Ask question

Ask question

All categories

3 years ago

10

Under which model of oligopoly are firms more likely to engage in a price war, driving down prices to marginal cost and resultin

g in no profit?

1 answer:

madam [21]3 years ago

6 0

Answer:

The price leardership model of oligopoly

You might be interested in

The best way to limit competition is to: Choose one: A. control a resource that is essential in the production process. B. lobby

zloy xaker [14]

Answer:

A. control a resource that is essential in the production process.

Explanation:

When the crucial resource is required to make a product, then the restrictions on such resource would not allow, many people to enter in such business.

Also that the resources will be restricted in some or other manner, its price will increase accordingly the cost of producing such article would also increase.

As the cost of production will increase only producers with a high budget and resources in terms of finance will chose it.

5 0

3 years ago

a. She has negotiated a sales price of $46,585 and she has a $15,000 down payment. She is eligible for the full $10,000 cash reb

nirvana33 [79]

Answer: Elaine should take Dealership's financing option.

Explanation:

Option A

Car Sale Price = $46 585

Down Payment = $15000

Interest rate = 0%

Period = 66 months

Value of Dealer Financing = $46585 - $15000 = <u>$31585</u>

Option 2.

Elaine takes the loan to pay for the car

R = 3.24%

Car price = Loan Amount = $46585

Period (n) = 72 months

Value of Option 2 Loan Financing = Loan Amount (1 + r)^n

Value of Option 2 Loan Financing = $46585(1 + 0.0324^/12)^72

Value of Option 2 Loan Financing = $46585(1 + 0.0027)^72

Value of Option 2 Loan Financing = 56566.482756

Value of Option 2 Loan Financing = $56566.48

Elaine receives a Cash rebate of $10 000

Overall Value of option 2 = $56566.48 - $10 000 = <u>$46566.48</u>

Let us assume Elaine Pays the Down Payment of $15000 AND take A Loan to finance the rest of the Car amount

Car sale price = $46585 - $15000 = $31585

Loan Amount = $31585

Option 2 Loan Financing with down Payment

Option 2 Loan Financing = $31585(1 + 0.0324^/12)^72 + $15000

Option 2 Loan Financing = $31585(1+0.0027)^72 + $15000

Option 2 Loan Financing = 38352.524586 + $15000

Option 2 Loan Financing = $53352.524586

Elaine Receives a Cash Rebate of $10 000

Value of Option 2 with down payment = $53352.524586 - 10 000

Value of Option 2 with down payment = $43352.524586

Value of Option 2 with down payment =<u> $43352.53</u>

When Elaine pays a down payment and takes a loan of $31585, the overall finance is valued at $43352.53, When Elaine takes a loan for the entire car amount the Value of option 2 finance is $46566.48.

Dealership Option Financing Value is $31585. Elaine should take Dealership's financing option

3 0

3 years ago

Cardboard is an example of which type of economic resource?

blsea [12.9K]

<h3><u>Answer</u>;</h3>

A capital resource

<h3><u>Explanation</u>;</h3>

Economic resources are the factors used in producing goods or providing services. That is, they are the inputs that are used to create things or help an individual to provide services.
<em><u>Economic resources can be divided into human resources, such as labor and management, and nonhuman resources, such as land, capital goods, financial resources, and technology. There are four types, namely; capital, labor, land, and entrepreneurship.</u></em>
<em><u>Capital resources are those resources that are used to manufacture other goods and services in future.</u></em>

3 0

3 years ago

You are an economist studying the small country of Mardodus. As you look at the data, you see Mardodus has experienced an influx

WINSTONCH [101]

Answer: Natural rate of unemployment will decrease because the productivity growth in the short term has passed up wage growth.

Explanation:

The natural unemployment rate simply means the lowest unemployment rate where the inflation in the economy is stable.

Based on the information given in the question, if the natural unemployment rate for this time frame.is analyzed, the natural rate of unemployment will reduce due to the fact that the productivity growth in the short term has passed up wage growth.

3 0

3 years ago

Suppose a Lexus LS400 and a Mercedes C300 are considered to be of equivalent value. The Lexus sells for 6,000,000 Japanese yen i

yarga [219]

Answer:

1 EUR = 120 JPY

Explanation:

As the purchasing power parity theory, the exchange rate of currency 1 to currency 2 = Cost of good in currency 1 / cost of same valued item in currency 2

In this case, a Lexus LS400 and a Mercedes C300 are considered to be of equivalent value, then the exchange rate between the yen and the euro

= price of Lexus in Tokyo/ price of Mercedes in Stuttgart

= 6,000,000 JPY/ 50,000 EUR

= 120 JPY/EUR

3 0

3 years ago