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katrin [286]
3 years ago
12

List three conditions for perfect competition.Instructions: You may select more than one answer.1. There is only one firm that m

akes up the entire market.2. There are high barriers to entry.3. Firms’ products are differentiated.4. There are no barriers to entry.5. Both buyers and sellers are price takers.6. Firms engage in strategic decision making.7. Firms’ products are identical.
Business
2 answers:
Sidana [21]3 years ago
7 0

Answer:

4. There are no barriers to entry.

5. Both buyers and sellers are price takers.

7. Firms’ products are identical.

Explanation:

Perfect.competitionnis one in which the lead of demand and supply apply effectively. In this type of competition no one company has monopoly of supply. Instead there are many firms that sell identical products.

These firms need to compete to gain market share. They do this through advertising and trying to differentiate their products from others.

Buyers and sellers are price takers, meaning both of them cannot influence the price of products in the market by their transactions.

Because of the lack of monopoly in this market there are no barriers to entry.

Jobisdone [24]3 years ago
6 0

Answer:

There are no barriers to entry.

5. Both buyers and sellers are price takers

.7. Firms’ products are identical.

Explanation:

A perfect competition is characterised by many buyers and sellers of homogenous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry.

In the long run, firms earn zero economic profit. If in the short run firms are earning economic profit, in the long run firms would enter into the industry. This would drive economic profit to zero.

Also, if in the short run, firms are earning economic loss, in the long run, firms would exit the industry until economic profit falls to zero.

A monopoly is when there's only one firm operating in an industry.

I hope my answer helps you

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Tobin Supplies Company expects sales next year to be $500,000. Inventory and accounts receivable will "increase $80,000" to acco
wel

Answer:

External funds needed = $40,000.

Explanation:

An increase in the firm's retained earnings (a component of the shareholder's equity) arises as a result of higher sales volume, thereby making the  Asset = Liability + Shareholder's Equity Equation unbalanced.

Therefore, there must be an increment in the firm's assets by an equal amount in order to re balance the equation. If there is an increase in assets by a greater magnitude than retained earnings increment, the gap is filled by external financing (which is a liability and increases the liability component of the equation).

Net income = Sales * profit margin = $500000*10% = $50000

Dividend= Net income * payout ratio = $50000*20%= $10000

Increase in retained earnings = Net income - Dividend = $(50000-10000)

                                                  = $40000

Increase in assets = $80000

External funds needed = $(80000-40000) = $40,000.

7 0
3 years ago
Suppose that two Japanese companies, Hitachi and Toshiba, are the sole producers (i.e., duopolists) of a microprocessor chip use
Dima020 [189]

Answer: Please refer to Explanation

Explanation:

a) When both Hitachi and Toshiba engage in a limited campaign, they both earn $11 million.

If both engage in an extensive campaign they both earn $8 million.

However, if one firm engages in an extensive campaign and the other firm engages in a limited one, the firm engaging in a limited campaign earns $4 million while the one engaging in an extensive campaign earns $16 million.

I have attached a photo to show the payoff matrix as a table.

b) In the absence of a binding and enforceable agreement, that is to say that if both firms are not colluding, Hitachi's dominant strategy would be to engage in an EXTENSIVE PROMOTIONAL CAMPAIGN.

A Firm's dominant strategy in absence of an agreement is that strategy that a firm can go on and make a maximum amount of profit regardless of what the other firm does.

Should Hitachi engage in an Extensive Campaign, they will make $16 million in quarterly profit if Toshiba engages in a Limited Campaign. Should Toshiba also decide to engage in an Extensive Campaign, then Hitachi makes a profit of $8 million. This is therefore their best alternative as opposed to embarking on a limited Campaign where there is a chance that they will make $4 million.

With the Extensive Campaign, Hitachi's Minimum Payoff is $8 million.

c) The game is the same for both players so the best option for Hitachi, is the best option for Toshiba as well. This means that Toshiba's dominant Strategy is an EXTENSIVE PROMOTIONAL CAMPAIGN and their minimum payoff is $8 million as well.

3 0
3 years ago
Labeling researchers focus on "extra legal" variables to explain differences in arrest and prosecution rates as well as entencin
Elena L [17]
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3 0
3 years ago
On the basis of the following data, what is the estimated cost of the merchandise inventory on May 31 using the retail method?
Misha Larkins [42]

Answer: The ending inventory is $43,500

Explanation:

Cost. Retail

$ $

Beginning inventory. 125,000 166,667

Add :Purchases 235,000 313,333

-------------------- -----------------------

Cost of good available for sale 360,000 480,000

Cost to retail ratio

360,000 ÷ 480,000

= 0.75

Cost. Retail

$ $

Cost of good available for sale 360,000 480,000

Less:Sales. 230,000 250,000

360,000. 172,500

187,500

-------------------- ----------------

(417,500) 58,000

Ending inventory × 0.75 (58,000 × 0.75) = 43,500

Cost to retail ratio.

Ending inventory. $43,500

3 0
3 years ago
Bullseye, Inc.'s 2008 income statement lists the following income and expenses: EBIT = $707,000, Interest expense = $58,000, and
ololo11 [35]

Answer:

$1.15 per share

Explanation:

The computation of the earning per share is shown below:

Earning per share = Net income ÷ common stock outstanding shares

where,

Net income is

= EBIT - interest expense - taxes

= $707,000 - $58,000 - $224,000

= $425,000

And, the common stock outstanding shares is 370,000

So, the earning per share

= $425,000 ÷ 370,000 shares

= $1.15 per share

8 0
3 years ago
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