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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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Beach Grub is a chain of "fast casual" restaurants that sells its menu items at higher prices than its competitors. Yet, the res
NikAS [45]

Answer:

A. Differentiation strategies

Explanation:

  • Different strategies seek to create greater value for their customers by creating goods and services that offer unique features that make them competitors. This is done by trying to keep the same or similar (perhaps slightly more expensive) price level as the competition.
  • In this case Beach Grub offers a variety of services, keeping its prices higher than competing but not more than luxury restaurants.
4 0
3 years ago
Poe Company is considering the purchase of new equipment costing $80,000. The projected net cash flows are $35,000 for the first
sergey [27]

Answer:

$23,773.65

Explanation:

Net present value is the present value of after tax cash flows from an investment less the amount invested

NPV can be calculated using a financial calculator :

cash flow in year 0 = $-80,000.

Cash flow in year 1 and 2 = $35,000.

Cash flow in year 3 and 4 = $30,000.

I = 10%

NPV = $23,773.65

To find the NPV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.  

3. Press compute  

5 0
3 years ago
What is purpose of public relations?
Elza [17]

Answer:

Explanation:

The aim of public relations by a company often is to persuade the public, investors, partners, employees, and other stakeholders to maintain a certain point of view about it, its leadership, products, or of political decisions.

5 0
3 years ago
Read 2 more answers
Name the four major categories of primary energy use in an industrial society, and match the energy sources that correspond to e
Fittoniya [83]

Four major categories of Primary energy use are:

1. Transportation

2. Industrial Process

3. Commercial and residential use

4. Generation of electrical power

Transportation depends entirely on petroleum, whereas nuclear power, coal, and water power are limited to the production of electricity. Electricity is in most commercial and residential use. Industrial processes use natural gas, oil, and electricity. Some oil, natural gas and biomass are used for the generation of electricity.

6 0
3 years ago
Consider the following​ alternatives: i. $ 140 received in one year ii. $ 240 received in five years iii. $ 350 received in 10 y
Svetradugi [14.3K]

Answer:

Ranking 10% interest rate:

1) 5 years

2) 10 years

3) 1 year

Raking 2% interest rate:

1) 10 years

2) 5 years

3) 1 year

Raking 18% interest rate:

1) 1 year

2) 5 years

3) 10 years

Explanation:

You have to apply to bring the amount of money to present value, according with the information, the formula is the next:

Present Value = Future Value/((1+ interest rate)^(n))

Where n is the number of years that you have to wait to receive the money.

You have to calculate every situation with the respective amount of time and interest rate, the result must be money. and when you get the 9 results, you have to compare every situation and chose the higher amount of money according to the interest rate, for example:

Present value = 140/ ((1+10%)^(1))=  127    

                       =  140/ ((1+10%)^(5))=   149    

                        =  140/ ((1+10%)^(5))=   135

So the answer for the first scenario with an interest rate of 10% is:  

Ranking 10% interest rate:

1) 5 years

2) 10 years

3) 1 year

5 0
4 years ago
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