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BabaBlast [244]
4 years ago
13

Which of the four market structures encourages the greatest competition and benefits for other businesses and consumers? Explain

your answer in terms of price competition and the effect of that business type on the overall economy.
Business
1 answer:
harkovskaia [24]4 years ago
4 0
Perfect Competition

Perfect competition describes a market structure, where a large number of small firms compete against each other. In this scenario, a single firm does not have any significant market power. As a result, the industry as a whole produces the socially optimal level of output, because none of the firms have the ability to influence market prices.

The idea of perfect competition builds on a number of assumptions: (1) all firms maximize profits (2) there is free entry and exit to the market, (3) all firms sell completely identical (i.e. homogenous) goods, (4) there are no consumer preferences. By looking at those assumptions it becomes quite obvious, that we will hardly ever find perfect competition in reality. This is an important aspect, because it is the only market structure that can (theoretically) result in a socially optimal level of output.

Probably the best example of a market with almost perfect competition we can find in reality is the stock market. If you are looking for more information on perfect competition, you can also check our post on perfect competition vs imperfect competition.


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Answer:

The correct answer is C.

Explanation:

Giving the following information:

Costs associated with the alternatives are listed below.

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Only Material Costs are relevant because they vary whether you chose Alternative X or Y. Processing costs are the same in both options.

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4 years ago
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Kazeer [188]

Answer:

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7 0
3 years ago
The primary difference between accrued revenues and unearned revenues is that accrued revenues have:________. a) been recorded a
adoni [48]

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Accrued revenue is a term used to describe a sale that has been recognized by the seller, but which has not yet been billed to the customer. Accrued revenue is needed in order to match revenues with expenses. The absence of accrued revenue would tend to show excessively low initial revenue levels and low profits for a business, which does not properly indicate the true value of the organization.

Unearned revenue on the other hand is the money received from a customer for work that has not yet been performed (in advance payment). This is an advantage to the seller who now has the cash to perform the required services. Unearned revenue is a liability for the recipient of the payment.

3 0
4 years ago
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UkoKoshka [18]

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6 0
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VikaD [51]

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