As a group oligopolists would always be better off if they would act collectively as a single monopolist.
Why do oligopolists act together?
- By acting together oligopolistic firms can hold down industry output, charge a higher price, and divide up the profit among themselves.
- When firms ac t together in this way to reduce output and keep prices high, it is called collusion.
What are the advantages of oligopoly?
- An oligopoly can adopt a competitive strategy.
- The extra profits earned from an oligopoly can go into research and development.
- It can bring price stability to the market.
- Oligopolies can offer more information to their consumers.
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Answer:
Cash flow will be $12750
So option (B) will be correct answer
Explanation:
We have given return on equity = 15 % = 0.15
Total equity = $85000
We have to find the cash flow
Equity is given by
So
So cash flow will be equal to $12750
So option (B) will be correct option
Answer:
The correct answer is letter "C": 15-20.
Explanation:
Different researches have helped businesses concluded that around <em>15% to 20%</em> of them lose their customers year after year. From them, almost 60% goes to the business's competitor and the other 40% substitute the good or service in reference. The main reason why individuals break up their relationship with companies is because of the treatment they received while others are dissatisfied with the good or service.
So, <em>customer service is a key feature at the moment of determining clients' loyalty to the firm.</em>
<span>Year
2018 ($45,000 - $5,000)/10 = 3,000 Ă— 4/12 = $1,000
2019 ($35,000 - $5,000)/10 = $3,000</span>
Answer:
He should take into account the implicit costs and the explicit costs of those actions.
Explanation:
Explicit costs are monetary costs, while implicit costs are opportunity costs (what is given up to obtain something).
For Doug, the explicit cost to start his business is $25,000.
And his implicit costs are:
- For the first option: withdrawing the $25,000 from his savings account, the implicit cost is the interest he will not receive.
- For the second option, the implicit cost is the interest payments for the loan.