Answer:
monopoly
Explanation:
In a monopoly market, a single firm sells a product with no close substitutes in a large market. It means that the single firm has no business competitors in the market. Without competition, the firm has the power to set prices, quality, and quantity without worrying about how customers will react.
In a monopoly market, customers have no choice since competition is absent. Customers have to do with high prices, limited varieties, and limited innovation, unlike in market structures that have business competition. Competition results in increased innovation, quality products, and a variety of products at fair prices.
Answer:
C. Responsiveness of quantity demanded to a percentage change in income.
Explanation:
Income elasticity is defined as the responsiveness of the quantity of a good demanded by an individual as his income changes, all other factors being constant.
Mathematically it is calculated as percentage change in quantity demanded divided by percentage change in income.
Income elasticity is used to find out if a good is a necessity or a luxury good.
The demand for goods that are a necessity does not change with a change in income.
However demand for a luxury good increases as income increases and vice versa
Answer:
Macroeconomics deals with events that affects the entire country or industry as a whole while Microeconomics affects individual members of the economy such as companies and people.
A. Congress recently passed the Tax Cuts and Jobs Act of 2017. MACRO
This Act will affect the entire nation so it will fall under Macroeconomics.
B. Amazon now has a 40% share of all e-commerce revenues. MICRO
Amazon is a single company in the market so things related to it will be considered on a micro economic level.
C. Tuition at the local university increased 11% from last year. MICRO
The local university like Amazon, is a single body in the economy and so they are a microeconomic player.
D. The U.S. unemployment rate fell below 4% in 2018. MACRO
The unemployment rate of a nation relates to the nation as a whole so this will fall under macroeconomics.
Answer:
$1,500
Explanation:
The computation of the firm operating income is shown below:
= Sales - operating cost other than depreciation - depreciation expenses
= $9,000 - $6,000 - $1,500
= $1,500
We simply deduct the operating cost and the depreciation expenses from the sales revenue amount to find out the earnings before income and taxes (EBIT) or firm operating income
