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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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The following information is available to reconcile Branch Company’s book balance of cash with its bank statement cash balance a
Rasek [7]

Answer:

<u>Bank Reconciliation Statement as of July 31, 2017</u>

Balance at Bank as per cash book (up to date)     $35,480

Add Unpresented Cheques :            

No. 3031                                                                      $1,570

No. 3065                                                                        $561

No. 3069                                                                     $2,338

Less Lodgements not yet credited                          ($10,132)

Balance as per Bank Statement                               $29,817

Explanation:

Step 1 Bring the Cash Book (Bank Balance ) up to date

Debit :

Balance as at July 31                                             $25,699

Note Payable                                                           $9,000

Evan Shaw                                                                   $805

Totals                                                                      $35,504

Credit:

Check No. 3056 Understated                                     $10

Bank service charge                                                     $14

Balance (Up to date)                                             $35,480

Totals                                                                      $35,504

Step 2 Prepare a  bank reconciliation for this company

<u>Bank Reconciliation Statement as of July 31, 2017</u>

Balance at Bank as per cash book (up to date)     $35,480

Add Unpresented Cheques :            

No. 3031                                                                      $1,570

No. 3065                                                                        $561

No. 3069                                                                     $2,338

Less Lodgements not yet credited                          ($10,132)

Balance as per Bank Statement                               $29,817

4 0
3 years ago
What is the effect on the labor market of counting marginally attached workers as​ unemployed? If we count marginally attached w
Setler79 [48]

Answer:

C. the labor force participation rate falls

Explanation:

Marginally attached workers are not part of labor force, but if they are included and are unemployed then the labor which is actually participating will fall.

As in the labor participation rate = Working labor or simply employed labor divided by total labor force.

Thus, in this case with marginally attached labor, only denominator will increase in the equation.

Therefore, this will state that the labor force participation will fall as marginally attached is considered as unemployed.

8 0
3 years ago
The dollars available from each unit of sales to cover fixe
lbvjy [14]

Answer:

False

Explanation:

Variable costs are part of direct expenses incurred in the production of goods meant for sales. Variable costs have a direct and proportionate relationship with the output level. An increase in output level increases variable costs. Examples of variable costs are packaging and raw materials.

The contribution margin is the dollar amount available from the sale of each unit to cater for fixed costs and profits. It is calculated by subtracting variable costs from the selling price. The contribution margin is used in determining the break-even point and the output level required to achieve desired profits.

5 0
3 years ago
Unearned revenues are generally: Multiple Choice Revenues that have been earned and received in cash. Increases to common stock.
Leto [7]

Answer:

i dont get it, is there a question?

Explanation:

6 0
3 years ago
Assume all markets are in long-run equilibrium. Market price in a duopoly would be ________ the market price in a monopoly, and
Vladimir [108]

Answer:

Assume all markets are in long-run equilibrium. Market price in a duopoly would be <u>greater than or equal to</u> the market price in a monopoly, and     <u>less than</u> or equal to the market price in a competitive market.

Explanation:

That is the logical answer to the question about markets that are in long-run equilibrium.

4 0
3 years ago
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