The average annual return form stock investments historically is: a) 11.3% b) 12% c) 12.5% d) 20$

Two firms compete in a market to sell a homogeneous product with inverse demand function P = 600 – 3Q. Each firm produces at a c

podryga [215]

Answer:

Explanation:

We need to find the function of firm 1 and firm 2 which we have as

PQ1/Q1= 300

600Q1– 3Q21 – 3Q1Q2/ = 300

300 – 6Q1 – 3Q2= 300

Q1 = 1/6(600 -300 – 3Q2)

Q1 = 50 – 1/2Q2 Reaction function for firm 1

Q2 = 50 – 1/2Q1 Reaction function for firm 2

Cournot which we have as;

Q2 = = 1/6(600 -300 – 3Q1)

Q2 = 50 – 1/2Q1

Q2 = 50 – ½(50 – 1/2Q1)

Q2 = 50 – 25 + 1/4Q1

Q1 = 100/3 = 33.33 Output

Q2= 100/3 = 33.33 Output

Equilibrium market price which is

P = 600 – 3(Q2+ Q2)600 – 3(100/3 + 100/3)= 400

Profits for firm 1

Π1 = TR1– C1= PQ1 – C1=400 * 100/3 – 300 * 100/3= 10000/3 = $3,333.33 For firm 1

Profits for firm 2

Π2 = TR2– C2= PQ2 – C2=400 * 100/3 – 300 * 100/3= 10000/3 = $3,333.33 For firm 2

Stackelberg is given as ;

QL= (600 – 300)/2*3 = 50 Firm 1 output is QL = 50

QF= (600 – 300)/4*3 = 25 Firm 2 output is QF =25 P = 600 – 3*75 = 375

Π1 = (375-300) * 50 = 3750Profit for firm 1

Π2 = 75*25 = 1875 Profit for firm 2

Bertrand is given as ;

Under this competition, price is the same to marginal cost and profits are zero

600 – 3Q = 300

Q = 100 Output = 100

P = Zero

Collusive Behavior is given as;

MR=MC600 - 6Q = 300

300 = 6QQ = 50 Output

P = 600 – 3*50 = 450

Π = (450 – 300) * 50 = 7,500profit

3 0

3 years ago

Carroll Corporation has two products, Q and P. During June, the company's net operating income was $25,000, and the common fixed

Firlakuza [10]

Answer:

Option (d) is correct.

Explanation:

Total Segment Margin = Net Operating Income + common fixed expenses

= $ 25,000 + $ 37,000

= $ 62,000

Total Segment Margin = Segment Margin of Q + Segment Margin of P

$ 62,000 = $ 21,000 + Segment Margin of P

or Segment Margin of P = $ 62,000 - $ 21,000

= $ 41,000

4 0

3 years ago

What role do values play in making ethical decisions?

Lubov Fominskaja [6]

Values play a central role in ethical decision making.It is because core values are so subjective, they will be relative to the individual who holds them. Not all individuals have the same core values and conflicts about them will often arise.

7 0

3 years ago

Mr. Barker enjoys a comfortable retirement income. He recently had surgery and expected that he would have certain services and

olasank [31]

Answer:

What you could tell him is that you can offer to help him review all the plans appeal process as well as to help him ask the plan to review his coverage decision which will enable him to know why he had large charges in excess of his maximum out-of-pocket limit.

Explanation:

Based on the information given we were told that when he received the bill, their was large charges in excess of his maximum out-of-pocket limit which is a limit on the amount of money a person or an individual have to pay for covered medical care services in which we were still told that the large charges in excess of his maximum out-of-pocket limit also include a number of services and items he thought would be fully covered, therefore since he called you to ask what he could do, What you could tell him is that you will offer to help him review all the plans appeal process and to as well help him to ask the plan to review the coverage decision which is why coverage decision is of benefit because it enables a person or an individual to makes decision about their benefits including the amount they have to pay for their medical services plan.

6 0

3 years ago

Garden Zurich Corp. manufactures garden fountains. It currently has two product lines, the basic and the luxury. Garden Zurich h

wolverine [178]

Answer:

Garden Zurich Corp.

a. Traditional costing system with machine hours as the cost driver:

Overhead rate = $171,500/10,000 = $17.15

Overhead assigned to each product line:

Basic = $85,750 ($17.15 * 5,000)

Luxury = $85,750 ($17.15 * 5,000)

b. Activity rates for each cost pool:

Materials handling = $200 ($14,000/70)

Quality control = $100 ($37,500/375)

Machine maintenance = $120 ($120,000/1,000)

Explanation:

a) Data and Calculations:

Total overhead = $171,500

Basic Luxury

Direct costs $200 $300

Selling price 500 750

Contribution $300 $450

Production units 800 500

Activity Cost Cost Driver Cost Assigned to Pool Quantity/Amount

Pools Basic Luxury

Materials handling Number of moves $14,000 20 50 moves

Quality control Number of inspections $37,500 250 125 inspec.

Machine Number of machine

maintenance hours $120,000 5,000 5,000 m.hour

Total overhead costs $171,500

4 0

3 years ago

The average annual return form stock investments historically is: a) 11.3% b) 12% c) 12.5% d) 20$​

The average annual return form stock investments historically is: a) 11.3% b) 12% c) 12.5% d) 20$