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Kisachek [45]
3 years ago
8

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.
If these two companies collude and agree upon the best joint strategy,
a.neither company will advertise.
b.both companies will advertise.
c.PM Inc. will advertise but Brown Inc. will not.
d.Brown Inc. will advertise but PM Inc. will not.
Business
1 answer:
sdas [7]3 years ago
7 0

Answer: (A)

If both companies collude and agree on the best joint strategy, then neither of them will advertise.

Explanation:

If PM Inc. and Brown Inc. agree on a strategy that is best for both of them, then they would decide not to advertise as this line of action will earn them both $50 million, which is higher than they stand to earn if they both advertise.

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A(n) ________ has no barriers to trade among member countries, includes a common external trade policy, and allows factors of pr
EleoNora [17]

Answer:

A common market

Explanation:

A common market has no barriers to trade among member countries, includes a common external trade policy, and allows factors of production to move freely among members.

A monetary union has all the features of a common market and participating countries have a common currency.

I hope my answer helps you.

6 0
3 years ago
A property's return on equity ratio is 28 nd generates a cash flow of $70,000. how much equity does the owner have (to the neare
Lera25 [3.4K]

A property's return on equity ratio is 28% and generates a cash flow of $70,000. The equity the owner have (to the nearest hundred) is $250,000.

In finance, the term equity is used to refer to the ownership of assets which have debts or other liabilities linked to them. It is measured for accounting purposes. This involves subtracting liabilities from the value of the assets.

Assets is a term for the items your company owns which provide future economic benefit. Liabilities are the things that an owner owes to others

In short, assets put cash in your pocket, and liabilities put cash out.

To learn more about equity here

brainly.com/question/13278063

#SPJ4

6 0
1 year ago
Assume a corporation has earnings before depreciation and taxes of $123,000, depreciation of $41,000, and that it has a 35 perce
Maslowich

Answer:

a.                     Computation of cash flow

Earnings before depreciation and taxes    $123,000

Less: Depreciation                                        <u> $41,000 </u>

Earnings before taxes                                   $82,000

Less: Taxes ($82,000*35%)                          <u>$28,700</u>

Earnings after taxes                                       $53,300

Add: Depreciation                                          <u>$41,000</u>

Cash Flow                                                      <u>$94,300</u>

b.  If Depreciation = 21,000  

                     Computation of cash flow

Earnings before depreciation and taxes  $123,000

Less: Depreciation                                          <u>$21,000 </u>

Earnings before taxes                                    $102,000

Less: Taxes($102,000*35%)                           <u>$35,700 </u>

Earnings after taxes                                        $66,300

Add: Depreciation                                           <u>$21,000</u>

Cash Flow                                                        <u>$87,300</u>

3 0
3 years ago
Identify and describe 5 key pitfalls that a company faces when attempting to go global?
Elina [12.6K]
The Most Common Mistakes Companies Make with Global Marketing
Not specifying countries. ...
Not paying enough attention to internal data. ...
Not adapting their sales and marketing channels. ...
Not adapting the product offering. ...
Not letting local teams lead the way. ...
Not thinking through the global logistics.
7 0
3 years ago
Cullumber Corporation had 312,000 shares of common stock outstanding on January 1, 2017. On May 1, Cullumber issued 29,700 share
ruslelena [56]

Answer:

a. Issued for Cash = ($312,000 * 12/12) + ($29,700 * 8/12)

= $312,000 + $19,800

= $331,800

b. Issued in a stock dividend: Shares issued in the stock dividend are assumed outstanding from the beginning of  the year

= ($312,000 * 12/12) + ($29,700 * 12/12)

= $312,000 + $29,700

= $341,700

7 0
3 years ago
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