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2 years ago

In Porter's Five Forces model, conditions under which a supplier group can be powerful include all the following except:

Business

1 answer:

kodGreya [7K]2 years ago

7 0

Answer:

D) readily available substitute products.

Explanation:

Porters five explains the following

Threat of new entry
Bargaining power of suppliers
Bargaining power of buyers
Threat of substitution

A) lack of importance of the buyer to the supplier group.

True. Buyers have less bargaining power as compared to suppliers

B) high differentiation by the supplier.

True. Higher differentiation leads to competitive advantage and rivalry within the market.

C) dominance by a few suppliers.

True. This falls under threat of new entry as the fewer suppliers create barriers such as capital requirement and licensing requirements to prevent new entrants

D) readily available substitute products.

False. This means there are more suppliers in the market that are ready to substitute a product thus making suppliers less powerful.

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Assume that Clark Electronics has a monopoly in the production and sale of a new device for detecting and destroying a computer

Triss [41]

Solution :

c. MC=MR is the profit maximizing equilibrium point. The price rise beyond that is likely to raise the total revenue. But the total cost might increase equally or more then that to nullify or decrease the profit.

d. (i). The demand increase implies that the AR (demand) curve shifts rightwards. This will increase the equilibrium price.

(ii). Change in demand does not affect the total cost.

a. Monopoly might continue to produce in short earn even if its AR < AC. It continues to do so until shut down point. It refers that production continued until average revenue (AR) is greater than equal to the average variable cost (AVC). The monopoly is a market with a single seller.

This market's average revenue (AR) demand curve is above its marginal curve . The curves are downward sloping, illustrating price demand inverse relationship.

Equilibrium quantity : when the marginal revenue = marginal cost

Equilibrium price : equilibrium quantity corresponding price at AR (demand ) curve.

3 0

2 years ago

Provenzano Corporation manufactures two products: Product B56Z and Product D32N. The company is considering implementing an acti

Yuliya22 [10]

Answer:

The correct answer is A.

Explanation:

Giving the following information:

Activity Cost Pool Activity Measure Total Cost Total Activity

Machining Machine-hours $330,000 15,000 MHs

To calculate the predetermined manufacturing overhead rate we need to use the following formula:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

<u>Machinning:</u>

Predetermined manufacturing overhead rate= 330,000 / 15,000

Predetermined manufacturing overhead rate= $22 per machine-hour

<u>Machine setups:</u>

Number of setups $50,000 100 setups

Predetermined manufacturing overhead rate= 50,000/100

Predetermined manufacturing overhead rate= $500 per set-up

6 0

2 years ago

Sales are $1.44 million, cost of goods sold is $570,000, depreciation expense is $144,000, other operating expenses is $294,000,

anygoal [31]

Answer:

Times Interest earned ratio is 4.41 times

Explanation:

Times interest earned ratio measure the business capability to pay the interest over its liabilities from its current earning.

As interest expense value is not given it is calculated by the net of Earning before interest and tax and Income before tax

Net Income = Addition to Retained Earning + Dividend Paid = $133,100 + ( 84,000 x $1 ) = $133,100 + $84,000 = $217,100

Income before tax = $217,100 x 100% / ( 100% - 35%) = $334,000

Earning before interest and tax = Sales - Cost of goods sold - depreciation expense - other operating expenses = 1,440,000 - 570,000 - 144,000 - 294,000 = $432,000

Interest Expense = Earning before interest and tax - Income before tax = $432,000 - 334,000 = $98,000

Times Interest earned ratio = Earning before Interest and tax / Interest expense = $432,000 / $98000 = 4.41 time

4 0

2 years ago

A price ceiling will have NO immediate effect if: a. it is set above the equilibrium price. b. the equilibrium price is above th

ioda

Answer:

A. Set above equilibrium price

Explanation:

A price ceiling is a mandatory maximum price that a seller is allowed to charge. Generally, a government may impose this in order to protect consumers, especially with regards to the purchase of essential goods.

If the price ceiling was set below the equilibrium price (option c) or if the equilibrium price is above the price ceiling (option b), it will immediately cause a shortage (option d) since the quantity demanded would be higher than the quantity supplied when the price falls. This is because people will be willing to purchase more since it is cheaper but suppliers will be willing to produce less due to lower profits. Hence, options b, c and d are eliminated.

Option A is correct because... (please refer attached diagram):

When the price ceiling is above the equilibrium price, suppliers are willing to supply more since they can make higher profits but consumers will reduce purchasing since it is expensive. However, it does not cause any immediate effect because it takes time for suppliers to be able to produce more and cannot be done immediately unless anticipated in advance. In the long run however, quantity demanded will fall from equilibrium quantity to D1 and quantity supplied will rise from equilibrium quantity to S1. Hence, causing a surplus between D1 - S1 in the long run.

4 0

2 years ago

(18.20) the coach of a college men's soccer team records the resting heart rates of the 27 team members. you should not trust a

drek231 [11]

Answer:

Explanation:

The coach of a college men’s soccer team records the resting heart rates of the 27 team members. You should not trust a confidence interval for the mean resting heart rate of all male students at this college based on these data because;

(a) with only 27 observations, the margin of error will be large.

(b) heart rates may not have a Normal distribution.

7 0

2 years ago