Business, 05.07.2020 14:01 matthewdabber7
The model of competitive markets relies on these three core assumptions 1. There must be many buyers and sellers-a few players can't dominate the market. 2. Firms must produce an identical product-buyers must regard all sellers' products as equivalent. 3. Firms and resources must be fully mobile, allowing free entry into and exit from the industry. The first two conditions imply that all consumers and firms are price takers. While the third is not necessary for price-taking behavior, assume for th problem that a market cannot maintain competition in the long run without free entry. . Identify whether or not each of the following scenarios describes a competitive market, along with the correct explanation of why or why not. Competitive? Scenario a. The government has granted a patent to a pharmaceutical company for an experimental AIDS drug. b. That company is the only firm permitted to sell the drug. c. There are hundreds of colleges that serve millions of students each year d. The colleges vary by location, size, and educational quality, which enables students with diverse preferences to find schools that match their needs. e. Dozens of companies produce plain white socks. f. Consumers regard plain white socks as identical and don't care who manufactures their socks. g. A few major airlines account for the vast majority of air travel. h. Consumers view all airlines as providing basically the same service and will shop around for the lowest price.
Answers: 2
Business, 21.06.2019 14:30
Aconsumer values a house at $525,000 and a producer values the same house at $485,000. if the transaction is completed at $510,000, what level of tax rate will result in unconsummated transaction?
Answers: 2
Business, 22.06.2019 13:20
Suppose farmer lane grows and sells cotton in a perfectly competitive industry. the market price of cotton is $1.64 per kilogram, and his marginal cost of production is $1.44 per kilogram, which increases with output. assume farmer lane is currently earning a profit. can farmer lane do anything to increase his profit in the short run? farmer lane: a. cannot do anything to increase his profit. b. may or may not be able to increase his profit. c. can increase his profit by raising his price. d. can increase his profit by producing more output. e. can increase his profit by shutting down.
Answers: 1
Business, 22.06.2019 23:30
Which statement best describes the two reactions? abcl, + h2 โ 2hci2h + h = he + inreaction a involves a greater change, and reaction b involves a change in element identity.reaction b involves a greater change and a change in element identityreaction a involves a greater change and a change in element identity.reaction b involves a greater change, and reaction a involves a change in element identity.
Answers: 1
Business, 23.06.2019 01:50
The capital balances, prior to the liquidation of the benjamin, gaynor, megan partnership, were as follows: benjamin, capital $100,000gaynor, capital $120,000megan, capital $175,000benjamin, gaynor, and megan share profits and losses in the ratio of 25%, 40%, 35%. as a result of a loan, the partnership owes gaynor $80,000. using the information above, which partner has the highest loss absorption power (lap) prior to liquidation? a. gaynorb. meganc. benjamind. both gaynor and megan have the same lap
Answers: 2
The model of competitive markets relies on these three core assumptions 1. There must be many buyers...
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