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Alecsey [184]
3 years ago
7

In exchange for a share of the revenues earned on campus, State U has granted CheapFizz the exclusive right to sell soft drinks

in the student union and in vending machines on campus. Prior to the deal, three soft drink companies sold beverages on campus; now no other soft drink company is allowed to sell its products on campus. Prior to the deal, a 12-ounce can of CheapFizz sold for 75 cents. After the deal you would expect a 12-ounce can of CheapFizz to sell for:
A. 75 cents because that is the market price.
B. less than 75 cents because CheapFizz will have greater volume and so can lower its price.
C. more than 75 cents because the demand curve for CheapFizz soda will shift to the left.
D. more than 75 cents because CheapFizz is the only company that can sell soda on campus.
Business
1 answer:
evablogger [386]3 years ago
5 0

Answer:

The correct answer is option D.

Explanation:

The price of a 12 ounce can of CheapFizz is 75 cents.

After a deal with State U, CheapFizz gets exclusive rights to sell soft drink on the campus.

This makes CheapFizz a monopoly firm.

A monopoly firm is a price maker and produces at the point where the marginal cost is equal to marginal revenue. At this point the output level is lower than socially optimal and the price level is higher than socially optimal.

This means that the price of CheapFizz cans will be more than 75 cents after the deal.

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Answer:

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Explanation:

Logistics is the method of managing materials and information between two points that is between the supplier and the manufacturer.

Inbound logistics means managing the materials and parts between the manufacturer and the supplier with the help of transportation and deals with the procurement and storage of the materials and parts.

A retail company sells agricultural produce and consumer products. The company procures materials from farmers and local producers. This process is an example of <u>Inbound Logistics.  </u>

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2 years ago
Your bank account pays an interest rate of 8 percent. You are considering buying a share of stock in XYZ Corporation for $110. A
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Your bank account pays an interest rate of 8 percent. You are considering buying a share of stock in XYZ Corporation for $110. After 1, 2, and 3 years, it will pay a dividend of $5. You expect to sell the stock after 3 years for $120. Is XYZ a good investment-This statement is False

Explanation:

Your bank account pays an interest rate of 8 percent. You are considering buying a share of stock in XYZ Corporation for $110. After 1, 2, and 3 years, it will pay a dividend of $5. You expect to sell the stock after 3 years for $120. Is XYZ a good investment

The above statement is false, since it is a bad investment because after figuring out the stock's value you get $108.15, which is less than what you initially paid for it.

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3 years ago
Joan is creating a new mail merge envelope to use in sending a letter to her customers. which word feature should she use for a
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3 years ago
Eight years ago you purchased an asset for $100,000 that has yielded a nominal capital gain of $30,000. If you sold the asset to
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                            Pharaoh Company

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                 For the year ended June 30, 2017  

Revenue & Gains                                              Amount

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Maintenance and repair expense  $630

Total expense (B)                                            <u>$5,480</u>

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