Answer: 1. A.Both firms will choose the low price.
2. B. Both firms would choose the high price.
Explanation:
1. If the firms cannot cooperate with each other and must choose simultaneously, both firms will choose the low price.
This is because at the low price both of them are at the highest profit they can make when they are not cooperating. For instance, if Firm B chooses Low Price and Firm A chooses High Price, Firm A will make $3 million while Firm be will make $8 million.
If Firm B decides to have a high price then firm A will take the low price and make $8 million in profit while Firm B makes $4 million. If they are not working together, they will both have to take the low price to make the most profit.
2. If the firms could cooperate with each other, both firms would choose the high price.
The is because they will be making more than competing and getting a lower profit. Should they cooperate they will each get $7 million in profit because they will pick the option they can both make the highest profit at. The is better than competing and making only $5 and $6 million respectively.
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Answer:
Trade credit
Explanation:
Trade credit occurs between traders where a trader allows another to purchase goods without paying for them immediately.
It is the cheapest form of short term financing.
This is a form of business to business agreement where payment is set at a later date of 30 days, 90 days or 60 days.
The transaction is recorded by using invoice.
Usually it is a zero percent short term finance. The amount of the good at time of purchase is what is paid at the sure date.
There is no extra payment made by the buyer as interest on the amount agreed.
Answer: Activities and opinions
Explanation:
The activities and the inventory opinions is basically providing the various types of data or information that helps in explain about the sales operation, facilities related to the production and also the product categorization.
The inventory of the activities and the opinions plays an important role in the management of an organization as it helps in providing the sufficient knowledge related to the production of the products in the market.
According to the given question, the inventories of the activity is providing the vast information in concern with the product categories and the specific brand.
Therefore, Activities and opinions is the correct answer.
Answer:
d. Market research
Explanation:
Market research -
It is one of the important step for the organisation ,
In this process , the information and data is collected , analysed and interpreted with respect to the customers reviews or feedback .
This step helps to enhance the production , sale and marketing of the goods and services the company produces , which in turn increases the profit earned by the company .
Hence , from the given information of the question ,
The correct option is d. Market research .
Answer:
D.Gain, $5,000.
Explanation:
Truck Value = $48,000
Annual depreciation = ( $48,000 - $8,000) / 8 = $40,000 / 8= $5,000
First year (2013) = $40,000 - $5,000 = $35,000
Second year (2014) = $35,000 - $5,000 = $30,000
Third year (2015)= $30,000 - $5,000 = $25,000
Gain = Sale Value - Truck Value (actual) = $30,000 - $25,000 = $5,000