The statement is true.
The existing network and registered consumer base gives them economies of scale and make them a preference of the consumers any new entrant in the market will have to face a lot of problem in the market i.e. have to incur considerable cost.
Chain shops or more than one store is a retail company composed of or extra retail shops, owned by and operated underneath one management. a chain save is the number of retail shops operating underneath not unusual ownership and management constitute a series.
Inside the enterprise world, a series method a set of shops (typically or greater). They possess the equal call (brand), and cling to comparable company store rules, sell identical products, and often owned by using the same determined economies. Right here, think about Wal-Mart as a series of mass-retail supermarkets.
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Answer:
The answer is: B) The reduction in economic surplus resulting from a market not being in competitive equilibrium.
Explanation:
Deadweight loss is an economic cost to society as a whole when market inefficiencies occur preventing it from reaching its equilibrium point. Market inefficiencies are caused by incorrect allocation of resources.
For example if a price ceiling is established, suppliers will tend to lower the quantity supplied while the quantity demanded either increases or stays the same. That economic deficiency resulting from an unsatisfied demand is what we call deadweight loss.
Other causes for deadweight loss are price floors (reduction of the quantity demanded) and taxation (shifts on the demand or supply curves).
Answer:
the wheat firm is perfectly competitive
A perfect competition is characterized by many buyers and sellers of homogenous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry.
In the long run, firms earn zero economic profit. If in the short run firms are earning economic profit, in the long run firms would enter into the industry. This would drive economic profit to zero.
Also, if in the short run, firms are earning economic loss, in the long run, firms would exit the industry until economic profit falls to zero.
he is a price taker and the price of his wheat which would be equal to equilibrium price would be determined by market forces
if he sells at the market price, he would sell all his wheat
Explanation:
If the uncle sells above equilibrium price, he would not sell any wheat
he cannot sell below equilibrium price because he would make losses
Answer:
$1.84
Explanation:
The formula for earning per share (EPS) is given as;
= Net income of the company / Average outstanding shares of the company
Given that ;
Net income = $230,000
Average outstanding shares = (100,000 + 150,000) / 2
= 125,000
Therefore,
EPS = $230,000 / 125,000
= $1.84
