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Anna35 [415]
3 years ago
11

In a market system, how are the terms of exchange established?

Business
1 answer:
NikAS [45]3 years ago
4 0

Answer:

<u>The forces underlying supply and demand interact to determine a market clearing price</u>

Explanation:      

Market is a place or system where person that are seller and buyer who come together for the purpose of sale and purchase the goods.

<em>Types of market are :</em>

<u>Perfect Competition</u> : It is a market in which there are number of sellers and number of buyers selling same commodities or homogeneous product.

<u>Monopoly </u>: It is a form of market in which there is single seller , he has full control over price.

<u>Monopolistic Competition</u> : It is a form of market in which there are number of sellers and number of buyers but all the sellers are selling different type of product.    

<u>Oligopoly</u> : it is a form of market in which there are few big firms but a large number of buyers .

The market is also known as price system.The market system is very efficient . Market system creates a good competition.                                                                                                              

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Two-Stage ABC for Manufacturing: Reassigning Costs to Cost Objectives National Technology, LTD. has developed the following acti
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Explanation:

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Less Budgeted fixed overhead ($780,000)

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The Johnson Family is looking to buy a new house on Belmont Road. Their insurance deductible is increased by $500 if they live m
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Answer:

a) Absolute Value Inequality => Absolute(0 + y) < 2

b) -2 < y < 2

Which means, Johnson Family has to live within the range of -2 to +2 from the fire department. Otherwise, they will have to pay 500 USD as increased deductible.

Explanation:

<u><em>Johnson Family has to live within the range of -2 to +2 from the fire department. </em></u>

<em>a) Absolute Value Equation:</em>

Absolute(0 + y) < 2

where y represent the location of the new house and 0 represents the location of the fire department.

Furthermore,

<em>Absolute(0 + y) < 2 = (0 + x) < 2 when (0 + y) is +ve. </em>

and

<em>Absolute(0+y) <2 =  -(0 + x) < 2 when (0 + y) is -ve. </em>

b) When (0 + y) is +ve,

we have,  (0 + y) < 2.

<em>Solving for y and subtracting 0 from both sides. </em>

0-0 + y < 2 - 0

<em>y < 2</em>

and when (0 + y) is -ve,

<em>we have, - (0 + y) < 2. </em>

Solving for y:

- 0 - y < 2

multiplying negative from both sides

<em>y > - 2</em>

<em>So, we have -2 < y < 2 </em>

<em>Johnson Family has to live within the range of -2 to +2 from the fire department. Otherwise, they will have to pay 500 USD as increased deductible. </em>

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3 years ago
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