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yaroslaw [1]
3 years ago
9

Scenario 12.3: Suppose a stream is discovered whose water has remarkable healing powers. You decide to bottle the liquid and sel

l it. The market demand curve is linear and is given as follows: P = 30 - Q The marginal cost to produce this new drink is $3. Refer to Scenario 12.3. What will be the price of this new drink in the long run if the industry is a Stackelberg duopoly? A. $12 B. $3 C. $9 D. $13.50 E. $9.75
Business
1 answer:
leva [86]3 years ago
7 0

Answer:

Option E : $9.75

Explanation:

As per the data given in the question,

The standard reaction function of industry = a-Cb ÷ 2b - 1 ÷ 2 × Qa

P = 30 - (Qa + Qb)

Here, a= 30

b= 1

C = 3

Leader's output (Qa) =( a + Cb - 2Ca ) ÷2b

= (30 + 3 × 1 - 2 × 30) ÷ 2×1

= 13.5 units

Reaction function of industry B,

Qb = 13.5 - 1 ÷ 2 × 13.5

Qb = 6.75 units

P = 30 - (13.5+6.75)

= $9.75

Hence Option E is answer.

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Answer:

B. First-line managers use mainly technical and human relations skills, while top managers devote most of their time to activities involving human relations and conceptual skills.

Explanation:

First-line managers are a group of managers that are tasked to oversee the company's daily operation. This require them to directly communicate with the employees. This is why, they use mainly technical and human relations skills.

Top managers on the other hand, are tasked to oversee the company's long term interest. They are the one that is involved in<u> creating strategic planning</u> that will drive the company to reach its end goal. This is why they rely most of their time on conceptual skills. That being said, top managers also need human relation skills to form network with other people who had high influence in the industry.

7 0
4 years ago
Prashant is shopping for a new pair of athletic shoes. Since he is concerned about both the price and the quality aspects of a p
DochEvi [55]

Answer:

B. Value-conscious.

Explanation:

In the scenario above Preshant can easily be tagged a value-conscious consumer particularly because of her keen interest and concern for price and goods quality.

It is also noted that their have always been segments of the population to whom value has mattered. This is especially the low-income families have long since used tactics such as coupon clipping to get the most out of their spend. However, as the economy recovered and strengthened, this prediction did not materialize.

8 0
3 years ago
Coca-Cola has expected EPS of $2.1. Its competitors have the following P/E ratios: Dr Pepper Nestle Pepsico P/E ratio 22.07 23.4
nikdorinn [45]

Answer:

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1. The lowest P/E ratio is 21.37 so the intrinsic value is;

Intrinsic value  = 2.1 * 21.37

= $44.88

2. Highest P/E ratio is 23.49

Intrinsic value = 2.1 * 23.49

= $49.33

3. The average P/E ratio is;

= (22.07 + 23.49 + 21.37)/3

= 22.31

Intrinsic value  = 2.1 * 22.31

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8 0
4 years ago
A consumer wants 400 keychains in 5 days, is it impossible to make 40 keychains per day with two people. The boss and the employ
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Answer:

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Explanation:

Also, offer a small discount for the inconvenience.

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3 years ago
The adjusting entry to account for use of prepaid insurance consists of: Multiple Choice a debit to Insurance Expense and a cred
Jet001 [13]

Answer:

a debit to Insurance Expense and a credit to Prepaid Insurance

Explanation:

The adjusting entry to record the prepaid insurance is shown below:

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(Being the prepaid insurance account is adjusted)

For recording the adjusting entry, we debited the insurance expense and credited the prepaid insurance account so that the proper posting could be done

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