BUSINESS COLLEGE

3. Problems and Applications Q3 This chapter discusses companies that are oligopolists in the market for the goods they sell. Many of the same ideas apply to companies that are oligopolists in the market for the inputs they buy. If sellers who are oligopolists try to increase the price of goods they sell, the goal of buyers who are oligopolists is to try to decrease the prices of goods they buy. Major league baseball team owners have an oligopoly in the market for baseball players. The owners' goal is to keep players' salaries . True or False: This goal is difficult to achieve because teams have different budgets. True False Baseball players went on strike in 1994 because they would not accept the salary cap that the owners wanted to impose. True or False: The owners felt the need for a salary cap to help prevent any team from cheating. True False

Answers

Answer 1

Answer:

Answer: 1. Low

2. False

3. False

Explanation:

1. The owners' goal is to keep players' salaries Low.

As the text says, Oligopolist buyers would try to reduce the price of goods that they buy. In the MLB world, the teams are the buyers and the players are the sellers with the salaries being their price. Team owners will therefore try to keep salaries at a low level so that they make more profit.

2. False

This goal is not difficult to achieve due to budget differences but rather because different payers offer varying contributions to the team's game. Some players push the team forward more and hence are able to demand their fair share. This makes it difficult to cap their salaries.

3. False

They only tried to impose the salary cap so that they could reduce the cost of running the basketball teams and not to prevent teams from cheating. The salaries they were paying were high enough that they felt they weren't making enough profit. So they conspired to impose a salary cap so that they could make more profit.

Related Questions

Perfect Clean, Inc. provides housekeeping services. The following financial data have been provided.Service Revenue$80,000Cleaning Supplies Used22,000Wages Expense19,350Office Rent Expense5,150Depreciation Expense—Machinery550Calculate the contribution margin and the contribution margin ratio. (Round your contribution margin to the nearest dollar, and your contribution margin ratio to two decimal places.)A) $38,650; 48.31% B) $74,850; 93.56%C) $60,650; 75.81% D) $32,950; 41.19%
Maria, the landlord, refuses to fix a small leak in the roof that was there prior to the current tenant. Juan, the current tenant, has just discovered the leak after a heavy rain. The consequence is that black mold has been forming in the attic for quite some time. Juan still has significant time remaining on his lease. Juan has notified Maria in writing of the mold and leak issue but has received no response. He is concerned about the premises becoming unsafe to live in. It has been 14 days since he emailed her his notification. What are all of Juan’s options if Maria declines to do the repairs? Please discuss all remedies Juan may seek. Please remember to reference the contract and text to support your analysis.
Faeber Textile Company frequently factors its accounts receivable. During 2019, Faeber made credit sales of $100,000 to customers, under terms of 2/10, n/30. Faeber records its credit sales using gross price. In 2019, Faeber sold $70,000 of these receivables to a factor. The factor remitted 90% of the accounts receivable factored and charged a 12% commission on the gross amount of the factored receivables. The factoring agreement also requires Faeber to be responsible for any cash discounts taken by customers upon payment of the factored receivables. Faeber is charged for these cash discounts upon reimbursement by the factor. During 2019, the factor collected the remaining amount of the factored receivables, minus the 2% discount on 94% of the collected receivables, and returned the balance owed to Faeber. Faeber collected the remaining amount of the unfactored accounts receivable, minus the 2% discount on 96% of the collected receivables. Required: Prepare all the journal entries necessary for Faeber to record the preceding information.
What is the most appropriate decision on a product line when a company decides to lengthen its product line beyond its current range
On December 31, 2015, Waterway Industries is in financial difficulty and cannot pay a note due that day. It is a $2900000 note with $290000 accrued interest payable to Carla Vista, Inc. Carla Vista agrees to accept from Waterway equipment that has a fair value of $1440000, an original cost of $2400000, and accumulated depreciation of $1160000. Carla Vista also forgives the accrued interest, extends the maturity date to December 31, 2018, reduces the face amount of the note to $1230000, and reduces the interest rate to 5%, with interest payable at the end of each year.Nolte should recognize a gain or loss on the transfer of the equipment ofa. $0.b. $120,000 gain.c. $180,000 gain.d. $570,000 loss.Nolte should recognize a gain on the partial settlement and restructure of the debt ofa. $0.b. $45,000.c. $165,000.d. $225,000.

he Top Hat Division of Blandon's Fine Menswear had the following results last year (in thousands). Sales $ 4 comma 600 comma 000 Operating income $ 690 comma 000 Total assets $ 2 comma 000 comma 000 Current liabilities $ 210 comma 000 Management's target rate of return is 14% and the weighted average cost of capital is 10%. What is the Top Hat Division's Residual Income (RI)?

Answers

Answer:

$410,000

Explanation:

Residual income = operating income - (rate of return*average operating assets)

= $690,000-(14%*$2,000,000)

=$690,000-$280,000

=$410,000

Therefore the Top Hat Division's Residual Income (RI) would be $410,000

On March 31, 2017, Alpha Corporation recorded the following factory overhead costs incurred: Factory Manager Salary $7,000 Factory Utilities 2,000 Machinery Deprecation 11,000 Machinery Repairs 2,500 Factory Insurance (prepaid) 1,000 The overhead application rate is based on direct labor hours. The preset formula for overhead application estimated that $21,000 would be incurred, and 10,000 direct labor hours would be worked. During March, 7,100 hours were actually worked on Job Order A-2 and 3,000 hours were actually worked on Job Order A-3. Use this information to prepare the March 31 General Journal entry to record the factory overhead costs. (round any final dollar answers to the nearest whole dollar):

Answers

Answer:

Explanation:

check the file attached for full explanation

A company purchased a building for $900,000 by obtaining a 30-year mortgage payable. Assume the lending arrangement specifies that the company will pay $20,000 of the principal over the first year, $30,000 in the second year, and the remainder evenly over the final 28 years. What amount of the $900,000 would be classified as a long-term liability at the time the mortgage payable is obtained

Answers

At the time the mortgage is obtained, approximately $850,000 of the $900,000 would be classified as a long-term liability.

In the first year, the company pays $20,000 of the principal. In the second year, it pays $30,000 of the principal. This means that by the end of the second year, the company has paid a total of $20,000 + $30,000 = $50,000 of the principal.

Now, the remaining principal balance is $900,000 - $50,000 = $850,000.

Since the company will pay the remainder of the principal evenly over the final 28 years, you can calculate the annual principal payment for the remaining term:

$850,000 / 28 years = $30,357.14 per year (rounded to the nearest cent).

At the time the mortgage payable is obtained, the long-term liability portion of the mortgage is the total principal amount to be paid after the first two years. Therefore, it is:

$20,000 (Year 1 principal payment) + $30,000 (Year 2 principal payment) + ($30,357.14 x 28) ≈ $850,000.

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Final answer:

The amount of the $900,000 mortgage payable classified as a long-term liability is $870,000.

Explanation:

To determine the amount of the $900,000 mortgage payable that would be classified as a long-term liability at the time the mortgage is obtained, we need to calculate the portion of the principal that will be paid over the first year, second year, and the remaining 28 years.

In the first year, $20,000 of the principal is paid.
In the second year, $30,000 of the principal is paid.
The remaining principal to be paid over the final 28 years is $900,000 - $20,000 - $30,000 = $850,000.
The annual payment for the remaining 28 years is $850,000 / 28 = $30,357.143 (approximately).

Therefore, the amount of the $900,000 mortgage payable that would be classified as a long-term liability at the time of obtaining the mortgage is the sum of the principal payments in the first year and the remaining principal payment over the final 28 years: $20,000 + $850,000 = $870,000.

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Define and explain SMART?

Answers

Being smart is something that's grown and cultivated, often by being curious enough to seek out new information and by recognising what you don't already know. Being smart is the ability to put ideas together, and create solutions to problems. Being smart is the ability to focus, concentrate, and communicate.

Buerhle Company needs to determine if its indefinite-life intangibles other than goodwill have been impaired and should be reduced or written off on its balance sheet. The impairment test(s) to be used is (are) ______________. A. Both recoverability test and fair value test
B. Recoverability test but not fair value test
C. Not recoverability test but fair value test
D. Neither recoverability test nor fair value test

Answers

Answer: The correct answer is "C. Not recoverability test but fair value test".

Explanation: The impairment test to be used is Not recoverability test but fair value test. To determine whether intangibles of indefinite life have deteriorated and must present another value in their balance sheet, they must implement the fair value test.

Jack Pickle decided to start a small business as a corporation. His initial investment was $4,000 cash in exchange for common stock. Demonstrate how to record this transaction in the accounting equation?

Answers

Answer:

Increase cash by $4,000 and Increase common stock by $4,000

Explanation:

Demonstration of how to record Jack Pickle

transaction in the accounting equation

Since we were told that Jack Pickle decided to start a small business in form of a corporation in which his initial investment was the sum of $4,000 cash and the cash was in exchange for common stock, therefore using accounting equation this means when we want to record Jack Pickle transactions we have to increase the cash by the sum of $4,000 and the increase common stock by the sum of $4,000.

Increase cash by $4,000 and Increase common stock by $4,000

Other Questions

Gator Corporation manufactures several types of accessories. For the year, the gloves and mittens line had sales of $489,000, variable expenses of $360,000, and fixed expenses of $140,000. Therefore, the gloves and mittens line had a net loss of $11,000. If Gator eliminates the line, $35,000 of fixed costs will remain. Prepare an analysis showing whether the company should eliminate the gloves and mittens line. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Continue Eliminate Net Income Increase (Decrease) Sales $ $ $ Variable costs Contribution margin Fixed costs Net income / (Loss) $ $ $ The analysis indicates that Gator should the gloves and mittens line.

Beginning inventory Merchandise $302,000 Finished goods $604,000 Cost of purchases 420,000 Cost of goods manufactured 760,000 Ending inventory Merchandise 202,000 Finished goods 196,000 Compute cost of goods sold for each of these two companies for the year ended December 31, 2017.

Assume the carrying capacity of the earth is 13 billion. Use the 1960s peak annual growth rate of 2.1% and population of 3 billion to predict the base growth rate and current growth rate with a logistic model. Assume a current population of 6.8 billion. How does the predicted growth rate compare to the actual growth rate of about 1.2% per year?

Is cost minimization equivalent or identical the concept of product maximization. True of False. Explain