Answer:
<em>The two firms will manipulate the market in unison, to maintain the same price, which guarantees the optimum benefit for both firms, as opposed to if one or both of them reduces its price.</em>
Explanation:
<em>A cartel is a group of independent market participants that collude with each other in order to improve their profits and dominate the market.</em> Cartels are usually in the same line of business, and they form a type of alliance as competitors. Cartel use price fixing, bid rigging, and reductions in output, to dominate the market and to maximize their profit. They are usually frowned upon in a free market system.
In this case,<em> if the the two firms Boeing and Rolls-Royce operates as a cartel, they will bend the market rules by fixing their prices, instead of letting market drivers like demand and supply to determine their selling price, they might also reduce their output so that they both have the same level of output, or do any other form of manipulation in unison to maintain the same price</em>. This is because both companies will benefit equally if they maintain the same price, as opposed to if one or both of them reduces price.
Answer:
1) Outside Location
2) Central Location
The profit will be the same when monthly demand is 230 cars
Explanation:
Let central location be termed as location A
Let outside location be termed as location B
<u>1. Demand 200 cars</u>
Profit- Location A = (90-30) * 200 - 7000 = $5000
Profit- Location B = (90-40) * 200 - 4700 =$5300
<u>2. Demand 300 cars</u>
Profit- Location A = (90-30) * 300 - 7000 = $11000
Let x be the number of cars where profit is same,
we will equate both the profit equations
(90-30)*x - 7000 = (90-40)*x - 4700
60x - 7000 = 50x - 4700
60x - 50x = 7000 -4700
10x = 2300
x = 2300/10
x = 230 cars
Profit- Location B = (90-40) * 300 - 4700 =$10300
Answer:
Industrial capitalism is a system both social and economic whereby industry and resources are owned by few for profit.
Explanation:
In order to understand the term industrial capitalism, the term capitalism must first be understood.
Capitalism is an economic and political system in which a country's trade and <u>industry are controlled by private owners</u> for profit, rather than by the state.
Hence, Any society is capitalist if the means of production that is tools and materials belongs to the employer and not the employees and the employees produce commodities belonging to their employer. Otherwise, it would be socialism.
Industrial capitalism is therefore a system, both social and economic whereby <u>industry and resources are owned by few</u> for profit.
C temporary workers do not receive any benefits & it save the company money.
Answer: $2,000 favorable
Explanation:
Total variable overhead variance = Budgeted variable overhead - Actual total variable overhead
Budgeted variable overhead = Budgeted machine hours allowed for actual output * Budgeted variable overhead rate per machine hour
= 30,000 * 2.50
= $75,000
Total variable overhead variance = 75,000 - 73,000
= $2,000 favorable
Favorable because the actual amount was less than the budgeted one.
