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gulaghasi [49]
3 years ago
6

The late Nobel Prize-winning economist George Stigler once wrote, "the most common and most important criticism of perfect compe

tition... [is] that it is unrealistic." Source: George Stigler, "Perfect Competition, Historically Contemplated," Journal of Political Economy, Vol. 55, No. 1, (February 1957), pp. 1-17. Despite the fact that few firms sell identical products in markets where there are no barriers to entry, economists believe that the model of perfect competition is important because
A. economists prefer studying theoretical markets instead of actual markets
B. it is a benchmark-a market with the maximum possible competition—that economists use to evaluate actual markets that are not perfectly competitive.
C. all markets eventually become perfectly competitive O D. this is the type of market that our business laws protect and promote
Business
1 answer:
Solnce55 [7]3 years ago
4 0

Answer:

B. it is a benchmark-a market with the maximum possible competition—that economists use to evaluate actual markets that are not perfectly competitive.

Explanation:

In a perfect market information is equally available to all players in the market and as such there is no undue advantage by any of the players.

Market forces are therefore controlled by forces of demand and supply. No one entity has the power to control the market.

This is a theoretical situation as all market in real life are imperfect.

However economists prefer to use the perfect market because it is used as a benchmark of what a market should be with perfect competition.

Real markets are compared to the perfect market to see how effective they are.

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Dimitri has several apple trees in his yard, and apples are a perfectly competitive market with a price of $2 per pound. if dimi
Alinara [238K]
The total revenue and the marginal revenue when he sells the 100th pound of apples is 
total revenue is $200 (100 * 2) and marginal revenue is $2 (the price of the apple per pound in the market)

So the answer is the total revenue of Dimitri is $200 while the marginal revenue is $2.
4 0
3 years ago
Sheila and Jim live in an island where they are the only two workers. Sheila can either catch 10 fish or gather 40 pounds of ber
Firlakuza [10]

Answer:

SHEILA

Explanation:

A person has comparative advantage in production if it produces at a lower opportunity cost when compared to other people.

Sheila's opportunity cost in producing berries = 10/40 = 0.25

Jim's opportunity  cost in producing berries = 8/24 = 0.33

Sheila has a lower opportunity cost in the production of berries and thus has a comparative advantage in the production of berries

7 0
3 years ago
a perpetual bond with a par value of $1,000 and a semiannual coupon has a yield to maturity of 5.20% and a current price of $1,0
ycow [4]

Rate = 5.2% / 2 = 2.6%

Price = Semi annual coupon / Yield

1,055 = Semi annual coupon / 0.026

Semi annual coupon = 27.43

Annual coupon = 27.43 * 2 = 54.86

Current yield = (Coupon / price) * 100

Current yield = (54.86 / 1,055) * 100

Current yield = 5.20%

A perpetual bond, also regarded colloquially as a perpetual or perp, is a bond without a maturity date, consequently allowing it to be handled as equity, not as debt. Issuers pay coupons on perpetual bonds all the time, and they no longer ought to redeem the most important. Perpetual bond coin flows are, consequently, the ones of perpetuity.

A perpetual bond is a bond not using a maturity date that isn't always redeemable however can pay a regular circulate of interest for all time.

Maturity or maturity date is the date on which the very last fee is due on a loan or other financial device, consisting of a bond or term deposit, at which factor the major is because of being paid. Most devices have a hard and fast maturity date which is a particular date on which the device matures.

Learn more about Perpetual bonds here: brainly.com/question/14685796

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4 0
1 year ago
In order to sell more goods​ and/or services, what must a monopoly​ do?
Readme [11.4K]
<span>In order to sell more goods​ and/or services, what must a monopoly​ do? Reduce price and increase output. A monopoly is when a company or a product has control in the industry. The supply or trade of this item or service is limited. For a monopoly to sell even more, they should reduce the price and increase their output because they have no competitors. 

</span>
7 0
3 years ago
Create a conversational but professional tone in letters, e-mail messages, instant messages, and memos by Group of answer choice
egoroff_w [7]

Answer:

Using familiar words, occasional contractions, and pronouns such as you and I.

Explanation:

This is the best strategy in order to create a conversational but professional tone in letters, e-mail messages, instant messages and memos. This strategy suggests the use of familiar words. This will give a personal, relaxed tone to your texts. Moreover, it suggests the use of occasional contractions. Contractions are useful when it comes to making a text less formal and more intimate. Finally, using pronouns such as "you" and "I" gives a tone of closeness, while remaining professional.

4 0
3 years ago
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