1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
In-s [12.5K]
3 years ago
12

Suppose there are monopoly profits in the production of​ airplanes, but two countries are each determined to capture the industr

y. When one country subsidizes its domestic​ firm, the other country matches the tactic. As a​ result, both firms stay in business. Who gains and who loses?
Business
1 answer:
jasenka [17]3 years ago
7 0

Answer:

The both firms lose and the consumers gain

Explanation:

This scenario paints the picture of a Price war.

A price war is a competition strategy known by repeatedly cutting prices below those of competitors.

As a competitor lowers its price, then others will lower their prices to match.

Eventually, price wars are beneficial to the buyers who are consumers, who can take advantage of lower prices.

Price cutting is not good for any of the competing companies involved because the lower prices reduce profit margins and can threaten their survival.

If this practice of price reduction continues the monopoly profits are erased, and the smaller, more marginal or less efficient firms cannot compete and must close.

You might be interested in
If a firm sells a prestige product, what kind of relationship between price and quantity demanded should it expect?.
solmaris [256]

For a firm that sells a prestige product, the relationship between price and quantity demanded is a <u>positive direct relationship</u>.

<h3>Why is the relationship between demand and price of prestige products direct?</h3>

The relationship between the demand and price of prestige products is direct because prestige products tend to sell better at high prices than at low prices.

And when the quantity demanded increases, the price tends to increase.

An example of a prestige product is an old car.

Thus, for a firm that sells a prestige product, the relationship between price and quantity demanded is a <u>positive direct relationship</u>.

Learn more about the demand for prestige products at brainly.com/question/6374886

3 0
2 years ago
Which of the following are conflict indicators?
adell [148]

All of these can be indicators of conflict EXCEPT

having a cheerful, positive demeanor and respectful comments.

In a well-functioning organization, you would hope to find both of these traits amongst your workers. They are signs that things are running smoothly with little conflicts.

7 0
3 years ago
Read 2 more answers
Bartoletti Fabrication Corporation has a standard cost system in which it applies manufacturing overhead to products on the basi
vazorg [7]

Answer:

Total of the variable overhead rate and fixed manufacturing overhead budget variances for the month = $9,096 Unfavorable

Explanation:

Actual variable overhead rate = \frac{Actual variable overhead}{Actual Hours} = \frac{66,170}{6,400}  = 10.34

Therefore variance with the budgeted standard variable overhead

= (Standard Overhead rate - Actual overhead rate) \times Actual Hours

= ($9.70 - $10.34) \times 6,400 = -$4,096

And Fixed Overhead variance = Standard Fixed Overhead - Actual Fixed Overhead = $69,000 - $74,000 = -$5,000

Total of the variable overhead rate and fixed manufacturing overhead budget variances for the month = -$4,096 + -$5,000 = -$9,096

Since the value of variance is negative it means the expense both variable and fixed are over absorbed, which means it is unfavorable.

Total of the variable overhead rate and fixed manufacturing overhead budget variances for the month = $9,096 Unfavorable

3 0
3 years ago
Suppose disposable income increases by $ 2,000 . As a result, consumption increases by $ 1,500 . Answer the questions based on t
timama [110]

Answer:

Increase in savings resulting directly from the given change in income

= increase in income - increase in consumption  = $2000-$150 = $500

Marginal propensity to save = increase in savings/increase in income = 500/2000 = 0.25

Explanation:

3 0
3 years ago
Sweet Company’s outstanding stock consists of 1,000 shares of noncumulative 5% preferred stock with a $100 par value and 10,000
frutty [35]

Answer:

preferred stockholders received $15,000 during the first 3 years

  • $2,000 in the first year
  • $6,000 in the second year
  • $7,000 in the third year

common shareholders received $25,000 in dividends during the third year.

Explanation:

preferred stock = 1,000 shares x $100 par value x 5% = $5,000

common stock = 10,000 shares at $10 par value

dividends declared and paid during the first 3 years:

year       dividends

1               $2,000

2              $6,000

3            $32,000

preferred stockholders should have received $5,000 per year x 3 years = $15,000. Preferred stockholders must be paid first, and their payment is fixed. If the dividends are not enough to pay the total amount, the remaining amount should be paid next year.

  • $2,000 in the first year
  • $6,000 in the second year
  • $7,000 in the third year

common shareholders received $32,000 - $7,000 = $25,000 in dividends during the third year.

7 0
3 years ago
Other questions:
  • In a market economy the three basic economic question are most often answered by which two groups?
    14·1 answer
  • You were hired as a consultant to giambono company, whose target capital structure is 40% debt, 15% preferred, and 45% common eq
    12·1 answer
  • Perfect summer weather increases farm output by 30%. in the short run, this can be expected to __________ the price level and __
    12·1 answer
  • The income statement will present
    14·1 answer
  • Which value describes the desire to be one’s own boss?
    14·2 answers
  • A major reason outsourcing is effective is that a. few firms possess superior capability in all primary and support activities.
    6·1 answer
  • Which of the following statements concerning a bank savings account is false? a. Deposits are insured for at least $100,000. b.
    9·1 answer
  • A profit maximizing monopoly's price is
    7·1 answer
  • Which marketing activity is most directly served by the promotion element of the marketing mix?
    8·1 answer
  • In kennedy's speech to rice university, find at least one example of: scope time cost quality human resources communication risk
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!