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Alona [7]
3 years ago
13

Briefly explain the nature of a perfectly competitive firm. Briefly discuss the effects of new entrants into a perfectly competi

tive market on existing firms that have profits in the short run.
Business
2 answers:
kogti [31]3 years ago
5 0

Answer:

Perfectly competitive firm means that there are many buyers (consumers) and sellers (producers) in the market and none of the companies can control the pricing (they are price takers).

Explanation:

Characteristics of a perfectly competitive firm.

 1. Many buyers and sellers  

  2.No transaction cost  

  3. As for new entrants into the market, there are no barriers for them to      enter the market  

   4.Products are undifferentiated ( identical )  

   5. There is perfect information concerning the pricing of the good  

Examples of perfectly competitive firms

1. Foreign exchange markets

The currency is undifferentiated, it's identical in all trading platforms.  

If you are a trader you have access to many buyers and sellers.

Information about the prices are available and accurate.

Ivanshal [37]3 years ago
3 0

Answer:

Explanation:

The nature of perfect competition is that there exist a large number of firms in an industry. However their products are identical from one seller to another, and sellers are referred to as price takers.

Perfect competition refers to a

situation whereby there are many sellers in the firm, and the entering and exiting of the firm is easy and accessible.

In the perfect competitive firm, the firms in the competitive market has no control in changing the supply and demand of the market.

Perfectly competitive firm can be described as price taker, i.e it must accept the equilibrium price at which it sells it's goods.

The effects of new entrants into a perfectly competitive market on existing firms that have profits in the short run will shift the demand curve of each individual downward, this will now makes the price to fall, and also the average revenue and marginal revenue curve. In addition the productivity of firms in the market will be proportional to their optimal level of production.

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It's the real thing. was the slogan for: wendy's, pepsi, coca cola?
Anni [7]
Wendy's is like a peach skin girl with red freckles, and ponytails that go sideways, and with blue bowties on the ponytails. Pepsi is a circle with a red semi circle, white stripe that is narrow, and blue as the rest, inside the circle. Coca cola is Coca in cursive, with the c's end as a line under that word, then cola in cursive, but the c's top is a line above the word. Hope it helps!
5 0
3 years ago
A warranty in which the seller warrants that he or she has valid title to the goods he or she is selling and that the transfer o
balandron [24]

Answer:

of good title.

Explanation:

A good can be defined as any physical object or material that typically satisfy and meets the demands, needs or wants of customers. Some examples of a good are mobile phones, television, microphone, microwave oven, bread, pencil, freezer, beverages, soft drinks, etc.

A warranty can be defined as a written promise or guarantee made by a manufacturer, lessor or seller about the identity or quality of goods and services or a property to a purchaser, promising him or her to repair or replace it if necessary within a specified time frame.

Hence, a warranty in which the seller of a good or service warrants that he or she has valid title to the goods he or she is selling and that the transfer of title is rightful is known as a warranty of good title.

A legal title can be defined as the actual (absolute) ownership of a property that is recognized and enforceable in a court of competent jurisdiction.

5 0
2 years ago
_____ integrates advertising of branded products into interactive games.
Anna35 [415]
Advergaming integrates advertising of branded products into interactive games. 
5 0
3 years ago
Judy, looks after Kaelyn's four-year-old twins so Kaelyn can go to work (she drops off and picks up the twins from Judy's home e
MrRissso [65]

Answer:

$1,440

Explanation:

Judy is not a dependent relative of Kaelyn, therefore the expenditures are qualified up to $6,000 (for two qualifying persons).

Thus the applicable percentage is 24%.

($6,000×24%)

=$1,440 allowable credit

Therefore the amount of Kaelyn's child and dependent care credit if her AGI for the year was $36,600 will be $1,440

4 0
3 years ago
Miltmar Corporation will pay a year-end dividend of $5, and dividends thereafter are expected to grow at the constant rate of 4%
MaRussiya [10]

Answer:

(a) 8.90%

(b) $102.04

Explanation:

(a) Market capitalization rate i.e. expected return:

= Risk free rate + Beta (Market return - Risk free rate)

= 4% + 0.70 (11% - 4%)

= 8.90%

Therefore, the market capitalization rate is 8.90%.

(b) Intrinsic value of stock:

= Expected dividend ÷ (Required return - Growth rate)

= $5 ÷ (8.90% - 4%)

= $102.04

Therefore, the intrinsic value of the stock is $102.04.

5 0
3 years ago
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