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Firms operating at or near capacity are unlikely to instigate price wars?
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∙ 11y ago
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Wiki User
∙ 11y ago
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If a firms fixed financial costs decrease the firms operating breakeven point will do what?
decrease <--------WRONG!!!!! The operating breakeven point will remain unchanged.
Why do monopolistic competitor operate at excess capacity?
Monopolistic competitors operate at excess capacity to discourage new firms from going into the industry, i.e, to deter entry. Operating at excess capacity means a firm produces large quantities of goods and at lower prices. This makes it difficult for newly established firms to compete, thus ensuring that the incumbent firm maintains its monopolistic position in the market.
What is horizontal and covers similar types of firms and operating practices of the firms?
industry analysis
What is excess capacity in economics and its graph?
Excess capacity is producing more than the market needs and are seen often in horizontal mergers due to supply increasing faster than the increase in demand.I can't draw a graph on here I believe, but firms expanded so that they had the capacity to produce at Qcapacity, but market demand and many firms forced the firm to produce at Q' (higher LRAC) leading to excess capacity.
Why aren't the prices in a collusive oligopoly unlikely to fall?
Prices in a collusive oligopoly are unlike to fall, because if prices fall that only benefits the consumer, so the firms will not do it. Also in a collusive oligopoly firms get together and FIX the prices, which answers the question.
If a firms fixed financial costs decrease the firms operating breakeven point will do what?
decrease <--------WRONG!!!!! The operating breakeven point will remain unchanged.
Why do monopolistic competitor operate at excess capacity?
Monopolistic competitors operate at excess capacity to discourage new firms from going into the industry, i.e, to deter entry. Operating at excess capacity means a firm produces large quantities of goods and at lower prices. This makes it difficult for newly established firms to compete, thus ensuring that the incumbent firm maintains its monopolistic position in the market.
What is horizontal and covers similar types of firms and operating practices of the firms?
industry analysis
Why firms invest and borrow?
Firms invest in order to make dividend and interest income when they have an excessof money over current operating expenses. Firms borrow to pay bills when they have an excess of operating expenses over the cash available.
Under which market condition do firms have excess capacity?
duopoly
The costs for firms operating on a global scale have been drastically reduced by what?
The Internet
Why do firms invest and borrow?
Firms invest in order to make dividend and interest income when they have an excessof money over current operating expenses.Firms borrow to pay bills when they have an excess of operating expenses over the cash available.
Which financial ratio is the best measure of the operating effectiveness of a firms management?
current ratio
How big is SIC 3669?
In 2001, there were 431 firms operating 468 establishments in this industry
What types of firms or what industry sectors might it be prudent to limit operating leverage?
susmita
Firms with relatively high nonfinancial fixed costs are said to have a high degree of what?
Operating Level.
What factors cause some firms to become more international than others?
operating characteristics
