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4 years ago

How does specialization benefit both producers and consumors in a free market economy?

1 answer:

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<span>Through specialization, both producers and consumers benefit. On the producer side, specialization allows producers to best use their resources in the most efficient manner possible by playing to their strengths, thus maximizing profit. On the consumer side, the fact that producers are specialized and thus efficient in their production ensures lower production costs than if products were made by less-specialized producers, translating into lower consumer-facing prices.</span>

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Which one of the following statements is correct? A) Cash management primarily involves determining the optimal level of liquidi

Anastasy [175]

Answer: B) The longer the cash cycle, the more likely a company will need external financing.

Explanation:

The cash cycle refers to the amount of time it would take a company to be able to convert the goods that it has in inventory to actual cash. If this cycle is long, then the company will have less cash than it needs because it is not raising cash fast enough.

To be able to fund operations therefore, the company might be forced to seek external financing.

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4 years ago

All of the following are key characteristics of a monopolistically competitive industry except A. a differentiated product. B. a

Maksim231197 [3]

Answer:

B. Homogenous product

Explanation:

Monopolistic competitive market is a market structure in which there are many sellers selling differentiated product.

Differentiated product are product that vary in taste or style. They are goods that can be substituted.

Monopolistic competitive firms gain some degree of market power by differentiating their products from those of other firms in the industry. Monopolistic competition firms achieve price control by selling a product that is in some way(s) different from close substitutes product.

Features of Monopolistic competitive firms

1. Existence of many sellers

2. Heterogeneous goods are sold

3. Existence of close substitute

4. Absence of barrier to entry of new firms and free exit to existing firms.

5. Existence of competitors.

4 0

3 years ago

An advertisement for the xerox corporation encourages customers to say, "copy it" rather than "xerox it." this indicates that xe

BlackZzzverrR [31]

Xerox is fearful that that its brand name might become a GENERIC NAME. A brand name becomes a generic name when the brand name becomes a common name and is identified with a category of goods rather than a particular product of a specified manufacturer.

8 0

3 years ago

A production function describes a. how a firm maximizes profits. b. how a firm turns inputs into output. c. the minimal cost of

leonid [27]

Answer:

d. the relationship between cost and output.

Explanation:

Production function describes how the output of a production function <em>relates </em>to differing levels of input factors such as labor , technology and machine.

The higher the input factors, the higher the physical output whereas, the lower the inputs, the lower the physical outputs of production.

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4 years ago

Storico Co. just paid a dividend of $3.15 per share. The company will increase its dividend by 20 percent next year and then red

ololo11 [35]

Answer:

The price of the stock today or the price at which the stock should sell today is $61.30

Explanation:

The price of the stock today can be calculated using the Dividend Discount Model approach which values a stock based on the present value of the expected future dividends from the stock. The price of this stock will be,

P0 = 3.15 * (1+0.2) / (1+0.12) + 3.15 * (1+0.2) * (1+0.15) / (1+0.12)^2 +

3.15 * (1+0.2) * (1+0.15) * (1+0.1) / (1+0.12)^3 +

[(3.15 * (1+0.2) * (1+0.15) * (1+0.1) * (1+0.05) / (0.12 - 0.05)) / (1+0.12)^3]

P0 = $61.296 rounded off to $61.30

5 0

3 years ago