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2 years ago

Some economists argue that competitive price-searcher markets are inefficient because

Business

1 answer:

inna [77]2 years ago

8 0

Answer:

A competitive price-searcher market is a market where there are low entry or exit barriers, and the suppliers can determine the price of their products. Some economists believe that this type of market is inefficient because the suppliers are not able to sell enough output in order to minimize their average costs. Since the demand is very elastic in price searcher markets, any price change will cause a drastic change in the quantity demanded.

Price searcher markets share a lot of similarities with perfect competition markets, the main difference is that suppliers and consumers are not price takers. This means that any supplier can change their sales output by changing their price, which leads to greater competition.

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The way the bank determines the balance on which to calculate your interest is known as _____.

bagirrra123 [75]

APEX: method of computing balance

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2 years ago

Frank riley just purchased a bond that is unsecured and is secondary to other unsecured bonds should the issuer declare bankrupt

egoroff_w [7]

The type of bond Frank has purchased is "subordinated debenture".

Other names or terms that are used for this type of bond are; subordinated debt, subordinated loan, subordinated bond, or junior debt.
Subordinated debenture is a sort of bond that refers to an unsecured and gives bondholders a claim optional to that of other assigned bondholders concerning both salary and resources.

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3 years ago

Read 2 more answers

Which of the following statements is CORRECT?a. An example of a sunk cost is the cost associated with restoring the site of a st

elixir [45]

Answer: The correct answer is "d. A good example of a sunk cost is money that a banking corporation spent last year to investigate the site for a new office, then expensed that cost for tax purposes, and now is deciding whether to go forward with the project."

Explanation: Sunk costs are those costs that have already been incurred and cannot be recovered in the future. Including the time, money or other resources that were spent on a project, investment or other activity and that will not be recovered.

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3 years ago

The Bonneville Company recently sold 2,200 units and had total sales of $143,000. During the same time the company reported vari

Lapatulllka [165]

Answer:

The company's projected net income is $64,000

Explanation:

We know that,

The net income = Sales - variable cost - fixed cost

In the question, the fixed cost is not given, so first we have to find out

Putting the values to the above formula,

So, the fixed cost would be

$60,000 = $143,000 - $77,000 - fixed cost

$60,000 = $66,000 - fixed cost

So, the fixed cost = $6,000

The variable cost = Number of units sold × variable costs per unit

= 2,200 units × $35

= $77,000

The price per unit would be equal to

= (Total sales) ÷ (number of units sold)

= $143,000 ÷ 2,200 units

= $65

New sale per unit = $65 + $5 = $70

New units = 2,200 units - 200 units = 2,000 units

So, the new sales would be

= Sale price per unit × number of units sold

= $70 × 2,000 units

= $140,000

The variable cost = Number of units sold × variable costs per unit

= 2,000 units × $35

= $70,000

So, the net income would be

= $140,000 - $70,000 - $6,000

= $64,000

7 0

2 years ago

On June 1 of the current year, Cross Corp. issued $300,000 of 8% bonds payable at par with interest payment dates of April 1 and

Licemer1 [7]

Answer:

$6,000

Explanation:

The computation of the interest expense is shown below:

= Total amount borrowed × interest rate × number of months ÷ total months in a year

= $300,000 × 8% × 3 months ÷ 12 months

= $6,000

The three months is calculated from October 1 to December 31

We have to apply the simple interest formula so that the accurate amount can come.

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3 years ago