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slava [35]
3 years ago
8

Is the loss in efficiency due to market power large or​ small? explain. the loss in efficiency due to market power is?

Business
1 answer:
saul85 [17]3 years ago
5 0

Answer:

Small

Explanation:

Competition limits the market power, even when the market is not perfectly comparative.

Market power refers to a company's relative ability to manipulate the price of an item in the marketplace by manipulating the level of supply demand or both.

A company with substantial market power has the ability to manipulate the market price and thereby control its profit margin, and possibly the ability to increase obstacle to potential new entrants into the market.

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A monopolist will find that its marginal revenue curve Grupo de opciones de respuesta Lies below its demand curve and has the sa
alexdok [17]

Answer:

Lies below its demand curve and is steeper than its demand curve.

Explanation:

The marginal revenue curve for a monopolist lies below the demand curve because of the quantity effect. The quantity effect refers to the fact that even a monopolist must lower its price if it wants to sell a larger quantity of goods or services.

The slope of the marginal revenue curve is steeper than the demand curve because it reflects the market power of the monopolist. Instead, the marginal revenue curve for a perfectly competitive firm (with 0 market power) is horizontal or perfectly elastic.

5 0
4 years ago
The following price quotations are for exchange-listed options on Primo Corporation common stock.
MrRissso [65]

Answer:

$729

Explanation:

The computation of the one call option is shown below:

= Call option price × number of shares

= $7.29 × 100 shares

= $729

Simply we multiplied with the call option price with the number of shares so that the one call option could be calculated as we have to find out the one call option price

All other information which is given is not relevant. Hence, ignored it

7 0
3 years ago
Monopoly manufacturer faces two types of consumers. The first type has a relatively​ flat, linear demand curve. The second type
Vikki [24]

Answer:

In both cases, the correct answer is the option 2: high price and low quantity.

Explanation:

First of all, if the company has the ability to choose the price and quantity of the goods that it produces then it always should prefer to charge the higher price as possible with the lowest quantities of the goods.

Secondly, in the first case, where the consumers have a relatively flat, linear demand curve then it does not matter how much the company charges the good due to the fact that the consumer will always demand the same quantity and therefore if the price if high the amount is the same if the price is low because the demand curve is flat.

Finally, in the second case, where the consumers have a relatively steep, linear demand curve then if the price is high the quantity will be low and if the price is low the quantity will be high, therefore that the company should choose to charge a high price and for instance the quantity will be low due to the fact that the demand curve is steep.

5 0
3 years ago
What does it mean to "pay yourself first"? The last speaker in the video says something that's factually not true. What makes hi
Natali5045456 [20]

Explanation:

1. What does it mean to "pay yourself first"?

Putting money in savings while the other first

2. The last speaker in the video says something that's factually not true. What makes him wrong?

You could either lose your money or make a system error, although with a direct deposit it would occur.

3. Which option would YOU prefer: automatic or manual? What are one benefit AND one disadvantage of using your preferred method?

Automatic. There's no profit in seeing it, so if you're measuring how much you have made, I'm not going to spend it at the cost of automatic saving, so you'd think some of your money has been wasted.

4 0
3 years ago
Which of the following best describes intelligent agents?A) Cookies used to track IP addresses of computer usersB) People who ca
Ainat [17]

Answer:

C) Sophisticated software programs that use collaborative filtering technologies to learn from past user behavior to recommend new purchases

Explanation:

Intelligent agents utilize the power of " sensor" to find answer to what a user want, through the environment so some actions can be performed.

It should be noted that intelligent agents use Sophisticated software programs that use collaborative filtering technologies to know about the behavior of user in time past for their activities.

3 0
4 years ago
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