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4 years ago

Why do markets need both adequate competition and adequate information?

1 answer:

8 0

Let's think about you want to build your home. You know 3 constructors who can build your home as you want to. But the price rate vary to each constructors. so made a tender and call these 3 constructors to join. At last they present their rate to build your building. Here is the question that who would you choose? You must choose that constructor who present the least rate for that tender. And you select the ONE. so you take a competition on three of them. that's why market need adequate competition. So you done it by lower price. It is a important terms that highly executed in business world. Think you want to buy something from another company but you don't know about that product. It means you are ignoring the fact that your money is under a good deal or bad. you have no interest about your money. but you are doing business for the money. so that you need that adequate information for that product. nothing else...

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A company has established that the relationship between the sales price for one of its products and the quantity sold per month

Vilka [71]

Answer:

max profit at MR = MC is 1,562.5 dollars

Explanation:

we need to solve for the point at which MR = MC

First we calculate marginal revenue, the revenue generate from an additional units which, is the slope of the revenue function

p = 70 - 0.1Q

total revenue = (70 - 0.1Q)Q = -0.1Q^2 + 70Q

dR/dq= -0.2q + 70

Then we do the same for marginal cost, the cost to produce another unit:

total cost: 1,500 + 35 Q

dC/dq = 35

Now we equalize and solve:

-0.2q + 70 = 35

70 - 35=0.2q

35/0.2 = q = 175

p = 70 - 0.1 (175) = 70 - 17.5 = 52.5

52.5Q - 1,500 - 35Q = profit

52.5 x 175 - 1500 - 35 x 175 = profit

profit = 1562.5

if we calcualte for one up or down:

Q = 174 then profit = 1562.4

Q = 176 then profit = 1562.4

This profit is lower than our maximize point, so we agree this is the max point.

8 0

3 years ago

Non price competition price leadership and cartels are models in the ____ market structure(s)

Degger [83]

These are monopoly market structures. This is where the person or company selling items does not face competition and is the only person or company selling the items with no competitor that has a close substitute. This is an imperfect kind of competition.

5 0

3 years ago

The refractive index of a rarer medium with respect to a denser medium is.....

vekshin1

Answer:

B) Smaller Than 1

Explanation:

Snell's Law states that the ratio of the sines of incidence and refraction is equal to the ratio of the phase of velocities in the two phases. When light travels from a rarer medium like air to a denser medium like water, the light would be refracted towards the normal line. For example, the refractive index of air with respect to glass is represented as;

sin i / sin r

If light rays travel from glass which is a denser medium to a rarer medium which is air, the light rays would bend away from the normal line, and then the angle of refraction would be greater than the angle of incidence. So, the refractive index of the rarer medium which is air with respect to the denser medium which is glass will be smaller than 1.

8 0

3 years ago

Generally, firms entering foreign markets begin with:

kirill115 [55]

Answer:

a. less risky strategies first.

Explanation:

When find enter into foreign markets their knowledge and experience in the market space is limited. They will most likely implement less risky strategies of doing business bearlier on.

As they get to understand the market dynamics of the foreign country they are more confident in doing more risky transactions.

For example they can start with local production and exporting to the foreign country first. Then later open up operations in the foreign country.

7 0

4 years ago

Read 2 more answers

Playtime Park competes with Zip World by providing a variety of rides. Playtime Park sells tickets at $ 60 per person as a one-

Lubov Fominskaja [6]

Answer:

degree of operating leverage 6.04

Income if sales increase by 10%: 72,180

Explanation:

degree of operating leverage:

$\frac{contribution}{profit}$

contribution per ticket

60 sales price - 24 variable cost = 36 dollars

36 x 7,550 = 271,800 total contribution

fixed cost (226,800)

profit 45,000

$\frac{271,800}{45,000}$

degree of operating leverage: 6.04

the sales have a multiplier effect of 6.04

a 10 percent increase on sales translates to 60.4 percent in the net operating income:

income with a 10% sales:

45,000 x ( 1 + 60.4%) = 72.180

5 0

4 years ago