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3 years ago

How is ease of market entry and exit and exit related to the number of suppliers in a purely competitive market?

1 answer:

4 0

Numbers of suppliers in a purely competitive market dictate how easy it is to start a business or transform it in that sector.

Explanation:

Entry an d Exit in a business sector means the ease of starting or transforming a business that is involved in a particular market sector.

In a purely competitive market the business is dictated by the market standards set by the completion of the various companies vying for a market share between each other.

The harder the competition at the top level, the harder it is for a new business to come up, similar is the case for when one or two companies dominate the hegemony in which case it is hard to grab a market share for the new entrant in the market.

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Cost advantages that accrue for firms with larger output because they can spread fixed costs over more units and can employ tech

xeze [42]

Cost advantages that accrue for firms with larger output because they can spread fixed costs over more units and can employ technology more efficiently are called:

Economies of scale

<h3>What are Economies of scale?</h3>

Economies of scale is a term that is used to describe the cost advantages that a company gets because they have increased the level of production. There are different types of economies of scale.

Some of these are the financial, technical, and purchasing economies of scale. So, when the purchasing strength of the organization increases, then there is an economy of scale.

Learn more about the economies of scale here:

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2 years ago

Your company introduced a new product one month ago. Since then, the Website has processed so many orders that the shipping and

blondinia [14]

Answer: The web team can create a FAQ page.

Explanation: FAQ is an abbreviation for Frequently Asked Questions. A FAQ page is a page on an c ecommerce store, where answers to important questions about a company or its products and services have been stored. This is done to clarify the uncertainties of customers and show them how the company or its products and services work.

This will greatly help the company reduce questions directed to sales team, as customers can easily find answer to their questions in the FAQ page

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4 years ago

Fill in the blanks to complete the sentence. A manufacturing company has budgeted production at 5,000 units for May and 4,400 un

GarryVolchara [31]

Answer:

Direct material purchases in May = 21,670× $10= $216,700

Explanation:

Material purchase budget is determined by adding the closing inventory of material to the material usage budget less the opening inventory.

Material budgets for May will be prepared as follows:

Materials needed for May production = 5,500 × 3 = 16,500

Materials needed for June production = 4,400× 3= 13,200

Closing inventory of raw material in May =60% × June requirement = 60% × 13,200 =7,920

Material purchase budget for February = Usage budget + closing inventory - opening inventory

= 16,500 + 7,920- 2,750=21,670

Direct material purchases in May = 21,670× $10= $216,700

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3 years ago

In the balance sheet at the end of its first year of operations, Dinty Inc. reported an allowance for uncollectible accounts of

ElenaW [278]

Answer:

$114,700

Explanation:

Bad debtsexpense -Write-offs= Change in Allowance balance.

Therefore Bad debts expense =Change in Allowance balance of $83,800 + Write-offs of $30,900= $114,700

The bad debt expense that Dinty report in its first-year income statement is $114,700

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4 years ago

Economists consider both explicit and implicit costs when measuring economic profit

patriot [66]

Explicit and Implicit costs should be considered when measuring economic profit because a business must cover its opportunity costs as well as its out-of-pocket expenses to be truly profitable. Economic profit consists of revenue minus implicit (opportunity) and explicit (monetary) costs. Explicit costs are monetary costs a firm has. Implicit costs are the opportunity costs of a firm’s resources.

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3 years ago