Answer:
Explanation:
a. Monopoly has no competition so it can charge a higher price and produce less quantity when compared to a perfectly competition. For a consumer, perfectly competition which provides more goods at a lower price is better.
b. Due to lack of competition, monopoly does not have to be efficient in its resource allocation. To increase the allocative efficiency, the government can pass regulation to limit price charged and increase quantities of goods produced by the monopoly.
In monopolistic competition prices are usually higher than in perfect competition.
Given:
march 1: loaned 40,000 to Hewell Company
loan term, 4 months, 6% interest on note.
On March 31, Harper Company should recognize the interest it will earn from the note of Hewell Company.
40,000 x 6% = 2,400 this is the annual interest
2,400 * 1/12 = 200 monthly interest
March 31
Debit Credit
Interest receivable 200
Interest Revenue 200
If the reserve requirements tightened, more funds are in reserves and banks do not have as much to lend, leading to an increase in interest rates for customers and a decrease in economic growth.
Hope this helps! :)
