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When the start-up cost is high

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Jerald Orn

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3y ago

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Which two specific examples of barriers could prevent a company or individual from entering a market?

technology and start-up costs


What factors contribute to an increase in supply?

Factors that contribute to an increase in supply include lower production costs, technological advancements, favorable weather conditions, and an increase in the number of producers entering the market.


What are total cost of production examples?

In a perfectly competitive market, all n firms are equal. Thus, the market total cost is the total cost (TC) of one firm multiplied by the amount of n firms in the market Total Market Cost =Variable Costs and fixed costs ...Fixed costs plus variable costs.


Explain the following statement with suitable examples a firm under a perfect competition is a price-taker and not a price-maker?

In perfect competition there are no barriers to entering the market as a firm. This also says that for this particular market that there is on differentiation of products between firms .This implies that fixed cost costs and total costs are zero and the only costs that matter are marginal costs. This makes the entry and exit for a market without costs and therefore any firm can take a share of the market. This makes it so if a particular firm wants to charge higher than the market price no consumer will buy their product because they have a plethora of other sources that charge for a lower price for the same exact product. Therefore it must take the price of the market or else it will sell no goods. There is also no reason for the firm to lower its price either because it can sell as much as it wants in the competitive market at a higher price.


What are the effects of rising of rising campaigns costs?

Rising campaign costs can lead to increased reliance on wealthy donors and special interest groups, potentially skewing political representation and prioritizing the interests of a few over the broader electorate. This financial barrier may discourage grassroots candidates from entering the race, reducing diversity in political representation. Additionally, higher costs can shift campaign strategies towards fundraising rather than engaging with voters, ultimately diminishing the quality of democratic discourse.

Related Questions

Why is the amount to be convicted for shoplifting less than theft?

To discourage shoplifting, which drives up a lot of costs in the retail market.


Which two specific examples of barriers could prevent a company or individual from entering a market?

technology and start-up costs


What do entrepreneurs earn?

Entrepreneurs earn money by selling goods and services to businesses and consumers. The fewer costs they have the more money they make.


What are the pitfalls of economic regulation?

Abiding by regulations costs money, making it more difficult to keep the market place for what is regulated relatively open to entrepreneurs. The cost of production goes up in many cases as well.


What are examples of total costs?

In a perfectly competitive market, all n firms are equal. Thus, the market total cost is the total cost (TC) of one firm multiplied by the amount of n firms in the market Total Market Cost =Variable Costs and fixed costs ...Fixed costs plus variable costs.


What factors contribute to an increase in supply?

Factors that contribute to an increase in supply include lower production costs, technological advancements, favorable weather conditions, and an increase in the number of producers entering the market.


What are total cost of production examples?

In a perfectly competitive market, all n firms are equal. Thus, the market total cost is the total cost (TC) of one firm multiplied by the amount of n firms in the market Total Market Cost =Variable Costs and fixed costs ...Fixed costs plus variable costs.


Explain the following statement with suitable examples a firm under a perfect competition is a price-taker and not a price-maker?

In perfect competition there are no barriers to entering the market as a firm. This also says that for this particular market that there is on differentiation of products between firms .This implies that fixed cost costs and total costs are zero and the only costs that matter are marginal costs. This makes the entry and exit for a market without costs and therefore any firm can take a share of the market. This makes it so if a particular firm wants to charge higher than the market price no consumer will buy their product because they have a plethora of other sources that charge for a lower price for the same exact product. Therefore it must take the price of the market or else it will sell no goods. There is also no reason for the firm to lower its price either because it can sell as much as it wants in the competitive market at a higher price.


Can you capitalize costs of an At the Market Offering?

It shouldn't be capitalized.


When will there be an increase in supply?

An increase in supply occurs when producers are able and willing to offer more goods or services for sale at a given price. This can happen due to factors such as lower production costs, technological advancements, or an increase in the number of producers entering the market.


Is the Rinspeed sQuba on the market yet?

Yes.It costs at the least $1,000,000.


What are the benefits of universal standards?

reduced search costs for consumerbecomes simpler, faster, and more accurate price discoverylower market entry costs for merchants