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3 years ago

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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The most obvious benefit of specialization and trade is that they allow us to

Kipish [7]

The most obvious benefit of specialization and trade is that they allow us to: <span>Consume more goods than we otherwise would be able to consume
When we do specialization, we could produce the goods that provide competitive advantage for us so we can produce that goods in a huge amount.
After that, we can trade the goods with other goods (which gives competitive advantage to other country) and trading countries could consume goods on a huge amount.</span>

6 0

4 years ago

Microhard has issued a bond with the following characteristics:

Aleks [24]

Answer:

At Yield to maturity = 11%

Price = $1,000

Explanation:

As for the provided information we have:

Par value = $1,000

Interest each year = $1,000 $\times$ 11% = $110

Effective interest rate semiannually = 11%/2 = 5.5% = 0.055

Since it is paid semiannually, interest for each single payment = $110 $\times$ 0.5 = $55 for each payment.

Time = 8 years, again for this since payments are semi annual, effective duration = 16

Price of the bond = $C \times \frac{(1 - \frac{1}{(1+i^n)}) }{i} + \frac{M}{(1 + i)^n}$

Here, C = Coupon payment = $55

i = 0.055

n = Time period = 16

M = Maturity value = Par value = $1,000

Therefore, if yield to maturity = 11% then,

P = $55 \times \frac{1 - \frac{1}{(1 + 0.055)^1^6} }{0.55} + \frac{1,000}{(1 + 0.55)^1^6}$

= $1,000

7 0

3 years ago

Instruck inc. is a real estate firm based in colorado. the company ensures that employees' pay is dependent on what they are cap

Kruka [31]

Based on the above scenario, the pay structure being exemplified Skill-based pay systems. Skill-based pay systems are pay structures that set pay as indicated by the workers' level of expertise or learning and what they can do. Paying For abilities bodes well at associations where changing innovation expects workers to constantly broaden and extend their insight.

6 0

4 years ago

2. How could you assess whether new office designs are improving the organizational culture

juin [17]

Answer:A proper office layout is the key to a high performance office. This means both good performance from your employees but also your business. Companies that have a great culture are highly sought after by prospective employees and can provide a competitive advantage in both hiring and retaining staff.

Explanation:

7 0

2 years ago

Mendrisio Company purchased a piece of machinery for $30,000 on January 1, 2019, and has been depreciating the machine using the

aleksley [76]

Answer:

a. There is no entry required to record the accounting change

b. The journal entry to record depreciation for 2021 would be as follows:

Debit Credit

Depreciation Expense $3,000

Accumulated Depreciation $3,000

Explanation:

According to the given data we have the following:

Sum of year digits=5(5+1)/2

Sum of year digits=(5*6)/2

Sum of year digits=15

Depreciation for year 2019=$30,000*5/15

Depreciation for year 2019=$10,000

Depreciation for year 2020=$30,000*4/15

Depreciation for year 2020=$8,000

Therefore, book value as on january 1, 2021=$30,000-$10,000-$8,000

book value as on january 1, 2021=$12,000

Revised useful life=6 years-2 years=4 years

Therefore, Revised depreciation for 2021=$12,000/4

Revised depreciation for 2021=$3,000

a. There is no entry required to record the accounting change

b. The journal entry to record depreciation for 2021 would be as follows:

Debit Credit

Depreciation Expense $3,000

Accumulated Depreciation $3,000

3 0

3 years ago