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3 years ago

Explain how self-interest and competition work together to regulate prices.

Business

2 answers:

Katena32 [7]3 years ago

7 0

Answer:

- Self-Interests exist in both customers and the companies who sells the product.

Self-interest held by the companies will determine how much profit that they desire to acquire. Some owner wanted a high profit margin, some wanted lower , etc. Self-interest held by customers will determine the type of value that the consumers expect from the product and how much money they're willing to pay to obtain it.

Both of this will create a push and pull in the market. Eventually, the price will fall to the spot where both sellers and consumers believe as 'fair.'

- Competition is an additional factor to regulate prices that tends to be beneficial for the customers.

The existence of competition make consumers have more than one option in order to obtain a similar product. This <u>make companies have to reduce their self-interest and offer prices that can compete with the competitors.</u>

This tend to bring the prices lower from the initial equilibrium.

qwelly [4]3 years ago

4 0

Answer:

- Self-Interests exist in both customers and the companies who sells the product.

Self-interest held by the companies will determine how much profit that they desire to acquire. Some owner wanted a high profit margin, some wanted lower , etc. Self-interest held by customers will determine the type of value that the consumers expect from the product and how much money they're willing to pay to obtain it.

Both of this will create a push and pull in the market. Eventually, the price will fall to the spot where both sellers and consumers believe as 'fair.'

- Competition is an additional factor to regulate prices that tends to be beneficial for the customers.

The existence of competition make consumers have more than one option in order to obtain a similar product. This make companies have to reduce their self-interest and offer prices that can compete with the competitors.

This tend to bring the prices lower from the initial equilibrium.

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Controllership includes banking and short- and long-term financing, investments, and cash management.

<h3>What is Controllership?</h3>

The position of the controller, the position in charge, and the position in command are the definitions of controllership. An example of a person who holds the controllership responsibilities in a corporation is the person in charge of accounting and auditing.

The top accountant for a business or organization. The controller is in charge of both managerial and financial accounting and is the leader of the accounting division. He or she assists management in interpreting accounting data and taking the right action. Comptroller is another name for a controller.

Providing financial data for managers' and shareholders' reports as well as managing the overall operations of the accounting system are both responsibilities of the controllership.

Therefore, the correct answer is option C) Controllership.

The complete question is:

________ includes providing financial information for reports to managers and shareholders and overseeing the overall operations of the accounting system.

A) Internal audit

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1 year ago

What does marketing mean

timurjin [86]

the commercial processes involved in promoting and selling and distributing a product or service

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4 years ago

Taj operates a sole proprietorship, maintaining the business records under the cash-basis method of accounting. Taj performs ser

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Answer:

Option D. $0

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3 years ago

Suppose a market is initially perfectly competitive with many firms selling an identical product. Over time, however, suppose th

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The merging of firms results in the market being served by only three or four firms selling this same product would lead to a decrease in market output and an increase in the price of the product. This is oligopoly

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Oligopoly- An oligopoly is a market structure in which a small number of large sellers or producers dominate a market or industry. Oligopolies are frequently the result of a desire to maximize profits, which can lead to collusion among companies.

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1 year ago

When a firm is operating in a perfectly competitive labor market the wage the firm increases with the number of workers hired. t

djverab [1.8K]

Answer: When a firm is operating in a perfectly competitive labor market: <u>"the firm can buy as much or as little labor as it wants at a fixed, going wage rate."</u>

Explanation:

1- "the wage the firm increases with the number of workers hired" - Is incorrect because The salary paid by the company is treated as a constant salary.

2- Correct.

3- "the firm’s marginal expense of labor (MEL) equals the cost of all workers hired." is incorrect because the firm’s marginal expense of labor (MEL) is equal to the salary (wage) rate.

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3 years ago