Creative destruction is Multiple Choice O O O the process by which large firms buy up small firms. the process by which new firms and new products replace existing dominant firms and products. a term coined many years ago by Adam Smith. applicable to planned economies but not to market economies.

Q: In the one period model, list the requirements for a competitive equilibrium, and explain why each…

A: Perfect competition refers to the condition of the market where there are a large number of firms or…

Q: A competitive market system is efficient. Discuss and explain this statement in detail. Your answer…

A: Macroeconomics is a part of economics that deals with production, decision and allocation concerning…

Q: What is then the use or relevance of the purely competitive model?

A: Pure competition is a market system in which multiple firms compete for the same clients. The best…

Q: Why do economists believe that economic profit is the more accurate measure of a business success?…

A: Accounting profit only considers the cost that has actually happened, but economic profit considers…

Q: How is non-price competition different from price competition?

A: There are two ways producers can compete (with their aim being profit maximization). They are: Price…

Q: Please explain the following TRUE or FALSE questions. Answers need to be supported with an…

A: 1. A firm maximizes profit by comparing its marginal revenue and marginal cost. Marginal revenue is…

Q: there are four (4) characteristics or term in which we can differentiate a market structure from…

A: A market is a meeting place where people can exchange goods and services. The most typical…

Q: What are the advantages of pure competition?

A: Answer: A purely competitive business is the most efficient type of operation. This is due to the…

Q: Discuss the differences between capitalist and command economy.

A: Economy: It refers to the system of organizing money, industry, and trade of a country or region.

Q: = = Consider two duopolists whose cost functions are Ci 10qi, i 1,2, where C₁ and qi are their costs…

A: Demand functionP=40-2qC=cqThere are 2 firmsFirm1 and firm 2

Q: KIND can be considered a "social enterprise." Again, what does the term mean? Whatever the term…

A: Social Enterprise: Businesses that change the world for the better are known as social enterprises.…

Q: cooperative theory and concepts related to the role of cooperatives and the history of cooperatives.

A: Cooperatives are collections of economic entities like farms. The cooperative is a third way of…

Q: Give an example in the marketplace that describes the principles of the free market (perfect…

A: Prices of goods in competitive market are determined by free market forces of demand and supply.…

Q: Give an example that would explain scarcity and economic decision making in the context of the…

A: Scarcity refers to the basic economic problem - the gap between limited resources and theoretically…

Q: If the producers of rice wants to maximize profit up to what level of output will it produce and at…

A: The allocative efficiency could be achieved by equating marginal private cost with marginal private…

Q: How do market concentration and market power relate to the principle of competition

A: This concept can be defined as the strength of a firm or a group of businesses to influence the…

Q: What type of industry has the characteristics where there are many producers, they are able to…

A: The industry is said to be Monopolistic Competition. Monopolistic competition is the market…

Q: According to Sutton's theory, which of the following statements about is NOT correct about…

A: John Sutton has explained why  many manufacturing industries or firm have remained highly…

Q: Correct Answer: There are many sellers (and, of course, many buyers). Kim Is the corn that you…

A: Note: The information given under ‘Correct answer’ (There are many sellers and many buyers) is taken…

Q: Using the tools of economic analysis that you learned, analyze the behavior of the enterprise…

A: Introduction Perfect competition is a market where large no. of firms producing homogeneous products…

Q: What are the advantages of scale in capitalist competition

A: GIVEN   the advantages of scale in capitalist competition   Defination of scale: means cost benefits…

Q: If competition also known as perfect competition rarely exists in the economy, then why study such a…

A: Markets are the place where buyers and sellers interact and exchange the products at certain price.

Q: In economics, an organization that produces a good or service is called a company. firm. 500…

A: In discipline of economics  there are four factors of productionlandlabourcapitalentrepreneurBy the…

Q: Comparison between Pure competition and the perfect competition in market structure of the economy?

A:

Q: I was wondering what the answer to this problem in Krugman´s microeconomics book is: A benefit…

A: In the short as well as long run they should close the business.