Scenario: Suppose there are only two firms in an industry, and their products are perfect substitutes for each other. Each firm had a fixed marginal cost of $5 and zero fixed cost of operation. The highest the consumers of this product are willing to pay for it is $10, and there are 200 consumers in this market. Refer to the scenario above. Suppose Firm 1 and Firm 2 have to come up with a pricing strategy simultaneously. In this case, Firm 1 will charge ________, and firm 2 will charge ____

Answers

Answer 1

Answer:

In this case, Firm 1 will charge $5, and firm 2 will charge $5

Explanation:

In a competitive market, where two companies have identical products, The companies try to capture the market by lowering the price of the product to attract the consumers in the market.

Firm 1 and Firm 2 are competitors with identical products and they will try to overcome their competitor. As the production of the product has a marginal cost of $5 and no fixed cost.

hence the price should be more than or equal to the marginal cost of the product to avoid losses.

As per pricing strategy simultaneously, the price should be as follow

Firm 1 Price = $5

Firm 2 Price = $5


Related Questions

If demand for reserves is predected to increase temporarily, the manager of the trading desk at the New York Fed bank will likely conduct ________ open market operations to ________ reserves.

Answers

Answer:4.1

Explanation:

On January 1, 2016, ABC Corporation purchased Equipment C for $72,000. Equipment C is expected to have a useful life of 8 years, and a salvage value of $2,400. Assume that ABC uses the straight-line method of depreciation for Equipment C. A Prepare the journal entry to record depreciation on the equipment for 2016. (5)

Answers

Answer:

Debit : Depreciation $8,700

Credit : Accumulated Depreciation $8,700

Explanation:

the journal entry to record depreciation on the equipment for 2016.

For the past year, Kayla, Inc., has sales of $46,382, interest expense of $3,854, cost of goods sold of $16,659, selling and administrative expense of $11,766, and depreciation of $6,415. If the tax rate is 35 percent, what is the operating cash flow

Answers

Answer:

$15,266

Explanation:

Sales                                                          $46,382

Less: Cost of goods sold                          $16,659

Gross profit                                                $29,723

Less: Selling & administrative expense   $11,766

Less: Depreciation                                     $6,415

Earnings before interest and tax (EBIT)    $11,542

Less: Interest expenses                             $3,854

Earnings before tax (EBT)                           $7,688

Less: Tax expenses  (7688*35%)               $2,691

Earnings after tax                                       $4,997

Operating cash flow = EBIT + Depreciation expenses - Tax expenses

Operating cash flow = $11,542 + $6,415 - $2,691

Operating cash flow = $15,266

Larkspur, Inc. reports net income of $89,770 in 2017. However, ending inventory was understated by $7,100. Collapse question part (a) What is the correct net income for 2017

Answers

Answer:

$96,870

Explanation:

The understatement of ending inventory causes the cost of goods sold to be overstated and the gross and net income to be understated by the same amount.

If the 2017 ending inventory was understated by $7,100 then the correct net income figure for 2017 will be $7,1000 more that what was reported.

Therefore, 2017 corrected net income

= $89,770 + $7,100

= $96,870

Liu, the owner of San Diego Mortgage Solutions, a sole proprietorship, wants to obtain additional business capital to expand operations. The additional business capital is most likely limited to Group of answer choices conducting a private offering. issuing stock. bringing in partners. borrowing funds.

Answers

Answer:

borrowing funds.

Explanation:

Since the owner could not add extra partners as it would be transform into the partnership firm in the case when there is an increase in the number of owners.

In the sole propertiorship, there is only one stockholder and he cant able to issue the stock or the initial public offering

Therefore it would be limited to the borrowing funds

Net Income $1,200 ($500) $2,300 Net Cash Flows $500 $300 $2,800 Dividends $200 $0 $200 Issuance of Stock $2,000 $0 $0 The above amounts represent totals from the first three years of operations. Calculate the balance of Retained Earnings at the end of 2018.

Answers

Answer:

$2,600

Explanation:

The computation of the balance of Retained Earnings at the end of 2018 is shown below;

= net income - dividend

= $1,200 - $500 + $2,300 - $200 - $0 - $200

= $2,600

We simply deduct the dividend amount from the net income so that the balance of the retained earning could come

The Core Company had the following assets and liabilities as of December 31: Assets Cash $58,000 Accounts receivable 25,000 Inventory 20,000 Equipment 50,000 Liabilities Current portion of long-term debt $20,000 Accounts payable 12,000 Long-term debt 25,000 Calculate the current ratio, working capital, and quick ratio. If required, round your answers to one decimal place. Current Ratio fill in the blank 1 Working Capital $fill in the blank 2 Quick Ratio fill in the blank 3

Answers

Answer:

Current Ratio 3.2

Working Capital $71,000

Quick Ratio 2.6

Explanation:

Calculation to determine Current Ratio, Working Capital and Quick Ratio Correct Answer:

Current Ratio= ($58,000 + $25,000 + $20,000) / ($20,000 + $12,000)

Current Ratio= $103,000/32,000

Current Ratio = 3.2

Working Capital= $103,000 - $32,000

Working Capital= $71,000

Quick Ratio=($58,000 + $25,000) / ($20,000 + $12,000)

Quick Ratio=$83,000/$32,000

Quick Ratio= 2.6

Therefore:

Current Ratio 3.2

Working Capital $71,000

Quick Ratio 2.6

At Susko Systems Inc., employees with exceptional performance ratings are three to four more times as likely to be promoted in comparison to employees who receive average or below average ratings. Susko Systems most likely uses the promotion criterion of _____ to promote its employees.

Answers

Answer:

Merit.

Explanation:

Human resources management (HRM) can be defined as an art of managing, controlling and improving the number of people (employees or workers), functions, activities which are being used effectively and efficiently by an organization.

Hence, human resources managers are saddled with the responsibility of recruiting, managing and improving the welfare and working conditions of the employees working in an organization.

An employee can be defined as an individual who is employed by an employer of labor to perform specific tasks, duties or functions in an organization.

Basically, an employee is saddled with the responsibility of providing specific services to the organization or company where he is currently employed while being paid a certain amount of money hourly, daily, weekly, or monthly depending on the contractual agreement between the two parties (employer and employee).

Hence, while an employer may be the owner of a business firm or company, an employee is a subordinate employed to provide unwavering services to the employer while also, being professional and diligent at all times.

In this scenario, Susko Systems most likely uses the promotion criterion of merit to promote its employees. A merit is function of the performance of an employee.

Due to an error in computing depreciation expense, Crote Corporation understated accumulated depreciation by $48 million as of December 31, 2021. Crore has a tax rate of 25%. Crores retained earnings as of December 31, 2021, would be: (Round million answer to 2 decimal places.) Multiple Choice

Answers

Answer: Overstated by $12 million.

Explanation:

Since Crote Corporation understated accumulated depreciation by $48 million as of December 31, 2021 and has a tax rate of 25%.

Crores retained earnings as of December 31, 2021, would be overstated in the amount of:

= $48 million × 25%

= $48 million × 0.25

= $12 million

Crores retained earnings as of December 31, 2021, would be overstated by $12 million.

one word for they have a higher than normal price to create an image of exclusivity​

Answers

Answer:

Everything which is exclusive is always expensive the higher price but quality work to create an image can give you a better result you should not compromise with the quality of the image to fit it in your budget a good image can give you a better reputation in the market the experience ones should be chosen in this manner always

Explanation:

Marx, Inc. has a net income of $600,000 for 2012, and there are 400,000 weighted-average shares of common stock outstanding. Dividends declared and paid during the year amounted to $80,000 on the preferred stock and $120,000 on the common stock. The earnings per share for 2012 is Group of answer choices

Answers

Answer:

$1.3

Explanation:

Net income = $600,000

Outstanding shares = 400,000

Dividends paid = $80,000

So, by using  earning per share formula,

Earning per share = (Net income - Dividends paid) ÷ outstanding shares

By putting the value, we get

Earning per share = ($600,000 - $80,000) ÷ 400,000

= $520,000 ÷ 400,000

= $1.3

Hence, the earning per share for 2012 is $1.3.

Geraldine, an attorney, rendered legal services in organizing an oil and gas partnership in the current year. Instead of submitting a bill for her services. Geraldine accepted a 10% capital interest in the partnership. Geraldine's normal charge for the services performed would have been $10,000. The fair market value of the 10% interest received by Geraldine was $12,000. How much should Geraldine report on her current year's income tax return

Answers

Answer:

Geraldine

The amount that Geraldine should report on her current year's income tax return as income from the above exchange is:

= $10,000.

Explanation:

a) Data and Calculations:

Geraldine's normal charge for the services performed = $10,000

The fair market value of the 10% interest received by Geraldine = $12,000

Geraldine's partnership interest = 10%

This is because $10,000 is also her basis in the partnership interest and not $12,000 the fair market value of the 10% interest.

Imagine you have $30 to spend. You are thinking of buying new soccer shoes because yours
are worn out and a new video game. Which of these do you want, and which of these do you
need? Explain your answer.
Plz no links to answer

Answers

Answer:

video game

Explanation:

because I don't go outside, I'm a gamer

The most important reason the selection committee should review the job
description before screening applications is to ensure that———.

A. the salary matches the job description
B. they do not select an overqualified candidate
C. the screening criteria matches the job requirements
D. the correct key words are used to screen the applications
SUBMIT

Answers

Answer: This might help.

Explanation: Look up chapter 6: selection flash cards.

Robo Hot Inc., is a company that markets electric heaters to hospitals. Mr. Heatmizer, it's CEO, would ike to reduce its inventory cost by determining the optimal number of electric heaters to obtain per order. The annual demand is 100,000 units and the ordering cost is $10 per order. The carrying cost per unit is $2.00. Using these figures, calculate the expected number of orders per year.

Answers

Answer:

Expected number of orders=31.6 orders per year

Explanation:

The expected number of orders would be the Annual demand divided by the economic order quantity(EOQ).

The Economic Order Quantity (EOQ) is the order quantity that minimizes the balance of holding cost and ordering cost. At the EOQ, the holding cost is exactly the same as the ordering cost.

It is calculated as follows:

EOQ = (2× Co D)/Ch)^(1/2)

Co- ordering cost Ch - holding cost, D- annual demand

EOQ = (2× 10 × 100000/2)^(1/2)= 3162.27 units

Number of orders = Annual Demand/EOQ

                              = 100,000/3,162.27= 31.62 orders

Expected number of orders=31.6 orders per year

When an interviewer says, “Tell me about yourself,” you should feel free to talk openly about your personal life.


False

True

Answers

Answer:

False

Explanation:

You should tell them about your personality and how others see you. Take for example your strengths and weaknesses as a person, or about your traits. If they ask you about your personal life keep it brief, they don't need too much info about that rather a small aspect of it.

Answer:

TRUE

Explanation:

Which one of these equations is an accurate expression of the balance sheet? Assets ≡ Liabilities −Stockholders’ equity Stockholders’ equity ≡ Assets + Liabilities Liabilities ≡ Stockholders’ equity −Assets Assets ≡ Stockholders’ equity −Liabilities Stockholders’ equity ≡ Assets −Liabilities

Answers

Answer:

Stockholders’ equity ≡ Assets −Liabilities

Explanation:

The Balance Sheet equation is also known as the Accounting equation. It can be written in 3 ways as :

Assets = Equity + Liabilities

or

Equity = Assets - Liabilities

or

Liabilities = Assets - Equity

The returns from an investment are 3% in Year 1, 7% in Year 2, and 19.8% in the first half of Year 3. Calculate the annualized return for the entire period. (Round your intermediate calculations to at least 4 decimal places and final answer to 2 decimal places.)

Answers

Answer:

i  hhhhhhh 136t8

Explanation:

dont kno

Marsh Company had 150 units of product A on hand at January 1, year 2, costing $21 each. Purchases of product A during the month of January were as follows: Units Unit cost Jan. 10 200 $22 18 250 23 28 100 24 A physical count on January 31, year 2, shows 250 units of product A on hand. The cost of the inventory at January 31, year 2, under the LIFO method is

Answers

Answer:

$5,850

Explanation:

Calculation to determine what The cost of the inventory at January 31, year 2, under the LIFO method is

Using this formula

Cost of inventory= January 28 units * Cost per unit + Remaining units *Cost per unit

Let plug in the formula

Cost of inventory= 100 units * $24 + 150 units *$23

Cost of inventory= $2,400 + $3,450

Cost of inventory= $5,850

Therefore The cost of the inventory at January 31, year 2, under the LIFO method is $5,850

Whitman has a direct labor standard of 2 hours per unit of output. Each employee has a standard wage rate of $26.50 per hour. During July, Whitman paid $120,790 to employees for 4,700 hours worked. 2,600 units were produced during July. What is the flexible budget amount for direct labor

Answers

Answer:

$137,800

Explanation:

A flexible budget uses the standard hour and costs adjusted to Actual level of output

thus

Flexible budget amount for direct labor = 2 x 2,600 units x $26.50 = $137,800

Indicate the effect each separate transaction has on investing cash flows. (Amounts to be deducted should be indicated with a minus sign.)

a. Sold a truck costing $40,000, with $22,000 of accumulated depreciation, for $8,000 cash. The sale results in a $10,000 loss.
b. Sold a machine costing $10,000, with $8,000 of accumulated depreciation, for $5,000 cash. The sale results in a $3,000 gain.
c. Purchased stock investments for $16,000 cash. The purchaser believes the stock is worth at least $30,000.

Answers

Answer:

a. Increase $8,000

b. Increase $5,000

c. Decrease $16,000

Explanation:

We focus on Investment Activities only

Sale of a Truck

Sale of a Machine

Purchase of Stock Investment

The only aim of a firm's marketing objectives revolves around buying the right media at the right price. B. They are usually defined in terms of specific outcomes such as sales volume, market share, profits, or return on investment. C. They are stated only in a company's strategic action plan. D. They are statements of what various aspects of the IMC pro

Answers

Answer: B. They are usually defined in terms of specific outcomes such as sales volume, market share, profits, or return on investment.

Explanation:

Question asks which options is true about marketing objectives.

Marketing objectives are defined in such a way that the company is able to see what it is they hope to accomplish and whether the marketing campaign will be yield a positive return on the investment put in.

They would therefore like to see if the advertisements created higher sales volume, gave them a larger market share and/or gave them more profit. These will be the objectives of the marketing campaign and will help support the decision to engage more or less in marketing.

can you have a sloth as a pet

Answers

Answer:

in most places yes

Explanation:

they are hard to care for tho

Answer:

i mean Ig it depends on if you need a license or have to pay alot for it

have a good day :)

Explanation:

The present value of a future sum decreases as either the discount rate or the number of periods per year increases, other things held constant. True False

Answers

Answer:

True

Explanation:

At the time when the future sum of the present value reduced and it can be either the discount rate or the number of the period on a yearly basis increased being the other things would remain the same

So the given statement is true

Hence, the same should be considered and relevant too

Innovation is the creation of something new that makes money. In order to be profitable, innovations must be both novel and useful.

a. True
b. False

Answers

Answer:

a. True

Explanation:

A product can be defined as any physical object or material that typically satisfy and meets the demands, needs or wants of customers. Some examples of a product are mobile phones, television, microphone, microwave oven, bread, pencil, freezer, beverages, soft drinks etc.

According to the economist Philip Kotler in his book titled "Marketing management" he stated that, there are five (5) levels of a product. This includes;

1. Core benefit.

2. Generic product.

3. Expected product.

4. Augmented product.

5. Potential product.

The core benefit of a product can be defined as the basic (fundamental) wants or needs that is being satisfied, met and taken care of when a customer purchase a product.

Hence, the term that refers to the first level of a product, which depends on the customer value it generates is generally referred to as a core benefit. For example, a hotel provides a comfortable and convenient bed to spend the night (sleep) when you travel for a vacation.

Innovation typically involves the creation of a new product of any category such as automobile, building, phones, electronics, etc., that generates money for the innovators or manufacturers through purchase made by the end users (consumers).

In order for the innovator to make profits, it is expected or required that his or her innovation is both novel and useful.

An outside supplier has offered to make the part and sell it to the company for $29.80 each. If this offer is accepted, the supervisor's salary and all of the variable costs, including the direct labor, can be avoided. The special equipment used to make the part was purchased many years ago and has no salvage value or other use. The allocated general overhead represents fixed costs of the entire company, none of which would be avoided if the part were purchased instead of produced internally. In addition, the space used to make part U16 could be used to make more of one of the company's other products, generating an additional segment margin of $25,000 per year for that product. The annual financial advantage (disadvantage) for the company as a result of buying part U16 from the outside supplier should be:

Answers

Answer:

-$79000  

Explanation:

The computation of the annual financial advantage (disadvantage) is shown below;

Particulars                           Per unit               Total 13000 units

                               Make               Buy          Make                Buy

Direct materials    2.90                                  37700  

Direct labor           7.50                                  97500  

Variable manufacturing

overhead               8.00                                  104000  

Supervisor's salary 3.40                                   44200  

Contribution margin                                         25000  

Purchase cost                          29.80                                  387400

Total                                                                   308400 387400

Now the finacial disadvantage is  

= 308400 - 387400

= -$79000  

For financial reporting, Clinton Poultry Farms has used the declining-balance method of depreciation for conveyor equipment acquired at the beginning of 2018 for $2,560,000. Its useful life was estimated to be six years with a $160,000 residual value. At the beginning of 2021, Clinton decides to change to the straight-line method. The effect of this change on depreciation for each year is as follows:

Year Straight-Line Declining Balance Difference
2018 $400 $853 $453
2019 400 569 169
2021 400 379 (21)
$1,200 $1,801 $601

Required:
Prepare any 2018 journal entry related to the change?

Answers

Answer:

A change in the depreciation method is not a change of accounting policies. Therefore, this change will not require any retrospective journal entry for 2018. Changes in depreciation methods are prospective, meaning that they affect future values, not past values. This is considered a change in an accounting estimate.

Explanation:

Financial statement data for the years 20Y5 and 20Y6 for Black Bull Inc. follow: 20Y5 20Y6 Net income $1,538,000 $2,485,700 Preferred dividends $50,000 $50,000 Average number of common shares outstanding 80,000 shares 115,000 shares a. Determine the earnings per share for 20Y5 and 20Y6. Round to two decimal places. 20Y5 20Y6 Earnings per Share $fill in the blank 1 $fill in the blank 2 b. Is the change in the earnings per share from 20Y5 to

Answers

Answer:

1. Earnings per share = (Net income - Preferred Dividend) / Average Common Stock EPS

Earnings per share 20Y5 = (1538000 - 50000) / 80000

Earnings per share 20Y5 = $18.60

Earnings per share 20Y6 = (2485700 - 50000) / 115000

Earnings per share 20Y6 = $21.18

2. The charnge in EPS is Favourable because there is increase in Earnings per share over the year.

Given the following cash flows for a capital project for the Witter Corp., calculate its payback period and discounted payback period. The required rate of return is 8 percent. Cashflows: Year 0 = -50,000; Year 1 = 15,000; Year 2 = 15,000; Year 3 = 20,000; Year 4 = 10,000; and Year 5 = 5,000. The discounted payback period is

Answers

Answer:

4.01 years  

Explanation:

The computation of the discounted payback period is shown below;

Given that

Required rate of return is 8%

Cashflows: Year 0 = -50,000;

Year 1 = 15,000;

Year 2 = 15,000;

Year 3 = 20,000;

Year 4 = 10,000;

and Year 5 = 5,000

As we can see from the attached table that approx in 4 years it could cover $49,975

So

the discounted payback period is

= 4 years  + ($50,000 - $49,975.91) ÷ $3,402.92

= 4.01 years  

4. Both the concentration and Herfindahl indices computed by the U.S. Bureau of Census tends to overstate the actual level. In addition, they understate the degree of concentration in local markets (gasoline, for example). Explain why we make these statements.

Answers

Answer:

The use of data aggregation leads to overstatement of the  concentration and Herfindahl indices

while the use of National/state data leads to understatement of the degree of concentration in local markets.

Explanation:

The ratio of concentration and Herfindahl indices computed are mainly made up of foreign players while  the contributions of small local unorganized players are not considered, which leads to the increase in the value of  indices and ratios been used, ( i.e. The use of data aggregation ) .  hence the overstatement of the actual level.

The understatement of the degree of concentration in local markets happens because of the use of national and state data while computing the concentration in the local markets like gasoline and this is mainly caused by the presence of fewer industries in the market. The state and national data does not reflect the true concentration in the local market hence the degree of concentration is understated at the local level.

Other Questions
What are yalls Zodiacs? I'm an Aries :3 Suppose the sphere below with radius r has a surface area equal to 45 unitsFind the surface area of the sphere with twice the radius.-21-oA. 180 units2B. 180 units 3C. 90 unitsD. 90 units 3 Please help! If 2 answers I will mark one as the brainliest!!! Pls help me I have 5 min to do this!!!! PLS PLS PLS PLS PLS NO LINKS!!!! I cant open them just pls give me the answer idc how you got it LOL. Pls help like real people help :( given 45, 39, 33, 27 ... find a12 plzzzzz help.societal beliefs that influence the prevalence of sexual assault How much heat is released when 233 grams of water at room temperature (25C) is frozen into ice at -15C? the first Punic war was fought over____.a. control over sicily b. carthage's attempt to take over spai c. helen of troy d. Scipio's attack on carthage HELP! On an 8 section spinner what is the propibility of spinning a number less then 6 need help with this one Based on the strength of the magnetic fields they produce, arrange the solenoids from strongest to weakest Can anyone tell me what the answer to this problem is and the explination? 2.What took place during the Trail of Tears?Your answer plz help I will mark brainliest :) (2x-1) (3x+5) -(2x-1) (x+4) Recessive refers to...A. The genetic makeup of an organism B. The trait that is expressed over another trait C. The physical trait you can see in an organism D. The trait that is not expressed when a dominant trait is present Overnight, a pipe cracked and started to leak into a basement. The graph shows the depth of the water in relation to time.How many inches does the water rise each hour? ___ inches.How deep is the water after four hours? The water is __ inches deep.How long will it take for the water to reach a depth of 80 inches? It will take __ hours. okay Ive been struggling on this for like 20 min, someone Pleaseee help me what is the defenition of annual fee? ou were hired as a consultant to Quigley Company, whose target capital structure is 35% debt, 10% preferred, and 55% common equity. The interest rate on new debt is 6.50%, the yield on the preferred is 6.00%, the cost of common from retained earnings is 11.25%, and the tax rate is 40%. The firm will not be issuing any new common stock. What is Quigley's WACC