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jeyben [28]
2 years ago
11

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

Business
1 answer:
Anuta_ua [19.1K]2 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 XYZ Chemical Company must ship 9,500 gallons of pesticides from its plant in Cincinnati, Ohio, to a customer in Columbia, Mi
never [62]

Answer:

Henderson  = $1,200

Central States = $1,000

Based on the calculations, Central States Railroad is better at a lower cost than Henderson

Explanation:

The question is to do an evaluation of the costs of use Henderson Bulk Trucking Company or the Central States Railroad

Step 1) Determine the cost of using Henderson

What is the cost per tank  truck = $600

What is the capacity in gallons = 700 galloons

However, since XYZ Chemical needs to ship 9,600 gallons, it means it will make use of 2 trucks from Henderson as follows

The cost of Henderson Bulk Trucking = $600 x 2 = $1,200

Step 2) Determine the cost of using Central Railroad

What is the cost per tank  truck = $1000

What is the capacity in gallons = 23,500 galloons

since XYZ Chemical needs to ship 9,600 gallons, it means it will make use of only one of the trucks

The cost of Central Roilroad= $1000 x 1 = $1,000

Based on the calculations, Central States Railroad is better at a lower cost than Henderson

3 0
3 years ago
A consumer uses goods and services to _____.
allochka39001 [22]
The answer is...

A consumer uses goods and services to satisfy economic wants.
8 0
3 years ago
Read 2 more answers
The Federal Reserve bank acts as banker to both the United States and various international banks true or false
USPshnik [31]
That's not true at all, so it'll be False
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ackson Inc. listed the following data for 2019: Budgeted factory overhead $1,530,000 Budgeted direct labor hours 90,000 Budgeted
Anastaziya [24]

Answer: $36 per machine hour

Explanation:

Assuming Jackson Inc. applied overhead based on machine hours, the firm's predetermined overhead rate for 2019 would be calculated by dividing the budgeted factory overhead by the budgeted machine hours. This will be:

= $1,530,000 / 42,500

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The rickerts decided to set up an account for their daughter to pay for her college education. the day their daughter was born,
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After n years, the deposit made at birth will have a value equal to;

FV1 = C(1+r)^n = 1000(1+0.018)^n = 1000(1.018)^n

After n years, the  yearly deposits made at every birthday will have a value equal to;

FV2 = P{(1+r)^n-1}/r = 750{(1+0.018)^n-1}/0.018 = 41666.67 {(1.018)^n-1} = 41666.67 (1.018)^n -41666.67

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