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3 years ago

The loss in efficiency due to market power large or small? Explain. The loss in efficiency due to market power is____________.

Business

1 answer:

MakcuM [25]3 years ago

7 0

Answer:

The answer is small because the firms with the market power of substantial are rare.

Explanation:

The loss in the efficiency is because of the market power which is small as the firms with the essential or substantial market power are rare in the market.

The firms with the power substantial market are the monopoly firms and these firms are very rare. Some competition exists in firms in the market but this competition limit the power of the market by decreasing the dead weight loss and keeping the cost closer to the marginal cost. So, it will result in loss in efficiency.

Note: The correct answer or option is missing. So, providing the correct statement.

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A potential customer for an $88,000 fire insurance policy possesses a home in an area that, according to experience, may sustain

Ksenya-84 [330]

Answer:

The answer is: In order for the company to break even on all the $88,000 policies in that area it must charge $528 per yearly policy.

Explanation:

In order to calculate what premium the insurance company should charge in order to break even, we must know how much money the company will have to pay during the year.

Fire insurance policy of $88,000

<u>Possible losses Probability Money paid by company </u>

total loss 0.001 $88,000

50% loss 0.01 $44,000

The company will have to pay $88 ($88,000 x 0.001) for a total loss and $440 ($44,000 x 0.01) for a 50% loss, we add them up and get $528.

In order for the company to break even on all the $88,000 policies in that area it must charge $528 per yearly policy.

8 0

3 years ago

Jeffrey runs a small magazine, which has always been printed and mailed to subscribers. Jeffrey has dreamed of creating a way to

balandron [24]

affiliative leadership

7 0

4 years ago

Jiffy Park Corp. has annual sales of $50,736,000, an average inventory level of S15,010,000, and average accounts receivable of

FromTheMoon [43]

Answer:

Jiffy Park Corp.

Cash Conversion Cycle:

a. Prior to proposed changes:

CCC = 169 days

b. After implementing changes:

CCC = 129 days

c. The change in CCC is 40 days

d. It is significant. It is about 24% reduction in the CCC. It is equal to the days that payable are outstanding under the proposed plan.

Explanation:

a) Data and Calculations:

Current annual sales = $50,736,000

Average inventory level = $15,010,000

Average accounts receivable = $10,010,000

Cost of goods sold = 85% of sale s= $43,125,600

Normal Days Payable Outstanding = 30 days

New Plan:

Planned Days Payable Outstanding = 40 days

Annual sales = $50,736,000

Average inventory level = $13,060,000 ($15,010,000 - $1,950,000)

Average accounts receivable = $8,060,000 ($10,010,000 - $1,950,000)

Cash Conversion Cycle:

a. Prior to proposed changes:

Days Inventory Outstanding = $15,010,000/$43,125,600 * 365 = 127 days

Days Receivable OUtstanding = $10,010,000/$50,736,000 * 365 = 72 days

Days Payable Outstanding = 30 days

CCC = 169 (127 + 72 - 30) days

b. After implementing changes:

Days Inventory Outstanding = $13,060,000/$43,125,600 * 365 = 111 days

Days Receivable OUtstanding = $8,060,000/$50,736,000 * 365 = 58 days

Days Payable Outstanding = 30 days

CCC = 129 (111 + 58 - 40) days

c. The change in CCC is 40 days (169 - 129)

d. It is significant. It is about 24% reduction in the CCC. It is equal to the days that payable are outstanding under the proposed plan.

6 0

3 years ago

) A company sells a software suite that includes a word processor and spreadsheet applications. The suite sells for $250 and the

DIA [1.3K]

Answer:

Allocated to the the word processing products would be$80

To the spreadsheet would be allocated revenues for $170

Explanation:

In order to calculate how much of the $250 revenue from the bundled product sale would be allocated to the the word processing products we would have to use the following formula:

allocated to the the word processing products= sold price suits- spreadsheet price

allocated to the the word processing products= $250-$170

allocated to the the word processing products=$80

To the spreadsheet would be allocated revenues for $170

7 0

3 years ago

Determine the value-added, non-value-added, and total lead times, and the value-added ratio under the present and proposed produ

AleksAgata [21]

Answer:

Hello some parts of your question is missing attached below is the missing part

Answer : value added times : 30 minutes , 30 minutes

non-value added times: 1210 minutes, 130 minutes

Total lead times : 1240 minutes, 160 minutes

value added time as a ratio: 2.4%, 18.8%

Explanation:

Given data:

production batch sizes = 40 units

process step 1 = 6 minutes

process step 2 = 10 minutes

process step 3 = 6 minutes

process step 4 = 8 minutes

Determining : The value added, non-value added , total lead times and value added ratio under the present and proposed production approaches

UNDER PRESENT PRODUCTION APPROACH

Th value added time:

= summation of all process times = (6+10+6+8) = 30 minutes

Non-value added time:

= Value added time *(Batch size -1) + move time between each step

= 30*39+8*5

= 1170 +40 = 1210 minutes

total lead time :

= value added time + non-value added time

= 30 + 1210 = 1240 minutes

value added time as a percentage/ratio

(value added time / total lead time) * 100

= 30 / 1240 * 100 = 2.4%

UNDER PROPOSED PRODUCTION APPROACH

value added time :

= summation of all process times = (6+10+6+8) = 30 minutes

Non-value added time :

= Value added time *(Batch size -1) + time between each step

= 30*4+2*5 = 120 + 10 = 130 mins

total lead time :

= value added time + non-value added time = 30 +130 = 160 mins

value added time as a percentage/ratio:

(value added time / total lead time ) * 100

= (30 / 160) * 100 = 18.8%

3 0

4 years ago

The loss in efficiency due to market power large or​ small? Explain. The loss in efficiency due to market power is____________.

The loss in efficiency due to market power large or small? Explain. The loss in efficiency due to market power is____________.