1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Agata [3.3K]
3 years ago
6

Quick Buck and Pushy Sales have agreed to each produce half the profit-maximizing monopolist quantity, set the monopoly price an

d split the profits evenly. Find the economic profit for both firms if they cooperate and charge the same price. Please enter your answers as numerical entries (ie. 1000 or $1000 not "One thousand dollars") Profit for Quick Buck Profit for Pushy Sales Suppose Quick Buck can cheat on Pushy Sales and reduce it's price to $1.00 each while Pushy Sales continues to comply with the collusive agreement and charge $1.50. Find the economic profit for both firms if Quick Buck breaks the agreement and charges a lower price. Profit for Quick Buck Profit for Pushy Sales
Business
1 answer:
Stells [14]3 years ago
6 0

Answer:

see explaination

Explanation:

Since marginal cost is zero in this case. Cartel will select the output such that MR=0

We observe that MR=0 at Q=2000 units

Corresponding price for a output of 2000 units is $1.50

So,

Output of each firm=q=Q/2=2000/2=10000

Profit of each firm=P*q-total cost=1.5*1000-0=$1500

So,

Profit for Quick Buch=$1500

Profit for Pushy Sales=$1500

Since Quick buck reduces the price to $1, it will capture the whole quantity demanded

Total quantity demanded at price of $1=3000

Profit for quick buck=P*Q-Total Cost=1*3000-0=$3000

Profit for Pushy Sales=P*Q-Total Cost=1.5*0-0=$0

You might be interested in
angston Labs has an overall (composite) WACC of 10%, which reflects the cost of capital for its average asset. Its assets vary w
masya89 [10]

Answer:

The correct answer is project A, B and D.

Explanation:

According to the given scenario, the given data are as follows:

Low risk WACC project = 8%

Average risk WACC project = 10%

High risk WACC project = 12%

As the company always prefer the projects that exceeds the WACC projects.

So,

  • Project A has 15% which exceeds the high risk WACC project.
  • Project B has 12% which exceeds the average risk WACC project
  • Project C has 11% which does not exceeds the high risk WACC project, hence it is not the correct answer.
  • Project D has 9% which exceeds the low risk WACC project.
4 0
3 years ago
Which loan type requires you to make loan payments while you’re attending school?
suter [353]
A Student Loan is the answer.
4 0
3 years ago
The advantages of using an acquisition strategy to pursue opportunities in foreign markets include:
Savatey [412]

Answer:

The correct answer is letter "A": having a high level of control and speed as an entry strategy to overcome trade barriers.

Explanation:

An acquisition is, in general terms, the purchase of a corporation or a division of a firm. Some acquisitions are paid out in cash, while others are paid out with a combination of cash and company shares. Some are even financed by debt, which is called a leveraged buyout.  

<em>Acquisitions are often carried out by another company in a similar line of business, which uses the acquired business to improve its own operations, have complete control in the business operations, tear down entry barriers if the target company is aborad, and fasten operational processes.</em>

7 0
3 years ago
Monopolistically competitive firms are unlikely to _______
Natalka [10]

Monopolistically competitive firms are unlikely to:

A. produce where price equals average total cost.

B. charge a higher price than firms in perfect competition.

C. produce a smaller quantity than firms in perfect competition.

<u>D. operate where price equals marginal cost.</u>

E. exit the industry when demand falls below long-run average costs.

The Correct answer is <u><em>OPTION D</em></u><em>.</em>

<em />

When several firms provide similar but not identical replacement goods or services, we have<em> </em>monopolistic competition.

An industry with low barriers to entry and little impact from any one company's actions is said to be monopolistically competitive. Companies separate themselves from one another in the market by using price and advertising strategies.

It is called monopolistic competition when multiple businesses sell nearly identical goods. In monopolistic competition, businesses use price and marketing tactics to set themselves apart from rivals. In monopolistic competition, there are few barriers to entry in the form of high start-up costs or other difficulties to new entrants.

To know more about monopolistically competitive firm refer to:

brainly.com/question/17241373

#SPJ4

8 0
1 year ago
The portion of bonds or notes payable that is due within one year is reported as a(n)
Murrr4er [49]

Answer:

c.current liability on the balance sheet

Explanation:

Current liabilities are the debts that a business owes to outsiders and are due for payments within the current financial year. They are obligations that need to be settled using current assets. A business must keep a close watch of current liabilities and current assets to ensure it can pay its obligations as they become due.

Examples of current liabilities include accounts payable, declared dividends payable, loan interest payble, salaries, and portions of long term debts that are due for payment in the current financial year. Current liabilities are recorded top on the liabilities side of a balance sheet.

3 0
3 years ago
Other questions:
  • Which three factors make starting a business a highly risky investment?
    12·1 answer
  • A portfolio is composed of two stocks, A and B. Stock A has a standard deviation of return of 17%, while stock B has a standard
    6·1 answer
  • Early in your first term as President of the United States you faced an economy in the beginnings of a recession. Which of the f
    7·1 answer
  • Which best explains how the invention of money affected the barter system?
    5·2 answers
  • Our company manufactures and sells electric staplers for $16 each. If 10,000 units were sold in December, and management forecas
    11·1 answer
  • Workman Software has 8.8 percent coupon bonds on the market with 19 years to maturity. The bonds make semiannual payments and cu
    5·1 answer
  • Payday loans could be considered
    9·1 answer
  • When the federal reserve decreases the federal funds target rate, it means that
    6·1 answer
  • g Corporation's cost formula for its bungalow operating cost is $2,960 per month plus $326 per day. For the month of December, t
    14·1 answer
  • Discuss Two social factors that may contribute to unemployment in South Africa amongst the youth?​
    7·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!