Answer:
This statement is true.
Explanation:
A market economy can be defined as an economic system in which economic decisions is taken by the market forces. The equilibrium prices and quantity are determined by the forces of demand and supply.
Market failure happens when these forces fail to efficiently allocate goods and services in the market.
The market fails to efficiently allocate goods and resources when the individual rational decisions in self-interest lead to inefficient outcomes for society.
Answer:
Amount of commission = $18,250
Explanation:
Given:
Listed price = $325,000
Sales price = $365,000
Commission rate = 5%
Find:
Amount of commission
Computation:
Amount of commission = Sales price x Commission rate
Amount of commission = $365,000 x 5%
Amount of commission = $18,250
The source of barriers to the scenarios described will be:
<u>Government impos</u>ed:
- There are a limited number of licenses for taxi drivers in NYC.
- Drug companies obtain patents so that they can recover research and development costs by the exclusive sale of the drug for some number of years.
- The government established a tariff on tea.
<u>Ownership of a key input:</u>
- Carribbean Cruz owns the only swimmable beach on an exclusive island in the Bahamas.
- The government establishes a quota on how much foreign oil can be imported.
<u>Economies of scale:</u>
- It is very expensive to build an amusement park, but not that expensive to admit an additional customer.
- Building a brewery is a high start-up cost operation.
It should be noted that government-imposed barriers are the barriers that can be in form of patents, licensing, tariffs, etc.
The ownership of key input is when the production of a good requires particular input, therefore, controlling the input can be a barrier to entry.
Economies of scale is when the long run average variable cost of a firm falls as there is an increase in output.
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Answer:
the stock price is $45.44
Explanation:
The computation of the stock price is shown below:
Sales per share is
= Total sales ÷ stock outstanding shares
= $3,010,000 ÷ 106,000 shares
= $28.40
Now
Benchmark PS = Stock price ÷ Sales per share
Stock price = $28.40 × 1.6
= $45.44
hence, the stock price is $45.44
We simply applied the above formula so that the correct value could come
And, the same is to be considered