All categories

2 years ago

All oligopoly models share several assumptions. Which of the following is among them?

Business

1 answer:

adoni [48]2 years ago

8 0

Answer: Option C

Explanation: Oligopoly refers to a market structure where a few firms dominate the complete market. The level of investment in such industries is very high so it is not easy to enter or exit these industries.

Automobile is one of many examples of oligopoly structure. There are few big firms in the industry therefore the operations of one affects the operation of others.

Hence from the above we can conclude that the correct option is C.

You might be interested in

Nowadays,there are more separate retail and commercial banks than ever.

cupoosta [38]

B!!!!!!!!!!!!!!!!!!!!

5 0

2 years ago

The Nellie Company has provided the following information: Operating expenses were $115,000; Gross profit was $629,000; Cost of

mrs_skeptik [129]

Answer:

A) $514,000.

Explanation:

Operating income = Gross profit - Operating expenses

Operating income = $629,000 - $115,000

Operating income = $514,000

6 0

2 years ago

Suppose there is a simultaneous increase in demand and decrease in supply, what effect will this have on the equilibrium price?

Sunny_sXe [5.5K]

Although the impact on the equilibrium quantity cannot be determined, a rise in demand and a decrease in supply will result in an increase in the equilibrium price. 1. Consumers now place a higher value on goods, and producers must charge a higher price to offer the goods; as a result, prices will rise for all quantities.

If demand increases at the same time as supply increases, as is the case in the scenario depicted, the new equilibrium price will be greater than the initial equilibrium price.

We therefore know that an increase in supply decreases equilibrium price and increases quantity, while a rise in supply increases equilibrium price and decreases quantity (and vice versa) (and vice versa).

To learn more on equilibrium price

brainly.com/question/14480835

#SPJ4

5 0

1 year ago

RT is about to loan his granddaughter Cynthia $10,000 for 1 year. RT’s TVOM, based upon his current investment earnings, is 12%,

qaws [65]

Answer:

They should not be able to successfully negotiate the terms of this loan within these parameters.

Explanation:

It has been provided that RT earns 12% on his current investments and would not like to receive an interest rate of less than 12% on the loan he gives.

if RT gives a loan of $10,000 for one year, he would charge an interest rate of minimum 12%.

Interest = $10,000*0.12

= $1,200

RT requires $1,200 in interest.

It has been provided that Cynthia earns 8% on her investment.

If she borrows $10,000 and invests the amount for one year, she can earn 8% return on such amount.

Earning = $10,000*0.08

= $800

Cynthia is going to earn $800

RT requires a minimum of $1,200 as interest for 1-year loan he gives while Cynthia can pay a maximum of $10,000 as interest for 1-year loan she takes. there is mismatch between the minimum expectation to receive of lender and the maximum expectation to pay of borrower.

Therefore, They should not be able to successfully negotiate the terms of this loan within these parameters.

6 0

2 years ago

Selected operating data for two divisions of Outback Brewing, Ltd., of Australia are given below: Division Queensland New South

Svet_ta [14]

Answer:

1. Quuen Land Division

Margin 6.50%

ROI 11.70%

New South Wale Division Margin

Margin 3.50%

ROI 15.75%

2. New South wale Division

Explanation:

1. Computation for each division's margin, turnover, and return on investment (ROI)

QUUEN LAND DIVISION MARGIN

Using this formula

Margin =Net operating income/Total Sales

Let plug in the formula

Margin =$70,200/ $ 1,080,000

Margin=6.50%

QUUEN LAND DIVISION ROI

First step is to determine the Turnover using this formula

Turnover=Total sales/Average Asset

Let plug in the formula

Turnover= $ 1,080,000 /$600,000

Turnover =1.8 times

Now let determine the ROI using this formula

ROI =Margin * Turnover

Let plug in the formula

ROI=6.50%*1.8

ROI=11.70%

NEW SOUTH WALE DIVISION MARGIN

Margin =$ 83,475 / $ 2,385,000

Margin=3.5%

NEW SOUTH WALE DIVISION ROI

First step is to determine the Turnover using this formula

Turnover=Total sales/Average Asset

Let plug in the formula

Turnover= $ 2,385,000 /$530,000

Turnover =4.5 times

Now let determine the ROI using this formula

ROI =Margin * Turnover

Let plug in the formula

ROI=3.5%*4.5

RO1=15.75%

2. Based on the above calculation the divisional manager that seems to be doing the better job

Is NEW SOUTH WALE DIVISION because the ROI is greater.

3 0

2 years ago