All categories

2 years ago

In pursing its own interest, an oligopoly firm will decide to increase production by 1 unit as long as

1 answer:

7 0

In pursing its own interest, an oligopoly firm will decide to increase production by 1 unit as long as the output effect is larger than the price effect. An oligopoly happens when there is limited competition because there are only a small number of producers or sellers in the market. Due to limited competition there is no need for most of these businesses to produce more unless the output is going to produce more and become sustainable for their consumers demand.

You might be interested in

If the government increases taxes in response to an inflation, the government is engaging in what economists call?

olchik [2.2K]

Answer:

fiscal policy

Explanation:

Fiscal policy is the policy which is used by the government the tax rate and government spending economy to analyse the economy of the nation

It is a technique through which a national bank impacts a country's cash supply.

The instances of fiscal policy are tax reductions and expanded government spending. Both of these strategies are proposed to build total interest while adding to shortages or drawing down of spending plan surpluses.

4 0

3 years ago

Read 2 more answers

Roberto Corporation was organized on January 1, 2021. The firm was authorized to issue 85,000 shares of $5 par common stock. Dur

Olegator [25]

Answer:

$254,010

Explanation:

Calculation for the total shareholders' equity at the end of 2021

Issue of stock (10,700 × $5.90) $63,130

Issue of stock (20,600 × $8.80) $181,280

Net income $95,000

Less Dividends( $53,000)

Less Treasury stock (3,000 × $10.80) ($32,400)

Total shareholders' equity $254,010

Therefore the total shareholders' equity at the end of 2021 is $254,010

4 0

2 years ago

Marshall owns and operates a construction firm. He uses inexpensive and low-grade building products and accepts inferior carpent

Kitty [74]

Answer:

The correct option is (d)

Explanation:

Ethics is considered above law as law requires just compliance of laws, rules and regulations. Ethics on the other hand establishes a standard of moral conduct. Being mere legal does not mean that something is ethical. Ethical responsibilities are not codified as it is expected from businesses to follow the same.

Here, Marshall, though complied with legal frameworks, he failed to fulfill his ethical obligations by using low-grade products that could harm the general public in future.

3 0

3 years ago

Toby’s current marginal utility from consuming peanuts is 100 utils per ounce and his marginal utility from consuming cashews is

statuscvo [17]

Answer:

a. Toby is not maximizing his utility

b. Toby should reduce his spending on cashew and increase his spending on peanuts.

Explanation:

a. Is Toby maximizing his total utility from the kinds of nuts? If so, explain how you know.

Toby will maximize his utility when we have:

MUp/Pp = MUc/Pc

Where;

MUp/Pp = Marginal utility of peanut divided by price of peanut = 100/10 = 10

MUc/Pc = Marginal utility of cashew divided by price of cash = 200/25 = 8

From the above, Toby is not maximizing his utility. I am able to know this because MUp/Pp > MUc/Pc (i.e. 10 > 8). An Toby will only maximize his utility when MUp/Pp = MUc/Pc.

b. If not, how should he rearrange his spending?

Since MUp/Pp > MUc/Pc (i.e. 10 > 8), Toby should reduce his spending on cashew in order to increase MUc and increase his spending on peanuts reduce MUp until MUp/Pp = MUc/Pc.

3 0

3 years ago

A reasonable business owner should purchase insurance to cover a possible

Vsevolod [243]

Answer:

Explanation:

8 0

3 years ago