Answer:
Niether firm cheats on the cartel agreement; Gary Cheats on the cartel agreement and Frank doesn't.
Explanation:
Gary's Gas and Frank's Fuel are examples of a duopoly.
A duopoly is when two firms dominate an industry.
A cartel is when firms come together collusively in order to increase their profits.
A cartel involves either agreeing on the price to sell a product or the quantities of a product to produce.
When two firms form a cartel and one firm cheats on the agreement, the party that cheats earns the highest profits.
When two firms form a cartel and both firms cheat on the agreement, both parties earn the lowest profit.
When two firms form a cartel and both firms keep to the agreement, the profit earned by both firms is higher than when both parties cheat on the agreement but lower than the profit earned when one company cheats.
I hope my answer helps you
Answer:
It will take 1.84 years to cover the initial investment.
Explanation:
Giving the following information:
Initial investment= $8,000
Discount rate= 17%
Cash flow:
1= 5,000
2= 6,100
3= 6,900
4= 8,200
<u>The payback period is the time required to cover the initial investment. We need to discount the cash flows using the following formula:</u>
PV= Cf / (1+i)^n
Year 1= (5,000/ 1.17^1) - 8,000= -3,726.5
Year 2= (6,100/ 1.17^2) - 3,726.5= $729.63
<u>To be more accurate:</u>
(3,726.5/4,456.13)= 0.84
It will take 1.84 years to cover the initial investment.
Answer:
Businesses begin to hire again.
Explanation:
Economic recovery is <u>the phase of the economy that follows a recession, during which an economy regains and exceeds peak employment</u> and output levels prior to downturn.
A recovery period is <u>characterized mainly by</u> high levels of growth in real gross domestic product, <u>employment</u>, corporate profits, and other indicators.
Therefore as given in the scenario, ''after several quarters of a severe recession, the reason there might be <u>a decrease in the official unemployment rate is because of growth in employment as businesses begin to hire again.</u>
Answer:
The first method would use prefabricated building segments, would have an initial cost of $6.5 million.
<span>1. determining your current financial situation
2. developing financial goals
3. identifying alternative courses of action
4. evaluating alternatives
5. creating and implementing a financial action plan
<span>6. reevaluating and revising the plan</span></span>