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Elanso [62]
3 years ago
13

Suppose that Boeing and Rolls-Royce Holdings are the sole producers of a particular jet engine. The two firms currently charge t

he same price for their products. If neither firm reduces the price of its engine, each firm earns $36 million in profit. If both firms reduce their prices, then each firm will earn $10 million in profit. If one firm reduces its price and the other does not, then the firm that reduces its price will earn a profit of $50 million while the other firm will earn a profit of $5 million. If the firms can operate as a cartel, then
Business
1 answer:
Reil [10]3 years ago
3 0

Answer:

each firm reduces its price.

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It is important negotiators consider the shadow negotiation carefully before meeting with the other party so they:________
UkoKoshka [18]

Answer:

b. are clear in their own minds about the scope of the negotiations.

Explanation:

Shadow negotiations refer to the unspoken assumptions that determine how those involved in a deal with each other, whose opinions get heard, whose interests hold sway. Therefore, this is important so the negotiators are clear in their own minds about the scope of the negotiations. Meaning that they go into the negotiation knowing who has more bargaining power and how far they can actually take the negotiation.

7 0
3 years ago
In 2019, Felicity's business use of her vehicle fell to less than 50%. Regular MACRS depreciation had been used in prior years.
Flauer [41]

Answer:

(d) Straight-line method (SL), the same convention as used in the first year of depreciation, ADS recovery period

Explanation:

The straight line method is the best to use, the convention to be used is the same as what was used in the first year of depreciation and the recovery period in 2019 is the ADS recovery period.

To decrease annual deduction, it is standardized that ADL is used with straight line method with 31 plus years for a recovery period that is longer.

5 0
2 years ago
Under the sales comparison approach to valuation, a subject property has 3 bedrooms, two bathrooms and is on a golf course. The
kondaur [170]

Answer:

The subject property should be valued at $760,000

Explanation:

Sales comparison approach to valuation in real estate values properties by comparing their similar characteristics, and the features are priced. The total value of a property is thus the addition of all features.

In the instance given, both properties have 3 bedrooms and 2 bathrooms and so using comparison theses features are equally priced at $690,000.

So the property with the golf course will have $690,000 added to the value of the golf course ($70,000).

That is $760,000.

8 0
3 years ago
In the equation Y = C + I + G + NX, Question 4 options: Y represents the economy’s total expenditure. C represents household exp
Zolol [24]

Answer:

Y represents the economy’s total expenditure

Explanation:

The equation Y = C + I + G + NX represents the expenditure approach to calculating GDP.

Y - economy’s total expenditure

C - household expenditures on services and goods

I - investment by firms

G - Government Spending

NX - Net Export

The variables can either be positive or negative .

I hope my answer helps you

7 0
3 years ago
The following information is taken from the operating section of the statement of cash flows (direct method) of Battery Builders
ollegr [7]

Answer:

See below

Explanation:

1. Complete accrual basis income statement

Sales

($28,000 + $3,000)

$31,000

Less cost of goods sold

($13,000 + $2,000 - $3,000)

-$12,000

Operating expenses

($9,000 - $2,000)

-$7,000

Depreciation expenses

-$4,000

Income tax

($4,000 + $1,000)

-$5,000

Amortization expense

-$1,000

Gain on sale of equipment

$2,000

Net income

$4,000

2. Cash flow statement (Indirect)

Net income

$4,000

Adjustments;

Add depreciation

$4,000

Add write off intangibles

$1,000

Less gain on sale of equipment

-$2,000

Less increase in accounts receivables

-$3,000

Less increase in inventory

-$3,000

Add increase in accounts payable

$2,000

Less decrease in accrued payable

-$2,000

Add increase in deferred income tax payable

$1,000

Net cash from operations $2,000

7 0
3 years ago
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