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Industries that are most sensitive to inflation include banks and other financial institutions. Since they make money by lending money, inflation hurts them first.

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How is pumice economically important?

It provides employment for those who gather volcanic rocks and profits for those who convert those rocks to pumice.


Not-for-profit organizations must make economic decisions?

Yes, the term "not-for-profit" doesn't mean those organizations do not aim at maximizing profits. Just they are not distributing the profits to their shareholders or owners but using the profits to achieve the organizations' goals.


Why does a business want to make a profit?

Money is a gauge of value. The more value a business gives to it's customers, or the more customers it can add value to will increase it's profits. A business desires profits so that it can expand, develop new products, do market research to find what it's customers need, and to reward those who took the risk in investing in a business before the profits would be known. Profits can be used to build new buildings and hire new people. For many small businesses, the business owner is the last to get paid, and those profits represent their income. Many businesses are charitable and donate to local schools, scouting groups, and other charitable causes. If there is no profit, there are no incentives to be the best, to develop better products, and to better serve their customers.


How were the deregulation of the oil industry and a windfall profits tax on oil companies in direct conflict with each other?

The deregulation of the oil industry aimed to promote competition and lower prices by allowing market forces to dictate supply and demand without government intervention. In contrast, a windfall profits tax imposed on oil companies sought to redistribute what the government deemed excessive profits, potentially discouraging investment and innovation in the industry. This conflict arose because deregulation encourages companies to maximize profits freely, while a windfall profits tax directly penalizes those profits, undermining the incentives created by deregulation. Ultimately, these opposing approaches created tension in the oil market's operational framework.


How do monopolistically competitive firms earn profits?

Monopolistically competitive firms earn profits by differentiating their products, allowing them to charge higher prices than those in perfectly competitive markets. They attract customers through unique features, branding, or quality, leading to a downward-sloping demand curve. In the short run, if the price exceeds average total costs, they can earn economic profits. However, in the long run, the entry of new firms typically erodes these profits, as they offer similar products and increase competition.

Related Questions

Is there costume makeup available for those with sensitive skin?

Yes, there is costume makeup available for those with sensitive skin.


The company profits paid out to shareholders are called?

Those distributed profits are called dividends, because the profit is divided among the various shareholders.


How is pumice economically important?

It provides employment for those who gather volcanic rocks and profits for those who convert those rocks to pumice.


The type of corporate ownership that has first claim on profits and assets is called a?

Preferred stock holders are those who have the first claims ob profits and assets.


Those who were opposed to private ownership of industries and wanted either the government or workers themselves to take over these industries were called?

Those who were opposed to private ownership of industries and wanted either the government or workers themselves to take over these industries were called socialists.


Those who were opposed to private ownership of industries and wanted either the government or workers themselves to take over these industries were called .?

Those who were opposed to private ownership of industries and wanted either the government or workers themselves to take over these industries were called socialists.


What are synonyms of the word sensitive?

Delicate, impressionable, nervous, tense, touchy, or perceptive. Those words mean sensitive.


Not-for-profit organizations must make economic decisions?

Yes, the term "not-for-profit" doesn't mean those organizations do not aim at maximizing profits. Just they are not distributing the profits to their shareholders or owners but using the profits to achieve the organizations' goals.


What happened to the profits of many major corporations during the world war 1?

During World War 1, many major corporations experienced a significant boost in profits due to increased demand for military supplies and equipment. Industries such as steel, munitions, and shipping saw substantial growth. However, not all corporations benefited equally, as those heavily reliant on international trade suffered due to disruptions in global markets and supply chains.


What are large scale industries?

those industries, which are ruined by require skilled labur and capital investment.its production is large


What do you mean by Nodal Industry?

Nodal industries are those industries around which other peripheral industries also develop. These peripheral industries manufacture the goods required by the nodal industries. An iron and steel industry is a typical example of a nodal industry.


Are capacitors polarity sensitive?

The capacitors those are polarity sensitive are called electrolytic and tantalum capacitors. These capacitors are labeled as positive and negative.