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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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3 years ago

Supporters of rent control say that it _____ the price of renting an apartment. raises lowers does not change

denis23 [38]

Answer:

The answer is lowers.

Explanation:

Supporters of rent control say that it <u>LOWERS</u> the price of renting an apartment.

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Rent control laws mostly limit the amount a landlord can increase rents on existing tenants. Therefore Rent control is controversial. In fact, 37 states have laws that forbid local governments from enacting such measures.

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3 years ago

A woman is shopping with her three children. She is carrying several items and does not have a shopping basket. She is still bro

dlinn [17]

Answer: The women customer either complain to the supervisors to address her issue immediately nor the employee should apologize to the woman and provides a shopping basket to her.

Explanation:

In every supermarket, All employees of the shop have the duties and responsibilities to serve the customers' needs without any delay in time. Consumer rights should be always ensured to protected in all the shops irrespective of the size of the business as well the employees count. The consumer has all rights to raise the complaint to the direct supervisors in the market.

In this case, Woman's customer has experienced the pain as she cannot able to get a basket to hold the items. As she needs to take care of her children, Her request needs to fulfilled without any delay. Mutual consent with the ethics of the shop needs to tie up the bonding relationship between employees and consumers. At last, if the employee apologizes for her mistake and helps the woman by providing basket will end in the peaceful business transactions in the supermarket.

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3 years ago

In recent years, the trend among U.S. firms is to outsource the "production" of certain service activities to developing nations

Amiraneli [1.4K]

Answer:

TRUE

Explanation:

We currently live in a globalized world. Globalization is an economic and political phenomenon that has transformed the relations of production and labor. The companies started to produce in countries where the labor is cheaper, becoming consequently more competitive. Thus, US multinational companies outsource the manufacture of components of their products in different territories. For example, an Iphone has components made in China, Vietnam and others. This makes the final price of the iphone lower around the world.

5 0

3 years ago

The following information is available for Barkley Company: 2017 2016 Accounts receivable $ 360,000 $400,000 Inventory 280,000 3

lubasha [3.4K]

Answer:

4.0 times

Explanation:

Given that,

2016:

Accounts receivables = $400,000

Inventory = 320,000

Net credit sales = 1,400,000

Cost of goods sold = 1,060,000

Net income = 170,000

2017:

Accounts receivables = $360,000

Inventory = 280,000

Net credit sales = 3,000,000

Cost of goods sold = 1,200,000

Net income = 300,000

Inventory turnover ratio refers to the ratio between the cost of goods sold and average inventory.

Average inventory:

= (Beginning inventory + Ending inventory) / 2

= ($320,000 + $280,000) / 2

= $300,000

Therefore, the inventory turnover ratio for 2017 is as follows:

= Cost of goods sold / Average inventory

= 1,200,000 / 300,000

= 4.0 times

6 0

3 years ago