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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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Select cost information for seacrest enterprises is as follows: 1,000 units of output 5,000 units of output total cost/unit tota
nasty-shy [4]

Answer:

Not sure but I think is B. again not sure

Explanation:

3 0
3 years ago
Read 2 more answers
A firm purchased 50 units of materials with a unit price of $1.30 on June 1. On June 15, the firm purchased 50 units with a unit
dsp73

Answer: $83

Explanation:

Given that,

On 1 June,

Materials purchased = 50 units

Unit price of material = $1.30

On June 15,

Materials purchased = 50 units

Unit price of material = $1.20

Total cost of 65 units:

= (Material purchased on 1 June × Unit price of material) + [(65 units - 50 units) × $1.20]

= (50 units × $1.30) + (15 units × $1.20)

= $65 + $18

= $83

8 0
3 years ago
On the island of Mabera, the local money is called "favoli." The price of every good in Mabera is expressed as the number of fav
tatuchka [14]

<u>Answer:</u>

The correct option is Unit of account

<u>Explanation:</u>

One of the functions of money is Unit of accounts in economics. The worth of an object is measured in a distinct currency. One of the downfalls of unit of account is that it is regarded as the steady unit of account but inflation factor devastate the said assumption that money is steady. It is regarded as the basic property of the money.

Thus, the correct option will be Unit Of Account.

7 0
3 years ago
Read 2 more answers
The compensation associated with restricted stock units (RSUs) under a stock award plan is: A. The book value of an unrestricted
pantera1 [17]

Answer:

Allocated to expense over the service period which usually is the vesting period.

Explanation:

The compensation associated with restricted stock units (RSUs) under a stock award plan is Allocated to expense over the service period which usually is the vesting period.

The compensation associated with restricted stock units (RSUs) under a stock award plan is computed as

Number of shares represented by the RSUs * market price of an unrestricted share of the same stock.

5 0
3 years ago
In January 2020, Ezra purchased 2,000 shares of Gold Utility Mutual Fund for $20,000. In June, Ezra received an additional 100 s
olchik [2.2K]

Answer:

a. Ezra's gross income from the 100 shares received in June is $1,000.

b. Ezra's gross income from the receipt of the 2,100 shares as a two-for-one stock split in December is equal to $0.

c. The $1,000 gross income realized by Ezra in 2016 will be recognized by him. Also, when the shares are sold by Ezra, he is allowed to deduct an economic loss.

Explanation:

a. What is Ezra's gross income from the 100 shares received in June? ​$X

Since it is not stated that the price per share changed from January to June, we have:

Price per share in June = Amount of shares purchased in January / Number of shares purchased in January = $20,000 / 2,000 = $10

Gross income from 100 shares received in June = Price per share in June * Number of shares received = $10 * 100 = $1,000

This shows that gross income is equal to the amount of the cash dividends Ezra would have received if he had not receive an additional 100 shares as a dividend.

Therefore, Ezra's gross income from the 100 shares received in June is $1,000.

b. What is Ezra's gross income from the receipt of the 2,100 shares as a two-for-one stock split in December? ​$X

The impact of two-for-one stock split is to increase the number of shares of the company by 50% but also to reduce its price per per by 50%. As a result, the total value of shares held by each shareholders remains the same.

Since the total value of shares held by Ezra remains the same, this implies that Ezra's gross income from the receipt of the 2,100 shares as a two-for-one stock split in December is equal to $0.

c. Should Ezra be required to recognize gross income in 2016 even though the fair market value of his investment at the end of the year was less than the fair market value at the beginning of the year?

The $1,000 gross income realized by Ezra in 2016 will be recognized by him. Also, when the shares are sold by Ezra, he is allowed to deduct an economic loss.

7 0
3 years ago
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