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andrezito [222]
2 years ago
15

Suppose you are a manager of a firm that operates in a duopoly. Recently, the state attorney general fined you and your competit

or for price fixing. In your market, firms only set prices, not total quantities to sell. From previous experience, you know your competitor has a marginal cost of $ 7.80 . Further, your marginal costs are $ 7.78 . The previous cartel price was $10.00, when you and your competitor were price fixing. What price level do you now choose to maximize profits
Business
1 answer:
OLEGan [10]2 years ago
7 0

Answer:

$7.79

Explanation:

The price level that should be choose in order to maximize the profit is $7.79

As when there is a price fixing that lies between the two rivalrs so if one rivalr select to fix the price it should not be more than the rivalr marginal cost i.e. price and it is more than the price .

here the price fixing is $10 so the price level would be less than the rivalr price and more than the marginal cost

Therefore it is $7.79

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When the government imposes price floors or price​ ceilings, A. some people​ win, some people​ lose, and there is a loss of econ
xxTIMURxx [149]

Answer:

The answer is: A) some people​ win, some people​ lose, and there is a loss of economic efficiency.

Explanation:

When the government imposes a price ceiling, some consumers win since they buy cheaper products (lower than equilibrium price) but suppliers lose. Inf the government decides a price floor is better, then customers will lose and some suppliers will win (prices are higher than equilibrium price).

Both price ceilings and price floors cause deadweight loss, decreasing economic efficiency.

5 0
3 years ago
Welfare economics is the study of a. taxes and subsidies. b. how technology is best put to use in the production of goods and se
const2013 [10]

Answer:

The answer is b) how technology is best used in the production of goods and services

Explanation:

The concept of welfare economics is used in the context of the Economy and public finances. It is defined as the branch of the economy that tries to determine the conditions that are needed to reach the maximum of social welfare. For this, the conditions are established to maximize production with a given amount of resources and optimization of the distribution of goods and services, analyzing the policies pursued in the achievement of goals that are considered desirable from the point of view of well-being.

7 0
3 years ago
Spielberg Inc. signed a $170,000 noninterest-bearing note due in five years from a production company eager to do business. Comp
GaryK [48]

Answer:

$100,890

Explanation:

To determine the value of the debt we must calculate the present value of the note:

present value = future value of the note / (1 + interest rate)⁵

present value = $170,000 / (1 + 11%)⁵ = $170,000 / 1.11⁵ = $170,000 / 1.685

present value = $100,890

7 0
3 years ago
DonCo, Inc. sold merchandise on January 14, and accepted a 90-day, 5% promissory note in the amount of $5,000. On January 14, th
svetoff [14.1K]

Answer:

The required entries on 14 January is as follows:

Dr Notes receivable    $5,000

Cr Sales                                     $5,000

Explanation:

No doubt by selling the merchandise a sale transaction has been discharged since the ownership of the goods has changed hands between the seller and the buyer,hence the seller can record a sale by crediting sales account.

However, since the cash has not been received nor is the transaction a mere credit sale where accounts receivable would been debited,neither the cash nor accounts receivable can be debited.

The debit goes to the notes receivable account, without considering the interest as the interest is considered later on when payment becomes due.

4 0
4 years ago
Read 2 more answers
At a local business school, there is a toasted submarine sandwich process that uses a conveyor-fed oven. ( See picture below) Al
dem82 [27]

Answer:

b. 20 sandwiches

c. 25 sandwiches

Explanation:

1. I added this diagram of the flow chart as an attachment

2.

Hourly capacity of sandwich making process:

Time it makes to 1 sandwich: 2 + 12 + 1 = 15

The time alice spends when making one sandwich = 2 + 1 = 3

oven uses 12 minutes to process one sandwich, so in 12 minutes, alice can can make 12/3 sandwiches = 4

The Oven can take 5 subs at a time,

So in one hour, the making process

= 60/3 = 20 sandwiches

3.

To calculate Hourly capacity with additional employee:

Alice takes 2 minutes

Additional employees takes 1 minute

Oven uses 12 minutes to make one sandwich

It's only after every 2 minutes Alice can put one sandwich. The oven can take only 5 sandwiches.

So in an hour:

Since oven can take 5

Sandwiches at a time, therefore one sandwich takes,

12 / 5 = 2.4 minutes.

In 1 hour number we have number of processed sandwich as

60 / 2.4 = 25

At hourly capacity with additional employees we have 25 sandwiches

5 0
3 years ago
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