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PilotLPTM [1.2K]

4 years ago

8

Because they can control product price, monopolists are always assured of profitable production by simply charging the highest p

rice consumers will pay.
True or False?

1 answer:

lara [203]4 years ago

8 0

I think it’s False

-TwoTime-

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Warrensburg is a small college town in Missouri. At the end of August each year, the market demand for fast food in Warrensburg

Usimov [2.4K]

Answer:

The correct answer is b. increases.

Explanation:

In a market that works as perfect competition (according to Microeconomics), an increase in demand (and the consequent decrease in inventories of producers) leads producers to increase their sales prices of their products, in order to also increase its level of production, until it equals demand (since at higher prices demand decreases) and this causes the market to balance, this is called economic equilibrium. In a competitive economy, producers can only increase their level of production if the sales prices of their products rise, the reason is that production costs increase with volume.

Excess demand occurs when there are imperfections in the market (such as when the Government sets maximum sales prices, at a price below the market equilibrium price) and for this reason the market does not reach equilibrium, where the quantity demanded and offered of the product are equal. When a market is in excess demand, the quantity demanded by consumers is greater than the quantity supplied by sellers, this causes the inventories of the producers to fall and they cannot increase their production.

4 0

4 years ago

The controller of Fortnight Co. has requested a quick estimate of the manufacturing supplies needed for the Cleveland Plant for

Talja [164]

Answer:

Total cost= $752,060

Explanation:

<u>To calculate the fixed and variable cost under the high-low method, we need to use the following formulas:</u>

<u></u>

Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)

Variable cost per unit= (853,560 - 723,060) / (540,000 - 450,000)

Variable cost per unit= $1.45

Fixed costs= Highest activity cost - (Variable cost per unit * HAU)

Fixed costs= 853,560 - (1.45*540,000)

Fixed costs= $70,560

Fixed costs= LAC - (Variable cost per unit* LAU)

Fixed costs= 723,060 - (1.45*450,000)

Fixed costs= $70,560

<u>Now, the total cost for 470,000 units:</u>

<u></u>

Total cost= 70,560 + 1.45*470,000

Total cost= $752,060

7 0

3 years ago

Diane owns a bakery where she sells cupcakes. Two blocks down there is another bakery, CC's Bakery, that sells cupcakes for $1 l

BabaBlast [244]

Answer:

competition based pricing

Explanation:

When a company engages in a competition based pricing strategy, they will set the price of their products or services taking based on the price of their main or direct competitor. The product or service provided by the competitor is used to benchmark both the price and quality of the goods and services offered by the company.

For example, Coca Cola products are used as a price reference for all the soda products sold by other companies.

8 0

3 years ago

You would like to purchase one Class A share of Berkshire Hathaway through your Scottrade brokerage account. Scottrade charges a

Bumek [7]

Answer:

The current bid/ask spread for Berkshire Hathaway Class A shares is $935

Explanation:

The computation of the current bid/ask price is shown below:

The Current bid/ask price = Ask price - Bid price

= $263,810 - $262,875

= $935

The commission amount should be ignored in the computation part. Hence, it will not be considered as it is not relevant.

5 0

3 years ago

Why did Steve and Vic focused on smaller cities rather than Silicon Valley

nirvana33 [79]

Focusing on smaller cities rather than areas like silicon valley a good strategy, why? Larger cities have a lot more competition and a great way to help others in smaller cities with money and jobs. They can have their businesses all over the world and be able to give success to everyone.

8 0

3 years ago