Answer:
b. Monopolistic competition is likely to result in a greater variety of product brands than pure competition.
Explanation:
Monopolistic competition is a competitive structure in which few companies operate in an industry that offers the same type of service or product, but differences. In this way each firm holds the relative monopoly of the product. For example, in the toothpaste market, companies sell the same product (toothpaste) but each company tries to differentiate their product from others.
In the competitive structure, several companies sell various products in a free competitive regime, having no monopoly power. Thus, the number of companies and products is infinitely larger than in monopolistic competition.
Answer:
Increase the consumption of product Y and decrease the consumption of product X.
Explanation:
Utility-maximizing rule states that a consumer is maximizing its utility at a point where the marginal utility per dollar spent equal for both the products.
Marginal utility per dollar for Product X:
= 2 utils per dollar
Marginal utility per dollar for Product Y:
= 8 utils per dollar
Here, the utility-maximizing rule suggests that this consumer should consume more of product Y and less of product X.
Answer:
$94 per share
Explanation:
Stockholders Equity Includes the Add-in-capital par value, Add-in-capital excess value of Common and Preferred, Net income accumulated value and dividends.
Equity of the firm = Assets - Liabilities
Equity of the firm = $125 million - $25 million = $100 million
Net Addition in the equity = Net earning for the period - Dividend paid
Net Addition in the equity = $10 million - $4 million - $6 million
Book Value of the equity = Equity of the firm - Additions in the year
Book Value of the equity = $100 - $6 = $94 million
Book value per share = Book Value of the equity / Numbers of Share
Book value per share = $94 million / 1 million
Book value per share = $94 per share
