Answer:
competitors will follow a price cut but ignore a price increase.
Explanation:
The Kinked demand curve model of oligoplolist is based on the assumption that competitors will follow price cut but ignore a price increase because of interdependence among firms price is rigid in oligopoly market. When a firm raises the price of its products none of its competitors will follow the same whereas in case firm reduces its price its competitors will follow the same.
Thus, it is prudent behaviour on the part of a firm not to change in the prices of its products frequently. It is because this reaction of rival firms, the demand curve face by an oligopoly firm has a kink. The kink is formed at prevailing price level.
The portion of demand curve above the kink is more elastic implying, when oligopolist increase the price of its product none of its competitors will follow it with expectation to capture the market demand created due rise in prices by first firm.
The lower portion of the kink is relatively inelastic showing that in case an oligopolist reduces its price its rival firms will also reduce their prices with a view to not to lose their market demand. Thus, it will not beneficial for the oligopolist in either of the situations. Therefore, it will stick to the prevailing price.
Answer:
"$10,000" is the appropriate solution.
Explanation:
According to the question, the values are:
Future cash flows,
= $2,10,000
Amortization Cost,
= $2,20,000
Now,
The loss amount will be:
= 
On substituting the given values, we get
= 
= 
Answer:
d. Both A&B
Explanation: Auction is a term used in the field of marketing or trading of goods where bidders are allowed to make bids(amount which they intend to pay for a given product) the Product can either be an Artwork or other goods like furniture,Cars, clothes etc.
A common value auction is a type of auction where certain information about the value of a product are available to some bidders and other sets of bidders have other information about the value.
DISPLAYING INFORMATION ABOUT A COMMON VALUE AUCTION IS GOOD FOR THE BIDDERS AS IT REDUCES THE RISK THEY FACE ESPECIALLY BEFORE BUYING THE PRODUCT AND FOR THE AUCTIONEER AS IT HELPS TO ATTRACT MORE BIDDERS.
Answer:
The ending balance of retained earnings account is $43,400.
Explanation:
Simply put, retained earnings are an amount of net income left after payment of dividends to shareholders. This amount accumulates over time period as the company retains profit for its operations. Usually, it is arrived at using the formula below:
Retained earnings = Opening balance + Net income (or loss) - Cash dividends - Stock dividends
At the instance of the question, retained earnings = $34,000 + $27,400 ($105,200 - $77,800) - $18,000 = $43,400.
Answer:
$64,474.20
Explanation:
As for the information provided,
discount rate = 7.25%
First payment will be made at the end of year 1
Discounting factor = 
Thus, current value of payment = 
= $26,107.20
Discounting factor for receipts =
Year 1 = = $28,000 
0.9324 = 26,107.20
Year 2 = 
Year 3 = 
Therefore, value of contract today = - $26,107.20 + $26,107.20 + $30,429.0 + $34,045.20 = $64,474.20
