a model of cutthroat competition
an example of open collusion
a price leadership model
Most oligopolies in the U.S. take the form of a cartel.
Covert collusion has probably never taken place among American oligopolists.
The cartel and the cutthroat competitor are on opposite ends of the competitive spectrum.
None of these is true.
the more elastic will be the demand curves for existing firms.
the more likely that existing firms will enjoy large profits in the long run.
the lower will be short-run profits.
the lower will be the average cost curves of existing firms.
the larger its share of the market and the more differentiated the product.
the smaller its share of the market and the more differentiated the product.
the larger its share of the market and the less differentiated the product.
the smaller its share of the market and the less differentiated the product.
Industry J has a higher concentration ratio than industry K.
Industry K has a higher concentration ratio than industry J.
The industries have the same concentration ratio.
None of these is true.
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Consumers often do not have enough money to pay the full price of items they want or need to buy. Using credit makes buying these items possible. Different forms of credit have different costs. In this activity, you will compare paying for an item using a credit card, renting to own an item, and leasing an item.
Another option for buying the computer is to get it from a rent-to-own company. With this type of arrangement, you pay fixed monthly rental payments. At this point, you are renting the computer; you do not own it. You can stop renting and return the item at any time. If you continue renting until you have paid a certain set amount, you will own the computer (and make no more rental payments). You must pay a monthly rental fee of . You will own the computer after you make 12 payments. What is the total you will pay for the computer using this option?
the balance sheet prepared by Svenson, a Swedish telecommunications firm, for Years 7 and 6. Svenson applies IFRS and reports its results in millions of Swedish kronor (SEK). In addition to the items reported in Svenson’s balance sheet, assume the following hypothetical information is available to you. (Adapted from the financial statements of Ericsson.)
- In Year 7 Svenson revalued land with an acquisition cost of SEK300 million upward, to its current fair value of SEK1,200 million.
- In Year 7 Svenson wrote down the value of equipment, with a net carrying value of SEK2,400 million, to its fair value of SEK1,600 million.
- Included in current provisions for Year 7 is the estimated loss on a lawsuit that a competitor filed, alleging patent infringement. Svenson estimates the following range of outcomes for this lawsuit: 10% chance of damages of SEK6,000 million, 10% chance of damages of SEK2,400 million, 30% chance of damages of SEK500 million, 10% chance of damages of SEK40 million, and 40% chance of zero damages.
Prepare a balance sheet for Svenson for Year 7, following the format, terminology, and accounting methods required by U.S. GAAP. Ignore any income tax effects of any revisions to reported amounts