firms 1 and 2 compete in a cournot duopoly. if firm 2 adopts a strategy that raises firm 1's marginal cost, multiple choice firm 1 will increase its output. firm 1 will not increase its output nor enjoy higher profits nor will firm 2 lose market share. firm 1 will enjoy higher profits. firm 2 will lose market share.

Answers

Answer 1

Firm 1 will reduce its output.

Cournot duopoly is  also known as  Cournot competition

It is a model of imperfect competition in which two firms with identical cost functions compete with homogeneous products in a static setting.

It was created by Antoine A. Cournot in his “Researches Into the Mathematical principles of the Theory of Wealth” in 1838. Cournot  duopoly represented the making of the study of oligopolies, particularly the duopolies, and it also expanded the analysis of market structures which, until then concentrated on the extremes of it as perfect competition and monopolies.

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Related Questions

A company had the following assets and liabilities at the beginning and end of this year. Assets Liabilities Beginning of the year $ 144,000 $ 61,733 End of the year 197,500 79,988 Owner made no investments in the business, and no dividends were paid during the year. Owner made no investments in the business, and dividends paid were $15,600 during the year. No dividends were paid during the year, but the owner did invest an additional $45,000 cash in exchange for common stock. Dividends paid were $15,600 during the year, and the owner did invest an additional $35,000 cash near year-end in exchange for common stock. Determine net income or net loss for the business during the year for each of the above separate cases:

Answers

Net income(first scenario) is $35,245

Net income(second scenario) is $50,845

Net loss(third scenario) is -$9,755

Net income(fourth scenario) is $15,845

What is accounting equation?

The accounting equation means that the assets of the company are financed by its equity and liabilities, also, the increase in assets are financed by the increase in equity and liabilities, based on that, we can determine the net income or net loss of the company based on the different scenarios:

Scenario 1:

increase in assets=increase in equity+ increase in liabilities

increase in assets=$197,500-$ 144,000=$53,500

increase in liabilities=$79,988-$61,733=$18,255

$53,500=x+$18,255

x=$53,500-$18,255

x=net income=$35,245

Scenario 2:

$53,500=net income-$15,600+$18,255

$53,500=net income+$2,655

net income=$53,500-$2,655

net income=$50,845

Scenario 3:

$53,500=net loss+$45,000+$18,255

$53,500=net loss+$63,255

net loss=$53,500-$63,255

net loss=-$9,755

Scenario 4:

$53,500=net income-$15,600+$35,000+$18,255

$53,500=net income+$37,655

net income=$53,500-$37,655

net income=$15,845

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A driver works 40 hours a week for the first year on the job. how much does the driver earn for the year?

Answers

A driver will earn Rs 36,800 for a year , if driver works 40 hours a week .

As he works 40 hours/ week and works for a year.

What are the total earnings of a driver in a year ?

1 year = 52 weeks.

First 4 weeks he earns Rs14/ hour

Rest of the year he earns Rs18/ hour

First 4 weeks = 40 hours x Rs 14 x 4 weeks = Rs2240

52weeks - 4weeks = 48 weeks

Rest 40 hours x Rs 18 x 48 weeks = Rs 34560

Total Earnings = Rs 2240 + Rs 34560 = Rs 36,800

The driver earns that total amount in a year.

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Small dollar value purchase orders can be efficiently and effectively managed by?

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Small-dollar value purchase orders can be efficiently and effectively managed by implementing an e-procurement application.

A buy entails the purchase of goods or offerings in exchange for a charge of some type. The charge is commonly in coins or credit (to be paid later). A buy may also be part of a barter transaction in which exclusive non-coins belongings are exchanged, or it may be in change for the idea of legal responsibility.

An example of to purchase is to buy meals on the grocery save. To gain at a price, as of struggling or sacrifice. (law) the acquisition of land, buildings, and so forth. by way apart from inheritance or descent.

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When faced with cash flows of equal magnitude occurring at different points in time, we prefer to?

Answers

When faced with cash flows of equal magnitude occurring at different points in time. Then, "receive it sooner than later."

What is cash flow?

The net amount of cash equivalents transferred into and out of a company is referred to as cash flow. Inflows are represented by cash received, while outflows are represented by money spent.

Some key points related to cash flow are-

The ability of a company to start generating positive cash flows or, more particularly, to achieve maximum long-term free cash flow is fundamental to its capacity to create shareholder value (CFC). FCF is a company's cash generated from normal business operations after deducting any money being spent on capital expenditures.Cash flow from operations, investing, & financing are common categories for a company's cash flow.The debt coverage ratio, free money flow, & unlevered cash flow are all methods for analyzing a company's cash flow.

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One reason why employers might assist hispanics in learning english is that they often have dangerous jobs.
a. true
b. false

Answers

Due to the fact that many Hispanics work hazardous jobs, businesses may offer to help them learn English. This statement is true.

The school experience is one of compounded disadvantage for Hispanics in the United States. Many Hispanic students start formal education without the financial and social support that many other students do, and schools are frequently ill-prepared to make up for these early inequalities. Initial difficulties for Hispanics frequently result from parents' socioeconomic background, immigration status, and ignorance of the American educational system. Hispanic pupils' academic progress is still being hampered as they go through the educational system due to insufficient school resources and poor relationships with their teachers.

Hispanics experience the lowest rates of high school and college degree completion, which reduces their prospects of finding steady employment as a result of earlier disadvantages that keep compounding. It is important for the country to be concerned about the Hispanic educational status.

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Who has the power to prosecute companies that fail to take reasonable precautions to protect private information?

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the power to prosecute companies that fail to take reasonable precautions to protect private information "FTC"

What is Prosecutor?

In jurisdictions with either a civil law inquisitorial system or a common law adversarial system, a prosecutor is a legal representative of the prosecution. In a criminal trial, the prosecution is the party legally tasked with making its case against the defendant who is alleged to have broken the law. The Prosecutor typically defends the state or the federal government in the case brought against the defendant.

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Success at delivering customer value rests on how well a company's entire supply chain performs against competitors' supply chains.
a. true
b. false

Answers

The claim that success at delivering customer value rests on how well a company's entire supply chain performs against supply chains of competitors is correct. Thus, the answer is TRUE.

Be aware that the term "supply chain" describes a path leading from raw materials to components to finished goods that are delivered to customers.

Businesses must truly strive to comprehend their customers or consumers, provide value to them, and establish enduring connections with them since firms actually profit from superior customer value creation.

Customers' value is captured in the form of sales, profits, and long-term customer equity by businesses that create value for consumers. Taking this into account is known as marketing or the process by which businesses produce value for customers and establish trusting bonds with them in order to reap value from them in return.

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When conducting an internal analysis, strategic managers should: _____.

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When conducting an internal analysis, strategic managers should- have a clear knowledge of an entity’s strengths and weaknesses prior to the enactment of a strategic plan.

What is Internal analysis?

Examining your company's internal resources, assets, and processes is referred to as internal analysis. Members of top management can identify potential growth areas thanks to these assessments, which also help them make wise judgments. You must update your business strategies and plans in response to an internal analysis. Work together with other experts to incorporate your internal analysis and the company's business plan to produce a comprehensive picture of the activities of the organization. Select a framework before conducting an internal analysis. Each framework has its own set of instruments, tactics, and goals for studying internal operations.

Based on your organization's position in the market for your industry, these assessments calculate the costs of your organization's operations and identify any prospective business prospects. They also determine your capacity to draw in new customers and clients. You must manage resources and cut costs as a result of an internal review in order to have more money for business development. This determines if your business has the resources required to find business possibilities.

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Consider the supply curve for basketballs. Other things held constant, if the price of basketballs goes up from $7. 99 to $14. 99, what can we expect from suppliers of basketballs as a result?.

Answers

There will be an increase in quantity supplied through the Law of Supply.

What is law of supply?

A key tenet of economic theory is the rule of supply, which asserts that an increase in price will result in an increase in the quantity supplied, all other things being equal.

According to the law of supply, price and quantity supplied of an item are directly related to one another, all other things being equal.
Therefore,

we expect from suppliers of basketballs as a result there will be an increase in quantity supplied through the Law of Supply.

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In the myers-briggs framework, elena is isfj. what would be the best job fit for her?

Answers

An accountant will be the best job fit for her.

What is the role of an accountant?

Despite the fact that an accountant's day-to-day duties will vary based on their position and employer, some of their most usual jobs and obligations include:

ensuring that all financial records are correct and adhere to all relevant laws and regulations.

important financial reports and maintaining them.

ensuring that taxes are paid correctly and on time, as well as producing tax returns.

To identify best practices, identify issues and develop solutions, and support firms in operating efficiently, financial processes are evaluated.

offering suggestions for optimizing profit, boosting sales, and cutting costs.

making forecasts and risk assessment evaluations.

Law also mandates that accountants conduct themselves honestly and without negligence. Therefore, they are also in charge of ensuring that their customers' Financial documents adhere to all applicable laws and regulations.

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The difference between the variable costing ending inventory and the absorption costing ending inventory is:_________

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The way fixed production overhead is handled in absorption costing and variable costing is the only distinction.

An overview of absorption costing versus variable costing

Work-in-progress and inventory values for businesses are determined using absorption costing and variable costing techniques. All expenses related to the production of a product are included in absorption costing. The only costs included in variable costing are the ones directly associated with production and none of the fixed costs. The Generally Accepted Accounting Principles (GAAP) of the Financial Accounting Standards Board mandate absorption costing for reporting purposes (GAAP).

Only businesses that spend costs of goods sold (COGS) on their income statement will need to consider absorption vs. variable costing.

Despite the fact that any business can utilize both approaches for various purposes, public businesses are obligated to employ absorption costing due to their GAAP accounting obligations.

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In the late 1920s, you could buy $10,000 worth of stock by putting down as little as:_________

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In the late 1920s, you could buy $10,000 worth of stock by putting down as little as: $1000.

What is meant by a stock in finance?

The term stock can also be referred to as what is called equity. This is the term that is sued to refer to the security that people would have from a particular issuing corporation. The purpose of the stock is to be able to give the owner a proportion of the assets of the particular company.

Hence we can say that In the late 1920s, you could buy $10,000 worth of stock by putting down as little as: $1000.

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In a ___________ architecture, computers are both client and server, thus sharing the work.

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In a Peer-to-peer architecture, computers are both client and server, thus sharing the work.

What is a Peer to peer Architecture?

Peer-to-peer (P2P) architecture is made up of a decentralized network of peers, which act as both clients and servers.

Peer-to-peer networks share burden among peers, who all contribute and consume network resources without the need for a centralized server.

A P2P network, because of its architecture, can provide various benefits to its users, including:

Simple file sharing: Advanced P2P networks may instantly transfer data across large distances. Files are available at all times. Reduced costs: When establishing a P2P network, there is no need to purchase a separate server computer.

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Arbitrage proofs in futures market pricing relationships multiple choice incorporate transactions costs. all of the options are correct. rely on the capm. demonstrate how investors ?

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A different approach to understanding returns on assets or portfolios than the capital asset pricing model (CAPM) is arbitrage pricing theory (APT). In the 1970s, economist Stephen Ross created it. Due to its very straightforward underlying assumptions, arbitrage pricing theory has gained prominence over time.

However, because it needs a lot of data and intricate statistical analysis, arbitrage pricing theory is far more challenging to put into effect. APT is a multi-factor technical model that is based on the correlation between the expected return and risk of a financial asset. The goal of the model is to represent how sensitive the returns on an asset are to changes in specific macroeconomic variables. These findings can be used by financial analysts and investors to assist in pricing stocks.

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Yvonne earned $75,000 and paid $4,500 of income tax; jasmine earned $43,000 and paid $3,000 of income tax. the tax rate structure they are subject to is?

Answers

Yvonne earned $75,000 and paid $4,500 of income tax; jasmine earned $43,000 and paid $3,000 of income tax. the tax rate structure they are subject to is Regressive.

Regressive taxes are those whose average tax burden decreases as income rises. Low-income taxpayers bear a disproportionately big amount of the tax burden, while middle- and high-income taxpayers bear an inequitably small portion.

Knowledge of Regressive Taxes

Because regressive taxes are applied consistently to all circumstances, regardless of the taxpayer, they have a greater negative impact on low-income individuals than they do on high-income individuals. Taxing everyone at the same rate is viewed as unfair in some situations, despite the fact that it may be reasonable in others. While other forms of taxes are applied evenly, most income tax systems use a progressive schedule that taxes high incomes at a greater percentage rate than low ones.

We pay some taxes that are seen as regressive taxes even though the United States has a progressive income taxation system, which means higher income earners pay a higher percentage of taxes each year compared to those with a lower income.

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Suppose+that+$2700+is+deposited+in+an+account+that+earns+4%+interest.+how+much+is+in+the+account+(a)+after+5+years?+(b)+after+10+years?+(c)+after+20+years?+(d)+after+50+years?+(e)+after+100+years?

Answers

As P= $2700 and R = 0.04

With Simple Interest: the formula to calculate payment in it after n years is = P + (P*R*N) / 100

a) After 5 years = 2700 + 2700 * 0.04 * 5 = 3240

b) After 10 years = 2700 + 2700 * 0.04 * 10 = 3780

c) After 20 years = 2700 + 2700 * 0.04 * 20 = 4860

d) After 50 years = 2700 + 2700 * 0.04 * 50 = 8100

e) After 100 years = 2700 + 2700 * 0.04 * 100 = 13500

With Compound Interest: the formula to calculate payment in it after n years is = P * ( 1 + R / 100) ^ n

a) After 5 years = 2700 (1.04)^5 = 3284.96

b) After 10 years = 2700 (1.04)^10 = 3996.65

c) After 20 years = 2700 (1.04)^20  = 5916.03

d) After 50 years = 2700 (1.04)^50 = 19188.04

e) After 100 years = 2700 (1.04)^100  = 136363.36

What is simple interest?

Simple interest is a quick and simple formula for figuring out how much interest will be charged on a loan. The daily interest rate, the principle, and the number of days between payments are multiplied to calculate simple interest.

Although some mortgages employ this calculation approach, this kind of interest typically relates to auto loans or short-term loans.

When you make a payment on a loan with simple interest, the money first goes toward the interest for that month and the rest is applied to the principal. Interest never builds up because it is always paid in whole each month. Compound interest, on the other hand, adds some of the monthly interest back onto the loan; each month after that, you pay new interest on the previous month's interest.

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How will an increase in demand and a simultaneous decrease in supply affect the equilibrium price and quantity of a good in a market?.

Answers

Although the impact on the equilibrium quantity cannot be determined, a rise in demand and a decrease in supply will result in an increase in the equilibrium price.

Consumers now place a higher value on goods in any quantity, and producers must charge a higher price to offer the goods; as a result, prices will rise. An equilibrium price, also known as a market-clearing price, is the consumer cost ascribed to some product or service such that supply and demand are equal, or close to equal. The manufacturer or vendor can sell all the units they want to move and the customer can access all the units they want to buy.

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______ is a term that describes involuntary turnover of employees that an organization performs to reduce costs.

Answers

Downsizing is a term that describes involuntary turnover of employees that an organization performs to reduce costs.

What is Involuntary turnover?

Layoffs, force reductions, and the firing of underperforming personnel are all examples of involuntary turnover. The first kind of involuntary turnover would be seen as undesirable since it could have an impact on the management and financial activities of the organisation. The second would be more positive for the business as we outlined above. One sort of turnover that takes place when a person is let go from a job is involuntary turnover. Employees may be fired for a variety of reasons, such as subpar work performance or inappropriate behaviour, which is frequently referred to as unproductive work behaviour (CWB).Pre-employment exams can be used during the hiring process to reduce involuntary turnover. One major factor in involuntary turnover, for instance, is the failure of new hires to comprehend and implement the training they receive.

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The extra cost associated with undertaking some action is its? marginal benefit. marginal cost. net cost. total cost.

Answers

The extra cost associated with undertaking some action is its marginal cost. (second option)

What is marginal cost?

Marginal cost is the additional cost generated when output is increased by one unit. Marginal cost is derived by dividing the change in total cost by the change in total output.

For example, if the total cost of producing 10 units of a good is 100 and the total cost of producing 12 units is 120.

Marginal cost : change in total cost / change in output

Marginal cost : (120 - 100) / (12 - 10) = 10

Marginal cost and marginal benefit are used in managerial economics to analyse the economies of scale to optimize production and overall operations. Marginal benefit is the change in total benefit when output is increased by one unit.

Production is optimised if marginal cost is less or equal to marginal benefit. If this is not the case, production is not efficient and production should be reduced until efficiency is attained.

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An+investor+is+in+a+30%+combined+federal+plus+state+tax+bracket.+required:+if+corporate+bonds+offer+9%+yields,+what+yield+must+municipals+offer+for+the+investor+to+prefer+them+to+corporate+bonds?

Answers

The municipal bonds must offer return higher than 6.30%. The best after-tax return bonds are those that investors would prefer. Shareholders in corporate bonds must pay taxes on both capital gains and interest payments. The after-tax profit on bond funds at a 9% pre-tax yield is: 9% * (1 - 30%) = 6.30%.

What is Municipal Bonds?

Municipal authorities issue municipal bonds as a means of borrowing money. Municipal bonds give the benefit of gst interest payments, setting them apart from other municipal and commercial bonds. As a result, a municipal bond's payoff is the same before and following taxes.

Municipal bonds have a yield to maturity that is pre-tax plus an after-tax return that is tax-free. If municipal bonds offer a return greater than or equal to that same 6.30% dividend on junk bonds, investors are more likely to pick them.

Therefore,

An investor is in a 30% combined federal plus state tax bracket. If corporate bonds offer 9% yields, what must municipals offer for the investor to prefer them to corporate bonds?

The municipal bonds must offer return higher than 6.30%.

The best after-tax return bonds are those that investors would prefer. Shareholders in corporate bonds must pay taxes on both capital gains and interest payments. The after-tax profit on bond funds at a 9% pre-tax yield is:

9% * (1 - 30%) = 6.30%.

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according to the international accounting standards board, recognizing income can result from: increasing assets. increasing liabilities. decreasing equity.

Answers

According to the international accounting standards board, recognizing income may end up from increasing assets.

Assets are items of import, like property and equipment, which your company owns or leases so as to control. they'll even be a way of making value in your business - as an example, holding, customer relations and goodwill.

Assets are important as they will facilitate your to:

generate revenueincrease your business' valuehelp the running of your business

You can sell or transfer assets, use them to lower your invoice and increase the efficiency of your business. Understanding the importance of assets can facilitate your achieve potential savings.

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Garrett was just convinced to buy life insurance. in terms of the hierarchy, he is driven by his ________ needs when he seeks financial security for his family should he die unexpectedly.

Answers

In a case whereby Garrett was just convinced to buy life insurance, in terms of the hierarchy of needs he is driven by his safety needs when he seeks financial security for his family should he die unexpectedly.

What are hierarchy of needs?

Maslow's hierarchy of needs can be described as the  theory  that was put in place by Abraham Maslow, which stressed  that people are motivated by categories of needs: such as

physiological safety, love esteem, and self-actualization.

Therefore, In a case whereby Garrett was just convinced to buy life insurance, in terms of the hierarchy of needs he is driven by his safety needs when he seeks financial security for his family should he die unexpectedly.

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The idea that some basic businesses such as steel mills, coal mines and utilities, should be owned and controlled by the government is indicative of a economic system.

Answers

It is an indicative of a socialism economic system. Socialism is a left-wing to far-left monetary philosophy and motion encompassing various monetary structures characterised via way of means of the dominance of social possession of the way of manufacturing in place of personal possession

What is communism versus socialism?The fundamental contrast is that under socialism, most property and monetary assets are claimed and constrained by the state (as opposed to individual residents); under communism, all residents share similarly in financial assets as dispensed by an equitably chosen government

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Hiring another worker is not beneficial when the marginal benefit of hiring one more worker _____ the marginal cost, meaning that hiring another worker _____ economic surplus.

Answers

Hiring another worker is beneficial when the marginal benefit of hiring one more worker exceeds the marginal cost, meaning that hiring another worker increases economic surplus.

What means marginal cost?

Marginal cost refers to the increase or decrease in the cost of producing one extra unit or delivering one more customer. It is also known as incremental cost.

Why is marginal cost important ?

Marginal cost is an crucial factor in determining  economic theory because a company that is seeking to maximize its profits will produce up to that  point where marginal cost (MC) equals marginal revenue (MR).

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An annuity is a stream of level, evenly spaced cash flows or cash payments that never ends. group of answer choices
A. true
B. false

Answers

The statement "An annuity is a stream of level, evenly spaced cash flows or cash payments that never ends" is false?

What is an annuity?

An annuity is a stream of level, evenly cash flows or cash payments that is paid to an individual over a definite number of years, in other words, an annuity has a fixed term not that it is paid forever or indefinitely.

However, perpetuity is the stream of evenly spaced cash flows that a beneficiary receives forever, it is similar to annuity, but the difference in the period of payments,  the former has a fixed tenure such as 10 years, whereas the latter is never ending.

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After the adjusting entries have been completed, the adjusted balance in the deferred revenue account represents:______

Answers

After the adjusting entries have been completed, the adjusted balance in the Deferred Revenue account represents: The amount of the sales or services still owed to the customer.

What is deferred revenue?

Deferred revenue can be defined as the amount a customers paid for the goods or product they are yet to received from a supplier.

The adjusted balance in a deferred revenue account means that company are still owing their customers because they are yet to supply goods to the  customers despite the customers has paid the company.

Therefore the adjusted balance in the Deferred Revenue account represents: The amount of the sales or services still owed to the customer.

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If a firm has $300,000 in cash flow from assets and $100,000 in cash flow to shareholders, what is the cash flow to creditors?

Answers

If a firm has $300,000 in cash flow from assets and $100,000 in cash flow to shareholders, the cash flow of creditors is 200,000.

The cash flow from assets must equal the sum of the cash flow to creditors plus shareholders.

CF from Assets = CF to Shareholders plus CF to Creditors.

CF From assets = CF to Shareholders + CF to creditors.

CF from assets - CF to Shareholders = CF to creditors.

Thus, 300,000 - 100,000 = 200,000.

What is cash flow (CF)?

One of the areas on the cash flow statement that details how much money was made or spent on various investment-related activities during a given time period is the cash flow from investing activities (CFI) section. Purchases of tangible assets, investments in securities, and sales of assets or securities are all examples of investing activities.

A company's poor performance is frequently indicated by negative cash flow. Negative cash flow from investing activities, however, could be the result of significant sums of money being spent on things like R&D that are essential to the company's long-term success.

It's crucial to understand where an organization's investment activity fits into its financial statements before analyzing the various positive and negative cash flows from investing activities.

The balance sheet gives a summary of the assets, liabilities, and owner equity of a company as of a particular date. An overview of the company's earnings and outlays for a time period is given by the income statement. By displaying how much money is made or spent on operating, investing, and financing activities over a given time period, the cash flow statement fills the gap between the income statement and the balance sheet.

Thus, $200,000 is cash flow to creditors.

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Your firm currently has taxable income of $80,500. how much additional tax will you owe if you increase your taxable income by $21,700?

Answers

Answer:

$102,200

Explanation:

Decreasing temperatures will ________ the frequency of collisions between molecules, thereby ________ the reaction rate.

Answers

Decreasing temperatures will Decrease the frequency of collisions between molecules, thereby decreasing the reaction rate.

What is molecules?

A molecule is an object comprised of two or more atoms that are linked together chemically; the precise number of atomic nuclei that make up a molecule is known. One hydrogen atom gets joined to one chlorine atom to form the molecule HCl(g), for instance.

Therefore,

Decreasing temperatures will Decrease the frequency of collisions between molecules, thereby decreasing the reaction rate.

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In practice, most companies list accounts on their trial balance in alphabetical order. True or false?.

Answers

Answer: false

Explanation:

Other Questions
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