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If an example of a highly competitive industry like potato market is taken, there are numerous sellers and buyers in the market due to which neither customers nor the sellers have the power to influence the price of potatoes. Since potatoes sold by every seller are homogeneous, therefore, the seller cannot raise the price of potatoes to earn more profit. In this market, there is no barrier to exit and enter because of which the existing firm earns normal profit. Hence, in a highly competitive industry there is no scope of earning higher profit. Thus, it is not an attractive industry.
Examine a highly competitive industry (airlines, video games, fast food, soft drinks, your own field, etc.) using the Five Forces .
Why do you think a highly competitive industry is not a attractive industry?
Identify 4 threats caused by globalization. Explain how globalization affects the gross domestic product (GDP).Explain your thoughts on globalization in your own words (e.g., is it bad or good Why or why not Does it affect all countries).
Susan is a single mother with three children. She can earn $8 per hour and works up to 2,000 hours per year. However, if she does not earn any income at all
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Let's see if the forces of the market can be as efficient as a benevolent dictator. Since laptop computers are increasingly easy to build.
Suppose industry abatement costs rise from $850 million in 2011 to $1,000 million in 2012 in nom- inal terms and that the CPI is 100 in 2011 and 106 in 2012. Evaluate the change in costs over the period in real terms, first in 2011 dollars and th..
In the early twentieth century, photos or drawings of big factories with tall stacks belching smoke were popularly used to represent the productivity.
Assume a household with a monthly income of $5,000. This household allocates its income to the purchasing of food and nonfood products. If the average price of food products is $20 per unit and nonfood items cost $150 per unit- Write the hous..
Determine what fiscal policy measure has a more direct impact to the economy, an increase in government spending or an equal decrease in taxes if consumer confidence is lower than the previous month.
The two major components of the interest rate that cause rates to vary across different investment opportunities or loans are:
How do the dividends affect the income statement? Why is the company using the accrual basis of accounting rather the cash basis?
Suppose a diagram has two PPF curves. Relative to the origin, Curve A is above Curve B. Which curve represents the greater level of potential output
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