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Hoochie [10]
3 years ago
8

The model of competitive markets relies on these three core assumptions:

Business
1 answer:
Vesnalui [34]3 years ago
7 0

Answer:

The three scenarios describe a competitive market.

Explanation:

1) In the competitive market buyers and sellers are price takers, this means that there are many producers and consumers and none of them are able to intervene in price and market. Price is given, ie price is determined by interaction in the market. 2) The products are identical. That is, no company will make a profit due to differentiated products. In perfect competition, companies produce identical products, and the consumer is indifferent to the product characteristics of each company. 3) There is free entry and exit of companies and factors of production, ie there is no cost to enter and exit any sector. This means that factors can migrate from one sector to another without incurring costs, meaning there are no barriers to entry and exit from any sector.

Thus, from items 1 and 2, consumers and buyers are price takers, that is, they cannot influence the price determined by the market. Item 3 is about achieving zero profit or normal long-term profit. This is because the free entry and exit of companies avoids extraordinary profits by encouraging companies to migrate to sectors that earn higher profits in the short term. Thus, in perfect competition, compa

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Carlos opens a dry cleaning store during the year. He invests $30,000 of his own money and borrows $60,000 from a local bank. He
kvv77 [185]

Answer:

$30,000

$6,000

Explanation:

Carlos risk = $30,000

Carlos risk of $30,000 is the amount of funds which he had invested in the course of his business which is why Carlos is not considered at-risk for the nonrecourse loan reason been that carlos is not found liable because the loan was not used in the business which makes him to have a risk of $30,000.

$24,000 loss that occured will reduces Carlos’ amount at-risk to $6,000

($30,000 - $24,000)

=$6,000

5 0
3 years ago
Jason, your client, is developing a subdivision of 140 houses. He may place deed restrictions on as many as ______ properties.
kolbaska11 [484]

Jason, your client, is developing a subdivision of 140 houses. He may place deed restrictions on as many as 140 (100%) properties.

<h3>What is a deed restriction?</h3>

This is the term that is used to refer to the written agreements that are done in order to restrict and limit activities that may go on in a property.

These are private agreements that are made. It has to be 100 percent on the properties.

Read more on deed restrictions here:

brainly.com/question/4510408

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4 0
2 years ago
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When they first started to conduct business, international ride-sharing companies such as Uber or Lyft relied on new, unfamiliar
kobusy [5.1K]

Ride sharing is transformational innovation, according to the innovation matrix.

Uber and Lyft use transformational innovation

  • Transformational innovation includes making discoveries and creating products for the market.
  • Companies like Uber use credit and debit cards for reservations, a novel tactic.
  • Such ideas were virtually unknown to markets in many nations.
  • In some markets, it gave businesses like Uber a competitive edge.

To learn more about transformational innovation, refer to-

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5 0
2 years ago
Katlyn Williams owns a company that makes specialized components for the aerospace industry. Her most important customer is a co
omeli [17]

Answer:

Need to accommodate the growth of a key customer.

Explanation:

In the given scenarios Katlyn is motivated to keep her company growing because her most important customer is a company that is growing at a rate of 33% per year.

To satisfy the customer needs for specialised components of aerospace equipment, Katlyn's company must also grow in output or they will not be able to satisfy the customer's need.

This demonstrates need to accommodate the growth of a key customer.

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3 years ago
Read 2 more answers
According to anthony downs model, a rational party will adopt the policy position that is
Stells [14]

Closest to the view of the majority of voters.

The Anthony Downs model attempts to apply economic theories to political decision making.

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3 years ago
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