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artcher [175]
3 years ago
11

even though firms in competitive price-searcher markets do not produce at minimum atc, competitive price-searcher markets may st

ill be consistent with economic efficiency because
Business
1 answer:
Natasha2012 [34]3 years ago
6 0

Firms are known to be free to set price and also to face strong competitive pressure. Competitive price-searcher markets may still be consistent with economic efficiency because they provide consumers with a greater diversity of products.

  • Firms in competitive price-searcher markets that has a small entry obstacles often face a downward sloping demand curve.  Competition often exists from existing firms and new rivals.

Firms that exist in a perfectly competitive market are known to be price takers due to the fact that once the market determines an equilibrium price for the product, firms need to accept the stated price.

For an individual to sell a product in a perfectly competitive market, one must  just be happy with the price.

Learn more from

brainly.com/question/13961843

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The price of cigars is $10, with a quantity demanded of 1,000 per day. If the price increases to $12, the quantity demanded decl
saveliy_v [14]

Answer:

PED = - 1

Explanation:

The PED or price elasticity of demand measures the sensitivity of quantity demanded to changes in price level. It is calculated by taking the percentage change in quantity demanded, which results from a change in price level, and dividing it by the percentage change in price level.

PED = percentage change in Quantity demanded / Percentage change in price

PED = [(800 - 1000) / 1000]  /  [(12 - 10) / 10]

PED = - 1

8 0
3 years ago
A firm has an outstanding issue of 1,000 shares of preferred stock with a $100 par value and an 8 percent annual dividend. The f
katen-ka-za [31]

Answer:

“Hence, the amount that must be paid to the preferred stockholders be paid prior to paying dividends to common stockholders at the end of third year = $24,000”

Explanation:

The Paid-up value of Preferred Shares = $100,000 [1,000 Shares x $100]

The Amount of Preferred Dividend per year = $8,000 [$100,000 x 8%]

The amount that must be paid to the preferred stockholders be paid prior to paying dividends to common stockholders at the end of third year

= Cumulative Preferred Dividends payable for the 2 years + Current Year Dividend

= [$8,000 x 2 Years] + $8,000

= $16,000 + 8,000

= $24,000

“Hence, the amount that must be paid to the preferred stockholders be paid prior to paying dividends to common stockholders at the end of third year = $24,000”

6 0
3 years ago
1. You are evaluating the purchase of HypeToys, Inc. common stock that just paid an annual dividend of $1.80. You expect the div
Arte-miy333 [17]

Answer:

$36.65

Explanation:

D1 = D*(1+g)

D1 = 1.8*(1+0.12)

D1 = 1.8(1.12)

D1 = $2.016

Price of stock P = D1 / (re - g)

Price of stock P = $2.016 / (0.175 - 0.12)

Price of stock P = $2.016 / 0.055

Price of stock P = $36.654545

Price of stock P = $36.65

So, $36.65 is the most that i will be willing to pay for the common stock if i am to purchase it today.

5 0
3 years ago
Blues Inc. manufactures jeans in the cutting and sewing process. Jeans are manufactured in 40-jean batch sizes. The cutting time
Radda [10]

Answer:

a. Value added time = Cutting time + Sewing time

Value added time = 5 minutes + 20 minutes

Value added time = 25 minutes

Non-value added time = Total within batch wait time + Move time

Non-value added time = [25 minutes * (40 - 1) + 2 minutes

Non-value added time = 977 minutes

Total lead time = Value added time + Non-value added time

Total lead time = 25 minutes + 977 minutes

Total lead time = 1,002 minutes

b. Value added ratio = Value added time / Total lead time

Value added ratio = 25 minutes / 1,002 minutes

Value added ratio = 0.02495

Value added ratio = 2.5%

8 0
3 years ago
Why is it important to understand the purpose of a document?
Gala2k [10]

Answer:Document Purpose. Documents should be created for explicit purposes or goals that both the writer and the reader would readily agree on. ... Among the most common of these goals are to establish a relationship, to create trust and credibility, and to document actions. hope it helps in someway ig idk

Explanation:

5 0
3 years ago
Read 2 more answers
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