Assuring competition is critical to maintaining low prices, high quality, and business efficiency. Blair and Lopatke (2008 explained that by eliminating the competition, dominant sellers can increase monopoly profits and deadweight of social welfare losses can occur (p. 442, 439). But not all monopoly companies causes harm, some companies like the water utility, natural monopoly, and is regulated by the government (McConnell, 2012, pp.
Which is the MOST commonly used measure of corporate performance (in terms of profit)? • ROE • ROI • EPS • DPS 4. When a company determines a competency's competitive advantage, Barney refers to this issue as • value • rareness • imitability • organization Final Exam Answers just a click away MGT 498 Final Exam 5. If performance data and activity reports indicate undesirable performance as a result of inappropriate use of the strategic management process, operational managers must • change the strategic management model. • know about it so that they can correct the employee activity.
How does Adam Smith's concept of the invisible hand explain why markets move toward equilibrium? Do market participants need to know about the invisible hand for it to function? Explain your answer. Answer: Adam Smith’s concept of the invisible hand explains why markets move toward equilibrium because it allows consumers to freely choose what to buy and producers to choose freely what to sell and ultimately how to product it. It is important for market participants to know how the invisible hand functions so they can all benefit by understanding how self-interest regulates the markets supply and demand.
Describe the competitive environment in which the firm operates, the distribution of market power, and the strategic behavior of the firm and its competitors. Apply your knowledge of the theory of this company’s market structure. How does the company make pricing and production decisions? Is your observation supported by the theoretical models? Refer to the financial reports for illustration.
So, if I set event X = “the global economy’s status is bad”, I will have P(X|A) = 80% = 0.8. Similarly, looking up the times when his company’s product can export, I see that 20% of the times the global economy’s status is bad. This means P(X|B) = 20% = 0.1 There are enough probabilities to find the posterior probabilities by using Bayes’ theorem: P(X) = P(A).P(X|A) + P(B).P(X|B) = 0.05*0.8 + 0.95*0.1= 0.135 So the probability that the global economy’s status is bad is 0.135. => P(A|X) = P(AX)/P(X) = P(A).P(X|A)/P(X) = 0.05*0.8/0.135 = 0.296 P(B|X) = P(BX)/P(X) = P(B).P(X|B)/P(X) = 0.95*0.1/0.135 = 0.704 We can summarize the results above into the following table: |P(A) |0.05 | |P(B) |0.95 | |P(X|A) |0.8
In the next chapter we learn how sellers set the prices in which we pay for an item, why things cost what they do and not what they are worth. The key to prices are sellers that can sell their products as close to the cost of making the item. In a regular market, prices are the key. Businesses cannot afford to charge a higher price, customers are normally looking for a lower price and the lower the better, in today’s economy. Many customers ask the question, “What affects prices?” We learn that things happen beyond the sellers’ and buyers’ control to raise and lower prices in today’s market.
[6 marks] [Total marks: 30] continued… BEA111 Principles of Economics 1 – S1, 2010 6 SECTION C Attempt ALL questions. Answer all questions in the spaces provided. Total marks for this Section: 40 Question 1 The diagram below shows the cost curves for a firm that experiences economies of scale and sells its product in a monopoly market. a Clearly label the firm’s demand, marginal revenue and marginal cost curves as D, MR and MC. Also label its ATC curve.
Running head: Differentiating between Market Structures Paper Differentiating between Market Structures Paper Melissa Blanco, Mary L. Lockett, Saundra Luke University of Phoenix ECO/212 Principles of Economics February 1, 2010 Instructor Michael Shackelford Four market structures makes today’s economic market, knowing the difference between the four can help a business realize which market would be more suitable for their firm. The term market structure refers to “the set of industry characteristics that affect the extent or rivalry in the market and ultimately affects market performance related to pricing and output.” (Humboldt State University, 2000, para. 2) The economic market consists of competitive market, monopoly,
Economic Forecasting Melissa Reamer, Daniel Heintzelman & Marcia D. McCants ECO/372 October 16, 2014 Mrs. Jill Winnington Economic Forecasting Introduction In the business world, the number of factors that affect the proficiency of loss verses gain rest on how well statistics and actual data reflect in the economy. Businesses, both small and large, treasure the information found in key economic guides. Useful numeric guidelines; discovered during research, contribute to business planning for future projects and business proposals. Forecasting financial characteristics and the present state of the economy enable businesses to avoid both current and future profit loss. Historical Economic Data Resources Here, Team A has gathered a list of Economic indicators released by the Economic and Statistics Administration (ESA).
Business owners can choose from one of several business options that the Internal Revenue Service’s offer in regards to tax (nbea.org, 2007). Antitrust law is to encourage corporate competition by restricting anti-competitive behavior. An example is a monopolization and, agreeing with a competitor on product price fixing. The antitrust laws require that each company establish prices and other terms on its own, without agreeing with a competitor. The government can stop businesses from merging or force businesses to divide into different companies to encourage competition (nbea.org,