Answer:
The principle or model of voluntary exchange assumes that people will act based on self-interests. This is an important component of a healthy economy. If individuals in a market economy do not feel that they will benefit from the exchange, they would not be willing to make it.
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Answer:
C)Many firms operate in the market and produce similar, but differentiated products.
Explanation:
A monopolistic market structure has many firms competing for the same customers. Although the firms sell similar products, each tries to make their products different from the rest. Each firm can set its price because the products are differentiated. Other characteristics of monopolistic competition include
- Freedom of entry and exit.
- There many sellers and buyers
- Each firm sets its product price
Answer:
B. in the long run
C. when the price is a large portion of your income
E. when many substitutes are available
G. when there are many competing firms selling similar goods
Explanation:
Elasticity of demand is the degree of responsiveness of change in quantity demand of a product if there is a change in price of the product.
The demand for a product is somewhat inelastic in the short run, but in the long run, demand is more elastic.
The reason is that consumers need more time to respond and adjust to the use of certain products.
Also, when the price is a large portion of your income, price becomes more elastic. The reason is that, an increase in price leads to a decrease in quantity demand.
When many substitutes are available, an increase in price will cause consumers to shift their demand for the substitute.
When there are many competing firms selling similar goods demand for a product becomes more elastic
Answer:
the bonds will recognize a gain for 3,500
Explanation:
The adjusted basis of the stock will be the value in Winkler books.
So selling at 7,500 will recognize gain for 3,500
Answer:
Customer may not want the product which the company is making well.
Explanation:
It is not necessary that market needs those products which the company is producing perfectly. It cannot enter into product differentiation and cannot meet customer demands and needs of specific or altered products. The company can achieve specialization and can be a niche player in the market but also on the other hand company’s business is limited to only few products at which it is perfect. It cannot allow customization to its products.