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Delicious77 [7]
3 years ago
5

Assume the market for cell phones is an oligopoly. Further assume that cell phone consumption and production generate no negativ

e externalities. Imagine that all the companies in the oligopoly agree to collude and charge a single price for their cell phones.
Which of the following is true?

A. This agreement is in the best interest of society because the price of cell phones will be higher than if there had been no collusive agreement.
B. This agreement is in the best interest of society because the quantity of cell phones sold will be significantly less than the quantity that would be sold if the cell phone market were perfectly competitive
C. This agreement is not in the best interest of society, because there will be less competition and the price of cell phones will be significantly above marginal cost.
D. This agreement is not in the best interest of society, because there will be less competition and the price of cell phones will be significantly below marginal cost.
Business
1 answer:
Svetllana [295]3 years ago
3 0

Answer:

D. This agreement is not in the best interest of society, because there will be less competition and the price of cell phones will be significantly below marginal cost.

Explanation:

If the market for cell phones is an oligopoly market(Oligopoly market is  a market situation where few firms are dominating the market), and the consumption and production of cell phone generate no negative externalizes and the major companies desired to collude and charge a single price for their product then this agreement is not in the best interest of society, because there will be less competition and the price of cell phones will be significantly below marginal cost.

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There is not enough information to have a significant answer
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3 years ago
A company is considering investing in a new machine that requires a cash payment of $38,209 today. The machine will generate ann
navik [9.2K]

Answer:

The IRR is 10%.

Explanation:

a) Calculation of Internal Rate of Return (IRR):

We choose a discount rate, say 10% and use it to discount the cash flows to their present values.  If the net present value (NPV) of all the cash flows equals zero, then that discount rate is accepted as the IRR.

b) Without 10% discount rate, the discount factors are for:

1st year = 1.1 (1 + discount rate) raised to power 1

2nd year = 1.21 (1 + discount rate) raised to power 2

3rd year = 1.331 (1 + discount rate) raised to power 3

c) These discount factors will divide the cash inflows for each year:

1st year, NPV = $15,364/1.1 = $13,967.27

2nd year, NPV = $15,364/1.21 = $12,697.52

3rd year, NPV = $15,364/1.331 = $11,543.20

Total NPV of inflows                 = $38,209 approximately

NPV of outflows                         -$38,209

NPV of inflows and outflows      $0

So, the IRR is 10%.

IRR is a capital budgeting metric to measure profitability by using a discount rate which makes the net present value of all cash flows to become zero.  To get a suitable rate, trial and error is involved, or one can make use of educated best guess.

8 0
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Answer:

c. Return on Assets

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The net income usually has an impact of interest expense since interest expense is deducted from  earnings before interest and tax in arriving at net income.

Hence, in order to take out the impact interest expense when computing return on assets, an adjusted net income known as de-levered net income is computed using the below formula:

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Evidence based management encourages managers to make facts and logic the foundation of their approach to decision-making.

<h3>What is meant by evidence based management?</h3>

This s the term that has to do with the type of management that is more likely involved with the ability of a person to engage in critical thinking. It is the type of management that lays aside feelings and relies instead on the ability of people to think and come up with facts.

Hence we can ay that Evidence based management encourages managers to make facts and logic the foundation of their approach to decision-making.

Read more on evidence based management here; brainly.com/question/24847839

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