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4 years ago

Price taking behavior for a firm means that:

Business

1 answer:

erma4kov [3.2K]4 years ago

5 0

Answer:

d. the firm has no individual effect on the market price.

Explanation:

Price taker -

It refers to the company or an individual who need to get the prevailing price of the market and have lesser market share , is referred to as price taker .

The price taker does not have the capability to alter the market price , because it does not have enough power to do the same .

A price taker can be any one in the economy , and can freely take entry and exit .

Hence, from the given information of the question,

The correct option is d.

You might be interested in

If a pure monopolist is operating in a range of output where demand is elastic:

soldi70 [24.7K]

Answer: The correct answer is "c. marginal revenue will be positive but declining.".

Explanation: If a pure monopolist is operating in a range of output where demand is elastic: marginal revenue will be positive but declining.

To the extent that the monopolist's demand has a negative slope, the marginal income is always below it. And this is so because to sell more the monopolist has to lower the price, and this reduction in the price affects all the units that will sell.

3 0

3 years ago

Discounts taken by a buyer because of early payment are recorded on the seller’s accounting records as Group of answer choices a

alexandr402 [8]

Answer:

B) Sales discount

Explanation:

For example, company A sells $100 in merchandise to company B on account under the following terms 2/10, n/30. The journal entry to record the initial transaction is:

Dr Accounts receivable 100

Cr Sales revenue 100

If the buyer pays within the discount period, the journal entry should be:

Dr Cash 98

Dr Sales discount 2

Cr Accounts receivable 100

Sales discount is a contra revenue account that lowers sales revenue.

8 0

4 years ago

Return on investment LO A1, A2 ZNet Co. is a web-based retail company. The company reports the following for 2017. Sales $ 23,16

katovenus [111]

Answer:

2017

ROI = 18%

Profit Margin = 30%

2018

ROI = 25.2%

Investment Turnover = 84%

Explanation:

The formulas for the required ratio are as follows,

ROI = Operating income / Average invested assets

Profit margin = Operating Income / Sales

For 2017,

ROI = 6,948,000 / 38,600,000 = 0.18 = 18%

Profit margin = 6,948,000 / 23,160,000 = 0.3 = 30% of sales

For 2018, we compute increased sales first

Sales = 23,160,000 * 1.4 = $32,424,000 after 40% increase

with profit margin staying the same, profit for 2018

Profit = $32,424,000 * 0.3 = $9,727,200

Using the earlier formulas,

ROI = $9,727,200 / 38,600,000 = 0.252 = 25.2%

Investment turnover = Sales / Average invested assets

Investment Turnover = $32,424,000 / 38,600,000 = 0.84 = 84%

Hope that helps.

8 0

3 years ago

Read 2 more answers

People's Clinic purchased a special machine for use in its laboratory on January 2, 2016. The machine cost $100,000 and was expe

klemol [59]

Answer:

Depreciation Expense for 2018; $10,528.57

Explanation:

On January 2, 2016

machine cost = $100,000

Useful life = 10 years

Annual depreciation = ($100,000 - $6000)/10

= $9,400

By early 2018,

Carrying amount of the machine

= $100,000 - 2($9,400)

= $100,000 - $18,800

= $81,200

Useful life is reassessed to 7 years (rather than 8) with a salvage value of $7,500

Annual Depreciation = ($81,200 - $7,500)/7

= $73,700/7

= $10,528.57

Depreciation Expense for 2018; $10,528.57

6 0

4 years ago

A company that rents bikes to students without any supporting business processes has likely implemented a ____________ competiti

valkas [14]

A company that rents bikes to students without any supporting business processes has likely implemented a differentiation competitive strategy.

<h3>What does "competitive strategy" mean?</h3>

A business uses a set of rules and practices known as a competitive strategy to acquire a competitive edge in the market. It is the procedure for choosing and carrying out steps that enable a corporation to strengthen its position in the market.

A company's competitive strategy is its long-term action plan, which is intended to provide it a competitive edge over its rivals after assessing their industry-specific strengths, weaknesses, opportunities, and threats in comparison to your own.

In essence, differentiation in business relates to the idea of distinguishing your business from the competitors by a particular feature, such your distribution system or pricing point.

Learn more about strategy on:

brainly.com/question/24851851

#SPJ1

6 0

2 years ago