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Butoxors [25]
4 years ago
11

What would happen if three more restaurants opened in a small town where only four restaurants were open for business originally

? rev: 05_15_2018 Multiple Choice The restaurants would form a cartel in the town. People would pay higher prices to eat out. The town would raise significantly more taxes. The restaurants would become more like a competitive market.
Business
1 answer:
Tanya [424]4 years ago
3 0

If three more restaurants opened in a small town where only four restaurants were open for business originally then The Restaurants  would form a cartel in the town.

<u>Explanation:</u>

In such a situation the restaurant would preferably form a cartel. A Cartel is an association of various firms. This association is formed to keep the prices at a higher level. When a cartel is formed it restricts competition.

Cartel is formed with the mutual understanding of all the firms. The existence of cartels negatively affects the consumers, as they have to pay higher prices and cannot afford to bargain as the price will be determined by all the concerns collectively. It might result in limited supply and more demand which will result in price to increase.

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f there are two factors used in producing a good, the least-cost rule specifies that costs have been minimized when Group of ans
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Answer:

Explanation:

When there are two factors used in producing a good, the least-cost rule specifies that costs have been minimized when the MPP of the first factor divided by its price is equal to the MPP of the second factor divided by its price.

The least cost rule evaluated two factors of production. Let's say labor and capital. production at least cost has the requirements that labor’s marginal product divided by its price is equal to capital’s marginal product divided by its price.

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4 years ago
What statement best describes why economies must make these decisions
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7 0
3 years ago
Madison Company issued an interest-bearing note payable with a face amount of $30,600 and a stated interest rate of 8% to the Me
Sidana [21]

Answer:

a. $0

b.  $31,620

Explanation:

a. Notes Payable do not fall under Operating activities in the cashflow statement but rather under Financing Activities which is where cash transactions that provide the business with capital and liability funds are accounted for.

The Operating activity balance from this is therefore $0.

b. The liabilities will include the Note and the interest accumulated at year end.

Interest accumulated = 30,600 * 8% * 5/12 months = $1,020

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3 0
3 years ago
Blues Inc. manufactures jeans in the cutting and sewing process. Jeans are manufactured in 40-jean batch sizes. The cutting time
Radda [10]

Answer:

a. Value added time = Cutting time + Sewing time

Value added time = 5 minutes + 20 minutes

Value added time = 25 minutes

Non-value added time = Total within batch wait time + Move time

Non-value added time = [25 minutes * (40 - 1) + 2 minutes

Non-value added time = 977 minutes

Total lead time = Value added time + Non-value added time

Total lead time = 25 minutes + 977 minutes

Total lead time = 1,002 minutes

b. Value added ratio = Value added time / Total lead time

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8 0
4 years ago
In year 1, Heron Corp. has depreciation expense for income statement purposes of $10,000. The depreciation deduction on the tax
dalvyx [7]

Answer:

The correct options are as follows:

c. debit tax expense of $24,000.

d. credit taxes payable of $22,800.

e. credit deferred tax liability of $1,200.

Explanation:

In the question, we are given the following:

Enacted tax rate = 30%

Pretax income for the year = $80,000

Taxable income = $76,000

The following can now be calculated:

Tax expense = Pretax income for the year * Enacted tax rate = $80,000 * 30% = $24,000

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Credit deferred tax liability of $1,200.

Therefore, the correct options are as follows:

c. debit tax expense of $24,000.

d. credit taxes payable of $22,800.

e. credit deferred tax liability of $1,200.

7 0
3 years ago
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