In a perfectly competitive market, a company is certainly making an economic profit when: MR is greater than MC P is greater than ATC. P is greater than MC. P is less than ATC. In which one of the following situations will a perfectly competitive firm make an economic ...
In economics, market competition occurs when more than one business produces identical or similar goods and/or services and competes to sell their products to the same target group of consumers. Learn about the types of competition within free markets, and understand ...
Sometimes it's not the supplier who has the market power, but the customer. A monopsony occurs when there is one buyer and many producers and the buyer has the power to drive prices lower by controlling demand. A classic example is the labor market and wages, in a case when there is o...
a带来的感动 Brings move [translate] aEarly extinguishment of debt occurs whenever a firm’s long-term debt is retired before maturity. management can accomplish this extinguishment by repurchasing the bonds in the market . other bonds are callable and give the issuing corporation the right to ...
Principles of Political Economy and Taxation. Ricardo used his theory to argue against Great Britain’s protectionist laws which restricted the import of wheat from 1815 to 1846. Comparative advantage occurs when a country can produce a good or service for a loweropportunitycost than another country...
Market failure occurs when the price mechanism fails to account for all of the costs and benefits necessary to provide and consume a good. The market will fail by not supplying the socially optimal amount of the good. Market failure occurs due to inefficiency in the allocation of goods and ...
Sources of Monopoly Power Why do some firm’s have considerable monopoly power, and others have little or none? A firm’s monopoly power is determined by the firm’s elasticity of demand. Sources of Monopoly Power The firm’s elasticity of demand is determined by: 1) Elasticity of market ...
Sometimes, the price discovery mechanism can fall out of whack, leading to price bubbles and crashes. A bubble occurs when stock prices rise significantly above their fundamental or intrinsic values, driven by exuberant market psychology, herding behavior, and speculative buying. For instance, theDot...
A buyer’s market occurs when there are more properties for sale than buyers actively shopping, which gives buyers the upper hand. Homes for sale can be on the market for a few months before the right buyer comes along, and it’s more likely that the seller will be inclined to give in...
Economies of scale: Occurs when a venture achieves production volumes that result in a per-unit decrease in costs. Four P's: The basic elements of marketing, which are product, price, placement (distribution), and promotion. Geographic location: A market segmentation technique that determines a...