Lack of competition can lead the doctor to charge high prices to patients
<u>Explanation:
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America's Government has anti-trust legislation to prevent monopolies from manipulating the market, price gouging, and stifled consumer choices. A monopoly is a case when a company that makes a product or a service dominates the market without a similar alternative.
After a monopoly is created, the seller can be led to charge customers high prices because of the lack of competition. A monopoly, therefore, reduces the customer choice. The monopoly is true if there is no alternative on the market at all.
This is acceptable to have monopolies if the customer profits. In some situations, governments may interfere and build a monopoly on delivering a particular railway, transport or postal system to customers.
A shortage is a term used to refer to the supply not being enough to accommodate the needs of all its users. This means that the gasoline supply may run out if not replenished and used properly. The shortage be eliminated by replenishing the supply or limiting the activities that would require the use of gasoline.
<span>Automatic stabilizers stabilize the level of real GDP because federal expenditures and tax revenues change as the level of real GDP changes. GDP stands for gross domestic product and it's the value of all finished goods and services produced over a set period of time. Automatica stabilizers are economic policies and programs that are designed to help offset economic activity when it fluctuates during high and low times. This keeps the economy stable without the use of government or policy makers needing to intervene </span>regularly.
Answer:
E. Since bondholders receive fixed payments, they do not share in the gains if risky projects turn out to be highly successful. However, they do share in the losses if risky projects fail and drive the firm into bankruptcy. Therefore, bondholders generally prefer to see corporate managers invest in low risk/low return projects rather than high risk/high return projects.
Explanation:
Answer:
131,250= number of units
Explanation:
Giving the following information:
<u>We need to calculate the number of units to be sold to maintain a profit of $175,000.</u>
Unitary variable cost= $3
Fixed expenses= $350,000
Selling price= $7
Net income= total contribution margin - fixed cost
175,000= number of units*(7 - 3) - 350,000
525,000 = number of units*4
525,000 / 4= number of units
131,250= number of units