Answer: products are standardized or homogeneous
Explanation:
Products are standardized or homogeneous for the perfectly competitive market as, in the case of the competitive industry there are no barriers in the industry to entry. The products are homogeneous in the nature and there is large numbers of the firms are perfectly substituted in the industry. So, the price elasticity of the demand for the firm product is infinite.
Answer:
correct option is B. about 30 years
Explanation:
given data
real per capita GDP west = $10,000
annual growth rate = 2.33%
real per capita GDP east = $2,500
annual growth rate = 7%
to find out
How many years will it take for East to catch up GDP of West
solution
we know here that future value is equal to real GDP of west after time will be
future value = real per capita GDP west × 
future value = 10000 × 
.....1
and
future value = real per capita GDP east ×
future value = 2500 × 
.....2
compare equation 1 and 2
10000 × = 2500 ×
4 
= 
t = about 30 years
so correct option is B. about 30 years
Answer:
The intrinsic value = $469.15
Explanation:
<em>The price earning (P/E) ratio can be used to determine the price of a stock. This is done as follows:</em>
Price = EPS × P/E ratio
It is appropriate to use the industry average price-earning ratio for the purpose of this valuation.
The intrinsic value = 19.75 × $5.50 = $469.15
Answer:
Retained earning balance at the end would be = $205,000
Explanation:
Retained earnings at the end = Retained earning at the beginning + Net income - Dividend paid
The net income would increase the balance of the retained earnings hence it is added to it.
The Dividend paid would be a cash outflow which would reduce the balance of the retained earnings, hence it is deducted from it.
So applying this to the question, we have
Retained earning balance at the end would be:
25,000 + 200,000 - 20,000 = $205,000
Retained earning balance at the end would be = $205,000
Answer:
c. firms are free to enter and exit the market.
Explanation:
A monopolistically competitive market is a market in which there are a lot of organizations that sell products that are similar and it tends to be easy to enter and leave the industry. Because it is easy for a company to enter the market and there is a lot of competition, in the long run the economic profit is zero. According to this, the answer is that in the long run, profits in a monopolistically competitive market are zero because firms are free to enter and exit the market.
The other options are not right because a monopolistically competitive market has zero profits because of its low entry barriers and amount of competitors not because of government regulations or an illegal agreement between organizations to control competition. Also, in a monopolistically competitive market the products are similar.
