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4 years ago

What is the difference between a market economy and a command

Business

2 answers:

shusha [124]4 years ago

7 0

Answer:

A. A market economy is determined by consumers and a command economy is determined by central authority.

Explanation:

A market economy is driven by customers in the form of demand and the sellers in market supply to satisfy the demand.

Command economy is driven by command, customers do not decide what to demand and when, only central authority supplies what they see fit.

Natasha_Volkova [10]4 years ago

5 0

Answer:

The correct answer is letter "A": A market economy is determined by consumers and a command economy is determined by central authority.

Explanation:

In a market economy, economic <em>decisions and prices are determined not by central planning but by market forces.</em> Market forces refer to the cumulative impact of all decisions made by individuals acting in the market, such as <em>consumers </em>and <em>producers</em>.

A command economy is one in which the <em>government controls the economy,</em> acts as the central planner, enforces production quotas and levels of distribution, and sets prices.

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Answer:

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3 years ago

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Whenever a product line or a product family is extended, there is a risk of ________, which occurs when sales of an existing bra

xxTIMURxx [149]

Whenever a product line or a product family is extended, there is a risk of cannibalization, which occurs when sales of an existing brand decline as the firm's current customers switch to the new product.

<h3>What is a new product line?</h3>

This is term that is used to refer to the offering of a new product from a line that the company has not offered previously. It is the introduction of a new product entirely to the market.

Hence we have to say that Whenever a product line or a product family is extended, there is a risk of cannibalization, which occurs when sales of an existing brand decline as the firm's current customers switch to the new product.

Read ore on cannibalization here: brainly.com/question/17772125

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2 years ago

Ivanhoe purchased a patent from Vania Co. for $1,240,000 on January 1, 2018. The patent is being amortized over its remaining le

Julli [10]

Answer: $744,000

Explanation:

The amount that should be reported in the balance sheet for the patent, net of accumulated amortization, at December 31, 2020 will be:

First, we have to calculate the amortization recorded up to 2019. This will be:

= (1,240,000 / 10) x 2

= 248,000

The we calculate the amortization to be recognized in 2020. This will be:

= (1,240,000 – 248,000) / 4

= 248,000

The amount that should be reported in the balance sheet for the patent, net of accumulated amortization, at December 31, 2020 will be:

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= $744,000

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3 years ago

When oil prices go up, we tend to see less investment by consumers in _____________________.

balu736 [363]

Larger vehicles with larger motors because they use oil whereas electric cars run on electricity,biofuels refers to oils if people invest to extract it they can earn money,solar energy is free and doesn’t require anything. Hence, people tend to spend less on larger machines with larger motors.

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3 years ago

Read 2 more answers

Refer to Exhibit 7.3, which shows the U-shaped cost curves for a producer. A is the marginal cost curve, B is the average variab

Alisiya [41]

Answer:

U shaped Curves are all of the three : A marginal cost curve , B average variable cost curve , C average (total) cost curve

Vertical Distance between B) Average Variable Cost Curve , C) Average Total Cost Curve is Average Fixed Cost

Explanation:

Marginal Cost [MC] is addition to total cost, when an additional unit of output is produced. It is the rate of change in Total Cost. As total cost increases at decreasing rate first, then at increasing rate ; MC curve falls first & then rises & hence is U shape

Average Cost [AC] is average total cost per unit of output. It is also U shape as it falls first & then rises, due to total cost first increasing at decreasing rate & then increasing at increasing rate.

Total Cost [TC] changes only due to change in total variable cost [TVC] , as total fixed cost is constant. So, TVC changes in same pattern as TC, first at decreasing rate & then at increasing rate. This makes Average Variable cost [AVC] rise first, fall then i.e U shape

Total Cost is the total production expenditure on all (fixed & variable) factors of production.

TC = TFC (total fixed cost) + TVC

AC = AFC (average fixed cost) + AVC

AC - AVC = AFC. Difference between AC & AVC is AFC. This distance keeps on falling with increase in output but never becomes zero (the curves keep on coming closer but never intersect). Such because TFC is constant, AFC = TFC / Q keeps on falling with increase in output

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3 years ago