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Elodia [21]
3 years ago
14

Explain why market power leads to deadweight loss. Firms with market power create deadweight loss because they A. charge a price

that is greater than marginal cost to maximize profits. B. produce where marginal revenue is greater than marginal cost to maximize profits. C. produce more than a perfectly competitive industry would to maximize profits. D. charge a price that is less than marginal cost to maximize profits. E. charge a price that is equal to marginal cost to maximize economic surplus. The total deadweight loss from market power for the economy is ________ small large .
Business
1 answer:
Readme [11.4K]3 years ago
5 0

Answer:

A) Charge a price that is greater than marginal cost to maximize profits.

Explanation:

The more market power a company has, the more it will tend to act like a monopoly. For example, Microsoft is not considered a monopoly because it is the only software company in the world, but because its market power in the PC business is so large that it dominates the industry.

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A automobile would be a asset

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An asset was purchased for $100,000 on January 1, Year 1 and originally estimated to have a useful life of 12 years with a resid
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Answer:

A

Explanation:

The following steps would be taken to determine the answer

  1. Calculate depreciation expense given the initial information
  2. calculate the accumulated depreciation by the third year. Accumulated depreciation is sum of depreciation expense
  3. subtract the accumulated depreciation from the cost price of the asset. This would give the book value
  4. calculate the depreciation expense using the new information and the book value

Straight line depreciation expense = (Cost of asset - Salvage value) / useful life

($100,000 - $10,000) / 12 = $7500

Depreciation expense each year is $7500

Accumulated depreciation = $7500 x 2 = $15,000

Book value at the beginning of year 3 = $100,000 - $15,000 = $85,000

($85,000 - $2800) / 4 = $20,550

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3 years ago
Oklahoma County issued a request for proposal (RFP) to paint all the offices in the buildings located in District 3. The RFP sti
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This requirement is an example of an order qualifier

<u>Explanation:</u>

Order qualifiers are the competing interests that a firm must prove to be a feasible opponent in the market field. An order qualifier is a quality of goods or assistance that is wanted for the goods/assistance to indeed be viewed by a client.

Order qualifiers are the ambitious criteria that create a firm's outcomes observed as access for marketing by purchasers. For a firm to remit order qualifiers, they have to be at least as great as their opponent. When a firm's thought of order winners and qualifiers rivals the customer's opinion of the equivalent, there endures a "fit" among the pair of panoramas.

Here only contractors that were licensed and bonded would be considered shows that the client is interest to a quality of assistance is wanted to paint.

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Valarie owns a company that makes specialized components for the auto industry. Her most important customer is a company that is
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Answer:

Need to accommodate the growth of key customer is the correct answer.

Explanation:

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Adeline runs a multi-cuisine restaurant. On the day of a big event at the restaurant, the chefs run out of cooking gas. At this
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Answer:

D. The GII decision style

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This is the situation or technique whereby a leader calls his team together seeking ideas and input (brainstorming together) to find solutions to apparent problems facing them. The overall decision of the group brainstorming is what is accepted and used. This is based on the Vroom–Yetton contingency model is a situational leadership theory of industrial and organizational psychology. In the GII decision style, the final decision is no longer the leaders decision again. The leader allows free flow of discussion during the brainstorming session and doesn't impose his will. Here, Adeline calls her staff together to brainstorm a solution to the finished gas problem in front of them.

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