All categories

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

You might be interested in

An LCD screen is purchased to be used in the manufacturing of a digital watch. The standard price for the LCD screen used is $40

GenaCL600 [577]

The answer would be

7 0

3 years ago

A company is offering to pay a stadium for naming rights. If the administrative costs for this sponsorship are $78,000, and thes

docker41 [41]

Answer:

The amount of $71,760 , is offered by the company for the stadium naming rights.

Explanation:

As the total cost for the sponsorship is $78,000 but the cost has 8% revenue for the naming sponsorship. Therefore,

= Amount × % of revenue

= $78,000 × 8%

= $6,240

In order to compute the amount which is offered to pay for the stadium rights, the revenue amount to be deducted from the administrative cost:

= Cost - Revenue

= $78,000 - $6,240

= $71,760

6 0

3 years ago

Carly has two children under 13 and worked full time while her spouse, Michael, was attending college for 9 months during the ye

Savatey [412]

$3000 because you are a madarchod okay

6 0

3 years ago

Break-Even Sales and Sales to Realize Income from Operations

strojnjashka [21]

Answer and Explanation:

The computation is shown below:

Contribution per unit

= Selling price per unit - Variable costs per unit

= $300 - $200

= $100 per unit

Now

Break even point (units)

= Fixed costs ÷ Contribution margin per unit

= $14,000,000 ÷ $100

= 140,000 units

And,

Sales units required for a target profit of $1,400,000

So,

= (Fixed costs + Target profits) ÷ Contribution margin per unit

= ($14,000,000 + $1,400,000) ÷ $100

= 154,000 units

4 0

3 years ago

Calloway department store buys jackets for $19.75 each and sells them for $37.88 each. what is the markup rate based on cost?

Svet_ta [14]

Answer : The markup rate based on cost is 91.79747%.

We have

Selling price per jacket = $37.88

Cost per jacket = $19.75

$Markup rate =[\frac{Selling Price - Cost}{Cost}] * 100$

Substituting the values in the formula above we get,

$Markup rate = [\frac{37.88-19.75}{19.75}] *100$

$Markup rate = [\frac{18.13}{19.75}] *100$

$Markup rate = 91.79746835$ %

8 0

3 years ago

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

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