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blsea [12.9K]
3 years ago
15

Suppose you are a manager of a firm that operates in a duopoly. Recently, the state attorney general fined you and your competit

or for price fixing. In your market, firms only set prices, not total quantities to sell. From previous experience, you know your competitor has a marginal cost of $. Further, your marginal costs are $. The previous cartel price was $10.00, when you and your competitor were price fixing. What price level do you now choose to maximize profits?
A. $10.05
B. $6.50
C. $10.00
D. $6.49
E. $6.48
F. $6.43
Business
1 answer:
postnew [5]3 years ago
3 0

Answer and Explanation:

When there is price fixing between two competitors, if one competitor chooses to fix the price it should not exceed competutors marginal cost and should be above his marginal cost.

Since the price fixing of $10 will be fined then the ideal price to maximize the profit would be below the competitors price $ and above his marginal cost $.

The ideak price to maximize profits would be (competitors price $ + his marginal cost $)/2, This price would be above his marginal cost and below competitors price.

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Marketing involves which of the following : A. Advertising B. Transporting products C. Taking surveys D. All of the above
IgorLugansk [536]
The following day I can send it off a couple advertising
4 0
3 years ago
Mackenzie is responsible for buying a week's supply of food and medication for the puppies and kittens at a local shelter. the f
Ira Lisetskai [31]
The budget is $4,240.

There are 164 kittens and 24 puppies.
Let
x = amount spent on each kitten
y =  amount spent on each puppy.

The cost for each puppy is twice a much as that for a kitten. Therefore
y = 2x                  (1)

The available amount is $4,240, therefore
164x + 24y = 4240          (2)

Substitute (1) into (2).
164x + 24(2x) = 4240
212x = 4240
x = $20
y = 2x = $40

Answer: $40 for each puppy.

7 0
3 years ago
Ramkissoon Midwifery's cost formula for its wages and salaries is $2,060 per month plus $442 per birth. For the month of July, t
iragen [17]

Answer:

Spending variance will be equal to -729

Explanation:

We have given wages and salary is $2060 per month plus $442 per birth

We have given total number of birth = 117

So standard cost = $2060+117×$442 = $53774

Actual wages and salary for the month is = $54500

We have to find the spending variance

Spending variance is given by

Spending variance = Standard cost - actual cost = $53774 - $54500 = -729

So spending variance will be equal to -729

6 0
3 years ago
On January 8, Lowrence Co. issued a $60,000, 120-day discounted note to Raines Bank. The discount rate is 8%. Assuming a 360-day
Salsk061 [2.6K]

Answer:

a. $58,400

Explanation:

A discounted note, will make the person receive a lesser amount than the amount due at maturity. This way the person who grants the note is receiving interest for borrowing.

<em><u>Calculations</u></em>

principal x discount rate x time = discount

<em><u>Where</u></em> rate and time should be expressed in the same metric IE if the rate is annual express time in portion of years if it is monthly, in months.

60,000 x 0.08 x 120/360 = 1,600

Now, we subtract this amount form the nominal:

nominal - discount = net

60,000 - 1,600 = <u>58,400</u>

6 0
3 years ago
Read 2 more answers
The operations vice president of Security Home Bank has been interested in investigating the efficiency of the bank’s operations
AURORKA [14]

Answer:

The computation of the activity rates for the activity-based costing system is shown below:-

Explanation:

                        Opening     Processing     Processing     Other        Totals

                        accounts     Deposits and     other          activities

                                             Withdraws       Customers

                                                                      transactions

Teller wages  $5,800         $108,750          $26,100      $4,350     $145,000

Assistant

branch

manager

salary             $4,800         $6,600              $16,200       $32,400   $60,000

Branch

manager

salary           $3,760           $0                     $20,680      $69,560    $94,000

                    $14,360         $115,350           $62,980      $106,310

Working Note

                        Opening     Processing     Processing              Other    

                        accounts     Deposits and     other                  activities

                                             Withdraws       Customers

                                                                      transactions

Teller

wages ($145,000 × 4%)  ($145,000 × 75%) ($145,000 × 18%) ($145,000 × 3%)

Assistant

branch

manager

salary  ($60,000 × 8%) ($60,000 ×11%) ($60,000 × 27%) ($60,000 × 54%)

Branch

manager

salary ($94,000 × 4%) ($94,000 × 0%) ($94,000 × 22%) ($94,000 × 74%)

Activity                      Activity cost        Cost drivers      Activity rate

Opening accounts    $14,360                230                  $62.43

Processing deposits

and Withdrawals       $115,350              51,000              $2.26

Processing other

customers

transactions               $62,980             1,150                  $54.77

4 0
3 years ago
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