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What is one effect of the profit motive?
It pushes companies to seek to eliminate competition.
Why does the government need to regulate the free market to protect competition?
Producers driven by the profit motive seek to reduce their competition.
Explain how monopoly causes an inefficient allocation of resources when the competitive firm does not even when both seek to maximize profits?
Explain how monopoly causes an inefficient allocation of resources when the competitive firm does not even when both seek to maximize profit
What are the aims of firms?
1) Profit maximisation.The standard assumption made by economist is that firm will seek to maximise their profit that is maximise the gap between the firm's total revenue and total cost (including normal profit.) A firm making the minimum level of normal profit is said to be producing the break even output. Firms will want to make abnormal profit as a reward for managing the resources and taking business risks.2) Sales revenue maximisation A firm may be prepared to accept a lower price and produce above the profit maximising output in order to increase its market share in a growing market. This is a penetration pricing policy.A firm choose to maximise its sales revenue would raise output beyond MC=MR until MR had fallen to zero. Extra sales after this would contribute nothing to total revenue, therefore it is at maximum.
What are Profits from a real estate sale?
It's hard to resell a property especially if the location would lack the necessary things to live in. Most agents seek an estate that has an easy access to everything and agents would get a high profit if this land mass is a great investment for people doing business.
A firm that does not seek to make money is a what?
Not-for-profit organization
What do you understand by profit oriented and non profit oriented entities?
A profit oriented entity is one whose goal is to make profits from its services or products. A non profit entity is one that does not necessarily seek to make profit but has set out other goals.
Why does a company seek to make a profit every year?
After all the employees and the expenses have been paid off the profit is used to improve the company or its also how the owners make money
Why did European government seek out colonies?
to expand land and get a profit
Why do governmental laws seek to restrict monopolies and cartels benefit consumers and businesses?
To prevent inflation growth.
What was the colony of Maryland founded for?
As a haven for English Catholics and to seek a profit.
What was the Maryland colony founded for?
As a haven for English Catholics and to seek a profit.
What is one effect of the profit motive?
It pushes companies to seek to eliminate competition.
What are Public schools charities and government agencies generally?
Do not seek to earn a profit
What is the goal the non-governmental organizations seek?
Non-governmental organizations (NGOs) typically seek to address social, environmental, or humanitarian issues by providing services, advocating for policy changes, raising awareness, and promoting sustainable development. Their goal is to create positive impact, empower communities, and improve the quality of life for marginalized or vulnerable populations.
Are firewalls between condo units a requisite?
Your local building code can give you the answer you seek.
Why does the government need to regulate the free market to protect competition?
Producers driven by the profit motive seek to reduce their competition.
