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3 years ago

The equilibrium price is often called the market-clearing price because:

Business

1 answer:

Natali [406]3 years ago

5 0

Answer:

The correct answer is option (c).

Explanation:

Equilibrium price occurs at the intersection of the demand and supply curves. That is, a particular quantity that both the supplier and the buyer are willing to exchange at a particular price.

At any price below the equilibrium price, quantity demanded would be more than the quantity supply, so this scenario creates a shortage (excess demand), so producers would be willing to sell the limited quantity at a higher price, preferably at the equilibrium price.

At any price above the equilibrium price, the quantity supply would be more than the quantity demanded, so there would be a surplus (excess supply) in the market. Producers would be willing to collect a lower price, preferably the equilibrium price.

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When offering financial products to clients you may

Viktor [21]

Answer: Decide if you really want to offer financial services to your clients I think so

Explanation:

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3 years ago

A ________ exists when various companies producing similar products or services work together to control markets for the types o

iragen [17]

A cartel exists when various companies producing similar products or services work together to control markets for the types of goods and services they produce.

A cartel is a group of independent market participants who work together to improve profits and control the market. Cartels are usually associations in the same line of business and mergers of competitors.

1: Written agreement between Sengoku. 2 : An association of independent commercial or industrial enterprises aimed at limiting competition or fixing the prices of illegal drug cartels. 3 : Faction combination for joint action.

Examples of cartels: Organization of the Petroleum Exporting Countries (OPEC), an oil cartel whose members control 44% of world oil production and 81.5% of world oil reserves.

Learn more about cartel here

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7 0

2 years ago

Gabriel Company views share buybacks as treasury stock. In its first treasury stock transaction, Gabriel purchased treasury stoc

denis23 [38]

Answer:

b. decrease no effect

Explanation:

When the treasury stock is repurchased and at a premium. That is the price more than the par value, the excess is debited to the additional paid in capital account as this is the account used to fund the additional amount required to pay the differential.

Retained earnings on the other hand are unaffected by this transaction as long as the company has enough funds in the paid in capital account to complete the transaction.

Total paid in capital will decrease

Retained earnings will have no effect

Hope that helps.

5 0

3 years ago

Compute and interpret the contribution margin ratio using the following data: sales, $5,000; total variable cost, $3,000.Interpr

Dmitriy789 [7]

Answer:

0.4 or 40%

Explanation:

The formula for Contribution Margin Ratio is:

[TS - TVC] / TS

Where TS = Total Sales

TVC = Total Variable Cost

Applying the formula,

[5,000 - 3,000] / 5,000 = 2000/5000 = 0.4

Turning this value to a percentage, 0.4 × 100 = 40%

The interpretation of this is that for every item sold, 40% of the sales price is available to cover fixed costs.

Remember: The addition of fixed cost to variable cost = total cost

7 0

3 years ago

From the list on your right select the letter that contains the word, phrase, name, etc that best matches the word, phrase, name

Sholpan [36]

Answer:

A - Intellectual Property Rights - can be used for innovations

B - A good is non excludable but could be rivalrous or non rivalrous. - Free rider problem

C - An example of "There is no such thing as a fee lunch" National Defense

D - Overproduction - Negative externality

E - Excludable Rivalrous

F - The area of the triangle in a demand and supply model which is formed as a result of negative or positive externality. - Magnitude of market failure

G - Non excludable and Rivalrous - Free rider problem

H - Market output will be lower than the socially efficient / optimal level of output. - Positive externality

I - At the intersection of marginal social cost curve and the demand curve.

J - The level of output where negative externality is equal to positive externality - Market producing socially optimal level of output.

K - Decline in production due to external factors such as bad news coverage about a product. Negative externality

L - A positive or negative side effect of an action that affects the wellbeing of a bystander or Third party. Externality

M - Subsidy positive externality

N - Both excludable and non rivalrous Congested non troll road

O- Taxation - national defense

Explanation:

When the market is producing optimal level of output then there will be no negative or positive externality. The positive externality is one when a firm cannot attain the full benefits of the decision made by them. Negative externality is one in which there is some undesirable impact of the market condition on the production.

8 0

3 years ago