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Anastasy [175]
2 years ago
11

Kit-N-Sit, Inc. and Kittysitters, Inc. are two cat-sitting services in Kent, Ohio. There are no other cat-sitting services so th

e market is considered to be a duopoly. According to the kinked demand curve theory, if Kit-N-Sit, Inc. increases prices, Kittysitters, Inc. will:______
a. respond aggressively by increasing prices drastically.
b. respond aggressively by cutting prices.
c. respond aggressively by increasing prices moderately.
d. sue Kit-N-Sit for monetary damages in court.
e. do nothing and leave prices unchanged.
Business
1 answer:
Cerrena [4.2K]2 years ago
6 0

Answer:

The correct answer ise. do nothing and leave prices unchanged.

Explanation:

It has been observed that many oligopolistic industries exhibit an appreciable degree of price rigidity or stability. In other words, in many oligopolistic industries prices remain sticky or inflexible, that is, there is no tendency for oligopolists to change the price even if economic conditions undergo a change.

There have been many explanations of this price rigidity in the oligopoly and the most popular explanation is the so-called crooked demand curve hypothesis. The crooked demand curve hypothesis was presented independently by Paul M. Sweezy, an American economist, and by Hall and Hitch, Oxford economists.

It is to explain the price and production under oligopoly with product differentiation, that economists often use the hypothesis of the crooked demand curve. This is because when products under oligopoly differ, it is unlikely that when a company increases its price, all customers abandon it because some customers are intimately linked to it due to product differentiation.

As a result, the demand curve facing a company under differentiated oligopoly is not perfectly elastic. On the other hand, under the oligopoly without product differentiation, when a company increases its price, all its customers leave it, so that the demand curve faced by an oligopolist that produces a homogeneous product can be perfectly elastic.

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Cash Flows. Quick Computing currently sells 10 million computer chips each year at a price of $20 per chip. It is about to intro
Tema [17]

Answer:

Since net revenue has increased from $140 million to $246 million = $106 million by considering all costs thus all the costs and revenue shall be considered.

Explanation:

For calculating the present value, all the cost and revenue will be considered.

Original revenue = Sale of 10 million chips

10 million \times $20 = $200 million

Less: Cost = 10 million \times $6 = $60 million

Net Revenue = $140 million

In case of introducing new chips

Revenue will be as follows

12 million \times $25 + 3 million \times $20

= $300 million + $60 million = $360 million

Less: Costs 12 million \times $8 + 3 million \times $6

= $96 million + $18 million = $114 million

Net Revenue = $360 - 114 = $246 million

Since net revenue has increased from $140 million to $246 million = $106 million by considering all costs thus all the costs and revenue shall be considered.

3 0
2 years ago
1. The highest risk for the exporter is in a. Letter of credit c. Advance payment b. Bill of exchange d. Consignment sales ​
Sergeu [11.5K]

Answer:

1. The highest risk for the exporter is in

d. Consignment sales.

Explanation:

a) A consignment sale is not an actual sale.  The risk remains with the exporter until the consignee has sold the goods and remitted the required amount to the consignor (exporter).  With a letter of credit, the exporter has made an actual sale guaranteed for payment by the importer's bank.  With advance payment, the exporter has received some payment for the goods before the importer receives them.  With a bill of exchange, there is a formal instrument acknowledging the sale.  Therefore, a bill of exchange, letter of credit, and advance payment are used for actual sales, while consignment sale is for transfers of goods for sale.

5 0
2 years ago
What journal should a company uses to capture cash transactions?
SOVA2 [1]
I think it is (<span>The </span>Cash<span> Payments </span><span>Journal)</span>
8 0
3 years ago
Your textbook notes a new form of policy experiment that would provide everyone with a guaranteed income called.
alina1380 [7]

Your textbook notes a new form of policy experiment that would provide everyone with a guaranteed income called "Universal Basic Income."

<h3>What is Universal Basic Income?</h3>

A proposed government guarantee of a monthly payment to every citizen is known as universal basic income. Its goal is to guarantee that everyone has the resources to buy needs and raise their standard of living.

Some key features of universal basic income are-

  • The fundamental concept under an universal basic income is to allocate tax revenue to fund programs that pay everyone who lives under that government's control.
  • To fund this scheme, a state or the federal government could divert a set amount of tax revenue, which would then be distributed to the locals.
  • For instance, the payment system linked to a nation's economic output is suggested by economist Kalle Moene & Debraj Ray.
  • According to their estimates, between 10 and 12 percent of the gross domestic product may be allocated to universal income transfers.
  • Payments would fluctuate according on the level of income and inflation in the nation under this arrangement.

To know more about Universal Basic Income, here

brainly.com/question/11986772

#SPJ4

5 0
1 year ago
What are the most common legal entities used for operating a business? How are these entities treated similarly and differently
konstantin123 [22]

Answer:

The correct answer is:

Corporations, limited liability companies (LLCs), general and limited partnerships, and sole proprietorships.  

These entities differ in terms of the formalities that must be observed to create them, the legal rights and responsibilities conferred on them and their owners, and the tax rules that determine how they and their owners will be taxed.

Explanation:

There are several important reasons, when opening a business in the US, to run the business under a limited liability company, corporation or other form of legal entity that has a separate legal existence to the business owner. The main reason for operating the business under a limited liability company or corporation is that it protects the personal assets of the business owner from the liabilities arising from the operation of the business.

One of the first decisions you will have to make as a business owner is the way the company should be structured. There is no single legal structure that is considered the best for all small businesses. The decision to start as a sole proprietor or the choice of one of the most complex organizational structures, such as a partnership, corporation or Limited Liability Company (LLC) depends on several

factors, including those listed below.

When choosing a type of entity, you should consider the following:

  • Your vision about the size and nature of your company
  • Number of co-owners of the company
  • Relationship between owners and management
  • Degree in which you will look for external investors
  • Level of "structure" and formality for which you are prepared as a manager
  • Expenses, in time and money, for the creation and maintenance of the entity
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  • Vulnerability of the company to face demands and other obligations
  • Tax implications of the different ownership structures
  • Expected profits (or losses) of the company
  • Whether or not you will have to reinvest profits in the business
  • The need to access cash from the company for its use
  • personal

6 0
3 years ago
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