What economic factors might be behind conventional wisdom

Assignment Help Business Economics

Reference no: EM13802531

Venture capitalists provide funds to finance new companies (start-ups), usually in return for a share of the firm’s initial profits (if any). Of course, venture capitalists look to back experienced entrepreneurs with strong products (or at least product blueprints). But potential competitors and the structure of the market into which the new firm enters also are important. According to the conventional wisdom, the best start-up prospects involve entry into loose oligopolies. What economic factors might be behind this conventional wisdom?

Reference no: EM13802531

Questions Cloud

Why perfect competition is allocatively efficient : In the argument for why perfect competition is allocatively efficient, the price that people are willing to pay represents the gains to society and the marginal cost to the firm represents the costs to society. Can you think of some social costs or i..

If monopolist lowers its price and its demand is inelastic : If a monopolist lowers its price and its demand is inelastic, then its. Now, assume there is a frost in Florida that destroys part of the orange crop. What happens to the market for oranges in this case? Which of the following statement about the rel..

All the points along the demand curve share same elasticity : In case of a Giffen good, income effect dominates substitution effect. All the points along the demand curve share the same elasticity. The marginal cost curve passes through the minimum point of the average fixed cost curve.

Marginal cost curve passes through the minimum point : In case of a Giffen good, income effect dominates substitution effect. All the points along the demand curve share the same elasticity. The marginal cost curve passes through the minimum point of the average fixed cost curve.

What economic factors might be behind conventional wisdom : Venture capitalists provide funds to finance new companies (start-ups), usually in return for a share of the firm’s initial profits (if any). Of course, venture capitalists look to back experienced entrepreneurs with strong products (or at least prod..

Find the optimal solution to the problem using level curves : The marketing manager for Mountain Mist soda needs to decide how many TV spots and magazine ads to run during the next quarter. Each TV spot costs $5000 and is expected to increase sales by 300,000 cans. Each magazine ad costs $2,000 and is expected ..

What is the percent change in the demand for visits : Per capita income in County A is $45,000. Per capita income in County B is $38,000. Physician visits average 3.4 per year in County A and 3.2 per year in County B. What is the percent change in the demand for visits?

What criterion is applied when choosing a policy instrument : Describe the structure and responsibility for policy tools in The Federal Reserve System. Describe what criterion is applied when choosing a policy instrument.

What is opecs optimal level of production : Suppose that, over the short run (say, the next five years), demand for OPEC oil is given by Q = 57.5 - .5P or, equivalently, P = 115 - 2Q. (Here Q is measured in millions of barrels per day.) OPEC’s marginal cost per barrel is $15. What is OPEC’s op..

User Account

All Pages