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kari74 [83]
3 years ago
15

name two different market structures describe how and why they each have a different competitive situation

Business
2 answers:
ELEN [110]3 years ago
8 0
Perfect Competition- many firms, freedom of entry, homogeneous product, normal profit
Monopoly- One firm dominates the market, barriers to entry, possibly supernormal profit.
Mkey [24]3 years ago
3 0
Economists suppose that there are various buyers and sellers in the marketplace which means that competition is everywhere in the market which in turn allowed price to change in reaction to changes in supply and demand. In Economics, there are some market structures that describes how each structure compete in a different competitive situation. Monopoly is one. Monopoly is one of the market structures whereby there is one producer or seller which means, the industry is the single business. This market structure prohibits others from joining the market when a company has a patent or copyright. Oligopoly is another market structure where there are chosen few firms that make up an industry. Both market structures have high barrier entries where competing markets for share are interdependent as the consequence of market forces.


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Therefore, Kendrick can be seen as innovator.

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7 0
2 years ago
Knox Company has a new product with a projected selling price of $6.00 each. It estimates that it could sell 100,000 units annua
Pachacha [2.7K]

Answer:

350,000

And if done per unit, $3.50

Explanation:

Both sales and variable cost are dependent on the number of units sold.

The sales less the variable cost gives the contribution margin. The contribution margin less the fixed cost gives the net operating income.

The target cost of the product is the difference between the selling price and the anticipated profit.

Target cost per unit

= $6.00 - $2.50

= $3.50

Total Target cost = $3.50 * 100,000

= $350,000

6 0
3 years ago
2. What are some reasons the seller was willing to sell the product at this price?​
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Explanation:

Just tired and ready to let it go

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The answer is "open innovation".

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3 years ago
Gouda Company and Cheddar Company had the same sales, total costs, and income from operations for the current fiscal year; yet G
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Answer:

If both companies have the sames sales volume, total costs and income from operations, the reason why Gouda has a lower break even point is that their variable costs are lower. We use the contribution margin per unit to calculate the break even point and the contribution margin per unit = sales price - variable costs. The question states that total costs are equal, but it doesn't say anything about variable or fixed costs.

Assuming that Gouda is above break even point, each sale will generate a higher operating profit since the contribution margin is higher.

Explanation:

3 0
3 years ago
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