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NEW QUESTION 43
A group of nations is considering me formation of a cartel associated with the manufacture and distribution of a product that they each export. Which one of the following outcomes would not be consistent with me formation of a carter?

  • A. A selling price where marginal revenue equals marginal cost
  • B. An increase in the output of the manufactured product
  • C. An increase in the selling price of the manufactured product
  • D. An increase m the net profits for each of the individual cartel members

Answer: B

 

NEW QUESTION 44
A company manufactures two products Product X and Product Y, during a joint process Product Y canoe processed further to create Product Z Relevant data are shown below.

  • A. Product Y should be processed further because me selling once of Product Z Is higher than Product Y
  • B. Product y should not be processed further because an additional S35 000 loss can be achieved by processing further
  • C. Product Y should he processed further because an additional S5.000 profit can be achieved by processing further
  • D. Product Y should be processed further because an additional $45,000 prof* can be achieved by processing further

Answer: C

 

NEW QUESTION 45
Willcox Company plans to sell 100 000 units of Us only product for $300 per unit to its existing customers It has received a new customer request for 10,000 units at a selling price of $2S0 per unit Willcox’s cost structure is shown below.

Capacity exists lo produce an additional 10 000 units and accepting the order would have no long-term implications If the order is accepted however a specialized piece of equipment costing S25 000 would need to I purchased If Wilcox accepts the special order its income would increase by

  • A. $75,000.00
  • B. $1,375,000.00
  • C. $375,000.00
  • D. $1400, 000.00

Answer: B

 

NEW QUESTION 46
……

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