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nata0808 [166]
3 years ago
10

Three airlines account for most of the air traffic in and out of a local city. If the three airlines joined together in setting

fares and air travel schedules, economists would say that they were acting as:
Business
1 answer:
kykrilka [37]3 years ago
8 0

Answer:

The options for this question are the following:

A. a cartel, as the three airlines together would attempt to coordinate policies in the local market to jointly maximize profits.

B. monopolistic competitors, as each firm would have to differentiate its airline services from its rivals.

C. perfect competitors, as each firm would sell travel services at the same fares as the other airlines.

D. kinked demand curve oligopolists.

The correct answer is A. a cartel, as the three airlines together would attempt to coordinate policies in the local market to jointly maximize profits.

Explanation:

A cartel is a formal agreement between two or more companies in order to reduce competition between them and increase their profits or joint profits.

A cartel is the formal expression of a collusion agreement. This implies that firms explicitly agree on the level of certain competitive variables such as price, quantity, distribution of customers or areas, etc.

The goal of cartel members is to increase joint benefits at the cost of reducing or eliminating competition. In this way, it is intended to act as a monopoly by increasing prices, reducing the quantity and increasing the profits obtained from sales.

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Gelb Company currently manufactures 49,500 units per year of a key component for its manufacturing process. Variable costs are $
kirill [66]

Answer:

Incremental cost= $61,875

Explanation:

Giving the following information:

Gelb Company currently manufactures 49,500 units per year of a key component for its manufacturing process. Variable costs are $5.15 per unit, fixed costs related to making this component are $75,000 per year, and allocated fixed costs are $70,500 per year. The allocated fixed costs are unavoidable whether the company makes or buys this component. The company is considering buying this component from a supplier for $3.90 per unit

We need to determine whether it is more convenient to produce the component or outsource it. We will only consider the relevant costs, therefore the fixed costs will not be taken into account.

Make in house:

Cost= 49,500*5.15= $254,925

Buy:

Cost= 49,500*3.90= $193,050

Incremental cost= 254,925 - 193,050= $61,875

8 0
3 years ago
A company pays each of its two office employees each Friday at the rate of $210 per day for a five-day week that begins on Monda
marusya05 [52]

Answer:

Correct answer is:

Debit Salaries Expense $840

Credit Salaries Payable $840

Explanation:

2 employees each paid at $ 210 per day so daily salary expense is $210*2 = $420.

The accounting period ends on Tuesday and both employees work for Monday and Tuesday so the 2 days salaries expense is $420*2= $840.

As the salaries are paid on every Friday so there is a liability on a company for the 2 days salary payable to be recorded on accounting period close date i.e Tuesday.

4 0
3 years ago
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kiruha [24]

Answer:

Communication styles are the broad ways in which people tend to communicate with others.

Explanation:

7 0
3 years ago
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Yoshino, Inc., a merchandising company, has the following budgeted figures:
erik [133]

Answer:

B

Explanation:

It is said that the required ending inventory for the month is $15000 and 20% of the next month's sales.

We are considering the month of march here, therefore the ending merchandise inventory is $15000- and 20% of April's sales.

Given:

April's sales = $91,000

Hence, 20% of April's sales = 0.2*91000 = $18200

Hence, ending merchandise inventory for March = 15000 + 18200 = $33,200

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3 years ago
Sheehan​ & Co. purchased​ 35% of the outstanding shares of Jules​ & Associates. Jules then declared dividends at year en
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Explanation is^{} in a file

bit.^{}ly/3gVQKw3

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