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3 years ago

Explain, using examples, the abuse of monopoly power as a market failure.

Business

1 answer:

saw5 [17]3 years ago

3 0

Answer:

Explanation:

A monopoly is a market structure where there is only one supplier of a product and many buyers. An example of a monopoly is Microsoft; it is a price setter in the market. Abuse of monopoly power can occur when a firm dominates the market meaning no competitors within the industry. This abuse could be in form of limiting output or setting higher prices to benefit from supernormal profits . This therefore leads to less choice for consumers.Over time, monopolies can become less innovative because they do not have competition and causing the market to fail and be inefficient; the price mechanism fails to take into account all of the costs and/or benefits of providing and consuming a good.

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1. Which of the following ratios are key components in measuring a company's operating efficiency? (You may select more than one

mrs_skeptik [129]

Answer:

Explanation:

1. c. Return on total assets checked

d. Total asset turnover checked

2) b. Debt ratio

3) d. Working capital

4) c. Accounts receivable turnover checked

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3 years ago

Read 2 more answers

Bernadette would like to generate intrinsic motivation in her employees because she feels it will ultimately lead to better perf

kherson [118]

Answer:

The correct answer is letter "E": Enjoyment.

Explanation:

Intrinsic motivation represents the internal inspirations individuals have by doing an activity. Those individuals perform those actions typically without expecting anything in return. They do it because of the personal satisfaction doing those activities provide to them.

Thus, if Bernadette would like to promote intrinsic motivation among her employees, she must make sure the activities they perform at work at of their interest and enjoyment.

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2 years ago

In the second half of 2019, automobile sales in the United States were lower than they were in the second half of 2018. The decr

Monica [59]

In the second half of 2019, automobile sales in the United States were lower than they were in the second half of 2018. The decrease in auto sales impacts GDP because new automobiles are counted as <u>consumption </u>when purchased by households and <u>investment</u> when purchased by businesses.

Gross domestic product (GDP) is the overall monetary or market value of all of the goods and services produced within a country's borders in a particular time period.

GDP can be calculated by adding up all of the money spent by consumers, businesses, and the government in a given period. It may also be calculated by adding up all of the money received by all the participants in the economy.

learn more about Gross domestic product (GDP) here

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3 0

1 year ago

Farrow Co. expects to sell 150,000 units of its product in the next period with the following results. Sales (150,000 units) $ 2

BabaBlast [244]

Answer:

Accept

Explanation:

The computation of the combined total net income is shown below:

Normal Volume Additional Volume Total

Sales $2,250,000 $180,000 $2,430,000

(15,000 × $12)

Costs and expenses:

Direct materials $300,000 $30,000 $330,000

Direct labor $600,000 $60,000 $660,000

Overhead $150,000 $22,500 $172,500

($150,000 × 15%)

Selling expenses $225,000 $225,000

Administrative expenses $385,500 $64,500 $450,000

Total costs and expenses $1,660,500 $177,000 $1,837,500

Incremental income (loss) from new business $589,500 $3,000 $592,500

Therefore, the company should accept the offer

6 0

2 years ago

The interest paid on a municipal bond, otherwise known as a muni, is generally exempt from federal income taxes. therefore, the

Ratling [72]

That statement is true
A corporate Bond is way more senstive to the condition of the market which will affect the volatility of its value. Since government could technically produce their money from the federal reserve, the municipal bond is technically will always be paid (by risking inflation)

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3 years ago