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fgiga [73]
1 year ago
14

Discuss the implications of discarding the profit maximization assumption for the effectiveness and efficiency of the market sys

tem
Business
1 answer:
jasenka [17]1 year ago
4 0

The implications of discarding the profit maximization assumption for the effectiveness and efficiency of the market system relate to the imbalance of the economic laws of supply and demand, which is responsible for the sustainable functioning of the market.

<h3 /><h3>What are profit maximization assumptions?</h3>

It corresponds to the theory that the main purpose of a company is the maximization of profits, with decision making based on this purpose, identifying the best market opportunities and the strategy associated with this objective.

By developing a profit maximization strategy, companies become more competitive and aligned with demand and its characteristics, making the offer balanced, with the allocation of resources necessary for effective fulfillment of demand.

Therefore, the balance of supply and demand helps in sustainable production and pricing, developing the economy and the global market.

Find out more about profit maximization here:

brainly.com/question/13464288

#SPJ1

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Allocative efficiency means that ___________.
frutty [35]

Answer:

D. society’s scarce resources are used to produce products that align with consumer preferences

Explanation:

Allocation efficiency is a point in the economy when the goods and services being produced are exactly what the customers or people of the economy want  and this is a point of production when marginal social benefit of producing the good is equal to the producers marginal cost.

6 0
3 years ago
Which of the following is true regarding the Statement of Revenues, Expenses, and Changes in Net Position for a public college c
blsea [12.9K]

Answer:

All of these options is true

Explanation:

Statement of revenue and expenses is a comprehensive report showing the amount of profit earned minus the amount of operating expenses.

It provides information regarding the organization's operation as well as the revenue generated.

Revenue earned is collated as receipts and included in the statement of revenue and expenses.

Regarding the Statement of Revenues, Expenses, and Changes in Net Position for a public college choosing to report as a special-purpose entity engaged in business-type activities, the following apply:

  • State appropriations should be reported as non-operating income
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4 0
3 years ago
A small business decides to upgrade its aging phone system. the business will probably place a straight rebuy order.
natulia [17]
False.
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8 0
2 years ago
Using the constant growth model, Camp Company's expected dividend yield ( D1) is 4% of the stock price, and its growth rate is 6
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Answer:

Ks = 4%+6% = 10%

Explanation:

so we need  to remember that tax rate doesn't affect Cost of equity

in this case the formula will be:

cost of equity is equal to=dividend yield+Growth rate  or Ks = D1/P + g

Camp Company's expected dividend yield ( D1) is 4%

growth rate is 6%

SO we get Ks = 4%+6% = 10%

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