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UNO [17]
3 years ago
12

If a monopolistic competitor raises its price, it ___________ customers than a perfectly competitive firm, but ____________ cust

omers compared to the number that a monopoly that raised its prices would.
Business
1 answer:
Jobisdone [24]3 years ago
3 0

Answer:

It would <u>lose less customers </u>than perfectly competitive firm, but <u>more customers</u> compared to a monopoly that raised its price would

Explanation:

  • Perfect Competition is a market form with many buyers & sellers, selling homogeneous products at constant prices
  • Monopolistically competitive firm has many sellers, selling slightly differentiated products, at different prices.
  • Monopoly is a market structure having single seller of a product in the market.

So, these market forms have following control over prices/ elasticity of demand :

  • Perfect competition has uniform prices, perfectly elastic horizontal demand curve. Firm is just a price taker, has no control in price.
  • Monopolistic competition firm has different prices because of differentiated products. But has only certain control on price, demand is elastic due to substitutes competition
  • Monopoly, being single seller has full control over price, is 'price maker'. Lack of substitutes also make its demand inelastic.

Therefore : A price rise would - reduce perfect competition firm demand the most;  more than that & less than monopoly for monopolistic competitive firm demand ; the least for monopoly demand

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Brummitt Corp., is evaluating a new 4-year project. The equipment necessary for the project will cost $2,000,000 and can be sold
sergejj [24]

Answer:

The aftertax salvage value of the equipment is $302,964

Explanation:

In order to calculate the aftertax salvage value of the equipment, first we would need to calculate the Book value of the equipment after 4 years as follows:

Book value of the equipment after 4 years = Purchase price *(1-depreciation rate each year)

= $2,000,000*(1-0.2-0.32-0.192-0.1152)

=$345,600

Loss on sale = $281,000-345,600

= 64600

Tax benefit on loss = $64,600*34% = $21,964

Therefore, After tax salvage value = selling price + tax benefit

= $281,000 + $21,964

=$302,964

The aftertax salvage value of the equipment is $302,964

5 0
4 years ago
Read 2 more answers
According to the specifications that a customer gave to a manufacturer, the length of a shoe should not deviate from the correct
vichka [17]

Answer:

Capability ratio = 1.04166

Explanation:

Given:

Length of a shoe (not deviate) = 1 mm

Standard deviation of this length = 0.32 mm

Number of standard deviations = 3

Find:

Capability ratio = ?

Computation:

Capability ratio = [Length of a shoe (not deviate) / Standard deviation of this length] / Number of standard deviations

Capability ratio = [1 / 0.32] / 3

Capability ratio = 3.125 / 3

Capability ratio = 1.04166

Capability ratio is greater than 1, therefore process is capable.

4 0
3 years ago
Describes the practice of products and services traded between counties around the world
mylen [45]

Global Trade, or commerce, involves the transfer of the ownership of goods or services, from one person or entity to another, in exchange for money goods or services. Help to Grow the Society.


4 0
3 years ago
Cashiers at a department store are authorized to make price adjustments for customers of up to​ $25 without getting approval fro
pentagon [3]
Cashiers at a department store are authorized to make price adjustments for customers of up to​ $25 without getting approval from their supervisors. This would suggest that the department store is​ a decentralized organization. In a company with decentralized organization the <span>decisions are not  made centrally by the head of the company (in our case manager of the store and supervisors) , but decisions are made by mid-level or lower-level managers (cashiers in our case).</span>

5 0
3 years ago
There is a justification of management interference in economies . Explain how it can
ankoles [38]

Answer:Governments intervene in markets to address inefficiency. In an optimally efficient market, resources are perfectly allocated to those that need them in the amounts they need. In inefficient markets that is not the case; some may have too much of a resource while others do not have enough. Inefficiency can take many different forms. The government tries to combat these inequities through regulation, taxation, and subsidies. Most governments have any combination of four different objectives when they intervene in the market.

Maximizing Social Welfare

In an unregulated inefficient market, cartels and other types of organizations can wield monopolistic power, raising entry costs and limiting the development of infrastructure. Without regulation, businesses can produce negative externalities without consequence. This all leads to diminished resources, stifled innovation, and minimized trade and its corresponding benefits. Government intervention through regulation can directly address these issues.

Another example of intervention to promote social welfare involves public goods. Certain depletable goods, like public parks, aren’t owned by an individual. This means that no price is assigned to the use of that good and everyone can use it. As a result, it is very easy for these assets to be depleted. Governments intervene to ensure those resources are not depleted.

Macro-Economic Factors

Governments also intervene to minimize the damage caused by naturally occurring economic events. Recessions and inflation are part of the natural business cycle but can have a devastating effect on citizens. In these cases, governments intervene through subsidies and manipulation of the money supply to minimize the harsh impact of economic forces on its constituents.

Socio-Economic Factors

Governments may also intervene in markets to promote general economic fairness. Government often try, through taxation and welfare programs, to reallocate financial resources from the wealthy to those that are most in need. Other examples of market intervention for socio-economic reasons include employment laws to protect certain segments of the population and the regulation of the manufacture of certain products to ensure the health and well-being of consumers.

Explanation:

ok

3 0
3 years ago
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