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Nonamiya [84]
3 years ago
14

The late Nobel Prize-winning economist George Stigler once wrote, "the most common and most important criticism of perfect compe

tition... [is] that it is unrealistic."
Source: George Stigler, "Perfect Competition, Historically Contemplated," Journal of Political
Economy, Vol. 55, No. 1, (February 1957), pp. 1-17.
----------------------------------
Despite the fact that few firms sell identical products in markets where there are no barriers to entry, economists believe that the model of perfect competition is important because
Business
1 answer:
Lyrx [107]3 years ago
8 0

The perfect competition model is based on the assumption that many companies provide the same type of product or service. In this competitive model, companies are not large enough to be able to influence prices, that is, the price is determined by the market through the interaction between demand and supply.

Economic reality is complex and would hardly be portrayed in a real way. That's why economists use models that can clarify concepts and create insights into how the real economy works. That is why the perfect competition model demonstrates what a liberal competitive economy would look like.

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The lower the user's switching costs:
JulijaS [17]

Answer:

more intense the competitive pressures posed by substitute products.

Explanation:

The lower the user's switching costs: the more intense the competitive pressures posed by substitute products.

Switching costs can be defined as the cost of a consumer switching from a product to a substitute good.

Therefore when such switching costs are low, it will be easier to switch from one product to another, implying that the competitive pressure from substitute goods are higher.

8 0
3 years ago
Read 2 more answers
Which of the following management orientations holds that each country in a global marketplace is unique?
iogann1982 [59]

Answer:

Polycentric orientation.

Explanation:

The polycentric orientation, referring to the management of the global marketplace, is a market vision (and in a great sense also political) that establishes that there is no single central point in a globalized market, but that each country has a strategic importance in the different sectors market that most concern you. Thus, the idea of market leaders is rejected, but rather the idea of a fragmented market in different sectors, with varied leaders, is defended.

7 0
3 years ago
Vivian worked as a manager at her company. She was asked to order a few cars that would be used by company employees. Which best
Margarita [4]

To ensure that her company is being socially responsible, Vivian should ensure that the cars are environmentally friendly. Being socially responsible means you do what is best for planet, people, and profits. In this case, taking care of the planet means choosing the car that is the most environmentally friendly.

8 0
3 years ago
A customer submits a written complaint disputing monetary charges assessed against an account held at a member broker-dealer. re
PilotLPTM [1.2K]

An account housed at a member broker-dealer has financial charges applied to it that a customer disputes in writing. Resolution of this grievance will be accomplished by: Code of Conduct

A subtype of medical categorization called a  code of conduct is used to specify particular surgical, medicinal, or diagnostic operations. The codes' structure will vary depending on how they are classified; for instance, some utilize an alphanumeric scheme and others a numerical one. In addition to procedure codes, the International Classification of Primary Care (ICPC-2) also includes diagnosis codes, grounds for encounter (RFE), and process of care.

The International Classification of Health Interventions (ICHI) and the International Classification of Medical Procedures (ICPM)

Learn more about  Code of Conduct here

brainly.com/question/17486514

#SPJ4

4 0
2 years ago
A company has a retention rate of 50%, sales of $25,000, beginning equity of $50,000 and profit margins of 10%, an asset turnove
Degger [83]

Answer:

Sustainable Growth Rate: 2.5%

Explanation:

Sustainable growth rate is calculated by multiplying return on equity with retention ratio.

Logic behind above is that whatever portion of net profit is retained by the Company, is used in the Company's operations, which earns certain percentage of equity known as return on equity. By multiplying both return on equity with retention ratio, we assume that the practice will continue for foreseeable future and the Company will continue to grow at the calculated growth rate.

Growth rate = Retention ratio * return on equity

Retention ratio = 50%

Return on equity = Net profit available for distribution / Opening equity

Return on Equity = (25,000 * 10%) / 50,000

Return on Equity = 5%

Growth Rate = 5% * 50%

Growth Rate = 2.5%

5 0
3 years ago
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