Which explains how revenue is determined?
The total amount of money brought in by sales is calculated
.
Which best explains the profit motive pushes producers to do?
So companies to maximize their profit must ensure that
marginal revenue is equal to marginal cost
. … The company increases the profit when the last unit produced always generates an additional income greater than the additional cost when producing it, which is indicative that the production must increase.
Which is the main force behind the decisions made by producers?
In a market economy, the producer gets to decide what to produce, how much to produce, what to charge customers for those goods, and what to pay employees. These decisions in a free-market economy are influenced by the
pressures of competition, supply, and demand
.
What is a possible market structure for an economic system?
The correct sequence of the market structure from most to least competitive is
perfect competition, imperfect competition, oligopoly, and pure monopoly
.
Which identifies the reason why producers try to minimize costs and maximize revenue?
Which identifies the reason why producers try to minimize costs and maximize revenue?
The profit motive
.
Which best explains profit motive?
The correct answer would be,
The desire to make money through goods and services
. Explanation: … Companies earn money through their goods and services. This is the profit motive of the company.
Which of the following best explains how profit is calculated?
The formula to calculate profit is:
Total Revenue – Total Expenses = Profit
. Profit is determined by subtracting direct and indirect costs from all sales earned.
What are the two parts to the law of supply?
Economists call this positive relationship
between price and quantity supplied
—that a higher price leads to a higher quantity supplied and a lower price leads to a lower quantity supplied—the law of supply.
Which of the following is the main force behind the decisions made by producers in free-market society?
Self-interest
is the motivating force behind the free-market. People produce goods and services for their own personal gain. Competition is the struggle among producers for the dollars of consumers.
Which best describes a situation where competition between producers exists?
Which describes a situation where competition between producers exists? Two or more producers are trying to sell the same good or service to the same consumers. Which type of market structure is most closely associated with the automobile industry?
Oligopoly
.
What are the 4 types of competition?
Economists have identified four types of competition—
perfect competition, monopolistic competition, oligopoly, and monopoly
. Perfect competition was discussed in the last section; we’ll cover the remaining three types of competition here.
What are the 4 types of market structures?
- Pure Competition. Pure or perfect competition is a market structure defined by a large number of small firms competing against each other. …
- Monopolistic Competition. …
- Oligopoly. …
- Pure Monopoly.
What are the 5 types of markets?
Tip. The five major market system types are
Perfect Competition, Monopoly, Oligopoly, Monopolistic Competition and Monopsony
.
Which best describes a situation of monopolistic competition?
Which describes a situation where monopolistic competition exists?
Many producers are selling slightly differentiated products.
… The total amount of money brought in by sales is calculated.
Which of the following best describes a situation where an oligopoly?
Which best describes a situation where an oligopoly exists?
A small number of producers command nearly the entire market for a certain good or service
.
Which tools helps a producer set up an efficient system of production?
Answer:
A production possibilities frontier graph
.
