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3 years ago

Which best states the main difference between a monopoly and pure competition?

Business

2 answers:

Dennis_Churaev [7]3 years ago

8 0

Answer:

Monopoly involves no competition at all while pure competition involves high competition

Explanation:

Brut [27]3 years ago

3 0

When you have a monopoly you have a product or service on the market with no competition. On the flip side, in a pure or perfect competition there are various competitors selling the same product or service as you. The main difference between these two are that a monopoly involves no competition at all while a pure competition involves a high level of competition. (the first choice)

The second choice is incorrect because it is harder to establish a product in a pure competition market because you are competing with other companies.

The third choice is incorrect because a monopoly refers to a company with a product or service and no competition whereas a pure competition refers to one with the same products or services.

The forth choice is incorrect because they can be present in various economy structures.

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4. Does inflation cause a change in demand? Explain the role of inflation in determining demand.

brilliants [131]

Answer:

Inflation is an increase in the general price level in an economy. It is probably caused by the relative increase in the amount of money in relation to the available economic production. If the social money supply increases and the country's production is not matched, the average price level will rise due to the increased demand for goods. Due to the price increases, the value of money, the purchasing power of money, decreases. You can buy less for the same amount, thus lowering demand.

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3 years ago

What speeds up the flow of investment and wages in the circular flow of the free-market system? A. Fractional reserve banking B.

Paul [167]

Answer:

Antitrust Laws

Explanation: Apex

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3 years ago

During 2019, $27,000 of cash dividends were declared and paid. A patent valued at $80,000 was obtained in exchange for land. Equ

nadezda [96]

Answer:

a. Change in Cash that occurred during 2019:

Cash outflow $27,000

Cash inflow = $13,000

Net outflow = $14,000

b. Statement of Cash Flows for the year ended December 31, 2019:

Investing activities:

Sale of Equipment $13,000

Financing activities:

Payment of dividends ($27,000)

Net cash outflow = $14,000

Explanation:

a) Data and Calculations:

Cash dividends paid during 2019 = $27,000

Patent purchased = $80,000

Land sold in exchange of patent = $80,000

Sale of equipment = $13,000

Sales of Bonds Payable = Cost of Building Improvements

7 0

3 years ago

Assume the risk free rate is 4 percent, the required rate of return on the market portfolio is 15 percent, and the reported beta

Eddi Din [679]

Answer:

required rate of return on the stock = 22.7%

so correct option is e. 22.7 percent

Explanation:

given data

risk free rate = 4 percent

rate of return = 15 percent

beta = 1.7

to find out

required rate of return on the stock

solution

we get here required rate of return on the stock that is express here as

required rate of return on the stock = risk free rate + beta × ( Return on the Market portfolio - Risk free Rate) ........................1

put here value we get

required rate of return on the stock = 4 + 1.7 × ( 15 - 4)

required rate of return on the stock = 22.7%

so correct option is e. 22.7 percent

5 0

4 years ago

U.S. Steel is considering a plant expansion to produce austenitic, precipitation hardened, duplex, and martensitic stainless ste

kirza4 [7]

Answer:

$5.5228 million

$5,522,800

Explanation:

First, calculate the present value of all cash outflows

Present value of cash outflow = Initial Cost + ( Year 1 cost x Discount factor 15%, 1 year ) + ( Annual Cost x Annuity factor 15%, 10 years )

Where

Initial cost = $13 million

Year 1 cost = $10 million

Discount factor 15%, 1 year = 1 / ( 1 + 15% )^1 = 0.8696

Annual Cost = $1.2 million

Annuity factor 15%, 10 years = 1 - ( 1 + 15% )^-10 / 15% = 5.019

Placing value sin the formula

Present value of cash outflow = $13 million + ( $10 million x 0.8696 ) + ( $1.2 million x 5.019 )

Present value of cash outflow = $13 million + $8.696 million + $6.0228 million

Present value of cash outflow = $27.7188 million

Now use the following formula to calculate the annual revenue required to recover its investment plus a return of 15% per year

Present value of Annual revenue = Annual Revenue x Annuity factor 15%, 10 years

Annual Revenue = Present value of Annual revenue / Annuity factor 15%, 10 years

Where

Present value of Annual revenue = $27.7188 million

Annuity factor 15%, 10 years = 1 - ( 1 + 15% )^-10 / 15% = 5.019

Placing value sin the formula

Annual Revenue = $27.7188 million / 5.019

Annual Revenue = $5.5228 million

Annual Revenue = $5,522,800

8 0

3 years ago