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Amanda [17]
3 years ago
8

La Tortilla is the only producer of tortillas in Santa Teresa. The firm produces 10,000 tortillas each day and has the capacity

to increase production to 100,000 tortillas each day. La Tortilla has made a large profit for years, but no other firm has chosen to compete in the Santa Teresa tortilla market. La Tortilla has been able to deter entry because if other firms were to enter the market it would greatly step-up production and reduce price.
A) La Tortilla's behavior is inconsistent with economic theory.
B) La Tortilla has been successful because of its credible threat.
C) La Tortilla behaves like a Stackelberg firm.
D) La Tortilla must have other barriers to entry to protect its monopoly power.
Business
1 answer:
Westkost [7]3 years ago
4 0

Answer: B

Explanation:

I THINK DONT BE MAD IF ITS NOT

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Behavioral economistsLOADING... attribute some consumer behavior to the endowment effect. Which of the following is an example o
mestny [16]

Answer:  Option C

Explanation: As per the subject matter of behavioral economics, endowment effect refers top the phenomenon under which it is assumed that a rational individual will retain a commodity he or she already owns rather than acquiring the same commodity if he do not own it.

Hence from the above we can conclude that correct option is C as it states that one will not sell a painting even though at a price that the holder would pay to purchase it himself.  

   

6 0
3 years ago
Wilma leads a task force charged with restructuring the order-processing system in the organization. The task force is composed
OLga [1]

Answer:

B. task-oriented leadership style .

Explanation:

Task-oriented leadership style -

It refers to the type of leader, who only target on the goal or project .

This type of leader is referred to as the task - oriented leadership style .

As from the very term, the person is only inclined towards his or her task

There type of leaders assign the tasks very clearly and making sure all the works are done on time with proper efficiency and accuracy .

These leader are very consult about the deadline and hence define all the task to get over before the deadline .

There type of leaders are very well organised and clear about the task .

Hence, from the given scenario of the question,

The correct answer is B. task-oriented leadership style.

6 0
3 years ago
Elemental Pharma Inc. recently acquired Crick Pharmaceuticals Inc. It now sells its own productsalong with the products original
UNO [17]

Answer:

Option A. It will lower its costs through economies of scale.

Explanation:

The reason is that the sales of both of the companies will increase and cost can be controlled by integration of departments like finance department, distribution department, etc. This will decrease the cost of the product which will be because of higher sales and cost benefits due to integration of department and this higher sales increases the production which reduces the cost. So the option A is correct.

4 0
3 years ago
The Sealing Company has 1,500 bonds outstanding that are selling for $1,060 each. The company also has 5,000 shares of preferred
iris [78.8K]

The weight of the common stock as it relates to the firm's weighted average cost of capital is <u>35%</u>.

<h3>What is the weighted average cost of capital?</h3>

The weighted average cost of capital computes a firm's cost of capital based on the firm's average cost of capital from all sources: common stock, preferred stock, bonds, and other forms of debt.

The weight of the common stock can be determined by dividing the common stock market value by the total capitalization from all sources.

<h3>Data and Calculations:</h3>

Outstanding:

Bonds payable = $1,590,000 (1,500 x $1,060)

Preferred stock = $160,000 (5,000 x $32)

Common stock = $936,000 (36,000 x $26)

Total debts and equity = $2,686,000

Weight of common stock = 35% ($936,000/$2,686,000 x 100)

Thus, the weight of the common stock as it relates to the firm's weighted average cost of capital is <u>35%</u>.

Learn more about the weighted average cost of capital at brainly.com/question/14703616

4 0
2 years ago
Oriole Company issues $200,000, 20-year, 9% bonds at 104. Prepare the journal entry to record the sale of these bonds on June 1,
user100 [1]

Answer:

Dr Cash $208,000

Cr Bonds payable $200,000

Cr Premium on bonds payable $8,000

Explanation:

Preparation of the journal entry to record the sale of these bonds on June 1,

Based on the information given we were told that the company issues the amount of $200,000 at 104 which means the that the journal entry to record the sale of these bonds on June 1 will be:

Dr Cash $208,000

(2,000 × $104)

Cr Bonds payable $200,000

(2,000 × $100)

Cr Premium on bonds payable $8,000

(2,000 ×$4)

Note:-

$200,000/100 =$2,000

3 0
3 years ago
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