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ipn [44]
3 years ago
13

Luke's Express Diner is the only place that sells burgers in a remote town in Arizona. As one of the​ long-time residents of the

​town, Bertha Hayes contends that the burgers at​ Luke's are priced a bit too high. She claims that this is because the diner enjoys monopoly power in the town. Her​ neighbor, Ruth​ Ernes, disagrees that the diner is in a position to​ over-price products due to monopoly power because she herself knows a lot of people who​ don't like the food there.
Which of the following if true will weaken berthas argument?

a. The local government issues a limited number of restuarant licenses every year
b. the diner is highly rated by food critics and is a very popular eating place in the town
c. lukes express diner cut prices when the nearby coffeeshop cut prices on its sandwiches
d. monopolies in the area have damaged economic efficiency
e. lukes express diner recently increased the price of a burger due to an increase in meat prices, but burger sales remianed unchanged
Business
1 answer:
erma4kov [3.2K]3 years ago
3 0

Answer:

The local government issues a limited number of restaurant licenses every year. (A)

Explanation:

Bertha claims that the burgers sold by Luke's Express Diner are priced a bit too high, because they enjoy monopoly power in the town; hence with the local government issuance of a limited number of restaurant licenses every year, this will break the monopoly that Luke's Express Dinner enjoy, thus weakening Bertha's arguments.

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Without the Gramm-Leach-Bliley Act, Bank of America would more than likely _____.
malfutka [58]
The answer is the third option not be a mega-bank. Hope this helps.
6 0
2 years ago
The Clyde Corporation's variable expenses are 35% of sales. Clyde Corporation is contemplating an advertising campaign that will
larisa [96]

Answer:

$29,850

Explanation:

The computation of the increase in net operating income is shown below:

= Increase in sales - increase in variable expenses - advertising cost

where,

Increase in sales = $89,000

Increase in variable expenses is

= $89,000 × 35%

= $31,150

And, the advertising cost is $28,000

So, the increase in operating income is

= $89,000 - $31,150 - $28,000

= $29,850

4 0
3 years ago
Ruiz Co. provides the following sales forecast for the next four months. Sales (units) April 560 May 640 June 590 July 680 The c
kherson [118]

Answer:

<u>Details                                             April       May       June </u>

Unit to be produced                        576        630        608

Explanation:

The production budget For April, May, and June can be prepared as follows:

                                                 Ruiz Co.

                                         Production Budget

                                   For April, May, and June

<u>Details                                                                April       May       June   </u>

Next month's budgeted sales (A)                     640       590         680

Ratio of inventory to future sales (B)                20%      20%         20%

Budgeted ending inventory (C = A * B)             128        118          136

Budgeted unit sales for month (D)                    560       640        590

Req'd units of avail. production (E = C + D)      688        758        726

Budgeted beginning inventory (F)                     112        128          118

Unit to be produced (G = E - F)                        576        630        608

5 0
3 years ago
Suppose that Dillon derives 40 utils of total utility from eating 5 hotdogs and 42 utils of total utility from eating 6 hotdogs.
gavmur [86]

Answer: The marginal utility is 2

Explanation:

Utility is the satisfaction derived from the consumption of a particular commodity. Total utility is the total satisfaction derived from the consumption of a particular commodity. Marginal utility is the extra satisfaction that a consumer gets from consuming a product. Utility is measured in utils.

Marginal utility increases with an extra consumption of a good at first but later it begins to reduce as the extra good consumed doesn't really have give the consumer enough satisfaction anymore.

Regarding the question, eating 5 hotdogs gives 40 utils and eating 6 hotdogs gives 42 utils.

The marginal utility is the extra utils which will be 42-40 which gives 2 utils.

3 0
3 years ago
In order to produce a new product, a firm must lease new equipment. The managers feel that they can sell 10,000 units per year a
kogti [31]

Answer:

The most the firm can spend to lease the new equipment without losing money=$75,000

Explanation:

The point at which the revenue in terms of sales equals the cost is the break-even point. This can be expressed as;

R=C

where;

R=revenue from sales

C=cost

And;

R=P×N

where;

R=revenue from sales

P=price per unit

N=number of units

In our case;

P=$7.5 per unit

N=10,000 units

replacing;

R=7.5×10,000=$75,000

Total revenue from sales=$75,000

C=p×n

where;

p=cost per unit

n=number of units

In our case;

p=$5

n=unknown

replacing;

C=5×n=5 n

At break-even point, R=C;

5 n=75,000

n=75,000/5=15,000

The break-even cost=5×15,000=$75,000

The most the firm can spend to lease the new equipment without losing money=$75,000

5 0
3 years ago
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