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Profits encourage entry into purely competitive industries and losses encourage exit from purely competitive industries because?
MrAndyProcter
When profits are zero, the firm is earning sufficient revenue to cover the opportunity cost.
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∙ 8y ago
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Why might price collusion occur in oligopolistic industries?
Price collusion may occur in oligopolistic industries because the suppliers may want to guarantee high profits for each other. If one reduces the prices too much, the other may be forced to also reduce and this may lower profits for one player.
In the late 1800 farm profits decline because?
In the late 1800, farm profits declined in part because of the demand for farm produce declined.
Why do businesses compete for free enterprise system?
To gain profits
Why is it that firms can earn profits in the long run in monopoly and oligopoly but not in monopolistic competition and perfect competition?
Because monopolistically competitive firms have an optimal production allocation at monopoly values: marginal revenue = marginal cost, marking-up to the demand function. When competition is not perfect, marginal revenue does not equal demand but is always below it on a Cartesian plane, so the optimal production value of a monopolistically competitive firm is both less and at a higher price than a perfectly competitive one.
Why cottage industries exist?
cottage industries exist because without them people would not get to eat cottage
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.
Explain why a monopolist must lower its quantity relative to a competitive market to maximize its profits?
A monopolist must lower its quantity relative to a competitive market to maximize its profits because the monopolist already controls and owns the largest share of the market.
Why might price collusion occur in oligopolistic industries?
Price collusion may occur in oligopolistic industries because the suppliers may want to guarantee high profits for each other. If one reduces the prices too much, the other may be forced to also reduce and this may lower profits for one player.
Does TD Meloche Monnex offer competitive insurance prices?
the td meloche monnex does offer compeititive insurance prices. these are there to encourage those to use their services. this is because they are the bomb.
Why should the government protect its local industries?
1. To allow the infant industries grow. 2.To allow local industries enjoy economies of trade. 3.To put to optimum use the scarce resources available. 4.To encourage exports as opposed to imports. 5.To enhance employment levels in the economy because more people will be employed in the local industries.
Advantages of capital from profits?
Amazon is a world full of profits, the most important thing is how to increase your profits, so I will introduce you to a tool that will double your profits for you to know more : snip.ly/tkynz2
In the late 1800 farm profits decline because?
In the late 1800, farm profits declined in part because of the demand for farm produce declined.
Why did tobacco save colonial virginia?
You're darn right tobacco caused the growth of Virginia!!! Tobacco is a great thing if you know what I mean! :)
Because Japan spends little on defense it has money to develop?
New Industries New Industries New Industries
How can I get my site to appear on the first page of Google to reach a larger target audience and more sales and profits?
If you want your website to appear on the first page of Google. Because it is of very high importance to reach a larger target audience and more sales and profits If so then I encourage you to go to this site and be impressed by the suggestions they have on this matter CLICK HERE: bit .ly/3kMKDtX (cancel the space)
Can the oligopoly market structure benefit both consumers and businesses by forging common standards in industries that experience rapid technological change?
The oligopoly market structure can benefit both consumers and businesses by forging common standards in industries because it would provide fewer sellers and more purchasers, which would mean lower prices for everyone and higher profits for the businesses.
Why is it that firms can earn profits in the long run in monopoly and oligopoly but not in monopolistic competition and perfect competition?
Because monopolistically competitive firms have an optimal production allocation at monopoly values: marginal revenue = marginal cost, marking-up to the demand function. When competition is not perfect, marginal revenue does not equal demand but is always below it on a Cartesian plane, so the optimal production value of a monopolistically competitive firm is both less and at a higher price than a perfectly competitive one.
