All categories

3 years ago

Why do economists generally favor deregulation of most industries?

1 answer:

8 0

Sorry this description is a bit confusing but i couldn't really think of a way to phrase it properly :)

most economists believe that deregulation has the potential to be helpful because the fact that things aren't regulated by the government increases competition in people selling the same wares, which normally ends up lowering the price of that specific good and/or improving the quality of the good drastically (which means more people will be buying, it whatever it may be, which is good for the economy)

You might be interested in

When marginal cost exceeds average total cost:

gtnhenbr [62]

Answer:

B) average total cost must be rising

Explanation:

Marginal cost is the rate at which total variable cost increases when one more unit is produces.

So when marginal cost is larger than average cost, it means that total average costs must be increasing.

For example, we have the following production costs:

total costs = $100
units produced = 20 units
total average costs = $5 per unit

If the marginal cost of producing 1 more unit is $6, then the total costs will be $106 and the total average cost will be $5.05 per unit (= $106 / 21 units).

4 0

4 years ago

Bank A offers to lend you money at 10 percent compounded monthly, Bank B at 11 percent compounded quarterly, and Bank C at 12 pe

ahrayia [7]

Answer and Explanation:

The computation is given below:

For Bank A,

Effective annual rate is

= (1 + 0.10 ÷ 12)^12 - 1

= 10.47%

For Bank B,

Effective annual rate is

= (1 + 0.11 ÷ 4)^4 - 1

= 11.46%

And,

For Bank C,

Effective annual rate = 12%

Therefore, Bank A is best to borrow at lowest effective annual rate

8 0

3 years ago

As soon as products are completed, their product costs are transferred from Raw Materials Inventory to Finished-Goods Inventory.

Dafna1 [17]

Answer:

True

Explanation:

In the case when the products is completed in all respects so here the product cost that involved direct material cost, direct labor cost, and overhead cost from raw material inventory would be transformed to the finished goods inventory

Therefore the given statement is true

hence, the correct option is first

4 0

3 years ago

Remote Company has developed a new universal remote that works with all cable, over the air and streaming channels. While the de

Vinvika [58]

Answer:

The correct answer is letter "B": Penetration pricing.

Explanation:

Penetration pricing launches new goods or services at an initially low price to keep buyers away from rivals. Penetration pricing allows a company to create barriers to market entry by removing them. The new company assumes that even when costs rise to normal levels, customers will continue to buy their goods.

7 0

4 years ago

How will each of the following changes in demand and/or supply affect equilibrium price and equilibrium quantity in a competitiv

Taya2010 [7]

Answer:

a. Equilibrium price rises but equilibrium quantity falls.

b. Equilibrium price falls and equilibrium quantity also falls.

c. Equilibrium price falls but equilibrium quantity rises.

d. Equilibrium price is indeterminate but equilibrium quantity rises.

e. Equilibrium price rises and equilibrium quantity also rises.

f. Equilibrium price falls but equilibrium quantity is indeterminate.

g. Equilibrium price rises but equilibrium quantity is indeterminate.

h. Equilibrium price is indeterminate but equilibrium quantity falls.

Explanation:

In theory of demand and supply, the following are the simple rules used to determine the effects of changes demand and supply on equilibrium price and quantity:

1. When there is a change in demand but supply does not change, the direction of changes in both the equilibrium price and equilibrium quantity will be the same.

2. When there is a change in supply but demand does not change, direction of changes in both the equilibrium price and equilibrium quantity will be opposite.

3. If both the demand and supply change in the opposite direction, it is possible to determine the change in the equilibrium prices while the change in the equilibrium quantity will be indeterminate because they depend on the magnitudes of the shifts.

3. If both the demand and supply change in the the same direction, it is possible to determine the change in the equilibrium quantity while the change in the equilibrium price will be indeterminate because they depend on the magnitudes of the shifts.

4 0

3 years ago