1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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

You might be interested in
Business rules apply to businesses and government groups, but not to other types of organizations such as religious groups or re
Wittaler [7]

Business rules apply to businesses and government groups, but not to other types of organizations such as religious groups or research laboratories. this statement is false.

A company is defined as an organization or company engaged in commercial, industrial, or professional activities. A business can be either a commercial enterprise or a non-profit organization. Legal forms range from limited liability companies to sole proprietors, corporations and partnerships.

Business improves quality of life in two ways. First, we provide quality goods and services to people who need them for their enjoyment, comfort and health. Second, businesses provide people with employment opportunities through which they generate income and improve their quality of life. SMEs are important because they provide entrepreneurial opportunities and produce more satisfying and meaningful work than positions in large, traditional companies. Boost your local economy, keep money closer to home, and support your neighborhood and community.

Learn more about Business  here

brainly.com/question/24448358

#SPJ4

8 0
2 years ago
If you expect a stock be priced at $80 in one year and pay a dividend of $1.85, what is the most you would be willing to pay for
ElenaW [278]

Willing to pay for the stock today is  $72.43.

Given values, Dividend = $1.85

                      Price = $80

                      return = 0.13

Formula, Current Price = (Dividend + Price ) / (1 + return )

                                     = (1.85 + 80) / (1+ 0.13)

                                     = $72.43

The number one purpose that buyers personal inventory is to earn a return on their funding. That go back commonly is available in  viable methods: The stock's price appreciates, this means that it is going up. you can then promote the stock for a profit if you'd like.

The very best way to shop for stocks is thru a web stockbroker. After beginning and funding your account, you may buy shares via the broker's internet site in a remember of minutes. Other options encompass the use of a full-provider stockbroker, or shopping for inventory directly from the company.

Learn more about stock here:-

brainly.com/question/25818989

#SPJ4

8 0
2 years ago
Wall Street financial services firms and banks rewarded employees for developing "innovative" new financial investment vehicles
Nataly [62]

Answer:

Incentive plans

Explanation:

Incentive plans are strategies in which representatives of an association are kept persuaded for the work that they do, and are given motivators on coming to or achieving certain association objectives. The motivator plans can be for lower level workers, center administration and senior administration.  

It is the apparatus utilized by entrepreneurs to empower, perceive and reward uncommon execution in their workers.

6 0
3 years ago
Venezuelans organize to overcome food shortages The government of Venezuela controls the price of food and there are shortages o
lubasha [3.4K]

Answer: Option A

Explanation: The control described in the case is <em>Price Ceilings. </em>Price ceiling is a method used by the government to control the price of certain commodities and to protect the consumer from overpricing of necessary goods.

Under price ceiling method, government fix the price of the commodity below the equilibrium price leading to demand exceeding supply which further results in shortage.

In the given case, shortage is clearly evident hence we can say the control is price ceiling.

5 0
3 years ago
You have been purchasing $12,000 worth of stock annually for the past eight years and now have a portfolio valued at $87,881. Wh
slega [8]

Answer:

28.3%

Explanation:

The formula to calculate the final amount for compound interest is:

A=P(1+\frac{r}{n})^{nt}

where

A is the final amount

P is the principal

r is the rate of return

n is the number of times the interest is compound in a time t

t is the time

Here we have:

P = $12,000 is the principal

A = $87,881 is the final amount

t = 8 y is the time (8 years)

n = 1 , since interest is compounded every year

Therefore, solving for r, we find the rate of return:

\frac{A}{P}=(1+r)^t\\r=\sqrt[t]{\frac{A}{P}}-1=\sqrt[8]{\frac{87,881}{12,000}}-1=0.283=28.3\%

8 0
3 years ago
Other questions:
  • Sabor Inc. is a medical testing laboratory that performs several tests and analyses for hospitals in the area. Four of the tests
    10·1 answer
  • Buffalo Corporation amended its pension plan on January 1, 2017, and granted $166,400 of prior service costs to its employees. T
    6·2 answers
  • Are the so-called advantages of small business really advantages?
    5·1 answer
  • Some employers provide employees with a fixed dollar amount for benefits, allowing employees to choose between various health in
    12·1 answer
  • ___________is a partnership Is also called the articles of incorporation.
    10·1 answer
  • HOW DO U CALCULATE TAKE HOME PAY?
    13·1 answer
  • Multiple Choice Is an outflow of cash from the use of a plant asset. Is applied to land. Measures the decline in market value of
    6·1 answer
  • Suppose $200 is deposited in a savings account at the beginning of each of 15 years and the account pays 8% per annum, the value
    6·1 answer
  • You have been asked to analyze the bids for 200 polished disks used in solar panels. These bids have been submitted by three​ su
    12·1 answer
  • The Tough Jeans Company produces two different styles of jeans, Working Life and Social Life. The company sales budget estimates
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!