Answer:
25,250.00
Explanation:
1.75 x 1000 = 1750.00/month x 12 months = 21,000/year
Then add the 5% of 85,000 sales which is 4250.00
Total 25,250.00
If your sales reach $85,000, your total annual rent payment will be $25,250.
The annual rent is the amount of rent that the tenant must pay the landlord for each year of the term (or any subsequent terms), starting with the initial rent.
I. Computation of annual rent payable:
[tex]\text{Monthly payment of rent per square} = 1.75 \text{ x } 1,000 \\\=1750\\\text{Annual Payment per year per square foot} = 1750 \text{ x }12\\=21,000[/tex]
II. Now, need to add the 5% of gross annual sales from $85,000
[tex]= 85,000 \text{ x } 0.05\\=4,250\\[/tex]
Gross sales is a measure of a company's overall sales that is not cost-adjusted for those sales' production. The sum of all sale invoices or associated revenue transactions is used to determine the gross sales calculation.
III. Therefore, if we add (I) and (II), we will arrive Annual rent payable
[tex]=21,000 + 4,250\\=25,250[/tex]
Therefore, the annual rent payable is $25,250.
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Randy has established a successful fast-food restaurant chain named randy’s in the united states. He currently has 12 locations across three states. He’d like to expand his brand to asia, but does not have the capital to do so. He’s also wary of the risk of failure, especially because he is not very familiar with business in asia. If you were consulting randy, what route would you advise against?.
The first thing to do is to consult an economist regarding what steps he should take. then after getting the answer, he can make his own decision, if he wants to take a high level of risk but the return, he gets is also high, then he can borrow money in the bank for capital. but if he doesn't dare to take the risk then he can invest the money he has.
Business risk or also called business risk is the impact or consequence that will be received during the course of a business activity. This has a direct or indirect impact on the decrease in the number of profits, as well as the finances of a company.
Even so, the majority of entrepreneurs will always anticipate the worst possibility that occurs from a business activity. Making the right decisions and having a mature strategy can reduce business risks that may occur in a business activity.
Business owners sometimes do have to take the 'worst' risks available to get bigger profits, compared to taking no risks at all which can actually make the business stagnate or 'stuck'.
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In late november, karen bought fib february puts with a strike price of $25. the ask price of the put was $281. the current price of fib shares is $28.40. the intrinsic value of the put is?
In late November, Karen bought fib February puts with a strike price of $25. the ask price of the put was $281. the current price of fib shares is $28.40. the intrinsic value of the put is $0.00.
A proportion is a unit used as mutual funds, constrained partnerships, and real property investment trusts. share capital refers to all of the stocks of an employer. The proprietor of stocks within the business enterprise is a shareholder of the agency.
In easy terms, a share is a percentage of ownership in a organisation or a economic asset. traders who hold stocks of any enterprise are known as shareholders.
A shares is referred to as a unit of possession which represents an identical share of a employer's capital. A proportion entitles the shareholders to an equal claim on profit and losses of the corporation. There are majorly two styles of shares i.e. fairness shares and preference stocks.
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Suppose General Electric payed its line workers $12 per hour
The relevant answers with regard to real wages are as follows:
A) $10.08
B) 10.89
C) 19.05. See explanation below.
What is the computation justifying the above results?[A]
Recall that Real Wages are computed as follows;
Real Wages = (Nominal Wage/CPI in the Given Year) x CPI in the base year
12 = (N/84) x 100
= 10.08
[B]
The formula for real wage still stands:
Hence,
12 x 1.08 = (N/84) x 100
= 10.89
One thing to keep in mind is that the percentage rise in real wages is always equal to the percentage increase in nominal wages. The same may be demonstrated with other values.
[C]
It is to be noted that the real wage is pegged at $12 which is same from the prior year.
Hence, percentage increase = 0
But because $12 is Nominal in the incumbent year,
[(12 - 10.08)/10.08] x 100
= 92/10.08
= 19.05
What is real wages?Real wages are earnings adjusted for inflation, or pay expressed in terms of the quantity of goods and services that may be purchased. In contrast to nominal wages or unadjusted wages, this word is used.
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Full Question:
Suppose General Electric paid its line workers $12 per hour in 2015 when the Consumer Price Index was 100. Suppose that deflation occurred and the aggregate price level fell to 84 in 2016. Instructions: Round your answers to two decimal places. a. GE needed to pay its workers $ in 2016 in order to keep the real wage fixed at $12. b. GE needed to pay its workers $ in 2016 if it wanted to increase the real wage by 8 percent. c. If GE kept the wage fixed at $12 per hour in 2016, in real terms, its workers got a % increase in wages.
Business owners should maximize economic profits because?
Business owners should maximize economic profit because maximizing economic profit includes setting higher prices and low quantities of products than the competitive market. This can help businesses to become more efficient and to expand on a large scale.
Economic profit is analyzed with accounting profit. Accounting profit is the profit a company shows on its income statement. Accounting profit measures inflow v/s outflow and is part of the required financial transparency of a company. Economic profit not record on company financial statements. It is required by investors.
Economic profit is a type of “what if” analysis. Companies and individuals calculate the future value of economic profit when they are faced with choices and business alternatives.
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Craigmont company's direct materials costs are $3,100,000, its direct labor costs total $7,090,000, and its factory overhead costs total $5,090,000. its conversion costs total:_______
Craigmont company's direct materials costs are $3,100,000, its direct labor costs total $7,090,000, and its factory overhead costs total $5,090,000. its conversion costs total: $12,180,000
conversion costs= direct labor costs+factory overhead
=(7,090,000+5,090,000)
which is equal to
=$12,180,000.
direct labor cost is part of wage-invoice or payroll that may be mainly and always assigned to or related to the manufacture of a product, a specific painting order, or provision of a service.
One instance of direct labor costs is the hourly earnings of a great guarantee inspector adjusted to encompass healthcare blessings and short-time period disability. Another instance will be the once-a-year earnings of a welder who works at the manufacturing line of a metallic components production company.
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_________ is the concept of starting a new business or enterprise to meet a need in the market
Entrepreneurship is the concept of starting a new business or enterprise to meet a need in the market.
Entrepreneurship is the process of creating or extracting economic value. According to this definition, entrepreneurship is defined as change, generally involving risk beyond what is normally encountered when starting a business and may include values other than monetary ones.
An entrepreneur is a person who creates and/or invests in one or more businesses, bearing the majority of the risks and reaping the majority of the rewards. The launch of a new business venture is the best example of entrepreneurship. Entrepreneurs are frequently referred to as a source of new ideas or innovators, and they bring new ideas to the market by replacing old with new inventions.
It can be divided into small or home-based businesses and multinational corporations. In economics, an entrepreneur's profits are made by combining land, natural resources, labor, and capital. In a nutshell, anyone with the will and determination to start a new business and face all of the risks that come with it can become an entrepreneur.
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Glycolysis grosses 4 atp. considering the energy investment step, how many atp does glycolysis net?
The net gain in the ATP molecules during glycolysis is 2ATP.
In the first step of glycolysis, 1ATP is required to convert, glucose into glucose -6-phospate .
In the third step 1ATP molecule is required to convert fructose -6phospate into fructose 1,6 biphospate.
Two ATP are produced during conversion of 1,3 biphosphoglycerate to 2 molecules of 3 phosphoglycerate, in the seventh step of Glycolysis.
In last step, phosphoenolpyruvic acid is converted to pyruvate, where 2ATP molecules are produced.
So, the net gain in the ATP molecules is (2+2) –(1+1) = 2molecules.
So, the net gain in ATP molecules during Glycolysis is 2molecules.
Glycolysis is the process or cycle where, glucose is converted into pyruvic acid. This process takes place in the cytoplasm of the cell. The main aim of glycolysis is to produce energy in our body. Pyruvic acid is produced during the anaerobic process and Lactic acid is produced during Anaerobic conditions.
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Internalization theory suggests that when an organization has superior knowledge, it may obtain a better price by selling it to the open market. true false
This statement is False.
What is Internalization?Making something internal is the process of internalization (or internalization), which has more specialized connotations in different fields. It is externalization's polar opposite.
In psychology, internalization is the result of conscious thought about a certain topic; the topic is internalized, and the thought process surrounding it is internal. Following a religious conversion or during a broader moral conversion process, ideas may be internalized. Internalization is closely related to remembering what has been taught and learning within an organism (or company).
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When eaton worked with the university of notre dame on its new engineering building to improve its energy efficiency and earn leed credits, both actors were working together for the first time. Therefore, the university’s buying situation can be classified as a ________.
When Eaton worked with the university of Notre dame on its new engineering building to improve its energy efficiency and earn leed credits, both actors were working together for the first time. Therefore, the university’s buying situation can be classified as a derived demand.
Notre Dame could be a good place to figure for. They need great benefits. lots of job opportunities for anyone with no experience. Appreciate the love and support they offer back to the staff. 81% of job seekers rate their interview experience at University of Notre Dame as positive.
Candidates give a median difficulty score of two.5 out of 5 (where 5 is that the highest level of difficulty) for his or her interview at University of Notre Dame. The University of Notre Dame is the nation's leading Catholic research university, providing a particular voice in instruction that's directly rigorously intellectual, unapologetically moral in orientation, and firmly embracing a service ethos.
The University of Notre Dame, having high acceptance rates and graduation rates, high rankings and lots of prestigious alumni remains NOT a league school. The league schools are a consortium of eight private universities based within the northeast region of the US. The academics at Notre Dame are very tough, especially within the engineering and science fields.
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Assume+you+purchased+200+shares+of+ge+common+stock+on+margin+at+$70+per+share+from+your+broker.+if+the+initial+margin+is+55%,+how+much+did+you+borrow+from+the+broker?+group+of+answer+choices
The amount borrowed from the broker = 6300
The amount borrowed from the broker = 200**70*(1-0.55) = 6300
Rate of return = (sale value - loan-Initial investment)/Initial investment = -41.67%
(13500-7200-10800)/10800
Initial investment = 300* 60 * 0.6 = 10800
Loan=300*60* (1-0.60) = 7200
sale value=300*45 = 13500
A broker is an intermediary between those who want to make trades and invest and the exchange in which those trades are processed. You need a broker because stock exchanges require that those who execute trades on the exchange be licensed.
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Gerritt wants to buy a car that costs $28,000. the interest rate on his loan is 5.43 percent compounded monthly and the loan is for 7 years. what are his monthly payments?
Gerritt wants to purchase a $28,000 vehicle. His loan has a 7.4 year term and an interest rate of 5.43 percent compounded monthly. So $401.43 is his monthly payment.
what is interest?In the fields of finance and economics, interest is defined as the payment of a sum over and above the principle amount (the amount borrowed) at a set rate by a borrower or deposit-taking financial institution to a lender or depositor.interest is different from a charge that the borrower may pay to the lender or another entity.It also differs from a dividend, which is money given to shareholders (owners) by a company from its profit or reserve, but not at a set rate predetermined beforehand, but rather on a pro rata basis as a portion of the rewards received by risk-taking businesspeople when revenue is earned that exceeds all costs.To know more about interest, refer to the following link
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A challenge to the validity of charismatic leadership is that charismatic leaders may?
A challenge to the validity of charismatic leadership is that charismatic leaders may be perceived as charismatic because of their accomplishments.
The German sociologist Max Weber invented the idea of charismatic authority. It involves a kind of organization or leadership where the leader's charisma confers authority. This contrasts with two other sorts of authority, namely traditional authority and legal authority. The three categories of authority that Max Weber identified are comprised of each of the three sorts.
What Is Charismatic Leadership?
The first time the word "charisma" came into use was in Saint Paul's writings to the fledgling Christian communities in the first century. In this context, it typically referred to a "gift" that had supernatural origins and served as a sign of God's might among the early Church leaders.Max Weber expanded this theological idea by considering it as something that adherents assign, which allowed sociologists to utilize it in non-Christian religious, political, military, and celebrity situations. "Charismatic leadership" and "charismatic domination" are other phrases that are employed.A distinct personality trait that distinguishes a person from other people and causes them to be thought of as possessing supernatural, superhuman, or at the very least particularly remarkable abilities or traits. These are things that are beyond of reach for the average person yet are thought to be heavenly or exemplary, and because of them, the person in question is viewed as a leader. It is obviously irrelevant for definitional purposes how the characteristic in question would ultimately be assessed from an ethical, aesthetic, or other such point of view.To learn more about Charismatic leadership visithttps://brainly.com/question/28503147
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The goal of the consumer in a market economy is to use his or her limited income to buy?
The set of goods and services that maximizes the consumer's total utility.
The goal to maximize utility drives consumer behavior.
What are Consumer Rights?The purpose of consumer rights is to safeguard customers' interests and shield them from unethical actions like hoarding and widespread black marketing. It is crucial that, as a consumer, you remain informed about the caliber, potency, quantity, purity, pricing, and standard of goods and services.Since customers have long been exploited in the marketplace, a widespread effort to stop this practice began in the 1960s and spread across the nation. In the following ten years, several articles were published, and protests took place, giving it a strong shape.To learn more about Consumer Rights, refer to:
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Joe was terminated from his job and believed the reason was his boss did not like him and his hard work was not appreciated. joe likely has?
Joe was terminated from his job and believed the reason was his boss did not like him and his hard work was not appreciated. joe likely has An external locus of control Joe is blaming his termination on his boss instead of himself.
Termination of employment or separation of employment is an employee's departure from an activity and the cease of a worker's period with an agency. Termination can be voluntary on the worker's part, or it can be at the palms of the employer, frequently in the shape of dismissal or a layoff.
Termination of employment refers back to the cease of a worker's work with an employer. Termination can be voluntary, as when an employee leaves of their own accord. Involuntary termination happens when an enterprise downsizes, makes layoffs, or fires a worker.
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Which term is used to describe a call provision in which the issuer is prevented from calling a portion or the entire issue for several years during the early years of the bond issue?.
The term used to describe a call provision in which the issuer can be prevented from calling a portion for many years towards early years of the issue of the bond is called deferred call provision.
When a business or other organization creates a bond, it occasionally prefers to have a backup plan in case it needs to break its promise. The right to call or buy back bonds is granted by a deferred call provision after a first deferment period, which may be five, ten, or any other number of years long. Investors favour making their own decisions on when to sell an asset. This sort of bond often pays a higher rate of interest compared to one without this provision since you could have to repay a bond with such a deferred call provision sooner than you would like to.
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In the interaction cycle, what human-related task occurs immediately prior to and provides context that helps bridge the gulf of evaluation used to understand objects, properties and events?.
In the interaction cycle, Perception occurs immediately prior to and provides context that helps bridge the gulf of evaluation used to understand objects, properties and events
The degree to which the system or artefact provides representations that can be immediately viewed and interpreted in terms of the expectations and intentions of the user is known as the gulf of evaluation in computer science.
A spinning wheel used by an application to display a "loading" state after a user action is an illustration of a wide gulf of evaluation. The user cannot interpret the advancement the system is making in response to their action simply by looking at the wheel.
The two gulfs are still crucial ideas in our profession thirty years later. The gulf of evaluation and the gulf of execution are two significant obstacles that users must get beyond in order to interact with any technology properly.
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Drag the tiles to the correct boxes to complete the pairs.
Match the given situations to the different types of stress that it could cause.
fatigue
environmental stress
internal stress
Al and his colleague are stuck in an elevator for an hour.
Sally's neighborhood is becoming increasingly polluted
because of ongoing construction work.
Ron has to put in long hours of work as his exams are
scheduled next month.
Sonia's company is sending her on an assignment to
London; she has no friends and relatives there.
survival stress
Reset
Next
1000
The situations and the different types of stress that they can cause are:
Al and his colleague are stuck in an elevator for an hour. - internal stressSally's neighborhood is becoming increasingly polluted because of ongoing construction work. - environmental stressRon has to put in long hours of work as his exams are scheduled next month. - fatigue Sonia's company is sending her on an assignment to London; she has no friends and relatives there. - survival stress What are types of stress?There is internal stress which come as a result of us being in situations that we did not expect like being stuck in an elevator. There is fatigue that comes from working for long hours.
Environmental stress comes from us being exposed to stressors from events around us and survival stress relates to moving to a place we are not familiar with.
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True or false: money pooled from many investors that is invested in a fixed portfolio of securities for the life of the fund is called a unit investment trust.
Money collected from many investors invested in a fixed portfolio of securities over the life of the fund is called a unit investment trust is true.
Investment portfolio is a term that is quite familiar among financial investors. In this portfolio there is an explanation of where you have allocated money when investing. It also contains various bonds, mutual funds, stocks, and other financial instruments. Not only that, but the portfolio will also be a consideration in assessing the investment instruments you have.
An investment portfolio is a collection of investment assets of individuals, companies, investment managers, to financial institutions. Usually, this portfolio contains a collection of cash, community, mutual funds, bonds, and stocks owned by investors. The assets stored in it will be in the form of, other forms of investment, works of art, jewelry, to real estate that can bring profits in the future.
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When an investor purchases stock, he or she becomes a(n) __________ of the issuing company.
When an investor purchases stock, he or she becomes an owner of the issuing company.
What is a stock?A stock is a general term used to describe the ownership certificates of any company. A share, on the other hand, refers to the stock certificate of a particular company. Holding a particular company's share makes you a shareholder. Stocks are of two types—common and preferred.All publicly traded companies issue common stock. Some companies also issue preferred stock, which exposes you to somewhat less risk of losing money, but also provides less potential for total return.
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Assume+you+purchased+200+shares+of+msft+common+stock+on+margin+at+$70+per+share+from+your+broker.+if+the+initial+margin+is+54%,+how+much+did+you+borrow+from+the+broker?
Rationale: 200 shares * $70/share * (1-0.55) = $14,000 * (0.45) = $6,300.
What are shares?Simply put, a share is a portion of ownership in a business or a financial asset. Shareholders are people who own stock in a company.
Companies sell shares to raise the funds necessary for their business's growth and expansion as well as to fund specific projects that will increaserevenue. These corporations offer a variety of shares for sale, both publicly and privately.
People purchase and trade shares as a way to gain exposure to both the health and growth of the global economy as well as a specific company.Whether you have a long-term or short term interest will determine whether you invest in stocks or trade on their price.
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On june 1, 2022, spk company signed a $100,000, one-year, 6 percent note payable. Interest and principal are due at maturity. What amount will spk record for interest expense in their december 31, 2022 adjusting entries?.
$3500 sum will spk record for interest expense in their december 31, 2022
Interest = $ 6000 for 12 months.
From June to December there will be 7 months due,
therefore 7/12x6000 = $ 3500
An interest expense is the fetched brought about by an substance for borrowed reserves. Intrigued cost may be a non-operating cost appeared on the salary explanation. It speaks to intrigued payable on any borrowings—bonds, credits, convertible obligation or lines of credit. It is basically calculated as the intrigued rate times the exceptional foremost sum of the obligation. Intrigued cost on the salary explanation speaks to intrigued collected amid the period secured by the money related explanations, and not the sum of intrigued paid over that period. Whereas intrigued cost is tax-deductible for companies, in an individual's case, it depends on their purview additionally on the loan's reason.
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Seth's skateboards has cash of $8,745, inventory of $36,287, fixed assets of $14,204, accounts payable of $66,410, and accounts receivable of $20,033. what is the current ratio?
Seth's skateboards has cash of $8,745, inventory of $36,287, fixed assets of $14,204, accounts payable of $66,410, and accounts receivable of $20,033. the current ratio is 98
In mathematics, a ratio demonstrates how many times one number may be found inside another. For instance, the proportion of oranges to lemons in a dish of fruit is 8:6 if it contains 8 oranges (that is, 8:6, which is equivalent to the ratio 4:3). The proportion of oranges to all fruit is 8:14, and the proportion of lemons to oranges is 6:8. (or 3:4). (or 4:7). Any number of numbers can be included in a ratio, including counts of individuals or objects as well as measurements of length, weight, and time. Most of the time, both numbers must be positive.
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A street vendor sells two types of newspapers, one for $0. 25 and the other for $0. 40. If she sold 100 newspapers for $28. 00, how many newspapers did she sell at $0. 25?.
The street vendor sold 80 newspapers for $0.25.
Let he sell x no. of one type newspaper cost $0.25.
Than the no. of another type of newspaper have cost $0.40=100−x
Then according to the question
=0.25(x)+0.40(100−x)=28
=0.25x+40−0.40x=28
=0.25x−0.40x=28−40
=−0.15x=−12
=x=12/0.15
=80
The street vendor then sells 80 newspaper of one type having cost 0.25.
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What are the implications of the informal economy for firms that operate only in the formal economy?
An official economy is one that is based on paid employment and is acknowledged by the government.
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What must a firm keep in mind when taking actions to increase the efficiency of its service package?
A firm should confine mind when taking actions to increase the efficiency of its service package is Standardization may have a negative impact on perceived quality by customers. Streamlining product offerings may reduce customers' desired product options.
What does one mean by standardization?
Standardization is that the process of developing, promoting and possibly mandating standards-based and compatible technologies and processes within a given industry. Standards for technologies can mandate the standard and consistency of technologies and ensure their compatibility, interoperability and safety.
Why is standardization important?
The goal of standardization is to make sure uniformity to certain practices within the industry. Standardization focuses on the merchandise creation process, operations of companies , technology in use, and the way specific compulsory processes are instituted or carried out.
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The case mentions that deutsche telekom has invested heavily in huawei’s services because it came at a competitive price. Based on what you know about how companies expand internationally, this would be an example of.
As the deutsche telekom has invested heavily in huawei’s services because it came at a competitive price and based on what you know about how companies expand internationally, this would be an example of an outsourcing.
What is an outsourcing?This refers to the business practice of hiring a party outside a company to perform services or create goods that were traditionally performed in-house by the company's own employees and staff. Most time, it is a business practice that are usually is undertaken by companies as a cost-cutting measure, thus, it can affect a wide range of jobs from customer support to manufacturing to the back office.
Therefore, this scenario given would be an example of an outsourcing.
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Suppose that professor johnson is negotiating a new contract with the university of wisconsin-madison. If she would like the purchasing power of her income to increase by 2 percent in the coming year, and she expects the inflation rate to be 1. 8 percent over the same period, by how much should she request her income to be increased?.
She asks for an increase in pay of 3.94%.
By inflation, what do you mean?Inflation is the steady increase in prices over a long period of time. Prices have generally gone up or the cost of living in a country has gone up. Examples of broad metrics of inflation include these.
How is the rate of inflation determined?The statisticians compare the index's value over one time period to its value over another period, such as month to month to calculate the monthly rate of inflation, quarter to quarter to calculate the quarterly rate, or year to year to calculate the annual rate.
Which three primary types of inflation are there?The three types of inflation that are sometimes distinguished are demand-pull, cost-push, and built-in. The two inflation indices that are most frequently used are the Consumer Price Index and the Wholesale Price Index.
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Percent. will the accountant's revenue from his accounting services increase, decrease, or remain unchanged?
Revenue growth is the increase in revenue that your business experiences over a predetermined period of time relative to the same period the year before.
Some of a company's expenses will rise along with an increase in sales or revenues, whereas other expenses won't. For instance, if a business sells a few more items for which it charges a sales commission, both its cost of goods sold and commissions costs will rise. However, even with the sale of a few more products, the salaries of the company's salaried staff and the rent will not go up one penny. Knowing how expenses behave—whether they will rise with rising sales or stay at the current level—can help a company increase its earnings. The objective is to boost sales or revenues by a sum greater than the rise in costs.
The change in a company's sales from one period to the next is known as revenue growth. Revenue growth, when expressed as a percentage, demonstrates the peaks and valleys throughout time and identifies company trends.
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You+will+require+$700+in+5+years.+if+you+earn+5%+interest+on+your+funds,+how+much+will+you+need+to+invest+today+in+order+to+reach+your+savings+goal?
$548.47 is need to invest today in order to reach your savings goal.
What is initial investment?The sum needed to launch a project or firm is known as the initial investment. It is often referred to as initial outlay or just initial. It is equal to capital expenditures, working capital needs, and after-tax revenues from assets sold or put to other uses.
The upfront costs or initial cash outlay associated with beginning a new project or buying an asset are represented by initial cash flow. Salvage profits from failed initiatives may be taken into account in some projects by subtracting those earnings from the starting cash flow total.
The worth of an anticipated income stream as of the valuation date is known as the present value, sometimes known as the present discounted value. The value of a sum of money today is known as its present value. For instance, if you are promised $110 in a year, the present value is what that $110 is currently worth.
To calculate the initial investment, we need to use the following formula:
[tex]PV= FV/(1+i)^n[/tex]
PV= present value
FV= future value
n= number of years
i= interest rate
[tex]PV= 700/(1.05^5)[/tex]
PV= $548.47
Hence, $548.47 is need to invest today in order to reach your savings goal.
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Are both competition and monopoly detrimental to the effective function of the free market?
while basically competition is essential to the effective function of the market, while monopoly is detrimental to it.
Monopoly is referred to as the inefficient way of distributing goods and services, that's how it obstructs the equilibrium between consumer and producer giving rise to high prices and shortages. Since healthy competition in the market is essential to a well-functioning of the free market ., the economic theory says that when companies in the market have to compete for customers, it leads to higher quality goods, lower prices, and greater variety, services, more innovation. since Competition is crucial not only in the labor market, but also in product markets, when there is competition, it leads to increase compensation and improve working conditions.
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