Why wouldn’t investment and saving flows at full employment always be equal?

For each of the following scenarios, identify the number of firms present, the type of product, and the appropriate market model

marshall27 [118]

Answer:

Number of Firms - many

Type of Product - differentiated

Market Model - monopolistic competition

Number of Firms - many

Type of Product - standardised

Market Model - perfect competition

Number of Firms - few

Type of Product - standardised

Market Model - oligopoly

Number of Firms - one

Type of Product - unique

Market Model - monopoly

Explanation:

A perfect competition is characterized by many buyers and sellers of homogenous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry. In the long run, firms earn zero economic profit. If in the short run firms are earning economic profit, in the long run firms would enter into the industry. This would drive economic profit to zero.

Also, if in the short run, firms are earning economic loss, in the long run, firms would exit the industry until economic profit falls to zero.

A monopolistic competition is when there are many firms selling differentiated products in an industry. A monopoly has characteristics of both a monopoly and a perfect competition. the demand curve is downward sloping. it sets the price for its goods and services.

An example of monopolistic competition are restaurants

A monopoly is when there is only one firm operating in an industry. there are usually high barriers to entry of firms. the demand curve is downward sloping. it sets the price for its goods and services.

An example of a monopoly is a utility company

An Oligopoly is when there are few large firms operating in an industry. While, a monopoly is when there is only one firm operating in an industry.

Oligopolies are characterised by:

price setting firms
profit maximisation
high barriers to entry or exit of firms
downward sloping demand curve

3 0

2 years ago

Granfield Company has a piece of manufacturing equipment with a book value of $36,000 and a remaining useful life of four years.

erastovalidia [21]

Answer:

Effect on income= -$18,000

Explanation:

Giving the following information:

Granfield Company has a piece of manufacturing equipment with a book value of $36,000 and a remaining useful life of four years. At the end of the four years, the equipment will have a zero salvage value. The market value of the equipment is currently $21,200. Granfield can purchase a new machine for $112,000 and receive $21,200 in return for trading in its old machine. The new machine will reduce variable manufacturing costs by $18,200 per year over the four-year life of the new machine.

Year 0= -112,000 + 21,200= -90,800

Year 1 to 4= 18,200*4= 72,800

Effect on income= -90,800 + 72,800= -18,000

7 0

3 years ago

The primary purpose of the trial balance is to: 1.prove the equality of the debit and credit amounts after posting. 2.transfer j

coldgirl [10]

Answer:

1.prove the equality of the debit and credit amounts after posting.

Explanation:

There are two columns in the trial balance, called debit columns and columns of credit. The total columns of debit and credit should always equaled. The debit columns report assets and expenditures side while profits, stockholder equity, and the liability side are reported in the credit column.

Its main purpose to equate and the prove the both side of the columns after posting of transactions

8 0

4 years ago

In order to build alliance management capabilities in small companies, it is recommended that firms take the ______ approach

julia-pushkina [17]

Answer:

non-equity alliance.

Explanation:

In Business management, a strategy can be defined as a set of guiding principles, actions and decisions that an organization combines so as to achieve its business goals, attract customers and possess a competitive advantage over its rivals in the industry.

Generally, a business strategy sets the overall direction for the business because it focuses on defining how a business would achieve its goals, objectives, and mission; as well as the funds and material resources required to implement or execute the business plan. The components of a business strategy includes the following;

I. Mission.

II. Value.

III. Vision.

Hence, when you wish to build alliance management capabilities in small companies, it is highly recommended that business firms take the non-equity alliance approach.

A non-equity alliance approach can be defined as a contractual relationship between two or more organizations that are interested in achieving common goals and objectives by pooling their resources, capabilities and efforts together while respectively maintaining their organizational independence without creating a new corporation or equity entity.

8 0

3 years ago

Read 2 more answers

Suppose a basket of goods and services has been selected to calculate the CPI and 2012 has been selected as the base year. In 20

Evgesh-ka [11]

Answer: 2016 CPI is 110

Explanation:

Given the following :

Base year = 2012

Cost of basket in 2012 = $50

Cost of basket in 2014 = $52

Coat of basket in 2016 = $55

The Consumer Price Index (CPI) is calculated using the formula :

CPI = (weighted cost item in current period / weighted cost of item in base period) × 100

Base period / year = 2012

Current period = 2016

Therefore, 2016 CPI equals;

($55 / $50) × 100

= 110

8 0

3 years ago