Discuss the Difference Between Formal and Informal Authority and Centralized

question 69

Essay

Discuss the difference between formal and informal authority and centralized and decentralized authority.

Understand the effects of price controls on market surplus.

Recognize the impact of external changes (such as technology and income changes) on market equilibrium.

Comprehend the relationship between willingness to pay, costs, and surplus.

Understand the concept of substitutes and complements in consumption and their impact on surplus.

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Definitions:

Direct Competition

Companies or businesses that offer the same or similar products or services and target the same customer base, competing directly in the market.

Nonprofit Organizations

Nonprofit Organizations are entities that operate for the collective, public, or social benefit, rather than to generate profit for owners or investors.

Federal Funds

The reserve balances that commercial banks hold at their regional Federal Reserve Bank, often lent overnight to other banks to help meet reserve requirements.

Functional Competition

Refers to competition among businesses that offer different goods or services that meet the same customer need or desire.