The profitability of the leading cola syrup manufacturers PepsiCo and Coca-Cola and of the bottlers in the cola business is very different. PepsiCo and Coca-Cola enjoy an 81 percent operating profit as a percentage of sales; bottlers experience only a 15 percent operating profit as a percentage of sales. Which of the following statements explains why the cola syrup manufacturing business is potentially so profitable relative to the bottling business? Check all that apply. High capital costs mean that the bottling industry has considerable barriers to entry. PepsiCo and Coca-Cola together make up the great majority of the market. Bottlers have unique suppliers (Pepsi and Coke) while the manufacturers buy their inputs from numerous vendors.

Complete the table (fill up the FC, compute for TC, MC, AC, AFC and AVC):

Distinguish between a plant, a firm, and industry. Contrast a vertically integrated firm, a horizontally intergrated firm, and a conglomerate. Cite and example of a horizontally intergrated firm from which you have recently made purchase.

Respond to the question with a concise and accurate answer, along with a clear explanation and step-by-step solution, or risk receiving a downvote.

Charging $17.99 a month for an unlimited number of movie rentals (three at one time), Netflix revolutionized the movie rental business with a one-day mailing service for DVDs and acquired 12 million subscribers and $1.5 billion in revenue. However, Blockbuster, the video rental giant from the earlier $5.5 billion bricks-and-mortar movie rental business, decided to enter the mail-in delivery and online-DVD rental businesses. Blockbuster (now a division of Dish Network) drove prices down to $14.99, attracting 2 million subscribers. Netflix responded with a cut-rate service of one movie at a time for $9.99 per month, which drove the net profit right out of the business. Movie studios like Viacom and Time Warner also entered the market with direct- to-the-customer video on demand delivered over the web. Following two months of theatre-only releases, the studios asked $20 to $25 per showing. This fee is five times what it costs to rent a second-run or classic movie from the cable companies…

Ben Hunt operated a farm under the name of S.B.H. Farms.  Hunt went to Mollary Bank and Trust and requested a loan to build hog houses, buy livestock, and expand farming operations.  The bank agreed to loan S.B.H. Farms $175,000, for which short-term promissory notes were signed by Hunt.  At the same time, oral discussions were held with the loan officer regarding long-term financing for the farm operations.  No dollar amount, interest rate, or repayment terms were discussed.  When Hunt defaulted on the short-term notes, the bank foreclosed on the farm.  Hunt counterclaimed for $750,000 damages, alleging that the bank had breached a contract for long-term financing.  Was there a valid offer for long-term financing offered by the bank?

The Hokey Pokey, a children's day care center is thinking about changing the nature of its business. It is considering shutting down the day care center, and re-opening their business as an adult night club called the Hanky Panky.  The Hokey Pokey currently makes $500 in profits. However, re-opening as the Hanky Panky will increase their profits from $500 to $1500. Friendly's Ice Cream which is currently located next to the Hokey Pokey is concerned because this move would reduce its profits by $1200. This would occur because they lose many of the families who currently come to the restaurant (some of which have their kids in the day care center.) but very few adult night club patrons are looking for ice cream.  If no significant bargaining costs exists, does economic theory predict that the efficient outcome will still occur?          A)  Yes, the Hokey Pokey will change to the Hanky Panky because this gives them the highest profit.…

How HEB behaves toward Walmart is a major determinant of whether it will face entry by new competitors. Explain.       (HEB is a chain store in texas)

3. Definition of economic costs Jacques lives in San Francisco and runs a business that sells guitars. In an average year, he receives $711,000 from selling guitars. Of this sales revenue, he must pay the manufacturer a wholesale cost of $411,000; he also pays wages and utility bills totaling $279,000. He owns his showroom; if he chooses to rent it out, he will receive $1,000 in rent per year. Assume that the value of this showroom does not depreciate over the year. Also, if Jacques does not operate this guitar business, he can work as a financial advisor and receive an annual salary of $31,000 with no additional monetary costs. No other costs are incurred in running this guitar business. Identify each of Jacques's costs in the following table as either an implicit cost or an explicit cost of selling guitars. Implicit Cost Explicit Cost The wholesale cost for the guitars that Jacques pays the manufacturer The wages and utility bills that Jacques pays The rental income Jacques could…