Answer: Option C
Explanation: Oligopoly refers to a market structure where a few firms dominate the complete market. The level of investment in such industries is very high so it is not easy to enter or exit these industries.
Automobile is one of many examples of oligopoly structure. There are few big firms in the industry therefore the operations of one affects the operation of others.
Hence from the above we can conclude that the correct option is C.
Answer:
1. Degree of Operating Level = %Δ in EBIT / %Δ in sales
2.3 = %Δ in EBIT / 10
%Δ in EBIT = 2.3*10
%Δ in EBIT = 23
Hence, the percentage change in EBIT is 23%
2. Operating Income Expected = Operating Income * (1+%Δ in EBIT)
Operating Income Expected = $58,500 *(1+23%)
Operating Income Expected = $58,500 *1.23
Operating Income Expected = $71,955
Answer:
Because of the tax, the number of basic push mowers sold will Increase or Decrease?
Decrease, The tax will reduce the number of basic push mowers sold. In this case, the quantity of basic push mowers will decrease to the socially optimal quantity because the $20 tax completely internalizes the noise externality.
The socially optimal price of basic push mowers is $?
$208, Because the $20 tax completely internalizes the externality, the socially optimal price to consumers is $208.
The private market price is $?
The private market price is the price that was prevailing before the corrective tax was put in place, which is $190 here.
A firm selling basic push mowers receives $? after it pays the tax.
Receives $188, because the consumer is paying $208 for basic push mowers and the company has to pay $20 of that price in taxes, the net price that a firm would receive for each unit sold is $208 - $20 = $188.
Whereas most men's suit brands focus on their craftsmanship and use of high-quality materials, Bluebird Suits distinguishes itself by emphasizing the durability of its products and deriding other suit makers as "delicate.". Bluebird is using positioning method of Competition.
<u>Explanation:</u>
Competition arises when two or more brands have a common objective. Bluebird and other brands are selling men's suits so they compete with each other.
Bluebird is trying to position its product in the market through competition. Bluebird is selling Men's suit. It trying to present its Suits different from other brands by focusing on the durability factor and telling that other brands are delicate. This will make customers believe that Suits of Bluebird will last long as compared to other brands. So, in this way, it can compete easily.
The answer to your question is all of the above .