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In which market type are firms considered price takers because they take the price in the market and have no control over setting a price?
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Who is in control in a market economy?
In a free-market economy, private individuals or groups are in control
What factors are responsible for setting prices in a free market system?
"Supply is relative to demand" explains the factors responsible for setting prices in a free market system.
What is market externality?
It is the forces outside of an organization that control a market.
What market structures does not limit consumer choice?
A monopolistic competition market structure gives the consumers more choice. A monopolistic competition market offers more producers and many consumers in the market, and no business has total control over the market price.
What factors are generally evaluated when setting wages?
Several factors are generally considered in evaluating the market rate of a job. They include the cost of living of the area, union contracts, and broader economic conditions.
What is a puremonopoly?
When one company has the control over the entire market for a product, usually because of barriers to entry. With the ability of price control and supply setting, this monopoly is extremely rare in any sort of market unless it is a government granted monopoly because of some inherent factors that make it crucial for a monopoly to exist. Otherwise, it may exist under certain circumstances, such as; a patent created monopoly which gives the company unilateral control over the extire market for a product, a cartel or illegal trust monopoly, or a natural monopoly where the supply for a product comes from one source because of natural barriers to entry that makes it nearly impossible for others to enter the market and survive.
Why a monopolist must lower its quantity relative to a competitive market to maximize its profits?
A monopolist has to lower its quantity relative to the competitive market to maximize profits because the monopolist is already in control of the biggest part of the market. This means that because they're already in control, to keep the market competitive they need to release the same amount of product as their competition.
What factors are responisble for setting prices in a free-market eystem?
Supply relative to demand is primarily responsible for setting prices in a free market system.
Who is in control in a market economy?
In a free-market economy, private individuals or groups are in control
What factors are responsible for setting prices in a free market system?
"Supply is relative to demand" explains the factors responsible for setting prices in a free market system.
What explains the factor responsible for setting prices in a free market system?
"Supply is relative to demand" explains the factors responsible for setting prices in a free market system.
Why did some corporations seek to gain control over their market?
What they were usually after was price control and thus maximizing profits through market control.
Why we're British manufacturers dumping goods on the American market?
They wanted to control the United States Market.
What is market externality?
It is the forces outside of an organization that control a market.
What factors are generally evaluated when setting wages?
Several factors are generally considered in evaluating the market rate of a job. They include the cost of living of the area, union contracts, and broader economic conditions.
What market structures does not limit consumer choice?
A monopolistic competition market structure gives the consumers more choice. A monopolistic competition market offers more producers and many consumers in the market, and no business has total control over the market price.
Why did big businesses support high tariffs?
Big business support tariffs because they want to limit competition. If it is expensive for foreign companies to sell goods in the US, businesses in the US can control the market.
