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Angelina_Jolie [31]
3 years ago
15

ABC Software charges a price for its video games that maximizes its profits. This company most likely functions in a market.coll

usinsingle sellercompetitive
History
2 answers:
ANEK [815]3 years ago
7 0

single seller.........

olchik [2.2K]3 years ago
5 0
This company is most likely functioning in a single seller market. The correct option among all the options that are given in the question is the second option. As there are no competitors in the market, so the company ABC is able to maximize its profit without getting challenged. I hope the answer helps you.
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In the 1920s, the mandatory requirements regarding margins were not very strict, and brokers asked investors to put in a small fraction of their own money. Leverage rates  which measure the proportion of debt, reached 90% with a high frequency.  Nowadays, the Federal Reserve has established the limit of 50%.

Back in 1929, when the stock market started to contract, many investors received margin calls. They had to hand in more money to their brokers, because the amounts required before were not enough and if not, their shares would be sold. Many people did not have the extra margin amounts required, their shares were sold and the market declined further. This generated more margin calls and more declines. This is why margin calls were one of the causes which triggered the Stock Market Crisis and, in turn, the Great Depression in 1929.

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