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3 years ago

A cartel differs from a monopoly in that ________.

Business

2 answers:

Harrizon [31]3 years ago

4 0

A cartel differs from a monopoly in that by businesses making the same product agree to limit production.

Further Explanation:

Cartel: It is an association formed by manufacturer, supplier, or both to limit production level, to fix prices, or to share customers or markets among themselves.

Monopoly: It is a market structure characterized by one producer selling a unique product. There are barriers to exit and entry. The firm in the monopoly is price maker, not the price taker.

Justification for the correct and incorrect answer:

One corporation has complete control of a product or service: This option is incorrect.

In the case of monopoly, there is a single producer who has control over services or product. In the case of a cartel, there are many producers who form an association to limit the supply or to fix the prices.

Businesses making the same product agree to limit production: This option is correct.

In the case of a monopoly, there is only a single producer who sells unique services or products. In the case of the cartel, there are many producers who are selling the same product agree to form an association to limit the supply or to fix the prices.

One firm sets the prices for all goods in the industry: This option is incorrect.

The one firm setting the price for product or service is a characteristic of the monopoly, but the cartel is characterized by many firms that agree to set the price.

All the firms involved in the same business merge into one entity: This option is incorrect.

The monopoly is characterized by a single producer, so it cannot merge with other business and cartel is an association of producer, supplier, or both.

Learn more:

1. Demand and type of goods

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2. Demand and supply of goods

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3. Elasticity of demand

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Answer details:

Grade: High School

Subject: Economics

Chapter: Types of markets

Keywords: A cartel, a monopoly, agree to limit production, control of a product or service, set the prices for all goods, same business merge into one entity, all the firms involved in, business making the same product, merge into one entity, one firm sets the prices, all goods in a n industry.

Marrrta [24]3 years ago

3 0

I believe the answer is: B. businesses making the same product agree to limit production.

In a monopoly, only one single business exist that control the production of a certain goods in the market.
For cartel, there are a lot of established businesses with different ownership, but they agreed to control their production in order to maintain the price level in the market.

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A service contract for a video projection system costs $195 a year. you expect to use the system for four years. instead of buyi

aleksklad [387]

Answer:

The future value of an annuity (FVA) is $828.06

Explanation:

The future value of an annuity (FVA) is the value of payments at a specific date in the future based on the payments being recurring and assuming a discount rate. The future value of an annuity (FVA) is based on regular cash flow. The higher the discount rate, the greater the annuity's future value.

$FVA= P * \frac{(1+r)^n-1}{r}$

Where:

FVA is The future value of an annuity (FVA)

P is payment per period

n is the number of period

r is the discount rate

Given that:

P = $195

r = 4% = 0.04

n = 4 years

$FVA= P * \frac{(1+r)^n-1}{r}$

substituting values

$FVA= 195 * \frac{(1+0.04)^4-1}{0.04}=195*4.246=828.06\\FVA=824.06$

The future value of an annuity (FVA) is $828.06

4 0

3 years ago

Read 2 more answers

Laurel, Inc., and Hardy Corp. both have 6 percent coupon bonds outstanding, with semiannual interest payments, and both are curr

stealth61 [152]

Answer:

A. If interest rates suddenly rise by 2 percent, what is the percentage change in the price of these bonds?

Laurel, Inc. = -8.11%

Hardy Corp. = -18.91%

B. If interest rates were to suddenly fall by 2 percent instead, what would the percentage change in the price of these bonds be then?

Laurel, Inc. = +8.98%

Hardy Corp. = +25.49%

Explanation:

bonds with 6% semiannual coupons, sold at par $1,000

Laurel, Inc. bond maturity in 5 years

Hardy Corp. bond maturity in 18 years

the current price of a bond is the sum of the present value of its face value and coupons. I will use an annuity table to calculate PV of face value and an ordinary annuity table for the coupons:

Laurel, Inc.

market rate 4% = ($1,000 x 0.8203) + ($30 x 8.9826) = $820.30 + $269.48 = $1,089.78, % change = 89.78/1,000 = 8.98%

market rate 8% = ($1,000 x 0.6756) + ($30 x 8.1109) = $675.60 + $243.33 = $918.93, % change = -81.07/1,000 = -8.11%

Hardy Corp.

market rate 4% = ($1,000 x 0.4902) + ($30 x 25.489) = $490.20 + $764.67 = $1,254.87, % change = 254.87/1,000 = 25.49%

market rate 8% = ($1,000 x 0.2437) + ($30 x 18.908) = $243.70 + $567.24 = $810.94, % change = -189.06/1,000 = -18.91%

3 0

3 years ago

6. On February 1, Ann sends Bob a letter offering to employ Bob at Ann’s auto dealership. On February 5, Bob mails Ann a letter

Radda [10]

Answer: A Contract was formed on February 5th

Explanation:

The contract was formed the very day that Bob mailed Ann his acceptance which was on the 5th of February.

Ann attempted to revoke the acceptance too late as she did it a day after he had emailed his acceptance even though she only received it on the 7th.

The date she received the acceptance is of no consequence because this falls under the Posting Rule. This rule in Common Law countries essentially states an agreement is made as soon as the letter is posted even if it never gets to it's destination.

6 0

3 years ago

when all-in-one technology offers its customers a discount for ordering their television, internet, and phone service all with a

Archy [21]

Penetration evaluation could be a strategy utilized by businesses to draw in customers to a brand-new product or service by giving a cheaper price ab initio.

The cheaper price helps a brand-new product or service penetrate the market and attract customers far from competitors.

EDLP is related to Walmart because the company has used it systematically in its selling. As an evaluation strategy, Walmart founder SAM Walton used EDLP once gap his initial stores.

In a predatory evaluation theme, area unit costs are set low to drive out competitors and build a monopoly. Shoppers could enjoy lower costs in the short term. However, they suffer if the theme succeeds in eliminating competition, as this could trigger an increase in costs and a decline in selection.

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8 0

1 year ago

On December 31, 2020, the Bennett Company had 100,000 shares of common stock issued and outstanding. On July 1, 2021, the compan

matrenka [14]

Answer:

$5.31

Explanation:

Earnings per share = Earnings Attributable to Holders of Common Stock ÷ Weighted Average Number of Common Stocks Outstanding

where,

Earnings Attributable to Holders of Common Stock is :

Net Income $650,000

Less Preference Stock dividend ($71,000)

Earnings Attributable to Holders of Common Stock $579,000

and

Weighted Average Number of Common Stocks Outstanding :

Common Stocks at Beginning outstanding 100,000

Stocks Sold at Weighted Average (18,000 / 2) 9,000

Weighted Average Number of Common Stocks Outstanding 109,000

therefore,

Earnings per share = $579,000 ÷ 109,000

= $5.31

The 2021 basic earnings per share is $5.31.

4 0

2 years ago