The profit-maximizing price and combined quantity of output is indicated in the demand curve by using a black point (plus symbol).
<h3>What is a cartel?</h3>
A cartel can be defined as a formal agreement between two or more business firms (producers) of a particular product or service, that's formed to control production, sales and pricing in an oligopolistic industry.
At equilibrium in a cartel, marginal revenue is equal to marginal cost (MR = MC). Thus, the profit-maximizing price and combined quantity of output should be calculated from the demand curve as illustrated in the image attached below.
Read more on cartel here: brainly.com/question/15294015
#SPJ1
<u>Complete Question:</u>
Mays and McCovey are beer-brewing companies that operate in a duopoly (two-firm oligopoly). The daily marginal cost (MC) of producing a can of beer is constant and equals $0.40 per can. Assume that neither firm had any startup costs, so marginal cost equals average total cost (ATC) for each firm.
Suppose that Mays and McCovey form a cartel, and the firms divide the output evenly. (Note: This is only for convenience; nothing in this model requires that the two companies must equally share the output.)
Place the black point (plus symbol) on the following graph to indicate the profit-maximizing price and combined quantity of output if Mays and McCovey choose to work together.
Answer: Carry out the Plan of Planning not to Plan.
As Fashion brand Zara is very popular clothing and accessories retailer. Its success as top 50 fashion brands is attributed to its unique approach of planning to achieve its vision of innovation and quality.
For ever changing style and trend, fashion industry is unpredictable, specially for brands and fashion lines. The changing trends in short span of time can cost high for business perspective as there can be huge restocking of seasonal production, if brands fail to identify future fashion trends in advance. To combat huge loss from such over stocking of production, Zara brand have implemented operational strategy to plan less. This is the Planning to plan less".
Most of the luxury fashion brands operate their production line based on prediction of what trend will be popular in coming months. This is risky plan, since fashion industry is very unpredictable.
Zara however devised unique plan to not plan. This way the brand does\t entirely plan the production line for next six months in advance, but only 50-60%. Rest of it, it changes according to the season. This way, Zara only have limited edition of certain designs and even less stock of those items. This way, the customer have to buy the items immediately after its launch because same item might not be there next time. This not only reduce stocking of production but also increases business as buyers constantly visit stores to but items which they know won't linger there for longer time.
Answer: For a competitive market, <u><em>if a seller charges more than the going price, buyers will go elsewhere to make their purchases.</em></u>
Explanation:
A perfectly competitive market has the following characteristics:
(a). In this particular market there are many buyers and sellers.
(b). Also each company makes similar product. i.e. the products are identical in nature.
(c). In this market buyers and sellers will have access to perfect information about price. and product.
(d). In a competitive market there are no barriers to entry into or exit from the market.
Therefore , <u><em>if a seller charges more than the going price, buyers will go elsewhere to make their purchases.</em></u>
Answer:
so they can have more attention to the logo and more people will under stand what itd be
Explanation:
