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Все вопросы
- Case study. Three years ago, Bethany started a shop in which she sells handmade bead bracelets. With her selling one type of bead bracelets (same type of bead, many different colors), she was able to quickly narrow down her choice of a supplier. She and her supplier, Beads – n – More, have a great working relationship. They’ve always provided the product on time and Bethany has always paid their invoices in a timely manner. Business is great! Bethany’s company has been selling quite well and has always maintained a positive cash flow. Although everything is going well, Bethany realizes she spends funds on materials and other things without keeping track of those things. She decides what she needs to do is create a formal company budget. Each quarter, she reviews the budget, compares it to the money that has come in and gone out of the company, and determines if she has stayed on budget. After the first two budget reviews, she sees that she has firmly adhered to the budget and gives herself a pat on the back for a job well-done. What is true of the relationship Bethany has with her supplier? #161
- Motives for regulating can be distinguished from … justifications for regulating. #162
- … of the rationales for regulating can be described as instances of «market failure». #163
- Monopoly describes the position in which … seller produces for the entire industry or market. #164
- Where … occurs, the market «fails» because competition is deficient. #165
- A firm will earn a windfall profit (sometimes called an «economic rent» or excess profit) where it finds a source of supply significantly … than that available in the marketplace. #166
- The reason for regulating externalities (or «spillovers») is that the price of a product does reflect the true cost to society of producing that good, and excessive consumption accordingly results. #167
- Competitive markets can only function properly if consumers are not well informed to evaluate competing products. #168
- In some circumstances, the market may not provide the socially desired levels of continuity and availability of service. #169
- Markets may be deficient not merely because competition is lacking: they may produce undesirable effects because firms behave in a manner not conducive to healthy competition. #170