Answer:
Explanation:
First scenario: The answer is No, not many sellers. The drug of the pharmaceutical company has patent right and it is the only firm selling this product. This makes the company a monopolist (single seller)
Second scenario: No, not an identical product. Cable company and phone company produce different products. Cable companies majorly deal with television access.
Third Scenario: no, not many sellers. One firm is dominating the market and customers prefers this. Its product has been differentiated and it can charge its own price.
Fourth scenario: yes,meets all assumptions. The socks are identical and consumers do not care about the seller because the same utility will be derived from the socks.
Answer:
A) Recession
Explanation:
Recession is a term in economics that refers to a situation where there is decline in economic growth. Specifically a recession is said to have occurred if for two or more consecutive quarters a negative economic growth is observed meaning that there is a decline in the gross domestic product (GDP). The implication of recession is that companies have less cash and revenue, so they will seek to reduce cost by cutting down on wages and employment which will generally lead to reduced output, income and jobs. Recessions are usually triggered by financial crises in an economy and government usually tackles it by spending more and reducing the cost of taxes
Answer:
According to the principles of economics, price and supply are positively correlated. That is, price and supply usually move in the same direction.
The obverse is true for Demand and Price. All things being equal, demand would usually go in the opposite direction of price.
Explanation:
In the question above, we have a scenario involving Joint Demand. Joint demand when the need or demand for a commodity arises as a result of the demand for another. Some examples are:
- Mobile phones and the internet (data bundles);
- Motor Vehicles and Engine Oil
The example in the question CD player and CDs is also a great example. Joint Demand is also referred to as Complementary Demand.
When there is a complementary relationship between two products, the rise or fall in the demand of one equals the rise or fall in the demand of the other.
When the price of CD players go up, the demand for it does down while its supply goes up. When the supply of CD players goes up, this will probably create a glut in the market because demand will go down.
When demand for CD players go down, it's complimentary demand -CDs will also experience a low output. In the long run, the prices for both will come down.
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Answer:
the budgeted cost of goods sold is $9,600
Explanation:
The computation of the budgeted cost of goods sold is shown below:
As we know that
Budgeted cost of goods sold = Beginning inventory + Purchase - Ending Inventory
= $2,400 + $8,600 - $1,400
= $9,600
Hence, the budgeted cost of goods sold is $9,600