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Lemur [1.5K]
3 years ago
12

Firms A and B plan to collude in an economy for their similar​ products, which includes the grim strategy for punishment. They p

lan to set the price of their product at​ $8. The marginal cost of Firm A is​ $5 and Firm B is​ $4.50. If firm A is impatient to earn more profits and Firm B wishes to last in the business for the​ long-run, which of the following situations would likely​ occur? A. Firm B reduces the price to​ $7 causing Firm A to exit the market. B. Firm B reduces the price to​ $7 causing Firm A to reduce its price to​ $7. C. Firm A reduces the price to​ $7 causing Firm B to reduce its price to​ $4.50. D. Firm A reduces the price to​ $7 causing Firm B to exit the market.
Business
1 answer:
denis-greek [22]3 years ago
3 0

Answer: C. Firm A reduces the price to​ $7 causing Firm B to reduce its price to​ $4.50.

Explanation:

Since firm A is impatient to earn more profits and Firm B wishes to last in the business for the​ long-run, then Firm A will reduce the price to​ $7 causing Firm B to reduce its price to​ $4.50.

Since Firm A reduces the price to​ $7, this will lead to an increase in the quantity demanded of the product and therefore the firm can earn more profit. On the other hand, firm B will reduce its price to a point where the price meets the marginal cost which is $4.50.

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Which explanation most likely accounts for the increase in the number of male butterflies in the five years after the initial pa
Stells [14]

The explanation most likely accounts for the increase in the number of male butterflies after the initial parasite problem is that male butterflies in the population survived had a gene that made them resistant to the parasite, as well as the gene, that was passed to their offspring.

So, the correct option is C.

A population's size might alter due to the occurrence of new people or species. The total number of living things that are present in a given habitat is referred to as its population. The scenario indicates that there are now considerably more men in the population. The male butterflies in the population that survived earlier had a gene making them resistant to the parasite, and they passed the gene on to their offspring, leading to the number of males to be increased in the population.

This increase in the number of population growth of males can be explained by the fact that the male butterflies in the population that survived earlier had a gene making them resistant to the parasite, and they passed the gene to their offspring.

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The given question is incomplete. The complete question is:

A few years ago the population of male blue moon butterflies on the island of Samoa declined. One hypothesis for the decline of the male butterflies is that a parasite-infected the cells of female butterflies. The parasite was passed to offspring through the females’ eggs and killed the male butterfly embryos. At one point during the decline, nearly all the butterflies in the population were females, but after five years the number of males in the population increased significantly.

Which explanation most likely accounts for the increase in the number of male butterflies in the five years after the initial parasite problem?

A. Male butterflies in the population that survived were able to prey on the parasites living in the females’ egg cells.

B. Female butterflies in the population that survived had a genetic adaptation that allowed them to transform into male butterflies.

C. Male butterflies in the population that survived had a gene that made them resistant to the parasite, and they passed the gene on to their offspring.

D. Female butterflies in the population that survived were able to protect the male eggs from the parasite and provide extra care for the male offspring.

6 0
1 year ago
Lohn Corporation is expected to pay the following dividends over the next four years: $18, $14, $13, and $7.50. Afterward, the c
Lerok [7]

Answer:

current share price = $85.96

Explanation:

Find the PV of each dividend

PV= FV / (1+r)^t

r= required return

t= total duration

PV(D1) = 18 / (1.14)= 15.78947

PV(D2) = 14 / (1.14^2) = 10.77255

PV(D3) = 13 / (1.14^3) = 8.774630

PV(D4) = 7.50 / (1.14^4) = 4.44060

PV(D5 onwards) is a two-step process, first PV of growing perpetuity;

PV(D5 onwards) at yr4 =[7.50*(1+0.04) ] / (0.14-0.04) = 78

second, finding PV today ; PV(D5 onwards) at yr 0 = 78 / (1.14^4) = 46.18226

Add the PVs to get the current share price = $85.96

4 0
3 years ago
Fervana Autos Inc., a large automobile company, made an initial small investment in a startup company that was developing a sola
eimsori [14]

Answer:

real options perspective

Explanation:

A real options perspective means that the investor has the right but not the obligation to invest in the other company, and/or has the right to buy it, but it is not required to do so. In this case, Fervana can invest if it considers it suitable or it can buy the start-up, buit it doesn't need to do anything if it doesn't want to.

5 0
3 years ago
Financial statements with data for two or more successive accounting periods placed in columns side by side, sometimes with chan
RideAnS [48]
The above is referred as Comparative statements. A comparative statement is an archive that contrasts a specific budgetary proclamation and earlier period articulations or with the same monetary report produced by another organization. Examiner and business supervisors utilize the wage explanation, monetary record and income proclamation for relative purposes.
6 0
3 years ago
Rachel's Designs has 1,100 shares of 7%, $50 par value cumulative preferred stock issued at the beginning of 2019. All remaining
gladu [14]

Answer:

The dividend payable to the cumulative preferred stock holers in 2021 is $11,550 while the amount payable to common stock holders is $1,450.

Explanation:

Cumulative preferred stock dividends accrue and becomes payable when the reporting entity has favourable cash flows. Rachael Designs plans to make payment of $13,000 dividends in 2021. As the annual cumulative preferred dividend is $3,850 (1,100 shares x $50 x 7%), the amount due over three years will be $3,850 x 3 whcih is $11,550. Thus, out of the proposed cash outflow of $13,000, the amount of $11,550 will be paid to cumulative preferred stock holders while only $1,450 will be paid to the common stock holders.

5 0
3 years ago
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