|PhP 120,000 |PhP 80,000 |PhP 200,000 | |Variable costs |42,000 |48,000 |90,000 | |Fixed costs (allocated based on revenues) |60,000 |40,000 |100,000 | |Total operating costs |102,000 |88,000 |190,000
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RELEVANT COST CASES: Problem 1: Judson Company Judson Company makes widgets and wangles, both of which use a polishing machine as part of production. The widgets and wangles have the following price and cost characteristics: | |Widgets |Wangles | |Annual Capacity |1,000 units |2,000 units
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The Role and Measurement of Quality in Competition Analysis 2013 The OECD Competition Committee discussed the role and measurement of quality in competition analysis in June 2013. This document contains an executive summary of that debate and the documents from the meeting: an analytical note by the OECD staff and written submissions: Australia, Canada, Chile, the European Union, Indonesia, Japan, Mexico, Portugal, United Kingdom, Ukraine, United States and BIAC. A note by Theodore Voorhees Jr. as
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Asymmetric (FTC has done a lot of research and know quiet a lot to support the antitrust case but Staples and Office depot will know more about the relevant product market, Pricing etc.), Incomplete (e.g. Whether it was possible to pass through the improvements in efficiencies to the consumers and if yes how much), Contested (Whether the definition of the relevant product market was right, etc.). Nonmarket issue lifecycle analysis - The issue was in the legislative stage. FTC had contested the merger
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Proposed Merger Between Staples and Office Depot Leads to Concerns of Higher Prices Michael Baye and Patrick Scholten prepared this case to serve as the basis for classroom discussion rather than to represent economic or legal fact. The case is a condensed and slightly modified version of the public copy of the FTC's motion for a temporary restraining order and preliminary injunction against the proposed merger between Staples and Office Depot dated April 10, 1997. No 1:97CV00701. OFFICE SUPPLY
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identification to the problems of defining markets and determining whether market power has been exercised. We show that the same analytic issues arise regardless of whether the evidence on these concepts is quantitative or qualitative. The second relevant body of economic knowledge derives from the empirical economics research literature, taken as a whole. That literature demonstrates that di¤erences among industries are important, making the industry the appropriate unit of analysis for addressing
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1. Sunk costs are usually relevant costs for decision making. a. True b. False 2. An example of a sunk cost is the amount of a guaranteed contract that has not yet been paid. a b. False 3. Personal employee responses are not critical considerations for the business decision maker. a. True b. False 4. For decision-making, differential costs assist in choosing between alternatives. a. True b. False 5. For a particular decision, differential revenues and costs are always
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revenue differences, cost differences and cost saving differences. While undertaking incremental analysis, the three different costs to be considered are sunk costs, relevant costs and opportunity costs. Sunk costs are those which are not relevant for decision making. They are incurred indifferent to the alternative course of action. Relevant costs are those which need to be considered for decision making. They vary between the alternatives. Opportunity costs is the cost of choosing one alternative
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October 2010 and incurred expenditure as follows: | RM ‘000 | Purchase price (including land cost RM450,000) | 2,500 | Stamp duties | 50 | Legal fees | 15 | Total | 2,565 | The SAF Sdn Bhd had used the factory for the purpose of its business up to 15 September 2010. The residual expenditure as at 31 December 2009 was RM1,020,500. The factory was constructed in 2009 at a cost of RM1,500,000. It was brought into use in November 2009 and capital allowances were claimed for each year
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October 2010 and incurred expenditure as follows: | RM ‘000 | Purchase price (including land cost RM450,000) | 2,500 | Stamp duties | 50 | Legal fees | 15 | Total | 2,565 | The SAF Sdn Bhd had used the factory for the purpose of its business up to 15 September 2010. The residual expenditure as at 31 December 2009 was RM1,020,500. The factory was constructed in 2009 at a cost of RM1,500,000. It was brought into use in November 2009 and capital allowances were claimed for each year
Words: 964 - Pages: 4
