Monopolistic competition is the economic market model with many sellers selling similar, but not identical, products. The demand curve of monopolistic competition is elastic because although the firms are selling differentiated products, many are still close substitutes, so if one firm raises its price too high, many of its customers will switch to products made by other firms. This elasticity of demand makes it similar to pure competition where elasticity is perfect. Demand is not perfectly elastic because a monopolistic competitor has fewer rivals then would be the case for perfect competition, and because the products are differentiated to some degree, so they are not perfect substitutes.
Monopolistic competition has a downward sloping demand curve. Thus, just as for a pure monopoly, its marginal revenue will always be less than the market price, because it can only increase demand by lowering prices, but by doing so, it must lower the prices of all units of its product. Hence, monopolistically competitive firms maximize profits or minimize losses by producing that quantity where marginal revenue equals marginal cost, both over the short run and the long run.
Federal Trade Commission (FTC) regulations require that used car buyers be informed of whether or not the vehicle comes with a warranty.
<h3>What is the Federal Trade Commission </h3>
The Federal trade commission is a body that is saddled with the responsibility of enforceing federal consumer protection laws which are aimed at preventing fraud, deception and unfair business practices.
The Commission also prevents federal antitrust laws that guides against anticompetitive mergers and other business practices that could result in higher prices, fewer choices, or less innovation.
Learn more about the FTC at brainly.com/question/2376957
<span>After you submit the Free Application for Federal Student Aid (FAFSA), you will be sent a Student Aid Report (SAR). If they have a valid e-mail address on file for you, they will send you an e-mail, within 3 to 5 days, with instructions on how to access an online copy of your SAR.</span>
Yes, the above statement is true. <span>If an organization is committed to ethical business conduct that commitment should remain constant. Although several firms and many employees remain constant in their ethical commitment and values, variances can happen.</span>
Answer:
1. comparing how different companies perform various value chain activities and then making cross-company comparisons of the costs and effectiveness of these activities.
Explanation:
Benchmarking -
It is the method of comparing the business performance and the process like the cost , time and quality .
Benchmarking is also known as process benchmarking , or , best practice benchmarking .
It is the comparison among various companies , that how the company performs various value chain activities .
Hence , from the question , the correct statement for the given term is ( 1. ) .
