Answer:
producers are "price takers".
Explanation:
Commodity markets is an example of A perfectly competitive market. A perfectly competitive market is characterised by many buyers and sellers of homogenous goods and services.
Because products are homogenous, sellers cannot set the price for their goods. Prices are set by forces of demand and supply,therefore, suppliers are price takers.
There are no barriers to entry and exit of firms into the market.
I hope my answer helps you
Answer: A. $250 million
Explanation:
The firm is a Monopoly and is lobbying Congress to remain that way. As a monopoly it makes $10 million a year and wants to remain a monopoly for the next 25 years.
Assuming there is no discount rate which means that the value of money stays the same over the 25 years, if they succeed in Congress, they have a chance to make a total profit of,
= 10 million * 25 years
= $250 million
If the maximum amount the firm can make if the lobbying is successful is $250 million, this is the maximum they will pay to lobby for a deterrence to entry. If they pay any amount more than $250 million, they will be making a loss and therefore it would make no sense to spend that amount of the lobbying.
The industry is likely to be a monopolistic industry.
<h3>What is a monopolistic competition?</h3>
A monopolistic industry is when there are many firms selling differentiated products in an industry. A monopolistic competition has characteristics of both a monopoly and a perfect competition. There is an intense completion among firms in this industry. An example of monopolistic industry are restaurants
To learn more about monopolistic industry, please check: brainly.com/question/21052250
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Answer: In macroeconomics, gross domestic product (GDP) is a macroeconomic magnitude that expresses the monetary value of the production of goods and services of final demand of a country or region during a determined period, normally one year or quarterly.
GDP can be measured by adding up all the final demands for goods and services in a given period. In this case, the destination of the production is being quantified. There are four major areas of spending: household consumption (C), government consumption (G), investment in new capital (I) and the net results of foreign trade (exports-imports).
And it can also be measured by adding the income of all the factors that contribute to the production process, such as wages and salaries, commissions, rents, copyrights, fees, interests, profits, etc. The GDP is the result of the calculation by means of the payment to the factors of the production. All this, before deducting tax.
Thus the statements "b. An increase in Social Security expenses" as government expenses, "c. An increase in retirement and pension benefits to elderly citizens" as subsidies or transfers, and "
d. An individual receiving an annual performance bonus of $5,000" as financial interest are likely to increase a country GDP.
Answer:
Disruptive innovation.
Explanation:
Disruptive innovation is one that creates the way a market operates, that is it creates a new market and disrupts the old one. Existing firms and products are displaced.
In this instance when Futura Inc. introduced an automobile that could run completely on electricity for longer periods of time than any other electronic or hybrid automobile, it introduced a product that will cause disruptions in the current automobile industry.
Although there was challenges of frequent repairs, this was eventually resolved.
