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lara31 [8.8K]
2 years ago
12

2. Explain the four characteristics of the price system.

Business
1 answer:
goblinko [34]2 years ago
5 0

Answer:

1-The four characteristics of the price system are that it is neutral, market driven, flexible, and efficient. It is neutral because prices do not favor the producer or the consumer because the they both make choices that determine the equilibrium price.

2-Why is the price system an efficient allocator of economic resources? Prices are neutral, which means they are equally fair to both consumers and producers. They are flexible which means they can adapt to changing economic conditions. Prices are familiar which means that everyone understands how they work.

3-how do prices serve as signals and incentives to producers to leave a particular market? it showed that when a strong competitor offers similar products for lower prices other producers must also lower their prices. Less efficient companies were driven from the market.

4-demonstrates the effects of competitive pricing because it shows how the company strategically lured customers away from rival producers while still making the highest profit.

Explanation:

:)

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PolarNik [594]
<span>American businesses began to be more interested in the needs of their customers due to the increase in the competition between merchants and the demand of quality by the consumer which forced the merchants to pay more attention to consumer needs rather than their own necessities as an entrepreneur, since if the consumer does not need a product, then it is not commercially viable. Since the 1950's the increase in consumption has had a direct impact on entrepreneurs, business owners, and markets.</span>
3 0
3 years ago
Ahoy do you need your rate of return to be greater than inflation
Brums [2.3K]
Why is it important for investments to provide a greater return than the rate of inflation?
When inflation levels are stable and moderate, investors have lower expectations of high
market returns. Conversely, expectations rise when inflation is high. When inflation rises,
DO PRICES IN THE ECONOMY, leading investors to require a higher rate of return to maintain
their purchasing power.
8 0
2 years ago
A wrapping paper company produced 20,000 rolls of paper one day. Standard price is $2 per roll. Labor cost was $240, material co
Vinvika [58]

Based on the various costs of producing the rolls of paper, the multifactor productivity is c. 58.394.

<h3>What is the Multifactor Productivity?</h3>

This can be found by the formula:
= Cost of standard production / (Labor + Material + Overhead costs)

Solving gives:

= (20,000 x 2 per roll) / ( 240 + 25 + 420)

= 58.894 rolls

In conclusion, option C is correct.

Find out more on multifactor productivity at brainly.com/question/17550779.

7 0
2 years ago
how can the size of the industrial/service sector and the agriculture employment rate indicate the level of industrialization?​
ludmilkaskok [199]

Answer:

A larger industrial and service sector, and a larger number of people working outside of agriculture, can indicate a higher level of industrialization in the economy and vice versa. This means that the size of industrial service and the sector of agriculture employment rate indicates the level of industrialization because if the agriculture employment is higher than the industrial service it means that the country is not fully developed yet and therefore the level of industrialization is lower. But if the industrial service is higher than the agriculture employment that suggests or indicates that the country is developing or developed. For example in the United States the size of the industrial/service sector is much larger than it's agricultural employment and therefore this should suggest that country is much more industrialized or developed and the United States is. In comparison you take a developing country such as Chad and you can see that the agricultural employment is higher than the size of the industrial/service sector and in relation to this you can see that Chad must have a lower level of industrialization and in fact it does.

Explanation:

3 0
3 years ago
What are the four areas of​ finance? Give an example of a financial activity that would fall into each area. ▼ Corporate Finance
chubhunter [2.5K]

Answer:

The correct answer is:

  1. Corporate Finance
  2. Investments
  3. Financial Institutions
  4. International Finance

Explanation:

Corporate finances are those that are related to the analysis and study of business variables that maximize shareholder value.

Corporate finance encompasses important investment decisions such as:

  • Remuneration of dividends,
  • Own or third-party financing,
  • The level of indebtedness and leverage,
  • The optimization of the risk-benefit ratio, its liquidity level,
  • The need for investment to develop
  • The evaluation of the opportunity cost of an investment, the financial model to be adopted and the repayment terms.
  • The efficiency of cash flows.

The first example as it can not be otherwise is the bag. Everyone who thinks about investments immediately receives the thought that if you can get a lot of money for an investment it is in the stock market. And in theory this is true. There are companies that have gone public and in a very short time have managed to increase their profits by multiplying by a lot what their investors contributed. Some of them have sold their shares and today they live on income.

A financial institution is an institution that provides financial services to its clients or members. Probably the most important financial services provided by financial institutions is to act as a financial intermediary or financial intermediaries. Most financial institutions are regulated by the government;

6 0
3 years ago
Read 2 more answers
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