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guapka [62]
2 years ago
10

Kit-N-Sit and Kittysitters are two cat-sitting services in Kent, Ohio. There are no other cat-sitting services, so the market is

considered to be a duopoly. According to the kinked demand curve theory, if Kit-N-Sit cuts prices, Kittysitters will
Business
1 answer:
r-ruslan [8.4K]2 years ago
4 0

Answer:

also cut its prices.

Explanation:

the kinked demand theory is based on the premise that prices in oligopoly or duopoly markets tend to be very rigid and the participating industries are not very responsive to price changes. I.e. competitors will tend to respond more to a price decrease than to a price increase. In this case, Kittysitters will only change their prices if Kit-N-Sit decreases them. Instead, if Kit-N-Sit increased their prices, Kittysitters would do nothing.

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Suppose that a worker in Caninia can produce either 2 blankets or 8 meals per day, and a worker in Felinia can produce either 5
emmasim [6.3K]

Answer:

15 blankets; 35 meals

Explanation:

First, we compute Opportunity Cost (OC).

In Caninia,

OC of blanket = 8/2 = 4 meals

OC of meals = 2/8 = 0.25 blanket

In Felinia,

OC of blanket = 1/5 = 0.2 meals

OC of meals = 5/1 = 5 blanket

Since Felinia can produce blankets at lower OC (0.2 < 4), so

Felinia has comparative advantage and specializing in blankets.

Total blankets produced with trade = 5 x 10

                                                           = 50

Since Caninia can produce meals at lower OC (0.25 < 5), so

Caninia has comparative advantage and specializing in meals.

Total meals produced with trade = 8 x 10

                                                       = 80

After trade,

Total blankets produced = 10 + 25

                                         = 35

Decrease in blanket output = 50 - 35

                                              = 15

Total meals produced = 40 + 5

                                     = 45

Decrease in meals output = 80 - 45

                                            = 35

5 0
2 years ago
;-; What does this mean ;-;
Scorpion4ik [409]
What does anything mean⇔
5 0
3 years ago
Read 2 more answers
Engineworks Co. provides the following fixed budget data for the year: Sales (20,000 units) ……………………………. ​ $600,000 Cost of sale
marysya [2.9K]

Answer:

Flexible Contribution Margin <u>147,000</u>

<u>Actual </u>Contribution Margin <u>139,000</u>

<u>Variance 8000 unfavorable</u>

Explanation:

Engine Works Company

Flexible Budget Performance Report

For the year using the Contribution Margin Format

                                      Actual                      Static                Flexible

                                    (21,000 units)       (20,000 units)     (21,000 units)

Sales                       …$651,000                 $600,00             630,000 Fav

V. Cost of goods sold: ​ ​ 512,000              $ 460,000           483,000 Unfav

Direct materials .$231,000 ​                     $200,000             210,000

Direct labor   168,000 ​                              160,000               168,000

Variable overhead  73,500 ​                       60,000               63,000

Variable Operating Expenses 39,500       40,000             42,000

<u>Contribution Margin    $139,000                140,000          147,000  Unfav</u>

Fixed Expenses

Fixed Operating Expenses 12,000 ​ 12000           12000

Fixed overhead 77,500           80,000                  84,000

<u>Income from operations  ​ $ 49,500    $ 48,000            $51,000  Fav</u>

<u></u>

<u>Working</u>

Flexible Calculations = (600,000/20,000)*21,000= $ 630,000

V. Cost of goods sold= ($ 460,000 /20,000)*21,000= 483,000

Direct materials .   =  $200,000 /20,000)*21,000=   210,000

Direct labor =    160,000/20,000)*21,000=    168,000

Variable overhead  =  60,000 /20,000)*21,000=    63,000

Variable Operating Expenses =  40,000 /20,000)*21,000= 42,000

All calculations are carried out in the same way. Dividing the amount in the given budget with the number of units and multiplying it with actual number of units.

Flexible Contribution Margin 147,000 and Actual Contribution Margin 139,000 which shows a Variance  of 8000  which is unfavorable.

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2 years ago
Greg, who is from florida and a geologist for exxonmobil, decided to transfer to an office in saudi arabia. greg is a(n) ____.
Lunna [17]
The best term to the situation where Greg is in is that he is an expatriate. It is a term called to a person who resides or is living outside his country. This explains the situation where Greg is in Saudi Arabia when he originally from Florida. This is also a term that describes to a person who is living abroad.
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2 years ago
Approximately 85% of the customers at hanson's furniture store purchase furniture using store credit. the store's average collec
aev [14]
<span>With a Net 30 payment policy, but an average collection period of 75 days with customers, Hanson's furniture store, should either reduce their store credit option, and encourage approximately 45% of their store credit customers to pay upon receipt, or shorten their operating cycle.</span>
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