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3 years ago

The kinked-demand curve of an oligopolist is based on the assumption that

Business

1 answer:

masha68 [24]3 years ago

5 0

Answer:

competitors will follow a price cut but ignore a price increase.

Explanation:

The Kinked demand curve model of oligoplolist is based on the assumption that competitors will follow price cut but ignore a price increase because of interdependence among firms price is rigid in oligopoly market. When a firm raises the price of its products none of its competitors will follow the same whereas in case firm reduces its price its competitors will follow the same.

Thus, it is prudent behaviour on the part of a firm not to change in the prices of its products frequently. It is because this reaction of rival firms, the demand curve face by an oligopoly firm has a kink. The kink is formed at prevailing price level.

The portion of demand curve above the kink is more elastic implying, when oligopolist increase the price of its product none of its competitors will follow it with expectation to capture the market demand created due rise in prices by first firm.

The lower portion of the kink is relatively inelastic showing that in case an oligopolist reduces its price its rival firms will also reduce their prices with a view to not to lose their market demand. Thus, it will not beneficial for the oligopolist in either of the situations. Therefore, it will stick to the prevailing price.

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Question 1 Multiple Choice Worth 10 points)

kipiarov [429]

Answer:

Federal Trade Commission

Explanation:

I just took the quiz and got it right.

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3 years ago

An example of a population is all people who shop at Target while a sample is only those people who buy orange juice at Target.

Mekhanik [1.2K]

Answer:

True

Explanation:

A population in statistics is defined as the total items that is of interest to the scientist and from which studies are conducted to draw conclusions.

It is from population samples are drawn.

Sample is defined as a part of a population that is studied and used to draw inference or conclusion about the whole population.

In the given scenario all people who shop at Target are the population that is of interest.

To draw conclusion about the population only those people who buy orange juice at Target. A are used as a sample to draw conclusions

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3 years ago

Julia is preparing the balance sheet for her company. building and land are the only two assets classified as property, plant, a

Ghella [55]

Land and equipment are considered as fixed assets. As such, Julia should enter the two in long term fixed assets column and list their current values.

Short term assets
Long term fixed assets
Gross value of building
- Total depreciation value.

Over time though, she should carry out valuation to have a true picture of how the land has appreciated in value.

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3 years ago

The Rogers Corporation has a gross profit of $746,000 and $305,000 in depreciation expense. The Evans Corporation also has $746,

allochka39001 [22]

Answer:

Net cash flow for The Rogers Corporation: $435,200

Net cash flow for The Evans Corporation: $332,400

Explanation:

For The Rogers Corporation:

Income before tax = $746,000 - $305,000 - $224,000 = $217,000

Tax = $217,000 x 40% = $86,800

Net income afer tax = $217,000 - $86,800 = $130,200

Net cash flow = Gross profit - Selling and administrative expense - Tax = $746,000 - $224,000 - $86,800 = $435,200

For The Evans Corporation

Income before tax = $746,000 - $48,000 - $224,000 = $474,000

Tax = $474,000 x 40% = $189,600

Net income afer tax = $474,000 - $189,600 = $284,400

Net cash flow = $746,000 - $224,000 - $189,600 = $332,400

5 0

3 years ago

Julius asks Rachel if she would like to sell her boat. Rachel privately has no interest in selling her boat, and believes that J

ryzh [129]

Answer:

C) formed a valid contract because Rachel's outward expressions showed the formation of a contract.

Explanation:

A valid contract is a binding and enforceable agreement, where all parties are legally bound to perform the contract.

Probably the most important part of a contract is the existence of an offer and acceptance. Once a valid offer is accepted, it binds the parties into a valid contract.

In this case, Rachel accepted Julius´s offer to buy her boat, so an offer and acceptance exists.

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3 years ago