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Otrada [13]
2 years ago
15

Explain which types of market inefficiencies derive from monopolies. Use examples from the textbook to support your claims.

Business
1 answer:
Phoenix [80]2 years ago
5 0

Most people criticize monopolies for charging excessive prices, but economists disagree because monopolies do not produce enough goods and services to be allocatively efficient.

What is Allocative efficiency?

Efficiency, whether allocational or allocative, is the quality of a market where all products and services are efficiently divided among consumers in an economy. It happens when parties can use the precise and easily accessible information reflected in the market to decide how to employ their resources.

Why is a monopoly allocatively inefficient?

Companies with monopoly power can set prices higher than in a market with competitors. Because in monopolies the price is higher than MC, an unregulated monopoly provider is very likely to be allocatively inefficient. In a market where there is competition, prices would be reduced and more people would benefit from buying the product.

Learn more about Allocative efficiency: brainly.com/question/23879464

#SPJ4

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Your employees are skilled and experienced customer service representatives who perform non-routine tasks, such as solving uniqu
Anvisha [2.4K]

Explanation:

The path-goal theory is based on adjusting the leadership style to the needs of employees and the work environment, in order to achieve goals.

In the scenario above, there is a work environment composed of qualified and experienced employees for the function, so the most appropriate leadership style for this scenario according to the path-goal theory would be participative and achievement-oriented leadership.

Participative leadership is a leadership style that ensures greater involvement of employees in decision-making, is effective in a work environment that has qualified and engaged employees. The achievement-oriented leadership style refers to the challenging goals proposed by the leader to employees and the confidence he has in the employees' ability to meet their expectations.

b) Two challenges in the team dynamics that make it difficult to support the view that teams are synergistic may be the lack of communication and a very centralized leadership.

The teams are composed of individuals with different personalities but who join their efforts to achieve organizational goals and objectives.

Therefore, it is necessary to have a leadership style that is geared towards the whole of the team, that seeks to engage and respect the individualities of each member of the team but that motivates them to seek common goals. It is also necessary that communication is valued, that all members feel they are a necessary part of the team, so that the information can be passed on properly and also to avoid conflicts that may occur.

5 0
4 years ago
Swordfish Corporation reported pretax book income of $1,000,000. During the current year, the net reserve for warranties increas
oee [108]

Answer:

<h2>net deferred tax benefit  42.500 </h2>

Explanation:

increase in warranty reserve  25.000

excess book depreciation  100.000

total  125.000

x tax rate 0.34

<h2>net deferred tax benefit  42.500</h2><h2></h2>

*The reported pretax book income of $1,000,000 is not considered

5 0
3 years ago
National income accountants can avoid multiple counting by1. only counting intermediate goods. 2. only counting final goods.3. i
lubasha [3.4K]

Answer:

2. Only counting final goods

Explanation:

When defining national income accounting and terminolgies, emphasis is always laid on "...total value of FINAL goods...". This is as a result of avoiding double counting. If intermediate goods were counted alongside final goods, it would be double counting because intermediate goods are used in producing those final goods. Final goods are good meant for final consumption. The other method used in avoiding double counting ( counting of the value of the same product more than once) apart from counting final gooda is Value added approach.

4 0
4 years ago
Altoid Company sold most of its inventory produced during the period. The manager needs to close the $1,200 balance of Manufactu
Likurg_2 [28]

Explanation:

The journal entry to close the books is

Cost of Goods sold A/c Dr $1,200

       To Manufacturing Overhead A/c $1,200

(Being the under-applied overhead is recorded)

Since the jobs were undercosted, that means the overhead is applied under overhead so we debited the cost of goods sold account and credited the manufacturing overhead account. Both the items are recorded for $1,200

5 0
4 years ago
During a recent​ month, Canon Company planned to provide cleaning services to 30 customers for $ 26 per hour. Each job was expec
prisoha [69]

Answer:

$1,950 more than expected

Explanation:

In this question ,we have to compare the revenues based on expected and the actual

So, the expected revenues would be

= Number of customers × per hour rate × expected time spent

= 30 customers × $26 × 8 hours

= $6,240

And, the actual revenues would be

= Number of increased customers × per hour rate × average time spent

= 42 customers × $26 × 7.5 hours

= $8,190

The revenue is increased by

= $8,190 - $6,240

= $1,950 more than expected

This is the answer but the same is not provided in the given options

7 0
3 years ago
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