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What are the four characteristics of a pure monopoly?
1) Only one firm in the market (no competition). 2) Significant barriers to entry by other firms exist. 3) Lack of substitute goos for the monopolist's good. 4) Firm is a price-maker.
How does network externalities act as a barrier to entry?
1. Network externality is the benefit we get from a single consumer and when it gets to the greater values it makes us, meaning the firm, bigger so the bigger the firm, the bigger the barriers to entry because there will be a firm which does the same job and good at what it does.
What are the reasons for different sizes of firm?
Size of market Capital employed Organisation or structure of firm Barriers to entry No. Of employees Market share Rate of integrations it means merger and acquisition
What factors contribute to a firm earning zero economic profit?
A firm may earn zero economic profit due to factors such as high competition, low barriers to entry, high production costs, and pricing strategies that do not cover all expenses.
What is barriers to entry prefect competition?
In perfect competition, barriers to entry are minimal or nonexistent, allowing new firms to enter the market freely. This ensures that no single firm can dominate the market, as many competitors provide identical products. Consequently, prices are driven to the level of marginal cost, benefiting consumers and preventing long-term economic profits for firms. Overall, the lack of barriers fosters a dynamic and efficient market environment.
What are the four characteristics of a pure monopoly?
1) Only one firm in the market (no competition). 2) Significant barriers to entry by other firms exist. 3) Lack of substitute goos for the monopolist's good. 4) Firm is a price-maker.
How does network externalities act as a barrier to entry?
1. Network externality is the benefit we get from a single consumer and when it gets to the greater values it makes us, meaning the firm, bigger so the bigger the firm, the bigger the barriers to entry because there will be a firm which does the same job and good at what it does.
What are the reasons for different sizes of firm?
Size of market Capital employed Organisation or structure of firm Barriers to entry No. Of employees Market share Rate of integrations it means merger and acquisition
What factors contribute to a firm earning zero economic profit?
A firm may earn zero economic profit due to factors such as high competition, low barriers to entry, high production costs, and pricing strategies that do not cover all expenses.
What is barriers to entry prefect competition?
In perfect competition, barriers to entry are minimal or nonexistent, allowing new firms to enter the market freely. This ensures that no single firm can dominate the market, as many competitors provide identical products. Consequently, prices are driven to the level of marginal cost, benefiting consumers and preventing long-term economic profits for firms. Overall, the lack of barriers fosters a dynamic and efficient market environment.
What is are monopolies?
A monopoly is a form of market structure in which there is only one firm which produces a certain good or service that has no close substitudes and in which the firm is protected from competition by a barier that prevents the entry of new firms.Barriers to entry: legal or natural constraints that protect a firm from potential competitors Legal monopoly: a market in which competition and entry are restricted by the granting of a publich franchise (exclusive right granted to a firm to suply a good or service i.e. Canada Post), government licence (control of entry into a particular occupation, profession and/or industry; requires a licence), patent (exclusive right granted to the inventor of a good or service), or copyright (an exclusive right granted to the author/composer of a literary piece, be it music, art or drama work)Natural monopoly: an industry in which one firm can supply the entire market at a lower average total cost han two or more firms can; there is a natural barriers to entry such as electric power.The firm can essentially set its own prices because there is no competition.
What specific factors could cause a firm to reject exporting as an entry mode?
There are several factors that could cause firms to reject exporting as an entry mode, including the presence of trade barriers, logistical issues, and distribution issues. Firms facing high tariff or nontariff barriers may find host country production preferable to home country production. Logistical considerations may also affect the desirability of exporting. For Example, the higher transportation costs associated with exporting, and the longer supply channel and difficulty communicating with customers may encourage a firm to choose an alternative entry method. Finally, firms that face difficulty finding appropriate distributors may turn to one of the other entry modes.
If a monopolistically competitive firm is making profits, how is it able to maintain its competitive edge in the market?
A monopolistically competitive firm can maintain its competitive edge in the market by offering unique products or services that differentiate it from competitors, creating brand loyalty among customers, and effectively marketing its products to attract and retain customers. Additionally, the firm may also benefit from barriers to entry that prevent new competitors from easily entering the market.
What is purchases return and the double entry?
Purchase return - this is the outward return by the firm While double entry is when you have entered the transaction twice
Loss on sale of stock investments journal entry?
the entry can be done in two ways 1= if house is the propery of the firm but firm deals in some another business cash account dr profit and loss account dr to house account ** this entry is done when house has been sold in cash 2= if firm's business is to deal in houses then entry would be cash account dr to sales account
Does stretching build muscle?
not necessarily, it does make your muscles more firm and stong though.
What does firm to touch mean in baking?
"Firm to touch" means that when you lightly touch the top of the baked product, the dough will not jiggle or move as it would if still liquid. It will feel firm, but not necessarily hard.
