Answer: B. Both firm A and firm B choose the low price.
Explanation:
Both firm A and Firm B will choose the low price and make profits of $3 if there is no cooperation.
This is because at any other price, the other firms could go with the low strategy and get more profit.
For instance, if Firm A is using a low price and Firm B is using a high price then Firm A makes profit of $10 whilst B makes $1.
Conversely, if Firm B charges a low price and A a high price, A will make paltry profits of $1 while B would make $10.
Their best option therefore is to both pick the low price and make $3.
If they were cooperating they could both charge a high price and make $5 each.
Your question was incomplete so I attached the payoff matrix.
Answer and Explanation:
The computation is shown below:
a. The distribution of Property A would result in a recognized gain
= $182,400 - $91,200
= $91,200
b. The distribution of Property B would result in a disallowed loss is
= $182,400 - $237,120
= -$54,720
c. The sale of Property B to an unrelated party in a recognized loss is
= $182,400 - $237,120
= -$54,720
Answer:
the inventory value is $267,000
Explanation:
As we know that the inventory is valued at cost or market whichever is lower
As seen from the given information, the lesser value for all products are
Product A $87,000
Product B $58,000
Product B $122,000
So, the total is
= $87,000 + $58,000 + $122,000
= $267,000
hence, the inventory value is $267,000
Answer:
Equipment, $46,000, and Land, $21,000 including Accumulated Depreciation, $18,000.
This amounts to $49,000.
Explanation:
The long term asset are also known as the non current assets.
These are assets that will not be used up in a year. It means that the benefits that will accrue to the entity as a result of ownership and control of these assets will be for more than a year. Examples are fixed asset, intangible assets etc
Archer's long term assets are Equipment, $46,000, and Land, $21,000 including Accumulated Depreciation, $18,000.
This amounts to
= $46,000 + $21,000 - $18,000
= $49,000
Answer: The loss of enjoyment people incur when scenic land is converted to commercial use.
The value of babysitting services, when the babysitter is paid in cash and the transaction isn't reported to the government.
The leisure time enjoyed by Americans Funds spent by state governments to build highways
Explanation:
The gross domestic product is the value in terms of money of all the goods and services that are produced in a particular country at a certain period of time.
Over time, people have often criticised the use of GDP as a good measurement of the output of a nation that it does not include every transactions and production for that nation. In this scenario, the following cases are either not accurately accounted for or are measured inaccurately.
1. The loss of enjoyment people incur when scenic land is converted to commercial use.
2. The value of babysitting services, when the babysitter is paid in cash and the transaction isn't reported to the government.
3. The leisure time enjoyed by Americans Funds spent by state governments to build highways.
In the above cases, the monetary value of these activities aren't reflected on the GDP calculation.
