13. Giganeers faces competition from many other companies that also provide engineering consulting services. In order to gain more business, Gig has tried to convince potential clients that his company offers better service than the competition. He has advertised heavily in professional magazines, often quoting some of his highly satisfied clients. The market Giganeers operates in is an example of: (Points: 1)
perfect competition.
monopoly.
oligopoly.
monopolistic competition.
Is it Perfect Competition
14. ____________ is the amount a business earns over and above what it spends for salaries and other expenses. (Points: 1)
Profit
Revenue
Interest
Dividends
is it revenue
Your first answer is correct.
However, check this definition of revenue for your second answer.
http://dictionary.reference.com/browse/revenue?qsrc=2888
Please look up the other words to find the right answer.
Profit?
Right. Profit is your second answer.
13. The market Giganeers operates in is an example of monopolistic competition. This type of market structure is characterized by many firms that offer differentiated products or services. Giganeers, in this case, is trying to differentiate itself from its competitors by offering better service and advertising heavily to attract more clients.
To arrive at this answer, one can analyze the characteristics of each market structure:
1. Perfect competition: This market structure is characterized by many buyers and sellers, homogeneous products, freedom of entry and exit, perfect information, and no market power. It does not match the description of the situation given, as Giganeers faces competition and advertises its services.
2. Monopoly: This market structure is characterized by a single firm with significant market power and barriers to entry. There is no indication that Giganeers operates as a monopoly, as it faces competition from other companies.
3. Oligopoly: This market structure is characterized by a few dominant firms that have significant market power and may engage in strategic behavior. However, the description does not mention a few dominant firms, but rather many other companies that provide similar engineering consulting services.
4. Monopolistic competition: This market structure is characterized by many firms that offer differentiated products or services. Firms in this market have some degree of market power and engage in product differentiation, advertising, and marketing efforts. Giganeers fits this description as it tries to convince potential clients of its superior service through advertising and quoting highly satisfied clients.
14. The correct answer is profit. Profit represents the amount a business earns over and above what it spends for salaries and other expenses. It is the net gain derived from business operations and is usually a measure of financial success. Revenue, on the other hand, refers to the total income generated from the sale of goods or services, before deducting any expenses.