In a perfectly competitive market, if one seller chooses to charge a price for its good that is slightly higher than the market price, then it will <u>lose all or almost all of its customers</u>
<h3>
What is a perfectly competitive market?</h3>
A hypothetical market system is referred to as perfect competition. There are no monopolies under a scenario of perfect competition. A few essential traits of this type of structure include:
- All businesses sell the same thing (the product is a commodity or homogeneous).
- Every company is a price taker (they cannot influence the market price of their products).
- Price changes are unaffected by market share.
- Buyers have complete or perfect knowledge of the product being offered and the prices each company is asking (in the past, present, and future).
- Labor and capital resources are completely mobile.
- Companies are not charged to enter or leave the market.
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I think the correct answer is D. The goal of expectation interest is to put the non-breaching party in the same position they would have been in if the contract hadn't been breached. Expectation interest is an interest of a party of having a benefit in a contract by being in a good position in the contract.
Answer:
d. Benefits consumers by forcing prices down to the level of average cost.
Explanation:
In the long run, as firms enter into the industry, price would fall. This is due to the law of supply which says the higher the price, the higher the quantity supplied and the lower the price, the lower the quantity supplied.
The entry of firms into the industry in the long run drives economic profit to zero and ensures that price is equal to marginal cost or average cost.
I hope my answer helps you
Answer:
the correct answer is C
Explanation:
First calculate the APR with quarterly compounding, which equals 8.62% then using a periodic interest rate of 8.62/4%, calculate the present value (PV) of an annuity of $54,000 for eight periods
Net Operating Income on Year 2 will be lower than Year 1. The reason is the distribution of fixed production cost under absorption costing
<h3>What is
absorption costing?</h3>
Total absorption costing is an accounting cost method that includes the entire cost of manufacturing or providing a service. TAC includes not only material and labor costs, but also all manufacturing overheads. Each cost center's cost can be direct or indirect.
Insurance and rent are two examples. Absorption costing is an inventory valuation, which means it is a capitalized cost that is tracked on the balance sheet until the product is sold rather than a regular expense.
The finance manager can use the absorption costing formula (materials + labor + variable production overhead + fixed production overhead) (number of completed units) to estimate how much production expenses the company may incur.
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