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Licemer1 [7]
2 years ago
6

Difference between monopoly and perfectly competitive market structure ​

Business
1 answer:
zmey [24]2 years ago
5 0

Answer:

see below

Explanation:

1. In a monopoly, one firm dominates a large market. Only one seller is serving a large number of buyers. In a perfectly competitive market structure, many sellers are competing to sell to many buyers.

2. A monopoly has no competition for its products. There are no close substitutes, which leaves customers with no other option but to buy from the monopoly. In perfect competition, sellers sell identical products. There is stiff competition for the product being sold.

3. In a monopoly, there are strong barriers to entry and exit from the market. In a perfectly competitive market, restrictions on entry or exit are absent.

4. The price for a monopoly is always set above the average cost, while in perfect competition, the price set is equal to the marginal cost.

5. A monopoly has full control over its price and can offer different prices to different groups of customers. In a perfects competition, the firms cannot practice price discrimination because they have no control over prices.

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What happens to the equilibrium price when supply goes down? A. The price goes up. B. The price goes down. C. The price stays th
Nady [450]
When supply goes down, the equilibrium price goes up. This is because if there is a smaller supply the good becomes more valuable to people who want the good.
4 0
3 years ago
Nelson Company's Radio Division currently is purchasing transistors from Charlotte Co. for $3.50 each. The total number of trans
melamori03 [73]

Answer:

The range of possible transfer is $ 3.25 to $ 3.50

Explanation:

Data provided:

The purchasing cost of the transistor = $ 3.50

The total number of transistors needed = 8,000

The production cost of the transistor = $ 4.00

The included variable cost = $ 3.25

The included fixed cost = $ 0.75

Now,

the fixed cost cannot be altered, thus it will be there

hence,

the variable cost will be the factor that will evaluate the decision i.e $ 3.25

therefore, the <u>range of possible transfer is $ 3.25 to $ 3.50</u>

3 0
2 years ago
An investment proposal with an initial investment of $100,000 generates annual net cash inflow of $20,000 for a period of 10 yea
dalvyx [7]

Answer:

5 years

Explanation:

Initital investment           $100,000

Cash inflows 1-5 (20,000*5)             ($100,000)

The payback period for this investment project is 5 years.

or

100,000/20,000=5 years

7 0
3 years ago
Steadigen Company sells two generators long dash Model A and Model Blong dashfor $ 432 per unit and $ 410 per unit, respectively
ch4aika [34]

Answer:

False

Explanation:

Contribution margin per unit = Sales -  variable cost

Contribution margin per unit (Model A) = $432 - $404

Contribution margin per unit (Model A) = $28 per unit

Contribution margin per unit (Model B) = $410 - $304

Contribution margin per unit (Model B) = $106 per unit

False, Contribution margin per unit (Model B) is higher so,  motivated to push sales of Model A will be false.

Break-even in units = Fixed cost / Contribution margin per unit

Break-even in units (Model A) =  Fixed cost / $28

Break-even in units (Model B) =  Fixed cost / $106

6 0
2 years ago
Suppose you bought 100 shares of IBM at $200 per share. What is the maximum loss if you place a stop-loss order at $165
Lynna [10]

Answer:

$3,500

Explanation:

Placing a stop-loss order at $165 means that the last amount that the stock traded, it had a price of $165 per share.

Based on that, it is evident that each stock has lost $35 when compared to the price at which the stop-loss order was placed and the initial cost per share of $200.

Loss per share=$200-$165=$35

The loss incurred on 100 shares of IBM=loss per share*number of shares owned

The loss incurred on 100 shares of IBM=$35*100

The loss incurred on 100 shares of IBM=$3,500

4 0
3 years ago
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