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lakshay
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How a firm in monopolistic competition makes decision on price and quantity?
In a monopolistic competition, the prices are determined by the demand and supply for that good. However, since each good is branded and distinguishable from each other, each firm can take non-price measures (marketing) to attract more customers. Hence, price is determined by the market while the quantity, although determined by market to some extent, still relies on the marketing measures of each individual firms.
What is market price?
Market price means the average price at which a good or service is being sold. It can fluctuate considerably during the course of one trading day. It is determined by what the buyers and sellers are willing to accept.
The price of a good that prevails in a world market is called the?
competative price
A group of companies agrees to charge the same inflated price for a good?
price fixing
What is the difference between supply schedule and market schedule?
A table which contains values for the price of a good and the quantity that would be supplied at that price. A market demand schedule is a table that lists the quantity of a good all consumers in a market will buy at every different price.
Define Market Price?
The current price at which an asset or service can be bought or sold. Economic theory contends that the market price converges at a point where the forces of supply and demand meet. Shocks to either the supply side and/or demand side can cause the market price for a good or service to be re-evaluated.
How a firm in monopolistic competition makes decision on price and quantity?
In a monopolistic competition, the prices are determined by the demand and supply for that good. However, since each good is branded and distinguishable from each other, each firm can take non-price measures (marketing) to attract more customers. Hence, price is determined by the market while the quantity, although determined by market to some extent, still relies on the marketing measures of each individual firms.
What is market price?
Market price means the average price at which a good or service is being sold. It can fluctuate considerably during the course of one trading day. It is determined by what the buyers and sellers are willing to accept.
The price of a good that prevails in a world market is called the?
competative price
What do you call the amount you must pay for a good or service in a market?
Market Price
A group of companies agrees to charge the same inflated price for a good?
price fixing
1 What can be said about the market price when a good is in surplus?
In a surplus, the market price will be lower. Since there are many options for consumers, they will want to pay the lowest price.
How does a sales contract work?
The buyer agrees to pay a pre-determined price for a good or service. The seller agrees to supply that good or service at the pre-determined price. There may well be other terms in the contract.
What is the difference between supply schedule and market schedule?
A table which contains values for the price of a good and the quantity that would be supplied at that price. A market demand schedule is a table that lists the quantity of a good all consumers in a market will buy at every different price.
Why free market system brings efficiency?
A free market, which has no interference from outsiders, like the government, is efficient because it forms a natural equilibrium between supply and demand. Suppliers are willing to supply the good and consumers are willing to buy the good at the price and quantity set by the natural forces of the free market. In this system, there is no deadweight loss.
How are the economic questions of what to produce and how to produce decided in a market economy such as the US?
All three of the basic economic questions, in a market economy is answered by the market: What to produce: This is determined by what is demanded and what can be supplied (with the resources) in an economy. How to produce: This is determined by the resource available although theoretically, it should produce at the bottom point in the average cost curve. To whom to produce: Although not stated in the question, this is still a fundamental question in an economy. In a market economy, this question is answered by the demand and supply: The good is produced for all those who is willing and able to buy that good at a given price (determined by the demand and supply.)
The price of a product is the amount of money exchanged for the good what determines the price of these goods?
The price of any product is determined by the laws of demand and supply.
