Answer:
The statement which is true about price war is A) firms that have to deal with the possibility of price often have sticky prices.
Explanation:
A price war can be defined as a situation where two or more firms compete with each other over the prices of goods and service by reducing their prices to earn profit or gain or maintain market share.
Sticky prices also called as price stickiness , it is a situation where prices of goods and services doesn't change quickly when there are shifts in demand and supply curve.
Statement A is true because firms that are engaged in wars have sticky prices because they don't want to change their prices more often or too low such that they start losing market share or incurring losses.
Answer:
$61
Explanation:
Calculation for What futures price will allow $1,000 to be withdrawn from the margin account
Let x be the futures price
Futures price =1000 units(x-$60 per units) = $1,000 loss
x-$60=$1,000/1000 units
x-$60 = $1
x=$60+$1
x = $61
Therefore the futures price that will allow $1,000 to be withdrawn from the margin account will be $61
Answer:
c $109,000
Explanation:
A person's wealth is calculated by deducting their liabilities from their assets. The value left after the deduction is the person's wealth. In the above case, Jordan's wealth is calculated as;
= Assets [ Two cars + House + Cash balance + Checking account balance ] - Liabilities[ Mortgage - Car loans - Credit card balance ]
= [ $10,000 + $200,000 + $1,000 + $2,000 ] - [$100,000 + $3,000 + $1,000]
= $213,000 - $104,000
= $109,000
Therefore, Jordan's wealth is $109,000
Answer:
Salah
Cash Dividends during Year 2:
= $84,400
Explanation:
a) Data and Calculations:
Dividends Paid:
Year 1 Retained earnings = $587,400
Year 2 Net Income = 191,000
Year 2 Retained earnings = (694,000)
Dividends paid = $84,400
b) Salah paid dividends worth $84,400. These represent the difference between the beginning retained earnings with the year 2's net income and the year 2's retained earnings. It is a reduction of the retained earnings after adding the net income for the year.
<u>Answer</u>:
In markets characterized by oligopoly, B) the oligopolists earn the highest profit when they cooperate and behave like a monopolist.
<u>Explanation</u>:
Oligopoly markets are those markets in which there are two or more businesses that have no direct competition with each other in the marketplace. Only these few businesses dominate the whole market. Businesses or their owners in these types of markets are known as oligopolists. To get high profits in Oligopoly influenced markets, the oligopolists act like monopolists, which means that they cooperate and become the leaders in their specialties to gain more profits in the market collectively.
Therefore, alternative B is correct.