All categories

3 years ago

Which of the following would make it easier to maintain an effective collusive agreement in a cartel?

Business

1 answer:

GalinKa [24]3 years ago

4 0

Answer:

A decrease in the elasticity of demand for the cartel's product.

Explanation:

The cartel is under the control of companies operating in the same area. This is undesirable. It is concluded between businesses and these contracts prevent competition. Such arrangements are also prevented by governments, which aims to promote competition among governments across the country. This type of arrangement creates unity and demonstrates business behavior in activities that prevent other competitors from entering the sector.

Adverse effects on consumers include:

1) Higher prices - cartel members can raise prices, which reduces the demand elasticity of any member.

2) Lack of Transparency - Members may agree to hide prices or hide information such as hidden charges in credit card transactions.

3) Limited production - Members may agree to limit market production, such as OPEC and oil quotas.

4) Build Market - Cartel members can collectively divide a market into regions or regions and not compete in each other's territory.

You might be interested in

Laws designed to promote competition and prevent the information of monopolies are known as _____ laws

Soloha48 [4]

The answer is B. antitrust laws.

Antitrust laws are designed to keep competition fair between corporations to protect consumers. These laws promote such competition and discourage monopolies from operating as such.

6 0

3 years ago

Read 2 more answers

Suppose Clancy would like to invest $1,000 of his savings.One way of investing is to purchase stock or bonds from a private comp

EastWind [94]

Answer:

Financial institutions in the U.S. economy

Suppose Clancy would like to invest $1,000 of his savings.

One way of investing is to purchase stock or bonds from a private company.

Suppose NanoSpeck, a biotechnology firm, is selling bonds to raise money for a new lab—a practice known as debt (equity or debt?).

Buying a bond issued by NanoSpeck would give Clancy an IOU promise to pay_(a claim to partial ownership in, or an IOU promise to pay?)in the firm.

In the event that NanoSpeck runs into financial difficulty, clancy and the other bondholders (clancy and the other bondholders, or the stockholers) will be paid first.

Suppose instead Clancy decides to buy 100 shares of NanoSpeck stock.

Which of the following statements are correct? Check all that apply.

a) The price of his shares will rise if NanoSpeck issues additional shares of stock. False

b) An increase in the perceived profitability of NanoSpeck will likely cause the value of Clancy's shares to rise. True

c) Expectations of a recession that will reduce economy-wide corporate profits will likely cause the value of Clancy's shares to decline. true

Alternatively, Clancy could invest by purchasing bonds issued by the U.S. government.

Assuming that everything else is equal, a corporate bond issued by an electronics manufacturer most likely pays a HIGHER (higher or lower?)interest rate than a municipal bond issued by a state.

5 0

3 years ago

The accounting rate of return requires the use of the accrual basis of accounting and therefore, the annual depreciation must b

PtichkaEL [24]

Answer:

Annual depreciation is calculated by dividing the cost of an asset over its useful life.

Explanation:

For example, if a company is looking to invest in new machinery which costs USD 300,000 and the machinery is expected to have a useful life of 10 years with no scap/salvage value, then the annual depreciation would be computed as:

USD 300,000/10 = USD 30,000 depreciation expense per year.

4 0

3 years ago

Malea Liberty has 800,000 common stock shares outstanding. It has decided to declare a 30 percent stock dividend. The new par va

Rama09 [41]

Answer:

Capital in excess of par = $22,480,000

Retained Earnings = $50,400,000

Explanation:

given data

common stock shares outstanding = 800,000

stock dividend = 30 %

new par value = $3

retained earnings account = $60,000,000

capital in excess of par = $13,600,000

current stock price = $40 per share

solution

we know that here stock dividend declared by 30%

so total share will be = 30% of common stock shares outstanding

share = 30% × 800,000

share = 240,000 shares

and

Market value will be by current stock price is

market value = 240,000 × $40

market value = $9,600,000

so here

Capital in excess of par will be

Capital in excess of par = market value - common stock shares outstanding

Capital in excess of par = $9,600,000 - $800,000

Capital in excess of par = $8,880,000

and

New values will be for Capital in excess of par

Capital in excess of par = $13,600,000 + $8,880,000

Capital in excess of par = $22,480,000

and

Retained Earnings will be

Retained Earnings = $60,000,000 - $9,600,000

Retained Earnings = $50,400,000

6 0

3 years ago

When GM introduced the Chevy Nova in South America, it was perplexed to find that, despite its best efforts, it wasn't selling m

anastassius [24]

Answer:

The correct word for the blank space is: Sociocultural.

Explanation:

Sociocultural forces refer to all cultural features a society possesses such as <em>language, values, </em>and <em>customs</em>. In business, sociocultural features can be an opportunity or a threat firms must identify while promoting or introducing a product into a foreign market. Companies must make sure that the introduction of those goods or services is as smooth as possible for the association to achieve its goals.

8 0

3 years ago