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Setler [38]
3 years ago
5

Suppose you are a manager of a firm that operates in a duopoly. Recently, the state attorney general fined you and your competit

or for price fixing. In your market, firms only set prices, not total quantities to sell. From previous experience, you know your competitor has a marginal cost of $ 6.72 . Further, your marginal costs are $ 6.70 . The previous cartel price was $10.00, when you and your competitor were price fixing.
Required:
What price level do you now choose to maximize profits?
Business
1 answer:
larisa86 [58]3 years ago
8 0

Answer: The price level  chosen to maximize profits will be $ 6.71

Explanation:

Whenever there is price fixing between two competitors, and one of the competitor decides to choose a price level. Such competitor must ensure that the price level chosen to maximize profit does not exceed his or her competitor's marginal cost but can be  above his or her marginal cost .

Since the price fixing is $10 from previous cartel price so the best price level to maximize the profit would be less than my  rival's  price of   $ 6.72 and more than my  marginal cost of $ 6.70  which is $ 6.71

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Suppose that a consumer has a health insurance program with co-payments of $10 per doctor visit. If the consumer purchases 6 doc
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Answer:

$300

Explanation:

Given that s a health insurance program with co-payments of $10 per doctor visit.

Thus,

amount paid by insurance in 1 visit = $10

Amount paid by insurance in 6 visit = $10*6 = $60

Total bill charged by the doctor in 6 visit = 360

Amount paid by the consumer = Total bill charged by the doctor in 6 visit - Amount paid by consumer in 6 visit = $360 - $60 = $300

Since , consumer is the third party payer he pays $300 out of total $360 bill charged by the doctor.

In fraction ,portion of bill paid by the third party payer = 300/360 = 5/6

Thus, 5/6 portion of bill is paid by third party payer.

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3 years ago
The United States is___. A. the leading exporter, but not the leading importer in the world B. the leading importer and exporter
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C. The leading importer, but not the leading exporter in the world

US is only the third largest exporter but it is the largest exporter

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3 years ago
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In the largest clinical trial ever​ conducted, 401,974 children were randomly assigned to two groups. the treatment group consis
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<span>The requirements are satisfied; the samples are simple random samples that are independent, and for each of the two groups, the number of successes is at least 5 and the number of failures is at least 5.</span>
4 0
3 years ago
A. The menu prices at restaurants in New Buffalo, Michigan, a small lakeside town, increase during the summer months and decline
skelet666 [1.2K]

Answer:

Which of the following are examples of collusion? Choose one or more:

Explanation:

Answer: C, and E

Collusion is the process in which few firms (but not all firms) in the industry mutually cooperate (through a secret meeting) for their own benefits (but not for the benefits of whole industry).

Option A: This is not collusion, since all the owners are involved.

Option B: This is not collusion, since increasing productivity is the normal process.

Option C: This is collusion, since the labor market is deceived by only 2 firms.

Option D: This is not collusion, since all the gas stations are involved.

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4 0
3 years ago
Sunland Company developed the following data: Beginning work in process inventory $800000 Direct materials used 800000 Actual ov
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Answer:

total manufacturing cost = $2100000

Explanation:

given data

Beginning work in process inventory = $800000

Direct materials = 800000

Actual overhead = 1200000

Overhead applied = 900000

Cost of goods manufactured = 1300000

Ending work in process = 1600000

solution

we get here total manufacturing cost that is

total manufacturing cost = Cost of goods manufactured - Beginning work in process inventory + Ending work in process inventory   .........................1

put here value and we get

total manufacturing cost = 1300000 - 800000 + 1600000

total manufacturing cost = $2100000

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3 years ago
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