1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
azamat
3 years ago
15

Which is not true for a monopolistically competitive industry?

Business
1 answer:
lesya [120]3 years ago
7 0

Answer:

Option (D) is correct.

Explanation:

In a monopolistically competitive industry, there are many firms which are selling similar products but products are not perfect substitutes. They generally have no control over the market price of the commodity.

Monopolistic competitive firms facing a downward sloping demand curve. Each of firm in this market condition is having a normal profit in the long run and no firm can earn economic profit.

These firms operate with a excess capacity because of the occurrence of zero profit tangency equilibrium. That's why the firms in this market are generally having the capability to produce larger amount of output at a lower average cost than the firm's current production level.

You might be interested in
The accounting equation is assets = liabilities + owner’s equity.
Anon25 [30]

Answer:

A. Why must this equation always balance?

It must balance because all the assets that firm controls have been acquired either by external funding (liabilities), or by internal funding (owner's equity).

This also explains the relationship between economic resources and claims to economic resources. Economic resources (assets) are either the claim of an external agent that has to be paid in the future (liability), or the claim of one of the company's owners who could in theory dissolve the company and take possession of the company's assets (equity).

B. What transactions increase or decrease owner’s equity?

Profits increase owner's equity, as well as capita contributions, whether in the form of stocks, equipment, or other financial instruments.

Costs and expenses are substracted from revenues, and therefore they reduce profits, and owner's equity.

C. How does net income or loss affect owner’s equity?

A net income profit increases owner's equity, while a net income loss decreases owner's equity.

D. Please give an example of a transaction, applied to the accounting equation.

ABC corporation issues 1,000 common stocks with par value of $5, and a price per stock of $7. The journal entry is:

Account                                    Debit                Credit

Cash                                        $7,000

Common Stock                                                 $5,000

Additional Paid-In Capital                                $2,000

In this transaction, cash is an asset and common stock and additional paid-in capital are part of the stockholder's equity. The corporation does not have any liabilities yet.

ABC Corp accounting equation = Assets = Liabilities + Stockholder's equity

                                                     = $7,000 = 0 + $7,000

As can be seen, the accounting equation is true even in the earliest stages of the corporation.

6 0
3 years ago
Qiang is a project manager at Enigma Industries and is able to borrow specialists from the organization on a regular basis to as
Alenkasestr [34]

Answer:

matrix organizational structure

Explanation:

When a company works under a matrix organizational structure, specialists from different parts of the organization are brought together on a temporary basis to work on specific projects. It is common for employees to report to both a functional manager (traditional manager) and a product manager (project manager).

3 0
3 years ago
During its first year of operations, the McCormick Company incurred the following manufacturing costs: Direct materials, $5 per
Arturiano [62]

Answer:

$150,000

Explanation:

The computation of value of ending inventory under absorption costing is shown below:-

Total Cost per unit = Direct Material per unit + Direct Labor per unit + Variable Overhead per unit + Fixed Overhead per unit

= $5 + $4 + $3 + ( $200,000 ÷ 25,000 units)

= $5 + $4 + $3 + $8

= $20

Ending Inventory in units = Units produced - Units sold

= 25,000 - 17,500

= 7,500

Cost of Ending Inventory = Total Cost per unit × Ending Inventory units

= $20 × 7,500

= $150,000

So, for computing the cost of ending inventory we simply multiply the total cost per unit with ending inventory units.

8 0
3 years ago
Joanna Grimshaw makes an hourly rate of $12.50, and she works 40 hours per week. Her boss offers her a promotion to a salaried p
MaRussiya [10]

Answer:

$175 more

Explanation:

She makes 500 without the promotion and 675 minus 500 is 175

5 0
3 years ago
Read 2 more answers
Under a flexible-price monetary approach to the exchange rate Group of answer choices when the domestic money supply falls, the
Anastaziya [24]

Answer:

when the domestic money supply falls, the price level would eventually fall, keeping the interest rate constant.

Explanation:

Price can be defined as the amount of money that is required to be paid by a buyer (customer) to a seller (producer) in order to acquire goods and services.

In sales and marketing, pricing of products is considered to be an essential element of a business firm's marketing mix because place, promotion and product largely depends on it.

The flexible-price monetary model was developed by Frenkel and Mussa in 1976 and it states that the prices of goods are flexible while the purchasing power parity (PPP) is always constant.

Under a flexible-price monetary approach to the exchange rate when the domestic money supply falls, the price level would eventually fall, keeping the interest rate constant.

6 0
2 years ago
Other questions:
  • The substitution effect is the portion of a change in quantity demanded that is due to a change in the relative price of the goo
    14·2 answers
  • Seacrest Company has 15,000 shares of cumulative preferred 2% stock, $50 par and 50,000 shares of $5 par common stock. The follo
    9·1 answer
  • Which is the largest item in discretionary spending?
    11·1 answer
  • Which of the statements correctly represents the accounting equation?
    9·1 answer
  • The situation described in the first excerpt, what is the inspector's opinion of employer taylor, ibbotson, and co.? what phrase
    15·1 answer
  • Find three celebrities of your choice. Type a paragraph for each celebrity explaining their net worth. Include their background
    14·2 answers
  • Depreciation, a type of expense, is included in the ________ category.
    12·1 answer
  • For which capital component must you make a tax adjustment when calculating a firmâs weighted average cost of capital (WACC)?
    7·1 answer
  • joel is upset as he reads an email message from his supervisor. when he discusses the message with a coworker he distorts what t
    5·2 answers
  • Under normal conditions, air management increases your work time, but if you are lost or trapped, it:_______
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!