All categories

2 years ago

Why is competition limited in an oligopoly

Business

1 answer:

schepotkina [342]2 years ago

5 0

Answer:

High entry costs prevent new producers from entering the market. ... Producers actively segment the market to avoid competition. High entry costs prevent new producers from entering the market.

Explanation:

Hope this helps:)

~Kisame'sAbs

You might be interested in

If the government and central bank don’t use economic policy, what could happen?

Alchen [17]

If the government and central bank don’t follow the economic policy, it could result in an economic depression

7 0

3 years ago

For the year, Peggy Grey's Cookies had net income of $8,110. The firm paid out 30 percent of the net income to its shareholders

slamgirl [31]

Answer:

$2,933

Explanation:

The company had a net income of $8,110, and paid 30% of it to its shareholders, therefore:

$8,110 x 0.30 = $2,433.

But it also repurchased $500 worth of common stock, and this is to be distributed among the sharedholders as well, thus:

$2,433 + $500 = $2,933

8 0

3 years ago

World Company expects to operate at 80% of its productive capacity of 50,000 units per month. At this planned level, the company

skad [1K]

Answer:

a. $13

b. $20,625 Unfavorable

Explanation:

a. Computation of overhead volume variance is shown below:-

Variable overhead rate = Variable overhead cost ÷ Expected standard hours

= $275,000 ÷ 25,000

= 11 direct labor hour

Fixed overhead rate = Productive capacity ÷ Expected standard hours

= $50,000 ÷ 25,000

= $2 direct labor hour

Total overheard rate = Variable overhead rate + Fixed overhead rate

= $11 + $2

= $13

b. The computation of overhead controllable variance is shown below:-

Variable overhead cost = Overhead rate × Standard hours

= $11 × 21,875

= $240,625

Fixed overhead cost = Overhead rate × Standard hours

= $2 × 21,875

= $43,750

Total overhead cost = $13 × 21,875

= $284,375

Actual result = $305,000

Variance = Actual result - overhead cost applied

= $305,000 - $284,375

= $20,625 Unfavorable

Working note:-

Standard direct labor hours = Actual units ÷ Standard hours

= 35,000 × 1.6

= $21,875

Standard units per hour = (Standard capacity × Expected production) ÷ Standard hours

= (50,000 units × 80%) ÷ 25,000 hours

= 1.6 units per hour

8 0

3 years ago

If aggregate planned expenditures in the economy increase by $100 million, then real GDP will _____ $100 million.

nirvana33 [79]

Answer:

Real GDP will rise by $100 million

Explanation:

Aggregate Demand [AD] is total amount of goods & services, all sectors of an economy are planning to buy . So AD = Aggregate Planned Expenditure [APE]

Aggregate Supply [AS] is total amount of goods & services, all sellers are planning to sell. As total output value of goods & services produced is distributed among factors of production, AS = National Income [NY] = GDP

At equilibrium : AD or APE = AS or NY or GDP

If AD or APE increases by $100 million :

AD or APE > AS or Aggregate Planned Production or GDP . This implies willingess to buy > willingness to produce. So, inventory levels will fall below desired level. To mantain inventory level, production [AS] & income level [GDP] will rise till it becomes equal to risen AD or APE

So, GDP will also rise by $100 million

6 0

3 years ago

Andreasen Corporation manufactures thermostats for office buildings. The following is the cost of each unit. Materials $ 36.00 L

ICE Princess25 [194]

Answer:

Instructions are listed below

Explanation:

Giving the following information:

The following is the cost of each unit:

Materials $ 36.00

Labor 14.00

Variable overhead 4.00

Fixed overhead ($1,890,000/105,000 units) 18.00

Total $ 72.00

Simpson Company has approached Andreasen with an offer to buy 8,000 thermostats for $60 each. The regular price is $100.

Simpson requires that each unit use its branding, which requires a more expensive label, resulting in an additional $2.00 per unit material cost. The Simpson order will also require a one-time rental of packaging equipment for $30,000.

Because this is a special offer and we have unused capacity, we will not have into account the fixed costs.

Costs:

Materials $ 36.00

Labor 14.00

Variable overhead 4.00

Label= 2

Total variable cost= $56

Total cost= 56*8000 + 30000= $478,000

B) Sales= 8000*60= $480,000

Costs= 478,000

Gross profit= 2,000

The offer is profitable.

C) break-even point= fixed costs/ contributionmargin= 30000/ (60-56)= 7500 units

5 0

3 years ago