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Papessa [141]
3 years ago
10

What necessary condition for the presence of competition in a market?

Business
2 answers:
Lady_Fox [76]3 years ago
6 0

Answer: See explanation below.

Explanation: The following are necessary conditions for competition in a market.

1. There are many firms that produce identical products or services. This will foster competition among the firms.

2. There and many buyers available to buy a particular product or service, and there are also many sellers who are ready to sell a product or service.

3. Free entry and free exit of the market. This means that there a little or no restrictions for entering or leaving a market. Firms can come and go as they please.

4. Presence of relevant information to buyers and sellers in order that they might make rational buying and selling decisions, especially information about price.

5. There is little or no government regulation.

Arlecino [84]3 years ago
3 0

Answer:

There are several conditions which are required for there to be a perfect competition in a market or economy.

Let me highlight those, there should be many firms in the market which have identical product offerings with not so variable prices. Secondly, the size of the firms on the market should not be big in terms of its sales. Thirdly, the market forces determine the demand and supply in the market. Fourthly, firms should be able to easily enter and exit the market as per their will.  Lastly, there are a number of sellers and buyers in the market for a particular product.

Hope this helps you.

Good Luck.

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Explanation:

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An example is the oil industry in which oil is produced by one country and sold to another. Both countries deal with both Foreign and International environments.

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Harlose Suits faced a lot of complaints from customers when its recent batch of goods was dispatched. The employees at Harlose S
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External failure costs.

Explanation:

These are explained to be the faults or defects a customer finds out or see after receiving his good and leaves the factory or finds out when goods or services has been delivered to him/her.

This can be either internal or external. When seen to be an internal aspect of the failure, costs result from identification of defects before they are shipped to customers. Some of these could include rejected products, reworking of defective units, scrap and also downtime caused by quality problem. It is said that a firms appraisal activities creates chances greater than the chance of catching defects internally and the greater the level of internal failure costs. This is the price that is paid to avoid incurring external failure costs, which can be devastating.

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Answer:

b.$60,000 outflow.

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The main advantage of the disclosure is that it helps in understanding the things more clearly without any interruption and makes the thinks more crystal clear.

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