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∙ 15y ago
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What has been the main drawback of globalization for the United states?
Competition with lower wages and jobs leaving the country are some of the major drawbacks of globalization.
How does privatization leads to lower prices and greater supply?
As I see it, if you don't have private companies, then the Government runs one big monopoly (basically) and there is no competition. Therefore, when you privatize something, you allow anyone to create a company. This leads to many different people (private companies) creating the same thing, which creates competition, and therefore lowers prices (if your competitor can do the same thing, you will lower the price of your product so that people buy from your company instead of his). This also leads to bigger supply because most companies think that they'll sell more products than their competitor because they're forecasts are overoptimistic. Also the more they produce, the lower the marginal cost of their product (individual cost).
Once a bankruptcy is discharged will getting a co-signer help obtain a lower interest rate on a new mortgage?
In most cases if you bring a strong credit co-borrower into the situation you will be able to get a lower interest rate on a new mortgage. However, there are some government insured programs that do not discriminate against Bankrupts, and their rates are very competitive.
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.
Why do firms become monopolies?
Two main reasons: 1. There are greater profits to be gained by being a monopoly, either in the form of lower costs (economies of scale) or higher revenues (since all the industry demand is supplied by one company). 2. Less uncertainty. You don't have to worry about competition.
What promotes greater efficiency and lower price by protecting competition?
Antitrust laws
What antitrust laws promote greater efficiency and lower prices by protecting?
Competition
Which of the following promotes greater efficiency and lower prices by protecting competition?
antitrust laws -apex :)
What is the intent of antitrust laws?
Antitrust laws are intended to prevent companies from cooperating to prevent competition. The typical way companies do this is by making agreements to fix prices -- that is, they will all charge the same price avoiding price competition between them. They may also agree to collectively lower prices in unison to drive competitors, who are not in the group, out of business.
What effect does competition have on price and why?
Competition will lower the price of products
How do consumers benefits from competition among business?
competition leads to lower prices
How consumers benefit from competition among businesses?
competition leads to lower prices
What is the goal of economic competition?
The goal of economic competition is better goods at lower prices for everyone.
What is the result of competition between sellers?
Lower prices.
Why did north and the south have different positions on higher tariffs?
North had factories that made goods- they wanted higher tariffs on imports to protect their businesses from competition. The South wanted to be able to buy from the North OR from foreign markets, and wanted lower tariffs (lower prices for them to pay)
What are the disadvantages of international trade?
Exposes a country's workers to competition from workers willing to take lower wages.Exposes a country's management to competition with other managements who bring different skills, attitudes and cultures to the competition.Creates the need to expend energy for international shipments.
Why it is better when two firms compete?
It is good for two firms to compete, especially for the consumer. The best way to show this is by a basic example. If Company A is the only company that makes TVs, then they can charge whatever they want to because they are the only company that makes it. If Company B begins to make TVs, then Company A now has competition. Now, Company B could price their TV lower than Company A, and in return, Company A has to price theirs lower to keep up with the competition. Now, in today's world, throw in multiple competitors and that is what the economy is made of. It is great for the consumers, but bad for the firms because they won't make as much money as they would if they had a monopoly. The Sherman Antitrust Act was put in place to protect consumers from monopolies taking advantage of them.
