The top management at Amore Corp, a manufacturer of computergames, is attempting to recover from a flood that destroyed some of their accounting records. The main computer system was also severely damaged. The following information was salvaged: Alpha Division Beta Division Gamma Division
Sales $5,500,000 (a) $2,500,000
Net operating income$3,500,000$ 1, 500, 000$1,500,000 $ 1,200,000
Operating assets (b) (c) $1,600,000
Return on investment 0.25 0.180.18 (d)
Return on sales (e) 0.120.12 0.5
Investment turnover (f) (g) 1.5
What were the sales for the Beta Division (a)?
A. $ 270 , 000$270,000
B. $ 180 , 000$180,000
C. $ 12 , 500 , 000$12,500,000
D. $ 8 , 333 , 333$8,333,333

Why is the cournot equilibrium an​ equilibrium? a. there are​ short-run barriers to exit in a cournot​ duopoly, so both firms cannot alter their output levels. b. given the other​ firm's level of​ production, both firms are maximizing profits and cannot improve their situation by unilaterally altering their level of output. c. both firms operate at zero profit under a cournot​ equilibrium, so they would face negative profits if they change output. d. both firms operate at minimum​ long-run average cost under a cournot​ equilibrium, so changes to output would reduce​ long-run profits. even if they​ can't collude, why​ don't firms set their outputs at the joint​ profit-maximizing levels​ (i. e., the levels they would have chosen had they​ colluded)? a. given that other firm produces at the collusive​ level, a firm could increase their own profits by increasing output above the collusive level. b. the midpoint of the collusion curve​ (i. e., the collusive​ outcome) lies below the reaction​ curves, so both firms have an incentive to increase output under the cournot duopoly. c. both a and b are correct d. both a and b are incorrect