Question

1. Identify and describe a minimum of two factors that affect price and output determination by American companies.  THIS IS FOR MICROECONOMICS

Answer 1

1) one of the main factors that gets to affect the price and output of the American companies is the amount of competition that the gate to enquire on the whole and considered agricultural products in the American market which is a form of perfect competition and that is why the price will be in such a way that it is equal to the marginal cost of producing that good while consider a monopoly in the American market where the price will be above the marginal cost at the same quantity in order to increase profits as there is no competition. the second factor is actually the demand for that particular product and consider the demand is very high in a particular time or seasonal demand such as woolen clothing in winter and at that time the prices will be a bit high to make the quantity supply more to reach the demand when compared to that of Summer. before in this regard demand mint competition can be considered as two factors that affect price and output determination by the American companies on the whole.