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Natali [406]
3 years ago
6

Suppose a third firm enters the market. If they all don't cheat, then they split the profits three ways so that each firm gets 2

million. If one firm cheats, he steals profits from the other two firms and earns 5.5 million while the other firms incur losses of 1 million. Will it be harder or easier to sustain cooperation?
Business
1 answer:
dmitriy555 [2]3 years ago
7 0

Answer: Harder to sustain cooperation

Explanation:

When the number of firms in an oligopolistic market increases as is the case here, cooperation becomes harder because profits become smaller so companies start to become more selfish.

Also in this scenario, the cheating firm has the incentive to do so because the profit is so much higher than sharing so companies will always be looking to cheat in order to make this profit. The other firms would reply by reducing prices and all of them would suffer.

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The total sales of a product, by all competitors in the industry, is:____.a. highest in the introduction stage.b. lowest in the
irina1246 [14]

Answer:

The total sales of a product, by all competitors in the industry, is:____

e. lowest in the market introduction stage.

Explanation:

The product life cycle refers to the time period when a product is first introduced to a market until it exits the market.  There are four main stages in a product life cycle.  They include introduction, growth, maturity, and decline.  It is during the introduction phase that the total sales are lowest.  The low sales are witnessed again during the latter stage of decline.   The highest sales are achieved during the maturity stage.

3 0
3 years ago
Which of these contains data that identifies a product?
zmey [24]

Answer:

A. UPC

Explanation:

A UPC is an acronym for universal product code. UPC is typically used for the identification of a specific product and its manufacturer (vendor) through a unique code that is printed on the product.

Basically, a universal product code (UPC) comprises of two (2) main parts;

  • A machine-readable barcode that contains sets of vertical black lines.
  • A unique twelve (12) digit number placed beneath or adjacent to the machine-readable barcode.

The first six-digits of the UPC represents the manufacturer and is printed on all of its products while the next five-digits is the product's unique reference number (item number) and the last digit is typically known as a check digit, used for the verification of the authenticity of a UPC.

Generally, the universal product code are usually scanned with a barcode scanner and this makes it easier to identify a product, as well as its price.

<em>Hence, a universal product code (UPC) contains data that identifies a product. </em>

6 0
3 years ago
Inventory costing methods place primary reliance on assumptions about the flow of:a. goodsb. costsc. resale pricesd. values
Mrac [35]

Answer: B costs

Explanation:

In business and accounting, cost is the monetary value that has been spent by a company in order to produce something.

Cost accounting aids in decision-making processes by allowing a company to calculate, evaluate, and monitor its costs.

4 0
3 years ago
Read 2 more answers
Splish Company purchased a computer for $9,920 on January 1, 2019. Straight-line depreciation is used, based on a 5-year life an
BartSMP [9]

Answer:

$2914

Explanation:

The following steps would be taken to determine the answer

1. Calculate depreciation expense given the initial information  

2. calculate the accumulated depreciation by the second year. Accumulated depreciation is sum of depreciation expense

3. subtract the accumulated depreciation from the cost price of the asset. This would give the book value  

4. calculate the depreciation expense using the new information and the book value

Straight line depreciation expense = (Cost of asset - Salvage value) / useful life

($9,920 - $1240) / 5 =  $1736

Accumulated depreciation = 1736 x 2 = $3472

Book value at the beginning of 2021 = 9920 - 3472 = $6448

Depreciation expense in 2021 = (6448 - 620) / 2 = $2914

5 0
3 years ago
The company budgeted for production of 2,400 units in June, but actual production was 2,500 units. The company used 19,850 pound
horsena [70]

Answer:

d. $40 F

Explanation:

Calculation to determine what The variable overhead efficiency variance for June is

First step is to calculate the SH

SH = 2,500 units × 0.4 hour per unit

SH= 1,000 hours

Now let calculate the Variable overhead efficiency variance

Using this formula

Variable overhead efficiency variance = (AH - SH) × SR

Let plug in the formula

Variable overhead efficiency variance= (980 hours - 1,000 hours) × $2 per hour= (-20 hours) × $2 per hour

Variable overhead efficiency variance= $40 F

Therefore Variable overhead efficiency variance is $40 F

8 0
3 years ago
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