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____ [38]
3 years ago
14

When firms are faced with making strategic choices to maximize profit, economists typically use a. the theory of monopoly to mod

el their behavior. b. the theory of aggressive competition to model their behavior. c. game theory to model their behavior. d. cartel theory to model their behavior
Business
1 answer:
stepladder [879]3 years ago
6 0

Answer:

The correct answer is option c.

Explanation:

Game theory is a tool in economics. It helps to understand the situation in cases where rational players interact and act in a strategic manner. For instance in an oligopoly market where there are few firms, which are interdependent.

These firms or producers are rational players who have to decide output and price level in order to maximize their economic profits.

The theory of monopoly can be applied only in case of monopoly market. The cartel theory is applicable if firms have formed a cartel. Aggressive competition model is not always necessary.

So, the correct answer here will be option c.

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Determine proper classification (LO11-1) Analysis of an income statement, balance sheet, and additional information from the acc
alexandr402 [8]

Answer:

Patent-investing activity

depreciation expense-operating activity

issuance of note payable-financing activity

Increase in inventory-operating activity

Explanation:

The purchase of patent as intangible asset is reported as an investing activity item as an outflow of cash from the business.

Depreciation expense is meant to added to net income  in arriving at the net cash flows from operating activities

Issuance of a note payable is a financing item under the financing activities' segment of the cash flow as an inflow.

Increase in inventory is increase in net working capital which is deducted as an operating activity item .

7 0
3 years ago
Read 2 more answers
Your firm has net income of $371 on total sales of $1,460. Costs are $800 and depreciation is $130. The tax rate is 30 percent.
cupoosta [38]

Answer:

Operating cash flow  = $501

Explanation:

Given:

Total sales = $1,460

Total cost = $800

Depreciation = $130

Tax rate = 30% = 0.30

Find:

Operating cash flow

Computation:

Earning Before Interest and Tax = $1,460 - $800 - $130

Earning Before Interest and Tax = $530

Tax = Tax rate x $530

Tax = 0.30 x $530

Tax =$159  

Operating cash flow = $530 + $130 - $159

Operating cash flow  = $501

4 0
3 years ago
Penelope, a sales representative for ADT Security Services, is meeting with Oliver and Gina Kim to discuss installing a security
romanna [79]

Answer:

Personal Selling

Explanation:

The marketing tool illustrated in the question is personal selling. Personal selling is a marketing strategy that involves a sales rep meeting with a potential client for business purpose.

It makes use of 7 approaches as listed: Prospecting ,pre-approach, approach,presentation , meeting and overcoming objection , closing the sale and follow up,

In the question , we can see that Penelope fulfilled some of the approaches in the course of her meeting with the Kims.

7 0
3 years ago
Who falls into the category of external stakeholders of an organization?
Alex Ar [27]
<span>These are group of individual who may not work in the organization but are very much influenced by the activities of organization. There are the people outside of the company who can have a major impact on it. Examples of stakeholders are government agencies, administrator, customers, suppliers and competitors too.</span>
3 0
3 years ago
Red, Inc., Yellow Corp., and Blue Company each will pay a dividend of $3.65 next year. The growth rate in dividends for all thre
Natali5045456 [20]

The value of each company's shares of stock

Red: $91.25

Yellow:$52.14

Blue: $36.50

Step 1

The constant dividend growth model, which is written as

Pt = Dt (1 + g)/(R - g)

<h3>Step2</h3>

Therefore, the current stock price for each company is:

Price of the red stock is $3.65/(0.08 -0.04) = $91.25.

Price of the yellow stock is $3.65/(0.11 -0.04) = $52.14.

Price of the blue stock is $3.65/(0.14 -0.04) = 36.50.

The stock price falls as the needed return rises. A greater discount rate reduces the present value of cash flows, which is a function of the time value of money. The stock price can be significantly affected by even slight changes in the needed return, which is another crucial point to remember.

learn more about stock price here <u>brainly.com/question/24196193</u>

#SPJ4

3 0
2 years ago
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