Home Inspirations
Hailey works for her father in a family-owned business called Home Inspirations, a bedding company that has been in operation since the 1800s. When her father retires, Hailey plans on taking over the business. Hailey is aware of many things about the company that she likes, and a few things that she does not. She has particularly noted that when the economy has low unemployment and high total income, sales are great. However, any other time, sales are not so good.
Currently, all of the bedding items are created in one place and everyone works on various tasks every day. Hailey is thinking about streamlining the production process so that individuals would be responsible for only one task. She believes that if production would increase, she could sell her products at a lower price and increase revenu
-Fred and Wilma go to the local Farmer's Market every Saturday morning. The market has many vegetable stands, many flower stalls, many artisan craft stalls selling handmade soaps and scented oils, and many stalls selling yard ornaments. All of the sellers within a sales category (vegetables, flowers, artisan crafts, and ornaments) sell their goods for essentially the same price, with little variation. Wilma comments to Fred that the vegetable stands enjoy perfect competition. What factors did she take into consideration when making this comment?
A) She is considering that there are many buyers and sellers of a product and no single buyer or seller is powerful enough to affect the price of that product.
B) She is considering that there are many sellers and few buyers so the sellers set their own perfect price.
C) She is considering that the vegetables are in perfect condition so the competition should also be perfect.
D) She is considering that vegetables, flowers, and crafts are different products and thus one could not be substituted for another so the vegetable stands are in a perfect location with a perfect market to sell their produce.
Correct Answer:
Verified
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