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Nikolay [14]
3 years ago
15

Assume there are currently five firms producing and selling computer chips in the European market. Also assume that the product

is differentiated and barriers to entry are high in the industry, making this market an oligopoly. If two firms were to exit the market, economists expect the equilibrium price will likely:
a. not change
b. decrease
c. increase
Business
2 answers:
Gnom [1K]3 years ago
4 0

Answer:Increase

Explanation:The demand will increase as these two companies exit the market because the competition has been reduced as the demand increases this will caus the equilibrium price to increase. People will be demanding more chips only from the three companies that will be remaining.They will have to supply more in return to that demand because the competition has been cut.

irina1246 [14]3 years ago
3 0

Answer: C. Increase

Explanation:

An oligopoly is a market structure in which a few firms dominate. When a market is shared between a few firms, it is said to be highly concentrated. Although only a few firms dominate, it is possible that many small firms may also operate in the market.

Where few firms dominate the equilibrium price will increase because the demand will be high, and this will make the equilibrium price increase.

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Jackson Implements, Inc. uses straight-line depreciation for an item of equipment that cost $135,000, had a salvage value of $15
ch4aika [34]

Answer:

the depreciation that should be charged over the useful life each year is $20,000

Explanation:

The computation of the depreciation expense using the straight line method is shown below:

= (Purchase cost of an equipment - residual value) ÷ (useful life)

= ($135,000 - $15,000) ÷ 6 years

= $120,000 ÷ 6 years

= $20,000

hence, the depreciation that should be charged over the useful life each year is $20,000

3 0
2 years ago
Records at Hal’s Accounting Services show the following costs for year 1. Direct materials and supplies $ 41,000 Employee costs
Korolek [52]

Answer:

Instructions are listed below

Explanation:

Giving the following information:

Year 1.

Direct materials and supplies $ 41,000

Employee costs 2,700,000

Production was 45,000 billable hours.

Fixed overhead was $700,000

Variable overhead $580,000

Total overhead 1,280,000

Unitary costs Year 1:

Direct materials= 0.91

Direct labor= 60

Variable overhead= 12.89

Unitary Costs Year 2:

Direct materials= 0.91*1.10= 1

Direct labor= 60*1.15= 69

Variable overhead= 12.89

Fixed overhead= 700000*1.05= 735,000

A) Total cost if billable hours= 36,000

Direct material= $36000

Direct labor= $2,484,000

Variable overhead= $464,040

Fixed overhead= $735,000

B)

Total cost per unit year 1= 0.91 + 60 + 12.89 + (700000/45000)= $89.36

Total cost per unit Year 2= 1 + 69 + 12.89 + (735000/36000)= $103.31

4 0
3 years ago
A small publishing company is planning to publish a new book. The production costs will include one-time fixed costs (such as ed
patriot [66]

The number of books that will be produced such that the costs from the two methods be the same is 4668 units.

From the complete question, the total cost of the first equation will be:

= 8.25x + 65054

The total cost for the second equation will be:

= 19.50x + 12539

Then, we'll equate both equations together and this will be:

8.25x + 65054 = 19.50x + 12539

Collect like terms

19.50x - 8.25x = 65054 - 12539

11.25x = 52515

Divide both side by 11.25

11.25x/11.25 = 52515/11.25

x = 4668 units.

Therefore, the breakeven unit will be 4668 units.

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After a large hotel chain discovered that their computer systems had been hacked and customer credit card information had been a
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Because confidential data like credit card information were stolen, they need to immediately inform their customers to ensure that the customers will take the necessary steps in protecting themselves from having their identity stolen and from having their credit cards used in purchasing items they are not aware off. 
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