The correct answer is allocates resources efficiently and allows economic freedom.
The market system of economics is one where economic decisions and the pricing of goods and services are guided solely by supply and demand and there is limited to no government interaction in the economy. Because of this, two major virtues of the market system are that it allocates resources efficiently and allows economic freedom.
Answer:
It eliminated the need for fixed costs.
Explanation:
Answer:
<em>A hedge is an investment that is made with the intention of reducing the risk of adverse price movements in an asset. </em><em>Managers hedge because they are undiversified</em>
Answer: D.No. Since 26 is less than the break-even quantity, production of the product cannot produce a profit
Explanation:
At Breakeven the company will be making $0 in profit. The break-even number of units will therefore be;
0 = Revenue - costs
0 = 520x - (390x+15,340)
0 = 520x - 390x - 15,340
0 = 130x - 15,340
130x = 15,340
x = 118 units
As the break-even point is 118 units, anything below this will yield a loss. As the company has a capacity of 26 units, this is below the breakeven point so the company should not produce the good as they will surely make losses.
Answer: "In such markets, sellers of goods can influence the prevailing market price, giving them the role of price in the market." is wrong ,
The correct statement is "In such markets, sellers of goods CAN'T influence the prevailing market price, giving them the role of price TAKERS in the market".
"The market for tomatoes does not exhibit the two primary characteristics that define perfectly competitive markets." is FALSE because the market of tomatoes does exhibit the two characteristics:
- Identical products.
- Large number of buyers and sellers
