Solution :
It is given that Fizzo and Pop Hop sells orange soda. Fizzo advertises about his drinks while Pop Hop does not advertises.
According to the matrix provided we can conclude that :
-- If Fizzo wishes to advertise about his soda drinks, he will earn a profit of 8 million dollar and if Pop Hop do advertises and a 15 million dollar if Pop Hop does not advertises.
-- If Fizzo does not advertise, it will earn profit of about 2 million dollar if Pop Hop advertises and 9 million dollar if Pop Hop does not advertises.
-- When Pop Hop wished to advertise , Fizzo will make a higher profit if he chooses to advertise.
-- When Pop Hop do not advertise, Fizzo will make a higher profit when it chooses to advertise.
And if both the firms acts independently and they start off not advertising, then --- both firms will advertise as both of them will earn highest profits each.
If both the firms collude and both firms start off not advertising, the strategies they will end up is that both the firms will not advertise as the joint profit will be maximized.
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What country first began to dismantle its welfare state? <span>Chili. Democracy was restored.
</span>What was put in its place? <span>A pension plan replaced welfare.</span>
The simple circular flow model shows that workers, landowners, and owners of capital offer their services through resource(or Factor) markets. Thus, option (b) is correct.
What is circular flow model?
An economic model that depicts how money moves across the economy is the circular flow model. Businesses need resources to generate the goods and services that households and households buy.
The circular flow model is the based on the business and the households. The four factors of the recourses to the labor, entrepreneurship, land, and capital) these are the mainly used in the business to manufacturer their goods and produces the services.
As a result, the circular flow model are resource (or Factor) markets. Therefore, option (b) is correct.
Learn more about on circular flow model, here:
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Your question is incomplete, but most probably the full question was.
a) Product markets.
b) Resource(or Factor) markets.
c) Employment Agencies.
d) Business Firms.
Answer:
The corporation's tax liability is $ 228,820.
Explanation:
To calculate tax liability we first have to find net profit. Detail calculation is given below.
<u><em>Net profit Calculation</em></u>
Sales $ 3,130,000
cost of goods sold and the operating expenses ($ 2,080,000)
Interest expense ( $ 377,000)
Net profit $ 673,000
<u><em>Tax liability Calculation</em></u>
Income fall under Tax bracket of 34% ($75,001 to $10,000,0000 for corporate tax. No additional surtax will be charged as income do not fall under its net.
Tax liabilty = 673,000 * 34% = $ 228,820
Answer: D. $7,500
Explanation:
Before the $150,000 mortgage at 5%, the existing $40,000 balance of the loan was paid off. Therefore, only the mortgage was payable. At 5% x %150,000 = $7500 interest.
Therefore, the amount $7500 interest expense Kris will deduct as home related interest expense would be $7,500.
