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2 years ago

Explain how firms that compete in the four different market structures determine profitability.

1 answer:

7 0

Price is determined by the forces of market demand and market supply. A firm sells its output at the given price. Therefore, a firm under perfect competition is a price taker, not a price maker.

Perfect competition is a form of market where there is a large number of buyers and sellers of a commodity. A homogeneous product is sold and its price is determined by the forces of supply and demand.

The elasticity of demand for the firm's demand = Infinite Because of free entry and exit, firms, in the long run, earn only normal profits (TR = TC or AR = AC). In the extra normal profits earned, new firms will join the industry. Market supply will increase. The market price will fall. Extra normal profits will be wiped out. In case of extra normal losses, some of the existing firms will leave the industry. Market supply will decrease. The market price will increase. Extra normal losses will be wiped out.

(A). Normal profits (TR = TC or AR = AC)

(B). Extra normal profits ( TR>TC or AR>AC)

(C). Extra normal losses (TR<TC or AR <AC)

In economics, a market is a system, institution, process, social relationship, or infrastructure configuration in which parties exchange ideas. Although parties can exchange goods and services through barter, most markets rely on sellers offering goods and services (including labor) to buyers in exchange for money.

A market can be described as the process by which prices for goods and services are determined. Markets facilitate trade and enable the distribution and allocation of resources in society. Marketplaces allow the valuation and pricing of any tradeable item. Markets can arise more or less spontaneously or be consciously constructed by people

Learn more about the market here

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This partnership was approached by a corporation that would like to acquire them by a stock acquisition. The partnership has no

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Answer:a The corporation can make a public issue of shares to obtain capital to make the purchase. ( B) The accountant will open a temporary account called the business purchase account and the vendor account to record the purchase

Explanation:

a. When a corporation want to purchase a existing business ,the purchase price may be paid either totally in cash or partly in cash and partly in shares or in some cases totally in shares. The method of payment is arranged between the corporation and the existing business. If the company makes a public issue of shares to raise funds for the purpose of acquisition of the business. A statement in the prospectus to issue the shares that the vendor will be paid either totally or partly in shares boost the investors confidence in the business because they see it as a sign that the vendor has faith in the future prospect of the business under the new ownership. The shares allotted as consideration for the purchase becomes part of the issued capital of the company.

b. The temporary account and the vendor account would include the following

1.Dr the business purchase account

Cr the vendor account

With the agreed purchase price,and the allotment of shares or debenture as part of the purchase price

2. Dr the asset, including Goodwill if any to their respective account,

Cr the total value of asset taken over in one amount to the business purchase account

3. Dr the total value of liabilities taken over in one amount to the business purchase account

Cr the liabilities to their respective account

4. Dr vendor account

Cr the corporation capital account both with the purchase price when paid

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3 years ago

Which of the following best describes the purpose of making an investment

LUCKY_DIMON [66]

Answer:

b.) to use money to make more money

Explanation:

The correct reason for making investments would be to use money to make more more money.

A financial investment represents the act of allocating money to a process or an item in order to reap profit or generate income in the short term, the long term, or both.

An investment can be in the form of purchased goods or services that can later be sold at a higher amount. It can also be an item or service that will be yielding immediate income while preserving all or parts of its original value.

The money made on an investment is referred to as gains o returns.

The correct option is b.

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What are the four broad characteristics used to classify retail stores?

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3 years ago

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almond37 [142]

Answer:

Explanation:

being agreeable is positive trait, the others are not

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You have a portfolio consisting solely of Stock A and Stock B. The portfolio has an expected return of 10.2 percent. Stock A has

Andrei [34K]

Answer:

Weight of Stock A is 55,88%

Explanation:

We know Weight Stock A + Weight Stock B =1 so, Stock B=1- Stock A

(Stock A*11.7) +(Stock B* 8.3)=10.2

(Stock A*11.7) +((1- Stock A)* 8.3)=10.2

(11.7 Stock A) +(8.3- 8.3 Stock A)=10.2

(11.7 Stock A) - 8.3 Stock A=10.2-8.3

3,4 Stock A=1,9

Stock A=1,9/3,4=0,5588 55,88%

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3 years ago