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3 years ago

In three to four sentences, explain why prices decrease when the market moves from a monopoly to perfect competition?

2 answers:

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When a company has a monopoly on a product, there is no other competition so that producer can price the product however high they want. When there is competition, the product must be priced appropriately or the consumer will go to another option. Additionally, monopolies can result is a lesser quality product.

Readme [11.4K]3 years ago

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Answer:

Prices will decrease when a market moves from a monopoly to a perfect competition mostly due to the fact that different providers of goods will try to outbid the other providers and will for that reason try to provide lower prices; to attract more customers.

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You read in the paper that there has been a significant increase in the consumer confidence index. having taken an economics cla

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Spending will increase.

Demand will increase.

The consumer confidence index is a measure of how "confident" the population of the United States is in the economic status of the US. Thus, both these values will increase!

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2 years ago

Karen runs a print shop that makes posters for large companies. it is a very competitive business. the market price is currently

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She has fixed costs of $250. Her variable costs are $1,000 for the first thousand posters, Her variable costs are $800 for the second thousand Her variable costs are $750 for each additional thousand posters. To calculate Average fixed cost that is AFC per poster we need two factors: Total fixed cost = 250 and Number of poster = 1000 So now AFC will be (250/1000) that is 0.25.

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2 years ago

The 'on my way button' should be clicked when you leave your current location (home, gym, etc.) to go to the walk. when should y

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Before starting walking from the current location "start walk" button should be tapped as 'on my way button' was clicked when you leave your current location to go to the walk.

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3 years ago

Newton, Inc. just paid an annual dividend of $0.95. Their dividends are expected to increase by 4% annually. Newton Company stoc

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Answer:

The required rate of return is 12.2%

Explanation:

Dividend growth model is used to calculate the price of the stock based on the dividend, its growth and required rate of return.

Formula to calculate the price

Price = Dividend / ( Required rate of return - Growth rate )

P = D / ( r - g)

P = $11.54

D = $0.95

g = 4%

Now placing the given values in the formula

$11.54 = $0.95 / ( r - 4% )

r - 4% = $0.95 / $11.54

r - 4% = 8.2%

r = 8.2% + 4%

r = 12.2%

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3 years ago

A supplier to Toyota stamps out parts using a press. Changing a part type requires the supplier to change the die on the press.

Pavlova-9 [17]

The EOQ is 980 units and should reduce the fixed ordering cost to an amount of $62.50.

Explanation:

a) Annual demand=Qty per mth multiply with 12 = 1000 multiply with 12 =12000

Annual demand in USD, A= 12000 multiply with USD 100 (cost of each part) = USD 1200000

Preparation cost, P= 4 hrs changeover time multiply with USD 250 per hr = USD 1000

Annual holding cost, I = 25% = 0.25

EOQ in USD= Root over (2 multiply with A multiply with P divide by I ) = USD 9.79 multiply with 10000 = USD 98000

EOQ in nos. = USD 98000 divide by USD 100 (cos of each part) = 980 units

b) Q = 980 divide by 4 = 245

In this case, annual carryring cost, C = EOQ 980 by 4 multiply with 0.5 multiply with Unit cost USD 100 multiply with 0.25 = USD 3062.50

Annual demand, D = 1000 per month multiply with 12 = 12000

Ordering cost = C multiply with 245 / D = USD 62.50

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2 years ago