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3 years ago

When is competition deemed desirable in business, when is it undesirable?

1 answer:

OverLord2011 [107]3 years ago

6 0

Competition is also considered the basis for capitalist or free market economies.

Competition is desirable when the price charged to individuals equals the marginal cost of production to each firm. In other words, one can say sellers charge buyers a reasonable or fair price.

Competition is undesirable when it leads to a lower output and increased costs. Competition is undesirable in business because you have to prevent new innovative ideas surviving due to firms operating with high research and development costs alongside dominant advertising. In addition fewer incentives to cut costs because of a lack of competitors.

Read more: https://www.referenceforbusiness.com/encyclopedia/Clo-Con/Competition.html#ixzz7Booeb5l4

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An agreed-upon solution about a common set of engineering features and design choices is known as a?

Vikentia [17]

Neudjsbqjaisinfhsu sorry need points

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2 years ago

If two projects (investments) A and B are said to be mutually exclusive then we know that the firm ______________. can choose to

Vitek1552 [10]

Answer:

must choose to invest in either A or B, but not both.

Explanation:

The whole concept of being mutually exclusive is that you must choose only one alternative investment. You can either choose to invest in A or B, but you cannot invest in both A and B, or first invest in A (or B) and then in the other one.

Generally investment projects are mutually exclusive due to budgetary constraints, i.e. you do not have enough money to invest in all of them, so you must choose the most profitable one considering the associated risks and capital costs.

3 0

4 years ago

The Talbot Corporation makes wheels that it uses in the production of bicycles. Talbot's costs to produce 110,000 wheels annuall

Anna [14]

Answer:

Indifferent Purchase price per wheel = $123,200/110,000 = $1.12

Explanation:

Provided that:

Number of wheels produced: 110,000

Cost for these wheels in case of manufacturing

Direct Material = $22,000

Direct Labor = $33,000

Variable Manufacturing Overhead = $16,500

Fixed Manufacturing Overhead = $59,000

Total Cost = $130,500

Rate of outside supplier = $0.80

Then total cost in case of purchase = Purchase cost + Unavoidable fixed cost - Rent Revenue

= $0.80 $\times$ 110,000 + ($59,000 - $14,000) - $37,700

= $88,000 + $45,000 - $37,700

= $95,300

since net effect of buying the wheels is a gain of $130,500 - $95,300 = $35,200

Thus the wheels shall be bought and not manufactured.

The price at which the buying and manufacturing option will be indifferent shall be:

Purchase Price + Unavoidable Fixed Cost - Rent Revenue = Manufacturing cost

Purchase Price + $45,000 - $37,700 = $130,500

Purchase Price = $123,200

Purchase price per wheel = $123,200/110,000 = $1.12

7 0

3 years ago

Fonda Motorcycle Shop sells motorcycles, ATVs, and other related supplies and accessories. During the taking of its physical inv

saul85 [17]

Answer:

See attached file

Explanation:

4 0

3 years ago

Explain single product cost-volume-profit (CVP) and break-even analysis. Provide a hypothetical example of CVP and breakeven ana

pickupchik [31]

Cost volume profit shows the relation between sales volume, price and costs, these three factors affects the profit of company. Such CVP analysis used in decision making for the company. Profit volume(PV) ratio is one of the ratio from CVP analysis. PV ratio is the ratio between Contribution and sales of the company.

For example:- Let's say Sales of the company is $10,000,000 and variable cost = $3,585,000

Contribution will be Sales-variable cost = $10,000,000 - $3,585,000 = $6,415,000

PV ratio = Contribution/sales *100 = $6,415,000 / $10,000,000 * 100 = 64.15%

Here in this example, PV ratio of 64.15% is the contribution before fixed cost that a company has earned from its sales.

Break Even Analysis:-

Break even analysis show the situation where the company is at zero profit situation, means no profit no loss situation. Break even analysis or the break even point is the point that given the level at which company earns no profit or incurred no loss. Break even point is one of the analysis that comes under Break even analysis. Break even analysis is the ratio between fixed cost and PV ratio (%) of the company.

For example;- Let's say in the above example Fixed cost of the company is $1,300,000 and PV as calculated in the above example is 64.15% , Break even point will be Fixed cost / PV ratio = $1,300,000 / 64.15% = $2,026.500. This is the point where company is at zero profit/loss situation means company incurred no loss and earned zero profit.

7 0

4 years ago

When is competition deemed desirable in business, when is it undesirable?​

When is competition deemed desirable in business, when is it undesirable?