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3 years ago

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

Business

1 answer:

inna [77]3 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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How much is 1 million british pounds worth in us dollars?

SIZIF [17.4K]

Answer: 1 million in British pounds converts to 1221650.00 US Dollars

I hope this helps! :)

7 0

3 years ago

has an investment worth $56,000. The investment will make a special, extra payment of X to XYZ in 2 years from today. The invest

tia_tia [17]

Answer:

The payment X that will be made two years from now is approx $17940.

Explanation:

The present value of the investment is $56000. To calculate the value of X, we first need to calculate the present value of the fixed annual payments made to XYZ.

The fixed annual payments made to XYZ is an annuity as the payments is fixed, is paid out after equal intervals of time and for a limited time period.

To calculate the present value of annuity, we will use the attached formula.

PV of annuity = 12000 * [(1 - (1+0.132)^-5) / 0.132]

PV of annuity = $42001.62278 rounded off to $42001.62 or we can round it off to be approx $42000

If the present value of fixed payments is $42000, the present value of X should be,

Present value of X = 56000 - 42000 = $14000

To calculate the value of X that will be paid in 2 years, we will calculate the future value of $14000 after 2 years. The formula for future value is as follows,

FV = PV * (1+r)^t

Where,

r is the rate of return
t is the time periods

FV of X= 14000 * (1+0.132)^2

FV of X = $17939.936 rounded off to approx $17940

So, the payment X that will be made two years from now is approx $17940.

4 0

3 years ago

At a price of $100, Beachside Canoe Rentals rented 11 canoes. When it increased its rental price to $125, 9 canoes were rented.

Dahasolnce [82]

Answer:

The correct answer is option is B.

Explanation:

The price elasticity of demand shows the change in quantity demanded due to change in price level.

The initial price is $100.

The quantity demanded initially is 11.

The price is increased to $125.

The quantity demanded falls to 9.

The price elasticity through midpoint method will be 0.90., as shown in the attached figure.

8 0

3 years ago

Your firm has the opportunity to buy a perpetual motion machine to use in your business. The machine costs $1,000,000 and will i

sasho [114]

Answer:

7.5%

Explanation:

A forever series formula for the interest rate is i = A / PV

Annual benefits = $75,000

Present value = $1,000,000

Thus, i = $75,000 / $1,000,000

i = 0.075

i = 7.5%

Therefore, the internal rate of return is 7.5%

8 0

3 years ago

How can entrepreneurs avoid getting caught up in the hype surrounding their product or service?

dybincka [34]

Entrepreneurs can avoid getting 'caught up in the hype' surrounding their product or service by always maintaining a level head and not obtaining an ego.

7 0

3 years ago