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2 years ago

Which situation could be the best example of an oligopoly?

Business

2 answers:

AURORKA [14]2 years ago

5 0

Answer:

B. A new producer of a smart phone operating system is trying to enter the market but cannot because most cell phone makers use one of two popular operating systems.

Explanation:

I got it correct on Edg.

Darya [45]2 years ago

3 0

Answer:

The answer is most likely A. new producer of power tools has entered the market and is relying on low prices to attract consumers.

Explanation:

In an oligopoly, there is only a handful of companies operating in the industry and they all present similar types of goods and services (but they can differ too)

The goods and services are closedly priced in an oligopoly market. This means that the price between the goods offered by the companies in the market do not change much between the companies.

So a new manufacturerentering the market has to use a market penetration strategy and set the prices low.

You might be interested in

Cordell Inc. experienced the following events in 2018, its first year of operation:

olga_2 [115]

Answer:

Cordell Inc.

a. Events that result in revenue or expense recognition:

2. Performed services on account for $82,000.

5. Paid $53,000 cash for other operating expenses.

6. Performed services for $19,000 cash.

7. Recognized $3,500 of accrued utilities expense at the end of the year.

b. The amount of net income reported on the 2018 income statement:

$44,500

c. The events that affect the statement of cash flows:

1. Received $40,000 cash from the issue of common stock.

3. Paid a $6,000 cash dividend to the stockholders.

4. Collected $76,000 of the accounts receivable.

5. Paid $53,000 cash for other operating expenses.

6. Performed services for $19,000 cash.

d. The amount of cash flow from operating activities reported on the 2018 statement of cash flows:

$42,000

Explanation:

Data and Calculations:

a) Revenue

Event 2. $82,000

Event 5. (53,000)

Event 6. 19,000

Event 7. (3,500)

b) Net Income $44,500

c) Cash flow from operating activities:

Event 4. Collection from Accounts Receivable $76,000

Event 5. Payment for operating expenses ($53,000)

Event 6. Cash Receipts for services $19,000

d) Net Cash from operating activities $42,000

6 0

2 years ago

One inherent risk to using lean philosophy is that companies are at higher risk of inventory shortage during volatile times such

olganol [36]

Answer:

True

Explanation:

As in the lean philosophy the production is based on specific customer demands, there are chances that when the order is received then the inventory required is not present and that the inventory is not held in hand.

Whereas in the traditional philosophy the production is based on the principle of budgets and sales forecast, accordingly the sales keeps on moving and the inventory is also held in hand prior to confirmation of order from customers.

Since there is no planning before the order is received from customers under lean, in emergency cases, or scarcity of resources, the inventory will fall short, and acquisition of inventory would not be easy.

6 0

2 years ago

Suire Corporation is considering dropping product D14E. Data from the company's accounting system appear below: Sales $ 670,000

Marina86 [1]

Answer:

a. According to the company's accounting system, what is the net operating income earned by product D14E? (Net losses should be indicated by a minus sign.)

net loss -$65,000

b. What would be the financial advantage (disadvantage) of dropping product D14E? Should the product be dropped?

financial disadvantage of discontinuing the produce is -$68,000, so the company should not discontinue the product since its losses would increase

Explanation:

total sales $670,000

- variable expenses $295,000

- fixed manufacturing expenses $246,000

- fixed selling and administrative expenses $194,000

net loss = $65,000

if product D14E is discontinued, $196,000 + $111,000 = $307,000, of fixed expenses can be avoided, but $133,000 are not avoidable. if the company discontinues the product, its losses will increase by $133,000 - $65,000 = $68,000

3 0

2 years ago

The manager of a canned-food processing plant has two labeling machine options. On the basis of a rate of return analysis with a

GREYUIT [131]

The manager of a canned-food processing plant has two labeling machine options. on the basis of a rate of return analysis with a marr of 20% per year, determine (a) which model is economically better, and (b) if the selection changes, provided both options have a 4-year life and all other estimates remain the same.

Answer:

The answer is below

Explanation:

First, compare the present values (PV) of all the expenses of all the investments to make an investment decision.

Given the formula of PV = ((C1/(1+r)1) + ((C2/(1+r)2) + ((C3/(1+r)3) +…….+ ((Cn/(1+r)n) + present value of investment – present value of the salvage value

Where, Cn equals to the expense incurred in the nth period and r is the rate of interest per period.

Therefore, for Machine A, present value of the expenses is

= ((1600/(1+0.20)1) + ((1600/(1+0.20)2) + 15,000 – ((3000/(1+0.20)2)

= 1333.33 + 1111.11 + 15000 – 2083.33

= 15361.11

For Machine B, present value of the expenses is

= ((400/(1+0.20)1) + ((400/(1+0.20)2) + ((400/(1+0.20)3) + ((400/(1+0.20)4) + 25,000 - ((4000/(1+0.20)2)

= 333.33 + 277.77 + 25,000 – 2777.77

= 22833.33

Therefore, it is shown that, Machine A is the least cost alternative and should be selected.

5 0

2 years ago

You are 50 years old and proud of having $75,000 invested in a mutual fund earning an impressive 17% per year. you want to retir

shtirl [24]

I am really not sure but i will be honest with you i would have to say yes he will make it but if he don't he could always ask for a raise to make his goal

8 0

2 years ago