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3 years ago

What does Market Power mean?

1 answer:

3 0

Market power is the ability of a company or a firm/firm group to raise and maintain the price of a product. This also means that they need to maintain the price above the level that will be better than its competitors. This can also be called as monopoly power as well. However, it can lead towards loss of economic welfare as well.

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just olya [345]

Answer:

Similarities between Free Market Economy and Command Economy

Both economies have similar economic players including consumers and producers, services and goods and money and labor.

8 0

3 years ago

John's Specialty Store uses a periodic inventory system. The following are some inventory transactions for the month of May 2013

jolli1 [7]

Answer:

Explanation:

The journal entries are shown below:

1. Purchase A/c Dr $5,400

To Accounts Payable $5,400

(Being merchandise is purchased on credit)

2. Freight-In A/c Dr $500

To Cash A/c $500

(Being freight charges are paid in cash)

3. Accounts Payable A/c Dr $800

To Purchase Returns A/c $800

(Being return merchandise is recorded)

4. Cash A/c Dr $5600

To Sales revenue A/c $5600

(Being merchandise is sold for cash)

5. No journal entry required

6 0

3 years ago

econ One year a country has negative net exports. The next year it still has negative net exports and imports have risen more th

Vesnalui [34]

Answer:

its trade deficit rose

Explanation:

Trade deficit occurs when the imports of a country are higher than the exports. It is called the trade deficit. It means the country is importing more value of goods from other countries and exporting less. When Imports grows higher than the growth in exports, the trade deficit eventually rises.

8 0

3 years ago

Adam has $200 to spend and wants to buy either a new amplifier for his guitar or a new cell phone. Both the amplifier and the ce

nika2105 [10]

Answer:

people face trade offs

Explanation:

Because wants are unlimited and the resources used to satisfy those wants are limited, people have to face trade offs. these trades off are opportunity costs.

Opportunity cost or implicit is the cost of the option forgone when one alternative is chosen over other alternatives.

In this question, the wants are a cell phone or an amplifier. the resource is $200. If the amplifier is bought, the cell phone cannot be purchased. This is an example of a trade off

7 0

3 years ago

Sandpiper Company has 10,000 shares of cumulative preferred 2% stock, $100 par and 50,000 shares of $30 par common stock. The fo

Aleonysh [2.5K]

Answer:

Year 1

$ 40.000 - Total Dividends

$ 20.000 - Preferred Stockholers

$ 20.000 - Common Stockholers

Year 2

$ 10.000 - Total Dividends

$ 10.000 - Preferred Stockholers

$ 0 - Common Stockholers

Year 3

$ 60.000 - Total Dividends

$ 30.000 - Preferred Stockholers

$ 30.000 - Common Stockholers

Total

$ 60.000 Preffered Stockholers

$ 50.000 Common Stockholers

Explanation:

First it's necessary to said that the preferred stockholders have a higher claim to dividends than common stock, it means that each time that the company paid dividends, the one corresponding to Preffered Stockholers must be paid first and if one year there are not enough dividends to pay then they must be paid the next year along with the dividends of next year, it's a kind of guaranteed dividend.

Total Dividends to Preferred Stockholders

10.000 Shares

2% percent of par value

$100 Par Value

Total Dividends: 10,000 * 2% * $100 = $ 20.000 of Dividend each year.

Preferred dividends for preferred stock.

$ 20.000

Total Dividends to be paid by the company each year

Year 1 Year 2 Year 3

$ 40.000 $ 10.000 $ 60.000

$ 20.000 $ 10.000 $ 30.000 Preffered Stockholers

$ 20.000 $ 30.000 Common Stockholers

4 0

3 years ago

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