Answer:
there is no deadweight loss.
Explanation:
In a perfect competition, there are many buyers and sellers of homogeneous products, and there is free entry and exit in the market.
This simply means that, in a perfectly competitive market, there are many buyers and sellers (price takers) of homogeneous products (standardized products with substitute) and the market is free (practically open) to all individuals or business entities that are willing to trade all their goods and services.
Generally, a perfectly competitive market is characterized by the following features;
1. Perfect information.
2. No barriers, it is typically free.
3. Equilibrium price and quantity.
4. Many buyers and sellers.
5. Homogeneous products.
Examples of a perfectly competitive market are the Agricultural sector, e-commerce and the foreign exchange market.
Hence, if equilibrium is achieved in a competitive market then, there is no deadweight loss i.e a loss of economic efficiency due to a lack of balance in competing economical influences for goods or services.
Answer:
Pretax income= $122,500
Explanation:
Giving the following information:
Fixed costs= $72,500
Variable costs equal to 40% of sales.
Sales= $325,000
<u>To calculate the pretax income, we need to use the following formula:</u>
Pretax income= contribution margin - fixed costs
Pretax income= 325,000*(1-0.4) - 72,500
Pretax income= $122,500
Answer choreographing a dance step by step
One of the reasons for the rapid rise in the value of the us dollar between 1980 and 1985 in due to commercial exchange with industrialized countries with political stability in other parts of the world, commercial relations with 10 countries of the organisation for economic co-operation and development and switzerland helped dollar raised 79% between 1980 and 1985.
