Price equal to the current market price

Assignment Help Business Economics

Reference no: EM13860275

Why would a firm in a perfectly competitive market always choose to set its price equal to the current market price? If a firm set its price below the current market price, what effect would this have on the market? Discuss.

Reference no: EM13860275

Questions Cloud

Fiscal policy as the preferred tool for stabilization policy : Why is monetary policy chosen over fiscal policy as the preferred tool for stabilization policy? What does the government gain from controlling monetary policy? Why would they choose to delegate responsibility for monetary policy to an independent ce..

Fiscal policy-is expansionary or contractionary : What is the current U.S. Fiscal Policy – is it expansionary or contractionary? If the current GDP has declined or expanded over the past 2 quarters at least, which of the tools of fiscal policy would you use to try to rein in the economy and how is t..

Discuss the problem of reverse logistics : See the information on the COSTHA website that discusses reverse logistics of hazardous materials. Discuss the problem of reverse logistics and how it relates to hazardous materials packaging.

Forward rate by using the interest rate parity : Suppose the one-year interest rate on Swiss France is 10% and the US Dollar interest rate is 12% and the current $/SF spot rate is 0.8. What do you expect the 12-month forward rate by using the interest rate parity? Suppose the actual 12-month forwar..

Price equal to the current market price : Why would a firm in a perfectly competitive market always choose to set its price equal to the current market price? If a firm set its price below the current market price, what effect would this have on the market? Discuss.

What is the break-even unit volume for product line : Hamsung , Inc., a manufacturer of electronic appliances, estimated the unit cost of one of its products as follows: Material costs $ 63 Labor costs $ 24 Overhead $110 $197 The overhead cost is made up of $50 per unit variable costs and $60 per unit f..

What effect would this have on the market : Why would a firm in a perfectly competitive market always choose to set its price equal to the current market price? If a firm set its price below the current market price, what effect would this have on the market? Discuss.

Report about the effect of increasing use of social media : Write a report about the effect of increasing use of Social Media in the workplace in Australia. This is not the use of Social Media as a MARKETING tool.

Preferences between milk and cookies : Santa Claus has preferences between milk and cookies. Draw indifference curves to represent the following types of preferences: a) Santa likes milk and cookies, and always gets the same satisfaction from 1 ounce of milk as he does 2 ounces of cookies..

User Account

All Pages