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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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telmack Corporation, a manufacturing Corporation, has provided data concerning its operations for September. The beginning balan

nignag [31]

Answer:

Direct material= $51,000

Explanation:

Giving the following information:

Beginning inventory= $20,000

Ending inventory= $27,000.

Raw materials purchases during the month totaled $63,000.

$3,000 consisted of raw materials classified as indirect materials.

First, we need to calculate the total raw material used in production:

Raw material used= beginning inventory + purchases - ending inventory

Raw material used= 20,000 + 63,000 - 27,000= 54,000

Now, the direct material used:

Direct material= 54,000 - 3,000= $51,000

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3 years ago

Discretionary fiscal policy that might occur is ______. Automatic fiscal policy that might occur is ______. A. a decrease in t

qaws [65]

Answer: a decrease in government expenditure and an increase in taxes by a decision of Congress; a decrease in transfer payments and an increase in taxes with no interference by Congress (D)

Explanation:

Discretionary fiscal policy is a government policy that changes government spending or taxes. The purpose of discretionary fiscal policy is to either expand or shrink the economy. It needs approval from the Congress and President. Its examples are increases in spending on bridges, roads, stadiums etc.

Automatic fiscal policy use spending in the form of taxes and transfer payments to automatically steady the economy. An example is when unemployed become eligible for the unemployment benefits after when losing their jobs during a recession.

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3 years ago

A disclosed principal is a principal whose identity is known by a third party with whom an agent contracts on the principal's be

Sedaia [141]

Answer: The correct answer is true.

Explanation: A disclosed principal is a principal whose identity is known by a third party with whom an agent contracts on the principals behalf, making this statement true.

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3 years ago

Artisan Inspiration, Inc. is a merchandiser of stone ornaments. The company sold 6,000 units during the year. The company has pr

Jobisdone [24]

Answer:

Option (A) is correct.

Explanation:

Given that,

Units sold = 6,000 units

Sales = $565,000

Selling and administrative expenses = $67,000

Operating income:

= Sales - Cost of Goods Sold - Selling and administrative expenses

= $565,000 - ($305,000 + $14,000 + $43,000 - $42,000) - $67,000

= $565,000 - $320,000 - $67,000

= $178,000

Therefore, the operating income for the year is $178,000.

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3 years ago

Mike is saving his emergency funds in an IRA account. Is his strategy a good one? Select the best answer from the choices provid

alexandr402 [8]

The answer to your question is:

- A. Yes, because IRAs have tax advantages over regular bank accounts.

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2 years ago