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Alexandra [31]
3 years ago
5

Xerox, the U.S. Postal​ Service, and​ McDonald's have enjoyed significant market power in the past. List and explain three major

factors that have eroded this market power. Market power is eroded when A. better substitutes become available because the market has less competition. B. fewer substitutes are available because the market has less supply. C. no substitutes are available because consumers have no choices. D. better substitutes become available because consumers will not be willing to pay as much for a good. E. fewer substitutes are available because consumers are more sensitive to prices.
Business
1 answer:
Elena L [17]3 years ago
3 0

Answer:

Correct Answer:

E. fewer substitutes are available because consumers are more sensitive to prices.

Explanation:

<em>Market power is the ability of a company to successfully influence the pricing of its products or services in the overall marketplace. </em><em>This is common among most big corporations that produces consumer goods and offer services. </em>

This market power can be influenced by some factors. On the other-hand, the market power could be eroded leading to inability of the companies to influence prices do to the following:

1.<u> Number of companies in the market:</u> The lower the companies producing same product in the market, the higher the chances of the companies to be able to influence market prices. Otherwise, the market power will be eroded due to high number of companies.

2. <u>Elasticity of demand:</u> The persistent demand of a product by people helps to determine the market power of those companies. When this is lacking, the market power is eroded.

3. <u>Product differentiation:</u> The ability of a company to provide a unique product that offers good services in a market helps it to achieve market power. Lack of these erodes the market power.

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The measure used to report price changes at the wholesale level is the:
ivanzaharov [21]

The measure used to report price changes at the wholesale level is the <u>"Producer Price Index (PPI)".</u>


The producer price index (PPI) is a group of indexes that estimates the normal change in offering costs gotten by household makers of merchandise and enterprises after some time. The PPI estimates value changes from the point of view of the seller and varies from the buyer value record (CPI), which estimates value changes from the buyer's viewpoint. The PPI thinks about three regions of generation: industry-based, product based and item based last interest transitional interest. It was known as the discount value file, or WPI, until 1978.  

5 0
3 years ago
Why would having information be a requirement for a purely competitive market?
dusya [7]

Answer:

To no the prices of goods and service and to buy stuff at low prices.

Explanation:

A purely competitive market is a situation where multiplier sellers have homogeneous products. The availability of the information is very important in a purely competitive market in order to decide how many sellers are selling the same product and from where an individual can buy products at low prices. Availability of information means, no seller can earn abnormal profits.

6 0
3 years ago
The basic model of pure competition reviewed in this chapter finds that in the long run all firms in a purely competitive indust
Helen [10]

If all firms only earn a normal profit in the long run, firms will develop new products or lower-cost production methods because they can innovate and possibly earn an economic profit in the short run.

Explanation:

Competition involves constant efforts by companies and executives to do more than the loss (normal gains) of new goods or by improving ways to manufacture current products at lower prices. Therefore, if businesses can invent, they will achieve short-term economic advantage.

Economic benefit encourages entry, economic losses lead to exit and firms in a highly profitable market earn little economic income in a long-term equilibrium. In an industry where inflation does not change the costs of materials (a market with a constant cost), the long-term supply curve is a horizontal line.

7 0
3 years ago
Accelerated Finance is deciding whether to purchase new accounting software. The cost of the software package is $ 67 comma 000​
sammy [17]

Answer:

The answer is: Expected annual net cash savings are $16,750.

Explanation:

Please find the below for detailed explanations and calculations:

Payback period is defined as the time it takes an investment to recover its initial investment.

In this case, the initial investment is the cost of software package at $67,000, while the payback period is four years.

We apply the payback period formula to calculate payback period to calculate the Expected annual net cash savings:

Payback period = Initial investment / Net cash flow per period <=> Net cash flow per period = Initial investment / payback period = 67,000 / 4 = $16,750.

So, Net cash savings annually is expected at $16,750. In other words, if the firm is to save $16,750 per year from owning the software, it will take the firm 04 years to recover its initial investment.

3 0
3 years ago
The number of dependents that people are choosing to have is ?
joja [24]

Current demographic trends show that the number of dependents that people choose to have is <u>Decreasing</u>.

<h3>What is the trend in dependants?</h3>

A general trend that has been noticed in recent years is that people are choosing to have less dependants such as children.

The top reasons for this include more education and increased economic hardship.

Find out more on trends in population growth at brainly.com/question/521129.

#SPJ1

5 0
2 years ago
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