A problem in using the judgment by market structure criterion is that: O it is the most subjective standard.
O it is difficult to determine the relevant industry and geographic market.
O it is an expensive and time-consuming standard.
O each action of a firm must be analyzed separately and within a particular context.

Answers

Answer 1

Answer:

Answer:

The problem faced while using the judgement by the market structure criteria is that it is difficult for determining the geographic market and the relevant industry.

Explanation:

Market structures criteria are the kind or type of goods and services being traded, the size as well as the numbers of the consumers and the producers in the market and the degree to which the information could flow freely.

So, the problem which can be faced while using the judgement by the market structure criteria is that it is difficult for determining the geographic market and the relevant industry.

Related Questions

Consider this case: Last year, Jackson Tires reported net sales of $80 million and total operating costs (including depreciation) of $52 million. Jackson Tires has $115 million of investor-supplied capital, which has an after-tax cost of 7.5%. If Jackson Tire's tax rate is 40%, how much value did it's management create or lose for the firm during the year? A) 39.38 million B) 2.66 million C) 60.38 million D) 8.18 million
Crystal Glassware Company issues $1,042,000 of its 14%, 10-year bonds at 97 on February 28,2019. The bonds pay interest on February 28 and August 31. Assume that Crystal uses thestraight-line method for amortization. What net amount will be reported for the bonds on theAugust 31, 2019 balance sheet?A) $1,010,740 B) $1,012,303 C) $1,009,177 D) $1,042,000
Laramie, Inc., has an operating environment with considerable uncertainty. The company prepares the budget for several different volume levels. Laramie had the following budgeted data: Budgeted variable costs per unit: Direct materials $7.00 Direct labor 10.00 Supplies 1.00 Indirect labor 0.50 Power 0.05 Budgeted fixed overhead for 2018: Supervision 4,000 Depreciation 3,000 Rent 2,000 What are the budgeted costs for rent if 5,000 units were produced
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"A marketing management technique whereby the company's current product offerings are reviewed to ascertain whether each product should be continued as is, improved, modified or deleted is known as _____."

Larry Bar opened a frame shop and completed these transactions: Larry started the shop by investing $41,100 cash and equipment valued at $19,100 in exchange for common stock. Purchased $180 of office supplies on credit. Paid $2,300 cash for the receptionist's salary. Sold a custom frame service and collected $5,600 cash on the sale. Completed framing services and billed the client $310. What was the balance of the cash account after these transactions were posted?

Answers

Answer:

$44,400

Explanation:

The computation of the balance of the cash account after posting of these transactions are shown below:

= Invested cash amount - cash paid for receptionist's salary + cash collection from sale of frame service

= $41,100 - $2,300 + $5,600

= $44,400

The other items do not involved any cash transactions. Therefore they are not relevant and thus they not considered in the computation part

Which of the following statements is (are) TRUE? I. A firm with market power maximizes profit by producing so that P = MC or MR = MC. II. If marginal revenue exceeds marginal cost, the firm should expand output to increase profits. III. If a firm has no costs of production, it should continue producing until marginal revenue falls to zero.

Answers

Answer:

Statement II and III

Explanation:

For Statement I

We know that in a perfect competitive market the profit is maximum where either Marginal Revenue = Marginal Cost, or the Price + Marginal Cost is the point defining the profit.

Therefore, firm having to exercise maximum power in market will produce more up till Marginal Revenue > Marginal Cost.

Therefore, statement I is false.

Statement II

For the time till when the marginal revenue is more than the marginal cost, more and more goods shall be produced to increase the quantum of profit.

as this will assure no losses up to the time where MR>MC.

Thus, statement II is true.

Statement III

If there is no cost of production then entire amount received for a good will be profit, accordingly till the time the marginal revenue does not fall to 0 the goods shall be supplied to consumers, as the entire amount received will be profit with no cost associated.

Thus, statement III is also True.

Identify whether or not each of the following scenarios describes a competitive market, along with the correct explanation of why or why not.Scenario1-There are hundreds of colleges that serve millions of students each year. The colleges vary by location, size, and educational quality, which allows students with diverse preferences to find schools that match their needs.2-The government has granted the U.S. Postal Service the exclusive right to deliver mail.3-A few major airlines account for the vast majority of air travel. Consumers view all airlines as providing basically the same service and will shop around for the lowest price.4-There are dozens of pasta producers that sell pasta to hundreds of Italian restaurants nationwide. The restaurant owners buy from the cheapest pasta producer available to them.

Answers

1. yes it is a competitive market because it meets all the assumptions of being a competitive market

2. no because there is no free entry in the market

3. no because there are only limited sellers in the market

4. no because the product is not homogeneous.

Explanation:

Competitive market is a kind of market which has in it various sellers involved who are selling the same kind of product that is the product in the competitive market is homogeneous in nature.

The entry and the exit of the sellers in this kind of market is not restricted and they are allowed to have free entry and exit in the market. The number of sellers is also large.

The Sherman Anti-Trust Act does not prohibit: Group of answer choices a manufacturer from having a natural monopoly over its own product a seller to dominate a market because of superior product or business a manufacturer to sell only through a particular distributor all of the above

Answers

Answer: All of the above

Explanation:

The Sherman Antitrust Act outlawed trusts. These are the groups of businesses that fine together to form a monopoly so that they can dictate price.

The purpose of the Act's was firctgr promotion of economic fairness and competitiveness. The Sherman Anti-Trust Act does not prohibit a manufacturer from having a natural monopoly over its own product.

Also, it doesn't prohibit a seller to dominate a market because of superior product or business a manufacturer to sell only through a particular distributor.

Therefore, the correct option is "All of the above".

On December 31, it was estimated that goodwill of $51,500 was impaired. In addition, a patent with an estimated useful economic life of 12 years was acquired for $115,200 on April 1.a. Journalize the adjusting entry on December 31 for the impaired goodwill
b. Journalize the adjusting entry on December 31 for the amortization of the paten

Answers

Answer:

a. The journal entries for the impaired goodwill as at Dec 31 would be:

Debit Impairment expense/charge $51,500

Credit Goodwill/Allowance for impairment $51,500

(To recognize impairment expense on goodwill)

b. Journal entries for the amortization of the patent as at Dec 31 would be:

Debit Amortization expense $9,600 [$115,200/12]

Credit Accumulated amortization $9,600

(To recognize amortization expense on patent)

Explanation:

A goodwill is impaired when its carrying value exceeds its fair value. The impairment test is carried out annually and the difference by which the carrying value of the goodwill exceeds the fair value is charged to the profit or loss account as impairment expense. The impairment reduces the goodwill to its fair value.

Goodwill belongs to a class of intangible asset and it arises essentially as a result of business combination. A business combination occurs when a company acquires another company.

A useful economic model a. deals only with possibilities that actually occurred. b. will avoid conclusions that have public policy implications, because economists do not make value judgments. c. makes only realistic assumptions. d. may make some unrealistic assumptions in order to simplify a complex reality. g

Answers

Answer:

d. may make some unrealistic assumptions in order to simplify a complex reality

Explanation:

In economics, a model is a conceptual structure that represents economic procedures through a number of variables and a series of rational or quantitative interactions. The economic model is a simpler framework intended to demonstrate complex structures that is often mathematical.

Other Questions

By the end of December, Jackson Company has completed work of $2,000. Jackson company has neither billed the clients nor recorded any of the revenue. If the appropriate adjusting entry is not made at the end of the year, what will be the effect on: (a) Income statement accounts (overstated, understated, or no effect)? (b) Net income (overstated, understated, or no effect)? (c) Balance sheet accounts (overstated, understated, or no effect)?

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