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coldgirl [10]
3 years ago
10

If an industry consisting of two firms produces a total of 12 units, the market price is $10. If 13 units are produced, the pric

e falls to $9. Suppose the two firms form a cartel and agree to produce 6 units each. If one firm cheats and produces 7 units, the cheating firm's revenue rises by _____ and the noncheating firm's revenue falls by _____.
$3; $12


$6; $12


$6; $6


$3; $6
Business
1 answer:
Olenka [21]3 years ago
8 0

Answer: $3; $6

<span>The two firms formed a cartel which means they agree to produce same with the purpose of maintaining prices at a high level and restricting competition.</span> In the case of two firms who agree on producing 6 units but one cheat, this will be the effect:

<span><span>At 6 units each, and a market price of $10, each firm will have a gross sale of $60. If one cheats and produced 7, the market price will fall to $9, resulting to $63 (7*9)  and a gain of $3. The noncheating firm will acquire a sale of $54 (6*9) only or a loss of $6. The answer is  </span><span>$3; $6.</span></span>
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3 0
2 years ago
​Martinville, Inc. earned revenues of $ 17,000 and incurred expenses of $ 7,000. The company declared and paid cash dividends of
vladimir1956 [14]

Answer:

$10,000

Explanation:

A company's income is either shared out as dividends or kept in as retained earnings. Therefore, the total of retained earnings and dividend paid out is the net income. This is the amount that will reflect in the income statement. In other words, income is calculated first before dividends or retained earnings are declared.

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Balance in the Income Summary account was $10,000

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3 years ago
When preparing the operating activities section of the statement of cash flows using the indirect method, a decrease in accounts
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True

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3 years ago
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Digiron [165]

Answer:

The correct answer is lower-class nonwhite.

Explanation:

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3 years ago
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Therefore the above statement represent an answer

The same should be relevant

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3 years ago
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