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serg [7]
3 years ago
6

You are CEO of Eastco, and you recently paid $58,000 or about 2x revenue (well under industry average) to purchase Westco, which

makes a product nearly identical to yours. This move will allow you to operate in both regions (East and West) of the country.
If you combine the markets, the total Fixed Cost would be $11,000 per month, and your larger purchase size will allow you to advantageous terms for your raw materials, meaning VC will be $4 per unit.
Demand and MR in the combined market is as follows: Qd = 600 - 6P
MR = 100 - 0.333Q
a) Compute your profit in the combined market.
Additional analysis shows that demand and fixed costs are different in the 2 regions.
The West has the following demand and MR:
Qd = 300 - 4P
MR = 75 - 0.5Q
Fixed costs associated with operating in the West are $5000/month. While the East is a less price sensitive market:
Qd = 300 - 2P
MR = 150 - Q
Fixed costs associated with operating in the East are $6000/month.
The area manager from the East suggests you use a strategy that charges each market a separate price. If you operate in separate markets, the VC associated with each unit is $5.
b) Calculate your profits using this strategy. What is this strategy called?
c) What strategy do you suggest in the Long Run?
Business
1 answer:
jeka57 [31]3 years ago
4 0

Answto be honest I really don’t know er:

Explanation:

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A classified income statement has four major sections—operating revenues, cost of goods sold, operating expenses, and non-operat
Advocard [28]

Answer: False

Explanation:

The statement in the question that a classified income statement has four major sections which are the operating revenues, cost of goods sold, operating expenses, and non-operating revenues and accounts receivables is not true.

It should be noted that a classified income statement is made up of the revenue, the expenses and the non operating revenues and expenses.

3 0
3 years ago
Why do you think that decorum and business etiquette play as essential components of business ethics and social responsibility
Delicious77 [7]

Proper decorum and good business etiquettes are essential components of business ethics and social responsibility because they:

  1. Create a professional atmosphere
  2. Improve communication
  3. Make a workplace productive
  4. Enhance workers' respect and dignity
  5. Improve customer and suppliers relationships.

<h3>What are business ethics and social responsibility?</h3>

Business ethics deal with the appropriate business policies and practices that ensure the observance of ethical principles.  They ensure that moral or ethical problems do not arise in a business environment.

Social responsibility refers to the cooperation that should exist among individuals and organizations for the benefit of the community.

Thus, Proper decorum and good business etiquettes remain essential components of business ethics and social responsibility.

Learn more about business ethics and social responsibility at brainly.com/question/25704651

4 0
2 years ago
You expect a share of EconNews.Com to sell for $65 a year from now. If you are willing to pay $65.74 for one share of the stock
iogann1982 [59]

Answer:

dividend payment = $6

Explanation:

given data

sell = $65

pay = $65.74

require a return =  8%

solution

we will use here present value formula that is express as

current stock price ( present value ) = \frac{future\ value}{1 + rate}  ........................1

$65.74 = \frac{65+d}{1+0.08}

here d is dividend

solve it we get

d = $6.00

so dividend payment = $6

6 0
3 years ago
Research the different types of body language the people use in different cultures.
KiRa [710]

Answer:

Explanation:

Body language is an extremely important form of communication in every single culture, yet every culture has differences. For example...

Korean's tend to greet individuals with a bow. This is a form of showing respect as well as saying hello. Other cultures such as the Swiss tend to greet others with three cheek kisses.

Body language can be for many occasions such as Americans using the middle finger to show their dislike of someone. There's also Italian's closing their fingers together in form of a pinecone to show their distraught over something.

Body language has always been a way of expressing oneself and their emotions.

4 0
3 years ago
Suppose the U.S. Drug Enforcement Agency steps up its efforts to control the illegal importation of cocaine into the United Stat
nikklg [1K]

Answer:

The Price of Cocaine would rise drastically

Explanation:

If U.S Drugs Enforcement Agency impose higher restrictions in an effort to control illegal import of cocaine into the United States, this would directly impact the market for illegal drugs in the following ways:

  • Since more restrictions get imposed, the procurement cost of cocaine alongside the risk associated with it in the form of higher penalties and prosecution, both will rise.
  • The supply of cocaine would shrink in the market.
  • The above two outcomes would result into the procurers and peddlers demanding much greater price for the same quantity of cocaine so as to compensate for the higher risk assumed and higher procurement costs associated.

Thus, price of cocaine will rise drastically as an outcome of such a move.

3 0
3 years ago
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