Why invest capital in purely competitive industries

Assignment Help Business Economics
Reference no: EM131161382

Why invest capital in purely competitive industries with equilibrium margins that are razor thin and entrants that erode quasi- profits? Suppose volume is not exceptionally large, why then?

500 Words....

Reference no: EM131161382

Questions Cloud

Consumer engagements on a brand page on facebook : Question 1: What evokes consumer's engagements on a brand page on facebook? Question 2: What attracts consumer to like a brand page on facebook?
Message appeals in blog post : Recall two (2) media appeals that you have recently noticed on Facebook, or another social media source. Discuss these two (2) examples of message appeals in your blog post. Provide a detailed description, and judge whether the appeals are effecti..
Suggesting purchases based on reviews : Do a comparison analysis identifying the advantages and disadvantages of the product or service and the varying companies competing for your business. Also, post your thoughts regarding the usefulness of this type of information for a company inte..
The profitability of the leading cola syrup manufacturers : The profitability of the leading cola syrup manufacturers PepsiCo and Coca-Cola and of the bottlers in the cola business is very different. PepsiCo and Coca-Cola enjoy a 81 percent operating profit a percentage of sales. Perform a Porter’s Five Force..
Why invest capital in purely competitive industries : Why invest capital in purely competitive industries with equilibrium margins that are razor thin and entrants that erode quasi- profits? Suppose volume is not exceptionally large, why then?
What percentage change in unit sales is required : Information Resources, Inc. (IRI), collects data on consumer packaged goods at 32,000 scanner checkout counters and in panel surveys of 70,000 households. What expenses explain the difference between 43 percent and 29 percent? What percentage change ..
Explain the main elements of virtue ethics : Compare and contrast Kant's deontological theory with natural law theory. -  Explain the main elements of virtue ethics and the ethics of care.
Calculate their value using the dividend valuation model : Calculate their value using the dividend valuation model (DVM), including zero growth, constant growth, and variable growth. Comment on the differences between the DVM value and the current market value.
For firm with fixed cost and average variable cost : For a firm with fixed cost of 555, average variable cost of 12 and selling at a price of 17, find a profit in terms of its level of sales, Q. What value should Q be to achieve the profit target of 195?

Reviews

Write a Review

Business Economics Questions & Answers

  What is the size of the firms profit

Suppose that a monopolistically competitive restaurant is currently serving 230 meals per day (the output where MR=MC). At that output level. ATC per meal is $10 and consumers are willing to pay $13 per meal. What is the size of the firm's profit

  Determine total number of campers to breakeven for season

Las Cruces Recreations Inc. headquartered in Las Cruces, NM operates a summer camp in Silver City, NM. The cost data for a 12-week summer camp are as follows: Charge per camper = $400 per week Variable cost per camper = $220 per week Fixed costs = $2..

  Viewed as a fundamental building block

Which of the following is viewed as a fundamental building block of the U.S. economic way of thinking?

  Discuss the multiplier effect it had on the economy

Refferring to the 10-yer historical period 1990 to 2000,discuss an example of a change in autonomous spending. Research a government policy implemented during that time and discuss the multiplier effect it had on the economy. Make sure your work is c..

  One-time fee affect the market supply or demand curves

Suppose that there are 1,000 hot pretzel stands in New York City. The market demand slopes downward, and the pretzel market is perfectly competitive (and starts in long-run equilibrium). Draw the current (long-run) equilibrium for pretzels. Use two g..

  How should the federal resent react if they desire

In an effort to bring inflation down they had set interest rates at 5% in 2018. How should the federal resent react if they desire to bring inflation down to 3%. When will they achieve that goal? (Hint: maintain plenty of decimal places.)

  What would happen to the demand curve

What would happen to the demand curve if the major taxi companies lowered their prices? If you were asked to forecast future demand for this firm, how would you set up a forecasting model?

  In case of demand-pull inflation-other things being equal

In the case of demand-pull inflation, other things being equal:

  Economic laws studied-price of some good rises

Economic laws studied in this unit tell us that as the price of some good rises

  Problems associated with active discretionary fiscal policy

Some examples of political problems associated with active discretionary fiscal policy are.... [Select two] Recognition lag taxpayer-funded favors to special interests Action (administrative) lag Operational (impact) lag

  Estimate a population proportion

After calculating the sample size needed to estimate a population proportion to within 0.05, you have been told that the maximum allowable error (E) must be reduced to just 0.025.

  Distributes unemployment checks to unemployed workers

You work for an unemployment agency that distributes unemployment checks to unemployed workers in California. Your boss recently learned that the Governorhas proposed a 21 percent increase in the state minimum wage, and wants you to provide her with ..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd