Answer:
a higher price and produce a smaller output than a competitive firm
Explanation:
A monpolistically competitive firm is a firm that :
1. Sells differentiated products from other firms in the industry.
2. Has many buyers and sellers
3. Is a price maker
4. Has no barrier to entry or exist of firms
An example of a monpolistically competitive firm is a resturant.
A competitive firm is a firm that:
1. Sells identical goods with other firms in the industry.
2. Is a price taker . Prices are set by forces of demand and supply
3. Has many buyers and sellers
4. There are no barriers to entry or exist of firms.
When a monopolistic and competition firm are faced with the same unit cost, a monopolistic firm would aim to earn profit by increasing its price and reducing the quantity produced.
While a perfect competition would sell at the price set by the forces of demand and supply. The firm can increase the quantity produced in order to increase revenue.
A monopolistic firm is able to charge a higher price for its products while a perfect competition isn't.
Answer:
A I don't know how to explain it but the answer is A
Answer: The Owner’s Equity ending balance is $15,730.
Explanation: In order to calculate the ending owner’s equity you need to identify the capital, revenue and expense accounts.
The Owner’s Equity is $12,940 and withdrawals are $790.
Revenue (Fees Earned) is $9,250.
Expenses equal 2,500 + 1,960 + 775 + 250 + 185 = $5,670.
Now that we have identified the each of the three categories, we will use the owner’s equity equation.
Owner’s Equity = Capital - Drawing + Revenues - Expenses
Owner’s Equity = $12,940 - 790 + 9,250 - 5,670
Owner’s Equity = $15,730
Answer:
Option (a) and (c) are correct.
Explanation:
We know that rent control is an example of price ceiling. If the price of apartments set below the equilibrium price level then there is increase in the demand for apartments. So, the demand for apartments exceeds quantity supplied at the prevailing market price.
(a) Therefore, the quality of rental housing falls because of the lower price of the apartment. As this will become less profitable for the landlords, so they are least interested in the maintenance of the apartments.
(b) This will also lead to develop black market. The landlords are trying to fool the higher authorities and rent their apartments at a higher cost because this will be done without any type of legal documentation of the apartments or results from the manipulation of the rules.
