Answer: c.
In a competitive market, there are many producers competing to provide consumers the products they needed and thus they cannot dictate prices.
If a surplus occurs, there is an excess of quantity supplied and since producers won't be able to sell all their products, they tend or are forced to lower their price.
The reverse happens when there is a shortage. When there is less supply in the market, price increases.
Surplus and shortage in a competitive market, therefore, will cause shifts in the demand and supply curves that tend to eliminate the surplus or shortage.
Answer:
TRUE
Explanation:
Opportunity cost refers to those costs that can help us save more money. When we move from one investment to another, then the additional income from the other investment is called opportunity cost.
In this case, if Joe chooses Invest in a bank deposit in the place of Gold coins, he can enjoy 3% more return at the place of no profit and loss, so Joe had loss his 3% opportunity cost.
With the absence of the options to choose from, lets look at general results of using cost-benefit analysis.
Explanation:
using cost-benefit analysis is a strategic way of making decisions based on cost and benefit solely.
Ideally any investment or strategic decision to be made by an institution needs a cost-benefit analysis.
This is done by listing all the projected resources needed to take up the strategic objective and costed. After which another list is made of the potential benefit that is likely to come to the organisation.
When the two is compared we say <em>you are making cost-benefit </em>analysis.
More often without secondary reasons, the option with the highest benefit over cost is chosen.
This cost and benefit analysis are made both qualitatively and quantitatively.
Quantitatively methods such as NPV are used.
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Answer:
(D) an inferior good.
Explanation:
The inferior good had a negative relationship between income and demand.
When the income is lower, the demand increases as people moves away from normal goods to inferior as they are cheaper. And it will decrease once the income level return to his previous level.
This causes even more troubles in recessions to normal company's as the demand decrease and also, it shift to other goods.
