Examples of defensive industries are food producers, pharmaceutical firms, and public utilities. Thus, the correct option is (e.) a, c, and d.
What are defensive industries?Defensive sectors are those that are largely stable or impervious to economic swings, such as economic expansions and recessions. Defensive enterprises are generally untouched by an economic boom or recession since their earnings are unaffected by economic swings. The industry is often made up of enterprises that deal with market necessities, i.e., necessities. Utility companies, for example, are defensive since customer demand does not fall as much during downturns. Whether the economy is in a slump or not, consumers require energy, water, heating, and air conditioning. Consumer goods and healthcare are the other two key defensive industries.
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Money neutrality suggests that an increase in the money supply leads to _____ in price level and inflation and _____ in real gdp.
Money neutrality suggests that an increase in the money supply leads to an increase in price level and inflation and no change in real GDP.
In the field of business, money neutrality is a theory that describes that although an increase in revenue can lead to an increase in price level but it does not have any real effect on the GDP.
In other words, money neutrality describes that an increase in monetary value does not affect the economic equilibrium that is required for enhancing the GDP of the country.
Factors like GPD or employment etc remain unaffected by the increase in money according to the money neutrality theory in business.
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government transfer payments rise when the economy is contracting and fall when the economy is expanding. in this role, transfer payments are described as:
Government transfer payments rise when the economy is contracting and fall when the economy is expanding. In this role, transfer payments are described as automatic stabilizers.
What is Automatic Stabilizer?
Automatic stabilizers are a sort of fiscal policy intended to offset changes in a country's economic activity through the course of their regular operation without additional, timely approval by the government or policymakers.
The most well-known automatic stabilizers include progressively graduated corporate and individual income taxes, as well as transfer programs like welfare and unemployment insurance. Because they act to smooth economic cycles and are automatically initiated without further government intervention, automatic stabilizers are so named.
Governments frequently supplement automatic stabilizers in the event of severe or prolonged economic downturns with one-time or short-term stimulus measures in an effort to kick-start the economy.
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the owner of barnes company established a petty cash fund amounting to $400. what is the effect on the financial statements of the entry to record this transaction? balance sheet income statement statement of cash flows assets
The establishment of petty cash fund would involve a disbenefit to petty cash and credit to cash account. Petty cash is reported under the cash account in the balance distance, thus, would have zero effect on the overall balances.
What's the purpose of petty cash?
Thus, the purpose of a petty cash fund is to give departments with ready cash for the payment of colorful small expenditures, similar as postage, trace sacrifices, parking freights, and the suchlike.
Where is petty cash recorded?Petty cash appears within the current means section of the balance distance. This is because line particulars in the balance distance are sorted in their order of liquidity. Since petty cash is largely liquid, it appears near the top of the balance distance.
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Suppose the government places a per-unit tax on a good. The smaller the price elasticities of demand and supply for the good, the.
Suppose the government places a per-unit tax on a good. The smaller the price elasticities of demand and supply for goods, the smaller the deadweight loss from the tax.
The term deadweight loss of taxation, caused by the imposition of a new tax is referred to as deadweight loss of taxation. This results from a new tax that is higher than the amount normally paid to the government's taxing authority.
Deadweight loss is calculated as follows: deadweight loss = (new price - old price) x (original quantity - new quantity) / 2.
A per unit tax, also known as a specific tax, is one that imposes a fixed amount on each unit of a good or service sold, such as cents per kilogram. Thus, regardless of price, it is proportional to the specific quantity of a product sold. Excise taxes, for example, fall under this category.
The study of how buyers and sellers interact to determine transaction prices and quantities is known as demand and supply analysis. As we will see, prices reflect both the value to the buyer of the next (or marginal) unit and the cost to the seller of that unit at the same time.
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any corporate distributions that exceed earnings and profits are always taxable as capital gains. a. true. b. false.
The statement is False because distributions made by corporations in excess of earnings and profits are not usually subject to capital gains tax.
So, the correct option is B.
Capital gains are profits from the sale of a capital asset, such as stock, a company, a piece of land, or an artwork. Normally speaking, capital gains are taxed at a lower rate even though they are generally included in taxable income. To the extent that it represents a dividend, a distribution from a corporation is counted as part of the taxpayer's gross income. A distribution from the corporation that is distributing the money is said to be a taxable dividend.
The excess of a non-dividend distribution over the stock basis is taxed as a capital gain on the shareholder's personal tax return. If the shares of an S corporation have been held for more than a year, it is a long-term capital gain (LTCG).
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you have started a software company and while you have started generating revenue, your expenses are still high. consequently, you want to understand better if you are going to run out of cash. the heuristic you will use to analyze your situation is:
Heuristics for representativeness are skewed judgments made in everyday life. A representativeness heuristic is the assumption that a person is a lawyer because they look like lawyers because they are dressed in a suit and tie and carry a briefcase.
How can heuristics help you get the most out of your investment?Heuristics are mental shortcuts for quick problem-solving that produce sufficient results to be useful in a short amount of time. A heuristic approach is utilized by investors and financial professionals to accelerate investment decisions and analysis.
Which three kinds of heuristics are there?Anchoring and adjustment, representativeness, and availability were the three heuristics that received the most attention. The tendency to estimate an event's likelihood based on how easily it is to recall instances of that event is known as the availability heuristic.
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without knowing what happened later: if you were going to invest in the boston beer company ipo, what information would you use to figure out how much your max price per share would be? (3-4 sentences)
You would analyze the Boston Beer Company's financial statements to determine your maximum price per share. Potential investors can clearly understand a company's overall financial health from financial statements.
Give a brief account of financial statements.Financial statements, usually referred to as financial reports, are official records of the financial operations and status of an individual, company, or other institution. An easy-to-understand format is used to provide pertinent financial data in a systematic manner. They typically contain a management discussion and analysis and four fundamental financial statements:
A balance sheet, also known as a statement of financial position, details the assets, liabilities, and owner equity of a business at a specific point in time.An income statement, sometimes referred to as a profit and loss report (P&L report), statement of comprehensive income, or statement of revenue & expense, lists the revenue, expenses, and profits of a company. A statement of retained earnings, a statement of equity, or a statement of changes in equity provides information on the company's equity changes during a certain time period.A cash flow statement provides information on a company's investing, operating and financing operations as well as its cash flow for a specific time period.Other comprehensive income components that are not taken into account when calculating net income are included in a comprehensive income statement.To know more about, financial statements, visit :
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martin, the ceo of a struggling company, has gathered his employees to deliver the unhappy news that the company has filed for bankruptcy and everyone is being let go. he doesn't want his employees to feel sad, so as he gives his speech, he makes sure to smile widely and make eye contact with everyone. how effective is martin's use of nonverbal communication? a.) effective, because his facial expression is reinforcing his message. b.) ineffective, because his smile may confuse or irritate his audience, since it conflicts with his message. c.) ineffective, because it would be better for him to use a variety of facial expressions. d.) effective, because his smile reflects how he wants his audience to feel.
The non-verbal communication is b.) Ineffective, because his smile may confuse or irritate his audience since it conflicts with his message.
Because much of our nonverbal communication is unconscious, we tend to believe that nonverbal communication is more credible than verbal communication. Nonverbal communication is the exchange of information through body language, such as gestures, eye contact, and facial emotions. Martin has assembled his team in the scenario provided to break the bad news that the business has declared bankruptcy and everyone will be laid off.
Although he gives his speech and doesn't want his employees to feel sad, he shouldn't grin broadly or make eye contact with everyone because this won't show that he is unhappy about the endeavor closing and missing out on so many people. His smile may confuse or annoy his listeners because it contradicts his message, making his nonverbal communication ineffective.
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boland manufacturing prepared a 2019 budget for 120,000 units of product. actual production in 2019 was 130,000 units. to be most useful, what amounts should a performance report for this company compare?
The amounts a performance report for Boland manufacturing company should compare the actual results for 130,000 units with a new budget for 130,000 units.
What does a performance report contain?A performance report discusses the results of a task or a person's efforts. The report may include a comparison of actual results to a plan or benchmark as well as the difference between the two numbers. When there is an adverse variation in a performance report, the recipient is expected to take action.
A properly-written performance report can help in the entire decision-making process and measure the performance of your company as well as identify any areas that need to be improved. A corporation develops a performance report to describe and assess its overall success. It gives a general picture of how the company is doing.
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cardinal industries purchased a generator that cost $11,000. it has an estimated life of five years and a residual value of $1,000. it is estimated that it will be good for 5,000 hours. compute the depreciation expense for the first year using the units-of-activity method of depreciation assuming the generator was used for 1,040 hours. a.$2,288 b.$208 c.$2,080 d.$2,000
Depreciation spreads an asset's cost across its lifetime, keeping track of depreciation expenses is crucial for reporting purposes. Depreciation cost is $2080
Calculate depreciation expense?Given: A generator costs $1000
Remaining value is $1000.
Generator life expectancy is 5000 hours.
1040 hours were actually spent working within the time period.
Using the units-of-activity method, find the depreciation expense for the first year.
Formula;
Depreciation expense
=(cost - residual value)/total estimated life activity *actual activity per formed
Depreciation cost =11000-1000/5000*1040
first parenthesis
Depreciation costs =10000/5000*1040
Depreciation costs =2*1040
= 2080
As a result, $2080 in depreciation costs are incurred for the first year using the units-of-activity technique.
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what is the price of a u.s. treasury bill with 68 days to maturity quoted at a discount yield of 2.10 percent? assume a $1 million face value.
The price of US treasury bill is $995,737.5.
The Price is the number of money. The bond equivalent yield equation is determined by dividing the difference between the face value of the bond and the purchase price of the bond, by the price of the bond.
From the scenario we know that
Face value = $1,000,000
Discount yield = 2.10 or 0.021
Time = 68 days
To calculate about the BEY we should find the price of the bond use this formula:
Discount yield = [ (FV - P)/P ] x (360/d)
0.021 =[ (1,000,000 -P)/P ] x 360/68
0.021P = (1,000,000 -P ) 5.2941
0.021P + 5.294P = 5,294,100
5.3151P = 5,294,117.65
P = $995,737.5
The price is $996,052.313
Thus, plug in the numbers in the bond equivalent yield (BEY) formula;
BEY = (Face Value - Purchase Price)/Purchase Price x 365/day
BEY = [ (1,000,000 - 996,052.313)/$ 996,052.313] x 365/68
BEY = (188,143.215 / $ 996,052.313) x 5.2941
BEY = 0.1889 x 5.2941
BEY = 0,97
If we convert the amount of BEY to percent it will be 97%.
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. a toyota tundra can be purchased today for $32,350. a civil engineering firm is going to need three more trucks in 2 years because of a land development contract it just won. if the price of the truck increases exactly in accordance with an estimated inflation rate of 3.5% per year, determine how much the three trucks will cost in 2 years.
Toyota tundra can be purchased today for $32,350. an estimated inflation rate of 3.5% per year, the three trucks will cost 2 years = $103,962.
The rate of price growth over a specific time period is referred to as inflation. Inflation is frequently measured broadly, such as the general rise in prices or the rise in the cost of living in a nation. Unevenly rising prices in an inflationary environment inevitably lower some consumers' purchasing power, and this erosion of real income is the single biggest cost of inflation. With its headquarters in Toyota City, Aichi, Japan, Toyota Motor Corporation is a multinational Japanese automaker. On August 28, 1937, it was incorporated and Kiichiro Toyoda founded it. With an annual production rate of about 10 million vehicles, Toyota is one of the biggest automakers in the world.
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which section of the uniform commercial code defines course of performance as the history of dealings between the parties in the particular contract at issue?
UCC 1-303 (B) section of the uniform commercial code defines the course of performance as the history of dealings between the parties in the particular contract at issue.
A Uniform commercial code is a uniform state law adopted for all commercial transactions in the United States. Uniform commercial code ensures that the terms in business and finances will be treated uniformly in all the courts of the US. This eases the firms to enter into business contracts and relations as the contract will be treated uniformly across the US.
The course of performance refers to a sequence of conduct during transactions between the parties. The course of dealing refers to the old transactions that have taken place between the parties and established an understanding between the parties.
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dev's group has successfully accomplished its task of writing a new policy for the quality assurance team and is preparing to dissolve. which life cycle stage is this group currently in? a.) storming b.) performing c.) norming d.) adjourning
Writing a new policy for the quality assurance team was a task Dev's group was tasked with, and they are now getting ready to disband. This group is currently in the Adjourning life cycle stage.
What is the Stage of Adjournment?In this last phase of group development, participants get ready to part ways. To achieve closure and come to a successful conclusion are the primary objectives of the adjourning stage. Group members require time to consider their personal contributions and development.
The meeting is winding down with most of the team's goals accomplished. The emphasis is on completing last-minute tasks and documenting the labor and results. As the workload diminishes, specific team members might be moved to other teams, which would result in the team's dissolution.
What does it mean to adjourn?The assembly's business is finished at the adjourned meeting. An item of business may be tabled until the meeting that follows the adjourned one. The meeting that was adjourned had to be scheduled before the assembly's subsequent regular meeting.
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q1) what is the total percentage return for an investor who purchased a stock for $8.06, received $1.46 in dividend payments, and sold the stock for $9.28? (2 points)
(End price-Beginning price + Dividends)/Beginning price = (8.57-8.06+2.76)/8.06 = 40.57% (approximately).
A company pays dividends to its stockholders to distribute profits.They get paid regularly and are one way investors get a return on their stock investments.
What are examples of dividends?
The majority of dividends paid to investors in the United States are cash dividends, which are paid in cash per share.For instance, an investor holding 100 shares would receive $20 in cash if the company paid a dividend of 20 cents per share.Dividends on stocks represent an increase in the number of shares owned by a percentage.
You only need to own shares in the company through a brokerage account or a retirement plan like an IRA to receive dividends on that stock. Cash will be deposited into your account automatically when dividends are paid.
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a data analyst wants to create a shareable report of their analysis with documentation of their process and notes explaining their code to stakeholders. what tool can they use to generate this?
For creating dynamic documents using R, there is a file format called Markdown. To save, arrange, and document code, utilise R Markdown documents.
Dynamic documents are those that include both text and a programming language's output in a format that updates the output whenever the code is run. Because the code and the results are well-documented, using dynamic documents significantly increases research transparency. The last ten years have seen terrible digital documents. In their static form, there is always a chance that version control will be lost, or even worse, the document will be saved somewhere and forgotten.
For formatting text using a plain-text editor, Markdown is a simple markup language. As a markup language that is appealing to human readers in its source code form, Markdown was developed by John Gruber and Aaron Swartz in 2004. Markdown is frequently used in documentation pages, readme files, online forums, instant messaging, blogging, and instant messaging.
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an adjustable rate mortgage with a start rate of 3.5%, an index of the 11th district cofi, a margin of 1.5%, and periodic and lifetime caps of 1/5 with semi-annual adjustments, would have a maximum interest rate of what at the end of the fourth loan year if 11th district cofi is 7.5% at that time?
9.0% is correct because the rate of interest will be lower than 10.45 %, and 9%
1/5 or .2 semi-annual increase
Semi-Annual Period Semi-Annual Increase Int. rate
1 0 5.00
2 0.2 6.00
3 0.2 7.20
4 0.2 8.64
5 0.2 10.37
6 0.2 12.44
7 0.2 14.93
or 7.5+1.5 9.00
In finance and economics, interest is charged from a borrower or deposit-taking monetary group to a lender or depositor of a quantity above reimbursement of the predominant sum (this is, the amount borrowed), at a selected charge.[1] it is distinct from a fee that the borrower may also pay the lender or some 1/3 birthday party. It is also wonderful from a dividend that is paid by using a company to its shareholders (owners) from its earnings or reserve, but no longer at a selected charge decided ahead, rather on a pro-rata foundation as a share inside the reward received by danger taking marketers while the revenue earned exceeds the full charges.
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why do some consumers feel upset about the fact that businesses are collecting their personal information?
When personal data is exploited or insufficiently protected, it can lead to identity theft, financial fraud, and other issues .
What are the issues that arise from personal data collection? Exorbitant cost of data compliance. Who is in charge of ensuring that data protection laws are followedData breach riskWide personal data definition It is impossible to totally remove the risk of a data breach.The ability to gain a deeper understanding of how their customers act online, define their general demographics, and pinpoint opportunities to enhance the customer experience is perhaps the main reason why so many businesses gather consumer data.To learn more about Data breach refer,
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selling the same goods to different targeted groups at different prices is called: group of answer choices cost customization. cost personalization. price discrimination. cost optimization. price gouging.
Selling identical items to one-of-a-kind focused agencies at one-of-a-kind costs is called price discrimination.
What's price discrimination?Price discrimination is a promoting approach that costs clients one-of-a-kind costs for identical products or services primarily based totally on what the vendor thinks they are able to get the purchaser to agree to. In natural fee discrimination, the vendor costs every purchaser the most fee they will pay.
In greater, not unusual place varieties of fee discrimination, the vendor locations clients in agencies primarily based totally on positive attributes and costs every organization a one-of-a-kind fee.
Price discrimination is practiced primarily based totally on the vendor's notion that clients in positive agencies may be requested to pay greater or much less primarily based totally on positive demographics or on how they fee the products or services in question.
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the market equilibrium is found at the: question 21 options: a) price where quantity supplied exceeds quantity demanded. b) price where quantity demanded equals quantity supplied. c) price where quantity demanded exceeds quantity supplied. d) highest price the market will bear.
The market equilibrium is found at the price where quantity supplied exceeds quantity demanded. Market pricing is the outcome of the relationship between supply and demand.
The forces of supply and demand are balanced at an equilibrium price. Prices tend to stabilise at this level unless specific supply or demand characteristics change. It is essential to comprehend the product's market equilibrium price when running a business. Controlling supply and demand is essential for reducing costs and increasing revenues. Market equilibrium frequently happens naturally. The supply and demand of a good are, in theory, balanced in a free market, leading to constant prices.
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g which of the following statement is not correct about data and information? a. data is an essential resource, like other assets in organizations. b. data are raw facts representing a phenomenon. c. information is the result of the processing of data. d. mostly, business intelligence and analytics use data collected using questionnaires
Mostly, business intelligence and analytics use data collected using questionnaires.
A business is a enterprising organization or entity that engages in commercial activity. They may be industrial, commercial, or other types. Businesses that are for profit operate with the intention of making a profit, while those that are nonprofit focus on charitable purposes.
Analytics is the process of identifying, explaining, and sharing important patterns in data. Simply put, analytics enables us to see information and insights that we might otherwise miss.
Data analytics is the science of examining unprocessed data to draw inferences about that data. A company can increase productivity, maximize profit, or make better decisions based on data analytics to improve performance.
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why would the consumption function (if extended) intersect the spending axis at a positive value? what does this mean? is it realistic?
The consumption function (if extended) intersect the spending axis at a positive value means it is increasing .
What is consumption function?
The link between total consumption and gross national income may be modeled using an economic formula called the consumption function, sometimes known as the Keynesian consumption function. The function was first proposed by British economist John Maynard Keynes, who claimed it could be used to monitor and foresee total aggregate consumer spending.
According to the traditional consumption function, income and changes in income are the only factors that affect consumer spending. If this is the case, aggregate savings should rise proportionately to the GDP's long-term growth. The objective is to establish a mathematical connection between consumer spending and disposable income, but only on an overall scale.
The stability of the consumption function, which is partly based on Keynes' Psychological Law of Consumption, is particularly noteworthy in light of the volatility of investment.
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he unpredictability of exchange rate movements in the post-bretton woods era has lead to which two situations?
The unpredictability of exchange rate movements in the post-Bretton Woods era has lead to which two situations:
Added risk to exporting and importing.Made international business planning difficult.What transpired with exchange rates once the Bretton Woods system was destroyed?The Committee recognized three fundamental shortcomings of the Bretton Woods System: adjustment, confidence, and liquidity. The Bretton Woods parity had been a source of difficulty for the dollar for the majority of the 1960s, but this crisis signaled the end of the system.
The major currencies started to float against one another in March 1973 after an attempt to restore the fixed exchange rates was unsuccessful. The Bretton Woods system was replaced with a floating exchange rate system in 1973, and the IMF officially accepted floating rates in 1976.
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a few years ago, michael purchased a home for $292,000. today the home is worth $350,000. his remaining mortgage balance is $132,000. assuming michael can borrow up to 80 percent of the market value of his home, what is the maximum amount he can borrow?
The price at which a property would trade in a competition auction environment is known as its market value, or OMV. Despite the fact that these phrases have different meanings under various standards and can have variations in some situations, market value is usually used interchangeably with market price, fair value, and fair market value.
What is market value ?The cost that an asset would fetch on the open market or the assessment that the financial sector makes of a particular equity or company is known as market value, often known as OMV or "open market valuation."
The price at which a house would sell in a regular market is its market value. Sales occurring from unanticipated circumstances like a move, a relative's passing, or any other circumstance where the seller is forced to sell the home are excluded from this.
One of the main reasons market value is important is that it provides a straightforward method for determining how much an asset is worth, removing any uncertainty or confusion. A product's value is frequently seen differently by buyers and sellers in the market place.
The industry the company or asset is in, its overall profitability, how much debt it has taken on, and other factors all have an impact on market value.
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which of the following is the best example of the product development stage? a delivering multiple versions of different phones to influencers for beta testing. b ranking the concept of high-quality camera versus other potential differentiators. c research revealing that customers are limited by existing smartphone cameras. d breaking down the feasibility of such a system based on the cost of development. e the engineering of the quad-camera feature.
The engineering of the quad-camera feature is the best example of the product development stage.
Simply put, a quad-camera setup refers to a mobile phone's rear four cameras (each with four lenses). A quad-cam setup includes a main camera lens, a telephoto lens, an ultra wide angle lens, and a depth sensor. These are all made with the goal of improving photography capabilities. Having four cameras on a mobile device primarily enables you to take better pictures with a deeper depth of field. It can also deliver faster focusing, greater detail capture, a bokeh effect akin to DSLRs, and monochrome images. A quadruple-lens camera that focuses exclusively on wide-angle photography will not be the best choice if you need a little extra zoom, as opposed to a triple-lens camera that also has a telephoto lens. The number of lenses on your phone ultimately doesn't matter.
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on december 31, 2024, the end of larry's used cars' first year of operations, the accounts receivable was $53,000. the company estimates that $2,100 of the year-end receivables will not be collected. net accounts receivable in the 2024 balance sheet will be valued at:
Net accounts receivable in the 2024 balance sheet will be valued at $50,900 while the amount of $2,100 of the year-end receivables will not be collected.
given data,
accounts receivable = $53,000
company estimates = $2,100
Estimated amount of uncollectible receivables is a sign of bad receivables.
In most cases, such amount receivables are eliminated from the books by crediting account receivables and debiting bad debit expense.
The entries would be a credit to allowance for bad debt and a debit to bad debt if it is just conceivable that the receivables may not be collected.
Because of this, the debt won't be paid back.
we get here accounts Receivable that is express as
accounts Receivable = accounts receivable - company estimates
accounts Receivable = $53,000 - $2,100
accounts Receivable = $50,900
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the parol evidence rule applies to agreements that are: multiple choice preliminary negotiations. not finalized. fully integrated. completed after a written contract.
The parol evidence rule is applicable to fully integrated agreements. It does not permit the parties to reach an oral agreement after entering into the written agreement.
Parol is a verbal term or word. Verbal evidence, such as a witness' testimony at a trial. Extraneous evidence, such as an oral agreement, or even a written agreement, that is not included in the relevant written instrument, is referred to as parol evidence in the context of contracts, deeds, wills, or other writings. The parol evidence rule is a principle that protects the integrity of written documents or agreements by barring parties from attempting to change the meaning of the document by using prior and contemporaneous oral or written declarations that are not referenced in the document. Contract terms are frequently presented, discussed, and negotiated before being incorporated in the final contract.
The parol evidence rule applies to integrated contracts and states that when parties put their agreement in writing.
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a fund complex currently operates a web site to provide details regarding the investment philosophy behind each of its funds and to provide general commentary on the state of the world's stock and bond markets. under finra rules, this web site is considered:
A fund complex currently operates a Web site to provide details regarding the investment philosophy behind each of its funds and to provide general commentary on the state of the world's stock and bond markets. Under FINRA rules, this Web site is considered retail communication.
There are many different types of investment philosophy, each with its own risks and rewards. Some common investments include stocks, bonds, and real estate. When deciding what to invest funds in, it's important to consider your goals and risk tolerance.
Some investments are more likely to generate a higher returns, but they also come with more risk. It's important to find a balance that meets your needs.
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which one of these is an example of a necessary debt
Answer:
An example of unnecessary debt is when you change your clothes and don't really need on a high-interest score. Thus option C is correct.
What is unnecessary debt?
An unnecessary debt can be caused by a variety of issues such as expensive life events, having children, or moving to a new house. It may also be due to poor money management. The debt is due to those things that are not needed and hence are unnecessary.
Explanation:
is it true that a company in a perfect competition industry will have a perfectly elastic demand and supply?
The right response is Valid In a completely cutthroat market, merchandise are for the most part thought to be an ideal substitute for individual ventures and firms.
Every time, the demand curve is perfectly elastic. The companies raise the product's cost; As a result, there will be less overall demand.
In perfect competition, is supply perfectly elastic?The demand curve is perfectly elastic for each of the small, independent businesses that participate in a perfectly competitive market, and all goods are regarded as perfect substitutes. These businesses are price takers because there would be no demand for one company's product if it tried to raise its price.
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