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Why economists say competitive markets are efficient?
Economists say that competitive markets are efficient because when there is competition prices are lower. The more available an item, the less it will cost the consumer.
What is the relationship between start up costs and a competitive market?
markets with high start-up costs are less likely to be perfectly competitive.
What is the Difference between competitive and comparative advantage?
Competitive advantage: ability to produce a unit for strictly less cost than someone else. Comparative advantage: ability produce a unit for less opportunity cost than someone else.
What are the advantages and disadvantages of Currency Appreciation?
Disadvantages of currency appreciation is makes the exports of the domestic economy less competitive in the world markets
How a monopoly firm will not achieve allocative efficiency?
They produce at a different point than a competitive firm, a monopoly produces at a point where marginal revenue= marginal cost, where a competitive firm equates price to marginal cost. The marginal cost curve is lower than the demand curve, but the monopoly charges the price at the demand curve, which is a higher price and a lower quantity than a competitive market would produce.
Does monopolies exist?
Yes, monopolies exist when a company dominates a particular industry and controls a large portion of the market. This can lead to less competition, higher prices for consumers, and less innovation in the industry. Governments often regulate monopolies to promote fair competition.
Why did business leaders form trusts in the late 1800s?
They were used to take over small business, and form monopolies.
When there are external benefits unregulated markets will tend to produce more than the efficient level of output Is this true or false?
false because it tend to produce less than the efficient level of output
When was Pay Less Food Markets created?
Pay Less Food Markets was created in 1947.
Are sports getting more competitive?
yes are people suppose to get less competitive!
Segmenting in international markets can be more challenging than segmenting in domestic markets because?
critical data is often less available and less dependable.
Can monopoly be efficient?
There are two types of monopolies: coercive and non-coercive.Coercive monopolies use coercion (physical force, threats of force or fraud), via private or government means, to eliminate their competition. Thus they have less competitive incentive to provide higher quality at lower cost. Therefore they tend to be relatively inefficient compared to freely competing businesses.On the other hand, a non-coercive monopoly does not use coercion to eliminate competition. It is a freely competing business. In other words, competing service providers are free to enter the market. This possibility provides competitive incentive for the non-coercive monopoly to maintain customer loyalty by providing them with high quality at low cost. If the non-coercive monopoly does not serve consumers as well as it could, they create profit incentive for competitors to enter the market and win those customers. To prevent this from happening, non-coercive monopolies tend to be relatively efficient compared to coercive monopolies and potential competitors.In fact when multiple businesses merge into one, they often achieve higher economies of scale. Thus non-coercive monopolies have the potential to be more efficient than multiple competitors.Keep in mind, most monopolies today are coercive monopolies, and thus relatively inefficient.
