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3 years ago

Cartel agreements are difficult to maintain because individual members True or False

Business

1 answer:

Anuta_ua [19.1K]3 years ago

8 0

Answer:

True

Explanation:

Cartel

It is important to define a cartel before explaining the question. A Cartel represents a group of firms that come together for making price and output decisions about their products.

Monopoly is one of the main reasons for the rise of Cartels. Cartel members are organisations in markets where there are very few firms and each firm has a significant share of the markets. An example of this is the Organisation of Petroleum Exporting Countries (OPEC).

The Petroleum market is monopolistic in the sense that a few countries are responsible for the crude oil and related products that are used by all countries around the world, hence, OPEC was formed to regulate the actions; production level and price of the Oil produced and processed for regulatory purposes.

Why it is difficult to maintain Cartel Agreements

It is difficult to maintain cartel agreements because individual members will always attempt to cheat and by-pass the agreement to produce beyond the agreed quota just to increase their share of the cartel's profits.

Individual members can always produce above their quota to take advantage of the large market and monopolistic situation to make more monopoly profit.

This difficulty is one of the reasons why there are few Cartels available and it is also why the OPEC has had difficulties monitoring the activities of its members over the years.

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The owner of Showtime Movie Theaters, Inc., would like to predict weekly gross revenue as a function of advertising expenditures

hoa [83]

Answer:

The predicted value of Revenue is $98.24.

Explanation:

The data provided is for the weekly gross revenue, the amount of television advertising and the amount of newspaper advertising.

Determine the regression equation developed to estimate the amount of weekly gross revenue based on television advertising using Excel.

Consider the Excel image for Summary Output for Weekly Revenue Vs. T.V. Adv.

The estimated regression equation with the amount of television advertising as the independent variable is:

Revenue = 89.31 + 1.27 TVAdv

Consider the Excel image for Summary Output for Weekly Revenue Vs. T.V. Adv. & News Adv.

The estimated regression equation with both television advertising and newspaper advertising as the independent variables is:

Revenue = 83.78 + 1.78 TVAdv + 1.47 NewsAdv

For TVAdv = $4.9 and NewsAdv = $3.9 predict the value of Revenue as follows:

$\text{Revenue} = 83.78 + 1.78\ \text{TVAdv} + 1.47\ \text{NewsAdv}$

$=83.78 + (1.78 \times 4.9) + (1.47 \times 3.9)\\\\=98.235\\\\\approx 98.24$

Thus, the predicted value of Revenue is $98.24.

5 0

3 years ago

The Warren Watch Company sells watches for $21, fixed costs are $180,000, and variable costs are $15 per watch.

enyata [817]

Answer:

5,000 watches : $150,000 loss

20,000 watches: $60,000 (Loss)

Break-even point = 30,000 units

if the selling price rises to 32 = break even points descends to 10,588 units

If the selling price rises to $32 but variable costs rises to $26 , the break even point goes back to 30,000units.

Explanation:

Hi, to answer this question we have to apply the next formula:

Profit = Revenue -cost

Where the revenue is equal to the units sold (x) multiplied by the selling price,

R = 21 x

And cost is equal to the sum of the fixed and variable costs.

C = 15x + 1800

So:

P = 21x-(15x +180,000)

P = x ( 21-15)- 180,000

For 5,000 watches:

P = 5000(21-15)-180,000

P = 5000(6) -180,000

P= 30,000-180,000

P=-$150,000 (loss , since is negative )

For 20,000 watches:

P = 20,000(6) -180,000

P = 120,000-180,000

P=-$60,000 (Loss)

To find the break even point:

R = C

21x = 15x + 180,000

21x-15x =180,000

6 x = 180,000

x = 180,000/6

x =30,000 units

if the selling price rises to 32

32x = 15x + 180,000

32x-15x = 180,000

17x =180,000

x = 180,000/17

x = 10,588 units

It descends,

If the selling price rises to $32 but variable costs rises to $26

32x = 26x+180,000

32x-26x = 180,000

6x = 180,000

x = 180,000/6

x =30,000

The break-even point comes back to 30,000 units.

6 0

3 years ago

A company forecasts growth of 6 percent for the next five years and 3 percent thereafter. Given last year's free cash flow was $

Ilya [14]

Answer:

d. $2,676

Explanation:

The computation of the horizontal value is shown below:

FCF1 = (100 × 1.06) = 106

FCF2 = (106 × 1.06) = 112.36

FCF3 = (112.36 × 1.06) = 119.1016

FCF4 = (119.1016 × 1.06) = 126.247696

FCF5 = (126.247696 × 1.06) = 133.8225578

Now

Horizon value is

= FCF5 ÷ (Cost of capital - Growth rate)

= 133.8225578 ÷ (0.08 - 0.03)

= $2,676

Hence, the correct option is d.

4 0

3 years ago

Campbell's Soup Company ran a series of radio ads tied to local weather forecasts. Before an impending storm the ads said, "Time

g100num [7]

Answer:

"Persuasive" "reminder"

Explanation:

Campbell's Soup Company ran a series of radio ads tied to local weather forecasts. Before an impending storm the ads said, "Time to stock up on Campbell's Soup." During the storm the ads said, "Stay home and stay warm with Campbell's Soup." The first ad was persuasive advertising, while the second ad was reminder advertising.

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3 years ago

What are the functions of MNCs

nikdorinn [45]

The various functions of MNC are:
Promotion of foreign investment.
Technology transfer.
Promotion of exports.
Investment in infrastructure.

4 0

2 years ago

Read 2 more answers