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Elan Coil [88]
3 years ago
10

How van an oligopoly cause market failure (8)​

Business
1 answer:
Sladkaya [172]3 years ago
6 0

The correct answer to this open question is the following.

Although there are no options attached we can say the following.

An oligopoly can cause market failure because companies that form the oligopoly do not allow other companies to enter and compete in the market. This action limits consumers to choose from a variety of options, including quality, the best price, and service.

Often, oligopoly associates the strongest or more powerful companies in order to wipe out other minor competitors. They want to establish a dominant presence that affects prices and consumers participation.

Oligopoly practices result in inefficiency and instability in the market. That is why oligopolies are not good for the economy.

The automobile industry is mostly associated with an oligopoly.

When a market is controlled by just a few numbers of companies, but none of them is above the others, we are talking about an oligopoly. They can collude intentionally or not, to establish prizes and to not let other companies compete with them.

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Sophie [7]

Answer: B) Keep bidding until all other bidders quit, regardless of your reservation price.

Explanation: Familiar to English auctions, the bidders are aware of the prices of items on sale and the numbers of other bidders. This price is known as the reserve or reservation price which is the limit on the price of the item on sale set by the seller (that is the lowest price the seller is willing to sell the item). The bids start at a low price and keeps coming in until there are no more bids irregardless of the reservation price set. It probably depends on how much you value the item on sale and are willing to pay for it. Not necessarily on the reservation price.

3 0
3 years ago
Brian invests $11,500, at 6% interest, compounded semiannually for 2 years. Manually calculate the compound amount (in $) for hi
Katena32 [7]

Answer:

The important thing to remember here is that the interest is compounded semi annually, which means twice a year. When the 1st interest is compounded, the second interest is calculated on that new amount.

(11,500 + (11,500×6%)) = $ 12,190

(12,190 + (12190×6%)) = $ 12921.40

Explanation:

4 0
3 years ago
Which statement best describes a pure market economy ?
grandymaker [24]

A pure market economy in a theoretical concept in that it has never really existed. In a pure market economy producers create what they want at a price consumers will pay. Consumers pay what they want. The key is no regulation.

8 0
3 years ago
Read 2 more answers
Use below information to prepare general journal entries for Belle Co.'s 1 through 7 transactions.
antoniya [11.8K]

Answer:

Belle Co.

General Journal Entries

1. Debit Cash $6,000

Debit Equipment $7,600

Debit Web Servers $12,000

Credit Common Stock $25,600

To record the assets exchanged for common stock by D. Belle.

2. Debit Prepaid Insurance $4,800

Credit Cash $4,800

To record the prepayment of insurance coverage.

3. Debit Supplies $900

Credit Accounts Payable $900

To record the purchase of supplies on account.

4. Debit Selling Expenses $800

Credit Cash $800

To record the payment of selling expenses for cash.

5. Debit Cash $4,500

Credit Service Revenue $4,500

To record the receipt of cash for services rendered.

6. Debit Accounts Payable $900

Credit Cash $900

To record the payment on account.

7. Debit Equipment $3,400

Credit Cash $3,400

To record the payment for the purchase of equipment.

Explanation:

a) Data and Transaction Analysis:

1. Cash $6,000 Equipment $7,600 Web Servers $12,000 Common Stock $25,600

2. Prepaid Insurance $4,800 Cash $4,800

3. Supplies $900 Accounts Payable $900

4. Selling Expenses $800 Cash $800

5. Cash $4,500 Service Revenue $4,500

6. Accounts Payable $900 Cash $900

7. Equipment $3,400 Cash $3,400

4 0
3 years ago
Rockeagle Corporation began fiscal Year 2 with the following balances in its inventory accounts.
irinina [24]

Answer:

I solved this manually. please try to follow up with the calculations.

ending inventory balance of

a. Raw material = $31000

b. work in progress = $49000

c. finished goods = $19000

Explanation:

<u>for</u><u> </u><u>raw</u><u> </u><u>material</u><u>:</u><u>-</u>

balance at beginning 30,000 + purchase of 125000 - issue of 124000

= 30000+125000-124000

= 31,000

the ending balance is 31000

<u>for work in progress inventory:-</u>

beginning inventory 45000 + 124000 current cost of issued material + 162000 direct wages + overhead 24000

= 45000+124000+162000+24000

= $355000

we subtract 306000 costs of goods manufactured from this value

= $355000-306000

= 49000 wip ending balance

<u>for</u><u> </u><u>finish</u><u>ed</u><u> </u><u>goods</u><u> </u><u>inven</u><u>tory</u><u>:</u><u>-</u>

begining inventory 14000 + 306000 costs of goods manufactured - 301000 costs of goods sold

= 14000+306000-301000

= $19000

<u>2</u><u>.</u><u> </u><u>schedule</u><u> for</u><u> </u><u>costs</u><u> </u><u>of</u><u> </u><u>goods</u><u> </u><u>manu</u><u>factured</u><u>:</u><u>-</u>

beginning inventory 30000 + purchase 125000 - ending inventory

= 30000+125000-31000

= 124000

124,000+162000 labour cost+24000

<u>total cost of manufacturing = 310000</u>

310000+begining wip of 45,000 - ending inventory of 49000

= 310000+45000-49000

= 306,000 costs of goods manufactured

we add this value to beginning inventory of finished goods-ending inventory

= 306000+14000-19000

= $301000 costs of goods sold

3. income statement:-

revenue of 400000 - 301000 costs of good sold = 99000

99000-36000 selling expenses

= $63000

4 0
3 years ago
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