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Anettt [7]
3 years ago
6

Which of the following statements best reflects a price-taking firm? a The firm has an incentive to charge less than the market

price to earn higher revenue b If the firm were to charge more than the going price, it would sell none of its goods c The firm can sell only a limited amount of output at the market price befo
Business
1 answer:
MatroZZZ [7]3 years ago
5 0

Answer:

b

Explanation:

A price taking firm is a firm that must sell at the price determined by the forces of demand and supply. This is typical of firms that in industries that sell identical products.

If the firm charges a price higher than equilibrium price, customers would go to other suppliers and the firm would sell known of its product.

There would be no incentive for a firm to sell below equilibrium price because it would be earning losses.

An example of an industry characterised by price taking firms are perfectly competitive industries.

For example, a farmer selling oranges is an example of a price taking firm

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If the number of firms in a monopolistically competitive industry increases and the degree of product differentiation diminishes
Viefleur [7K]

Answer:

C) the industry would more closely approximate pure competition

Explanation:

A monopolistically competitive industry is one with different firms selling similar products that are slightly differentiated. It is very easy for firms to enter into industries that are monopolistically competitive. They also have the autonomy to increase their prices.

If the number of firms in a monopolistically competitive industry increases and the degree of product differentiation diminishes they would then resemble a pure competition because they would all be selling identical products which would result in little or no competition.

5 0
2 years ago
Jamal purchased a motorcycle from Getaway Automobiles, and the motorcycle's electric starter began malfunctioning after a week o
BartSMP [9]

Answer:

Option B, Jamal is entitled to revoke acceptance because he took back the motorcycle after the seller's assurance that the nonconformity would be cured.

Explanation:

The primary purpose of purchasing goods is to obtain conforming goods of the desired quality. Occasionally, the seller delivers non-conforming goods, goods that fail to meet the contractual obligation (obligations include: seller's description, statements promises...). In situations like this the buyer may revoke his acceptance if already accepted or reject the delivery upon discovery.

If delivery is already accepted, acceptance may be revoked;

* On the reasonable grounds that its non-conformity would be cured and it has not be cured.

* Without discovery of such non-conformity if his acceptance was reasonably induced either by the difficulty of delivery before acceptance or by the seller's assurances.

Therefore, option B best suits the question. Under these circumstances, Jamal is entitled to revoke his acceptance because the he took back the motorcycle after the seller's assurance that the non-conformity would be cured which was not, even after several complaints.

3 0
2 years ago
Justus Motor Co.has a WACC of 11.50%, and its value of operations is $25.00 million. Justus's free cash flow is expected to grow
lakkis [162]

Answer:

FCF_0=1.05

So option (b) is correct option

Explanation:

We have given value of operation PV = $25.00

WACC, that is Ke = 11.50% = 0.1150

It is grow at a constant rat of 7 % so g = 0.07

We have to find the value of FCF_0

We know that value of operation is given by

PV=\frac{FCF_0(1+g)}{Ke-g}

So 25=\frac{FCF_0(1+0.07)}{0.1150-0.07}

FCF_0=1.05

So option (b) is correct option

4 0
3 years ago
What type of debt has the highest consumer debt balance?.
Zinaida [17]

The student loan debt has the highest consumer debt balance.

Below is an explanation about student loan debt.

<h3>What is Student Loan debt</h3>

Student debt is a type of debt that is owed by a current student, a formerly withdrawn student or graduated student to a lending institution, or to a financial institution

This type of loan has the highest consumer debt balance.

Lean more about types of debt at brainly.com/question/2754850

4 0
2 years ago
If the performance evaluations that salespeople receive are based solely on sales revenue to the exclusion of other important fa
babunello [35]

Answer:

c. criterion deficiency

Explanation:

Based on the information provided within the question it can be said that in this scenario it seems that the performance management system suffers from Criterion deficiency. This term refers to a company failing to assess one or more very important aspects of the process of job performance appraisal for employees within the company. Such as is the case in this scenario as the company is only looking at the sales revenue and completely ignoring all of the other important factors.

8 0
3 years ago
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