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laila [671]
3 years ago
7

What assumptions are necessary for a market to be perfectly​ competitive? In light of what you have learned in this​ chapter, wh

y is each of these assumptions​ important? For a market to be perfectly​ competitive, A. firms must be price​ takers, firms must produce a homogeneous​ product, and firms must be able to easily enter and exit the market. B. firms must have market​ power, firms must produce a differentiated​ product, and firms must be able to easily enter and exit the market. C. only one firm can have access to a key​ input, the government must regulate entry of new​ firms, and the​ long-run average cost of production must be decreasing. D. only one firm can produce​ output, no close substitutes may​ exist, and firms must not be able to enter the market. E. only a few firms may produce​ output, firms must have market​ power, and firms must produce a homogenous product.
Business
2 answers:
Sergio [31]3 years ago
8 0

Answer:

Option A and B is applicable for a market to be perfectly​ competitive, A. firms must be price​ takers, firms must produce a homogeneous​ product, and firms must be able to easily enter and exit the market. B. firms must have market​ power, firms must produce a differentiated​ product, and firms must be able to easily enter and exit the market.  

Explanation:

Perfect competition refers to the situation prevailing in a market in which buyers and sellers are in abundance and well informed that all elements of monopoly are non existent and the market price of a commodity is beyond the control of individual buyers and sellers.

For firm to attain perfect competition, certain conditions must be met. Here is a few to begin with.

  • There are many buyers and sellers in the market.
  • Each company makes a similar product.
  • Buyers and sellers have access to perfect information about price.
  • There are no transaction costs.
  • There are no barriers to entry into or exit from the market.

From the foregoing, option A and B are satisfactory assumptions for perfect competition.

zzz [600]3 years ago
7 0

Answer: A

Firms must be price​ takers, firms must produce a homogeneous​ product, and firms must be able to easily enter and exit the market

Explanation:

A perfectly competitive market is a market in there are many sellers of a single homogeneous goods, many buyers, abundance of information about product, free entry and exit at any point and no transaction cost. None of the (selling) firms is big enough to determine the market price. A perfectly competitive market totally follows the law of demand and supply.

Total revenue for a firm in a perfectly competitive market is the function of product price and quantity (TR = P * Q).

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There are simultaneous changes in the demand for and supply of tablet​ devices, with the consequences being an unambiguous decre
lord [1]

Answer: c. Demand decreases and supply decreases.

Explanation:

When demand for tablets decrease, the demand curve shifts to the right. The price and quantity declines. At the same time, when supply also falls, the supply curve shifts to the left leading to an increase in price and a fall in quantity.

Since, decrease in demand and supply have opposite effect on the price there is no change in the price of tablets.

Both the forces work towards reducing quantity to quantity will fall unambiguously.

Thus, the correct option is c, Demand decreases and supply decreases.

3 0
3 years ago
Cierra, Inc. manufactures computer chips. Currently, the costs per unit are as follows: Direct materials $ 1.00 Direct labor 10.
Soloha48 [4]

Answer:

It is more convenient to make the component.

Explanation:

Giving the following information:

Direct materials $1.00

Direct labor 10.00

Variable manufacturing overhead 5.00

Total unitary variable cost= $16

Total fixed overhead= 8*10,000= $80,000

Proposal= 10,000 units for $22

If Cierra accepts the proposal, $50,000 of the fixed overhead will be eliminated.

We need to calculate the total cost of both options and determine which one is better.

Make in-house:

Total cost= 10,000*16 + 50,000= $210,000

Buy:

Total cost= 10,000*22= $220,000

It is more convenient to make the component.

5 0
3 years ago
A company takes insights provided by its data analytics team, validates them, and finalizes a strategy. They then implement a pl
musickatia [10]

The correct option is C) Act. Act is the sixth phase of the data analysis process.

<h3>What is the act in the data analysis process? What are the other steps involved in it?</h3>

The sixth step of the data is to act. It will provide the recommendations or solutions to the team and stakeholders for solving the business problems and makes the good decision.

Data analysis process involves the defining of the question, collection, cleaning, analyzing of the data and sharing the results.

Basically, it helps the business in making the informed and sound decisions.

Learn more about the data analysis process here:-

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3 0
2 years ago
Read 2 more answers
Xminus−Industries manufactures 3minus−D printers. For each​ unit, $ 3 comma 200$3,200 of direct material is used and there is $
madreJ [45]

Answer:

Profit= $106,682.52

Explanation:

Giving the following information:

Unitary Variable costs:

Direct material= 3,200

Direct labor= $2,300 ($15 per hour)= 153.33 hours

Manufacturing overhead is applied at $18 per direct labor hour.

Units sold= 42

Selling price= $10,800

Profit= Total sales - total variable cost

Profit= 42*10,800 - (3,200 + 2300 + 18*153.33)*42= $106,682.52

3 0
3 years ago
Suppose that the weekly price of milk is $3.40 per gallon and MPEP decides to ramp up weekly advertising by 35 percent to $150 (
nadezda [96]

Answer:

Total Cost increase  5,253.4 unit

Explanation:

given data

weekly price a = $3.40 per gallon

ramp up weekly b = 35%

ramp up weekly  upto x = $150( in hundred)

solution

we will use here the regression equation that is

Y = a + b x    ...........................1

here Y is Total Cost and a is fixed cost and  

b is rate of variability and x is level of activity

so here put value in equation 1 we get

Total Cost Y = 3.40 + 0.35 × ( 15,000)

Total Cost  Y = 3.40 + 5,250

Total Cost increase  5,253.4 unit

7 0
2 years ago
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