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Which of these is a group of producers working together to raise prices and increase profits?
cartel
Which of these groups of producers working together to raise prices and increase profits?
A Cartel
Why can firms not always reduce prices until they increase sales and profits?
if marginal production costs exceed marginal revenues, the firm will suffer losses, not profits.
How were the deregulation of the oil industry and a windfall profits tax on oil companies in direct conflict with each other?
The deregulation of the oil industry aimed to promote competition and lower prices by allowing market forces to dictate supply and demand without government intervention. In contrast, a windfall profits tax imposed on oil companies sought to redistribute what the government deemed excessive profits, potentially discouraging investment and innovation in the industry. This conflict arose because deregulation encourages companies to maximize profits freely, while a windfall profits tax directly penalizes those profits, undermining the incentives created by deregulation. Ultimately, these opposing approaches created tension in the oil market's operational framework.
How elasticity affects a company pricing?
Elasticity measures how sensitive the quantity demanded of a product is to changes in its price. If a product has high price elasticity, a small increase in price can lead to a significant drop in sales, prompting companies to keep prices lower to maintain demand. Conversely, for products with low elasticity, companies can increase prices with less risk of losing customers, often maximizing revenue. Understanding elasticity helps companies strategically set prices to optimize sales and profits based on consumer behavior.
What are oil bonds?
Government owned oil companies in India suffer losses as the prices of petroleum products are administered by the government. Even when the oil prices increase the government is not in a position to rise the prices automatically due to fear of loss of popularity. So the government issued oil bonds to cover the losses or to put it simply the loss was covered by the government without paying a single rupee from its funds. The oil companies can raise loans against the bonds but can they cash the same is a moot question.
Who would raise prices on exports to increase profits and why?
That would depend on the elasticity of demand. If the elasticity were sufficiently high, a firm would want to increase export prices to increase their total revenue; if else, they would want to lower or maintain their price.
Effects of hacking and of piracy on society?
Hacking and piracy causes product's prices to increase. When companies are getting the money they expected, they increase their prices to recoup their loses.
Why did companies form trusts?
Companies formed trusts in order to consolidate control over a particular industry or market, allowing them to eliminate competition and increase profits. By combining multiple companies under one trust, they could set prices, control production, and dominate the market. Trusts were a way for companies to work together to achieve greater power and influence.
Output per worker is expected to increase by 10 during the next year Therefore wages can also increase by 10 with no harmful effects on employment output prices or employer profits True or false?
"Output per work is expected to increase by 10 percent during the next year. Therefore, wage can also increase by 10 percent with no harmful effects on employment, output prices, or employer profits." Discuss this statement. "Output per work is expected to increase by 10 percent during the next year. Therefore, wage can also increase by 10 percent with no harmful effects on employment, output prices, or employer profits." Discuss this statement. "Output per work is expected to increase by 10 percent during the next year. Therefore, wage can also increase by 10 percent with no harmful effects on employment, output prices, or employer profits." Discuss this statement. "Output per work is expected to increase by 10 percent during the next year. Therefore, wage can also increase by 10 percent with no harmful effects on employment, output prices, or employer profits." Discuss this statement.
What is a negative effect of government regulation?
they cut into company profits, they stifle competition, they cause higher prices for consumers.
If selling prices sales mix and cost structure remain the same do profits and sales increase using variable costing?
Equal
