Answer: Harder to sustain cooperation
Explanation:
When the number of firms in an oligopolistic market increases as is the case here, cooperation becomes harder because profits become smaller so companies start to become more selfish.
Also in this scenario, the cheating firm has the incentive to do so because the profit is so much higher than sharing so companies will always be looking to cheat in order to make this profit. The other firms would reply by reducing prices and all of them would suffer.
Answer:
Use at least three extensions in each campaign or ad group.
Explanation:
Google recommends that in other to optimize Google ad campaigns at least three extensions should be used for each campaign or ad group: At the point of each auction, Sandy's ad will be assembled with the most appealing extensions. Elegible extensions will give Sandy's ads more opportunity to meet users’ specific needs.
Answer:
The answer is: $4,522
Explanation:
Since Stanford doesn't operate in the restaurant business and doesn't buy the restaurant, he cannot deduct any amount for investigation costs relating to the restaurant.
Stanford doesn't operate in the bakery business but he bought the bakery, so he can deduct up to $5,000 (before amortization) for investigation costs related to the bakery. But those $5,000 are reduced by every dollar he spent over $50,000, so he can only deduct $4,000 [= $5,000 - ($51,000 - $50,000)].
The remaining $47,000 (= $51,000 - $4,000) can be amortized over 180 months, which equals $261 per month (= $47,000 / 180 months).
Since he bought the restaurant in November, he can deduct two months: $261 per month x 2 months = $522
So his total deduction for investigation expenses is = $4,000 + $522 = $4,522
Priya Rahavy, M.D., is a general practitioner whose offices are located in the Lake Forest Professional Building. In the past, Dr. Rahavy has operated her practice with a nurse, a receptionist/secretary, and a part-time bookkeeper. Dr. Rahavy, like many small-town physicians, has billed her patients and their insurance companies from her own office. The part-time bookkeeper, who works 15 hours per week. is employed exclusively for this purpose.
North Avenue Physician's Service Center has offered to take over all of Dr. Rahavy's billings and collections for an annual fee of $24,000. If Dr. Rahavy accepts this offer, she will no longer need the bookkeeper. The bookkeeper's wages and fringe benefits amount to $20 per hour, and the bookkeeper works 50 weeks per year. With all the billings and collections done elsewhere, Dr. Rahavy will have three additional hours available per week to see patients. She sees an average Of four patients per hour at an average fee of $30 per visit. Dr. Rahavy's practice is expanding, and new patients often have to wait several weeks for an appointment. She has resisted expanding her office hours or working more than 50 weeks per year. Finally, if Dr. Rahavy signs on with the center, she will no longer need to rent a records storage facility for $200 per month.
a. Conduct a relevant cost analysis to determine if it is profitable to outsource the bookkeeping.
Answer:
b. incur the opportunity cost of ignoring the wishes of others.
Explanation:
Opportunity cost in economics is seen as the forgone cost of doing something.
So in this instance where private ownership rights are well defined, everyone knows what is his own and what belongs to others.
The opportunity cost of this will be to ignore the wishes of others. They must now consider the wishes of others.
