
3 years ago
15

Both firms in a Cournot duopoly would enjoy lower profits if:

Business
1 answer:
daser333 [38]3 years ago
4 0

Answer:

each firm simultaneously increased output above the Nash equilibrium level.

Explanation:

A French mathematician, Antoine Augustine Cournot developed the Cournot duopoly in his economic model “Researches into the mathematical principles of the theory of wealth”, of 1838.

Cournot duopoly also known as the Cournot competition, is an economic model where two (2) business firms having identical cost functions compete in a oligopolistic market of imperfect competition with homogeneous products.

Under the Cournot duopoly, the competing firms offer identical products and thus, choose an amount or quantity to produce independently and at the same time because they cannot collude.

Both firms in a Cournot duopoly would enjoy lower profits if each firm simultaneously increased output above the Nash equilibrium level.

Hence, the advantage of the Cournot duopoly is that, it inhibits competing firms from deviating unilaterally.

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What is the definition of creative command
k0ka [10]

Answer:

Explanation:

a set of various licenses that allow people to share their copyrighted work to be copied, edited, built upon

4 0
3 years ago
Ginocera Inc. is a designer, manufacturer, and distributor of low­cost, high­quality stain­ less steel kitchen knives. A new kit
Aleonysh [2.5K]

Answer:

1. $432,000

2. Finished goods inventory $776,000

Work in process $230,000

Explanation:

1. Preparation of an annual income statement for the Kitchen Ninja knife series

First step is to determine The Total Manufacturing cost per unit

DIRECT MATERIAL

Hardened steel blank $ 4.00

Wood for handle $ 1.50

Packaging $ 0.50

Total direct material $ 6.00

(4.00+1.50+0.50)

Direct labor $ 0.50

Factory overhead (800/250)$3.20

Total manufacturing cost per knife $ 9.70

(6.00+0.50+3.20)

Now let prepare the Income statement

INCOME STATEMENT

Sales $17,920,000

(1120,000 * 16)

Cost of good sold $10,864,000

(1120,000 * 9.7)

Gross profit $7,056,000

($17,920,000-$10,864,000)

Selling expense:

Infomercial campaign $2,000,000

($600,000 +$1400,000 )

Promotional material $3,600,000

(60,000 * $60)

Shipping cost $224,000

(1120,000 * 0.2)

Total selling expense $5,824,000

($2,000,000+$3,600,000+$224,000)

Administrative expense:

Legal expense $800,000

Total selling and administrative expense

$6,624,000

($5,824,000+$800,000)

Income from operation $432,000

($7,056,000-$6,624,000)

Therefore the annual income statement for the Kitchen Ninja knife series will be $432,000

2. Calculation to Determine the balances in the work in process and finished goods inventories for the Kitchen Ninja knife series on December 31, 2016

Calculation for Finished goods inventory

Finished goods inventory=($1,200,000 – $1,120,000) * 9.7

Finished goods inventory=$80,000*9.7

Finished goods inventory= $ 776,000

Calculation for Work in process

Work in process= 25,000 * (6 + 3.20)

Work in process=25,000*9.20

Work in process= $230,000

Therefore the balances in the work in process will be $776,000 and finished goods inventories will be $230,000 for the Kitchen Ninja knife series on December 31, 2016

7 0
2 years ago
The most recent income statement for the Chicago Branch of Illinois State Bank is presented below: Sales $65,000 Variable costs
olya-2409 [2.1K]

Answer:

Operating income will be decreased by $19,000

Explanation:

Prior to elimination of Chicago branch Loss = $3,000

After eliminating chicago branch (Unavaoidable fixed costs will still be incurred) loss = $22,000

Difference = $3,000 - $22,000 = $19,000(decrease)

4 0
3 years ago
25)
boyakko [2]

Answer:

B

Explanation:

8 0
3 years ago
Industry regulations, such as RESPA, can affect your business by ______. Indirectly affecting real estate and limiting how you m
chubhunter [2.5K]

Indirectly affecting real estate and limiting how you may conduct business.

Industry regulations, such as RESPA, can affect your business by <u>Indirectly</u><u> </u><u>affecting real estate</u><u> and </u><u>limiting</u><u> how you may </u><u>conduct business</u>

<u></u>

<h3>What is RESPA?</h3>

RESPA stands for Real Estate Settlement Procedures Act.

  • homebuyers and sellers and forbidding abusive settlement tactics, RESPA aims to lower excessively high settlement costs.
  • All Borrowers shall be informed of the potential of a transfer of mortgage servicing, real estate transactions, settlement services, and applicable consumer protection regulations.
  • In addition to detailed representations of actual settlement costs, borrowers are entitled to initial and annual escrow account statements.
  • RESPA prevents sellers from pressuring borrowers to buy title insurance from particular companies, outlaws kickbacks, referral fees, and unearned fees, and forbids loan servicers from requiring unreasonably large escrow accounts.

To learn more about RESPA visit:

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5 0
1 year ago
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