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Andre45 [30]
4 years ago
7

Why do most markets in the real world fall somewhere between perfect competition and monopoly?

Business
1 answer:
REY [17]4 years ago
8 0

Answer:

When you let people in the market to freely compete with one another without any restriction, eventually there will be a sole winner who stand in the top of the competition.

When this happen , that sole winner will gradually accumulate wealth and the production process that it structured will become more efficient. This made that winner able to produce the product with really low price and expanded the operation using the gained wealth.

This will make it really hard for newcomers to compete with the existing winner. Eventually, the winner will takes it all and monopoly or  will naturally formed (or at least that winner will own majority of the market)

Perfect competition is an effort that people consciously do in order to prevent monopoly. They strictly regulated the competition to ensure that there no difference in price and types of products.

To put it simply, if we try to let free market take it course by itself, monopoly tend to unavoidable. If we try to restrict it without freedom to compete, we technically form a perfect competition.

This is why most markets in the real world fall somewhere between perfect competition and monopoly

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3. Franchising is widely used in the casual dining and fast food industry, yet Starbucks is quite successful with a large number
Softa [21]

Starbucks doesn't franchise.

Explanation:

Starbucks doesn't franchise because they want to run their own stores and can control the quality and profits.

In addiction, franchising is a way for companies to expand fast with less money. Starbucks is relying on their name to continue its success and growth. According to Starbuck's investor report , "Seattle's best coffee brand does offer franchise opportunities to qualified and select applicants , using a predefined set of criteria and focusing on multi-unit franchisees with a proven track record of success."

Starbucks pursues join ventures. Starbucks can be found in several grocery stores and retail stores. Starbucks has the name tights  but it is using the location of these venues to promote the product and introduce new customers in the Starbuck's pool.

3 0
3 years ago
Which firm would an economist most likely label as an oligopolist? Choose one: A. This firm is one of many successful pest exter
RoseWind [281]

Answer:

C. This firm is one of a handful of cement manufacturers in a small country. There are barriers to entry due to the necessity of controlling specific resources to make cement.

Explanation:

An oligopoly is defined as a market situation where a few businesses exist in a given market, with none of them having ability to keep others from having significant influence.

A monopoly is when only one supplier exists in a market, a duopoly is when there are 2 suppliers, while an oligopoly is when number of supplier is more than 2.

But the number must be small enough that the actions by one firm significantly affects others.

When a firm is one of a handful of cement manufacturers in a small country, and there are barriers to entry due to the necessity of controlling specific resources to make cement. It is an oligopoly

7 0
3 years ago
FIRST ANSWER GETS BRAINLIEST!!!!!!!
evablogger [386]
I would say bond. Bob would most likely going to buy bonds. Bonds are known to be very safe however it has low return.
8 0
3 years ago
how do managers resolve problems related to transactions including cash, checks, debit cards, credit cards, discounts, layaway,
zhenek [66]

Answer:

Explanation:

In order to solve such problems the managers analyze the financial transactions in their systems. They first obtain the transaction number that the client received upon making the purchase. Then they find this transaction number in their system and analyze the numbers. If the transaction was a mistake or had an error they can reverse the transaction which would return the money to the client and move that transaction off of the confirmed transactions in the system.

3 0
3 years ago
Pam runs a mail-order business for gym equipment. Annual demand for TricoFlexers is 14,000. The annual holding cost per unit is
AleksAgata [21]

Answer:

a)

economic order quantity (EOQ) = √(2SD/H)

  • S = order cost = 65
  • D = annual demand = 14,000
  • H = holding cost = 3.75

EOQ = √[2 x 65 x 14,000) / 3.75] = 696.66 ≈ 697 units

b)

if demand increases to 28,000, then:

EOQ = √[2 x 65 x 28,000) / 3.75] = 985.22 ≈ 985 units

4 0
3 years ago
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