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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

Following are the average accounts receivable and net sales reported recently by two large beverage companies (dollar amounts ar

Leokris [45]

Answer:

Part a.

Accounts receivable turnover ratio is the shows how many times accounts receivable can be converted in to cash during the period. The formula for calculating the same is given below.

Accounts receivable turnover ratio = Net credit sales / Average accounts receivable

The following table shows the accounts receivable turnover ratio of MCB and ABI:

Particulars MCB ABI

Net sales $5,170 $39,046

Average Accounts Receivable $517 $2,606

Accounts Receivable Turnover rate 10 14.98

Part b.

Day's sale outstanding shows the average number of days taken to collect the accounts receivable. The formula for calculating the same is given below.

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3 years ago

Cream Corporation produces and sells a single product. Data concerning that product appear below: Per Unit Selling Price $130 Va

Ipatiy [6.2K]

Answer:

$2,280 increase

Explanation:

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

= Increase in monthly sales unit × contribution margin per unit - increased monthly advertising

= 140 units × $52 - $5,000

= $7,280 - $5,000

= $2,280

Since this comes in a positive figure that results in increased in monthly net operating income we simply considered the change in monthly sales unit, monthly advertising, and the contribution margin per unit

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3 years ago

Simple interest is paid oniy on the

azamat

Answer:

Principal amount only

Explanation:

Simple interest is calculated based on the principal amount borrowed or the principal deposit. If the principal amount does not change, the simple interest earned will remain a constant figure through the loan or deposit life. Simple interest does not increase or decrease the principal amount.

Simple interest contrast with compound interest that adds interest earned to the principal amount at the end of a season.

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3 years ago

sosa company has $39 per unit in variable costs and $1,900,000 per year in fixed costs. demand is estimated to be 138,000 units

satela [25.4K]

Managerial accounting is used to give relevant information to people within a company, mostly management, to aid them in making more informed business decisions. Financial accounting is used to generate financial statements that benefit external users.

Annual fixed cost is $1,900,000.

Producing 138,000 units annually

Fixed cost per unit is $13.77 divided by 1,900,000 units.

$39 is the variable cost per unit.

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Any expenses that vary according to how much a business produces and sells are considered variable costs. Contrarily, fixed costs are those outlays that don't change regardless of how much a business produces.

To know more about variable costs, click here:-

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#SPJ4

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1 year ago