I think the correct answer from the choices listed above is the last option. H<span>e earns a salary from his work, interest on his savings account, and dividends on his stock holdings. Hope this answers the question. Have a nice day.</span>
Answer:
The correct answer is the option C: an agreement among firms to charge the same price or otherwise not to compete.
Explanation:
To begin with, the name of <em>"collusion" </em>refers to an economy concept that focus on the situation where two or more companies decide to work together ilegally by taking a same strategy such as pricing the goods with a same amount so in that order the limit or at least intent to restrict the competion so in that way those firms can keep a piece of the market for themselves. It is consider ilegally in the countries because it is an disadvantage for the competition.
Answer:
If sales fall by 20% AFC raises 38 cents per paper, i.e. a 25% increase in AFC.
Explanation:
To find the average fixed cost (AFC), we have to sum all fixed costs and divide it by the amount of units produced. Fixed costs are those that don't depend on how much is produced, in this case, rental and labor cost don't depend on output, as you can neither move to a cheaper place nor decrease labor obligations even if the factory had no output (newspapers printed).


We can see that as the output reduced, AFC rose 38 cents per paper or a 25% increase in AFC.
Answer:
This is an example of price leadership.
Explanation:
Price leadership is a type of practice where a firm, most likely a dominant one, sets the price and other firms follow it. It is commonly seen in an oligopoly market.
In an oligopoly market, there are a few firms, these firms are interdependent. A price change by one firm affects its rivals.
Price leadership is of different types.
- Barometric
- Collusive
- Dominant
So when a dominant firm changes its price, the followers have to follow it if we they want to retain their market share.
Answer:
Check the explanation
Explanation:
Kindly check the attached image below to see the step by step explanation to the question above.