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netineya [11]
3 years ago
9

Consider two cigarette companies, PM Inc. and Brown Inc. If neither company advertises, the two companies split the market and e

arn $50 million each. If they both advertise, they again split the market, but profits are lower by $10 million since each company must bear the cost of advertising. Yet if one company advertises while the other does not, the one that advertises attracts customers from the other. In this case, the company that advertises earns $60 million while the company that does not advertise earns only $30 million. Refer to Scenario 17-4. What will these two companies do if they behave as individual profit maximizers
Business
1 answer:
Tanya [424]3 years ago
7 0

Answer:

Explanation:

If these two companies were to behave as individual profit maximizers, both company will  advertise regardless of whether the other company advertises or not because their goal primary goal is to increase the profit and domination of the market.

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Modern corporation operates a steel mill. it has never contributed anything to the local community, and it knowingly pollutes bo
svetlana [45]

I guess the correct answer is the narrow view, or invisible hand theory .

The narrow view, or invisible hand theory, holds that producing profit is more important than being socially responsible.

5 0
3 years ago
14-2B (Issuance and Retirement of Bonds) StarCenter Co. Is building a new music arena at a cost of $5,600,000. It received a dow
mezya [45]

Answer:

there are no requirements, but I assume that they ask about issuance costs and their amortization:

market price of the bonds:

PV of face value = $5,000,000 / (1 + 10%)²⁰ = $743,218

PV of coupon payments = $400,000 x 8.5136 (PV annuity factor, 10%, 20 periods) = $3,405,440

market price = $4,148,658

Journal entry to record issuance and bond issue costs

January 1, 2013

Dr Cash 4,088,658

Dr Discount on bonds payable 851,342

Dr Bond issue costs 60,000

    Cr Bonds payable 5,000,000

amortization of bond discount and issue costs = ($4,088,658 x 10%) - $400,000 = $8,865.80 ≈ $8,866

allocation to bond issue costs = ($60,000 / $911,342) x $8,866 = $583.71  ≈ $584

allocation to bond discount = $8,866 - $584 = $8,282

Journal entry to record first coupon payment

January 1, 2014

Dr Interest expense 408,866

    Cr Cash 400,000

    Cr Discount on bonds payable 8,282

    Cr Bond issue costs 584

4 0
3 years ago
Someone who does not have an aptitude or ability in a career area is at disadvantage if they select a career in that
REY [17]

Someone who does not have an aptitude or ability in a career area is at a disadvantage if they select a career in that field. ... When working on developing an ability, it is important to get feedback to know how you are doing. True. Jobs that require you to use your aptitudes are typically unrewarding

8 0
3 years ago
Read 2 more answers
Describe how effective employee relations techniques prevent the need for unionization.
timofeeve [1]

Employees join unions because of their discontent with how management regales employees and a belief that the union can create conditions in the workplace better.

<h3>What is unionization?</h3>

Joining together in unions allows workers to negotiate for higher wages and advantages and enhance conditions in the workplace. There exist millions of union members in America from all walks of life.

Employees join unions because of their discontent with how management regales employees and a belief that the union can create conditions in the workplace better. While pay and advantages exist often hot topics in union organizing tactics, employees are most affected to join a union when the company is scented to be unfair, unresponsive, or presenting substandard working conditions to employees.

Employers that minimize employee dissatisfaction can also minimize employees’ passion for union representation. Strategies that help discourage union approval are:

  • Fair and consistent procedures and practices.
  • Open door management procedures.
  • Competitive compensation and benefits.
  • Employee confidence and recognition.

A workplace that fosters sound relationships between management and employees and addresses employee relations exists much less likely to force employees to union miniature for assistance.

To learn more about unionization refer to:

brainly.com/question/12222284

#SPJ4

8 0
1 year ago
If you put $2,620 in a savings account and make no further deposits, what type of calculation would provide you with the value o
riadik2000 [5.3K]

Answer:

future value of a lump sum:

Nominal(1+r)^n = FV\\2,620(1+r)^{28} = FV

Explanation:

when there is only a single deposits the formula will be the compounding interest future value of a lump sum

The deposits will generate incoem at a given rate r which, will make it increase their value over the course of time.

3 0
3 years ago
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